(1) The New Zealand Railways Corporation—

• (a) continues in existence; and

• (b) continues to be an instrument of the Executive Government of New Zealand; and

• (c) is a Crown entity for the purposes of section 7 of the Crown Entities Act 2004.

(2) The Crown Entities Act 2004 applies to the New Zealand Railways Corporation except to the extent that this Act expressly provides otherwise.

(3) The entity's board must have at least 5, but no more than 8, board members.

(4) No person may be incorporated or registered, or operate or carry on activities, under a name that contains the words New Zealand Railways Corporation or under any name that, in the opinion of the Registrar of Companies, or the appropriate registering authority within the meaning of section 2 of the Flags, Emblems, and Names Protection Act 1981, so resembles a name containing those words that it is likely to deceive.

(5) Nothing in subsection (4) applies to the entity or to any person who is appropriately authorised by the entity.

(1) The objective of the entity is to undertake its functions in a way that contributes to the aim of achieving an integrated, safe, responsive, and sustainable transport system.

(2) In meeting its objective, the entity must exhibit a sense of social and environmental responsibility, which includes avoiding, to the extent reasonable in the circumstances, adverse effects on the environment.

(3) In meeting its objective, the entity must aim to recover its direct and indirect costs of operating the rail network.

(1) The entity has the functions of—

• (a) operating the rail network; and

• (b) operating rail vehicles to the extent reasonable and necessary for the purpose of carrying out its function referred to in paragraph (a); and

• (c) preparing and maintaining industry codes and standards to the extent reasonable and necessary for the purpose of carrying out its function referred to in paragraph (a); and

• (d) acquiring, administering, managing, controlling, maintaining, developing, leasing, and disposing of rail network land in accordance with this Act; and

• (e) co-operating with, or providing other transport advice and assistance to, any government agency or local government agency when requested to do so by the Minister, but only if the Minister and the entity are satisfied that the performance of the rail functions and duties of the entity will not be compromised; and

• (f) providing the Minister with any advice relating to the entity's functions that the Minister may request; and

• (g) carrying out any other functions and duties conferred on it by this Act or any other enactment; and

• (h) carrying out any other functions relating to rail transport that the Minister directs in accordance with section 112 of the Crown Entities Act 2004; and

• (i) carrying out any functions that are incidental and related to, or consequential on, its functions set out in paragraphs (a) to (h).

(2) In performing its functions, the entity must—

• (a) act consistently with its objective; and

• (b) act efficiently and effectively and in a manner consistent with the spirit of service to the public; and

• (c) operate in a financially responsible manner and, for this purpose,—

  • (i) prudently manage its assets and liabilities; and

  • (ii) endeavour to ensure its long-term financial viability; and

  • (iii) endeavour to ensure that it acts as a successful going concern.

(3) Subsection (2) does not limit any of the duties of the entity's board under sections 49 to 51 of the Crown Entities Act 2004.

(4) Neither a code nor a standard prepared or maintained under subsection (1)(c) is to be treated as a regulation for the purposes of—

• (a) the Regulations (Disallowance) Act 1989:

• (b) the Acts and Regulations Publication Act 1989.

(1) Subject to this Act, the entity may do all or any of the following things:

• (a) acquire any land (whether by or on behalf of the Crown, or on its own behalf):

• (b) occupy, use, and manage any rail network land:

• (c) grant leases, licences, easements, and permits or rights of any kind in respect of, and receive income from, any rail network land:

• (d) dispose of any rail network land, and receive the proceeds of the disposal of that rail network land, without any authority other than this paragraph:

• (e) subdivide any rail network land (whether by or on behalf of the Crown, or on its own behalf).

(2) Nothing in subsection (1)(d) applies to the disposal of any public reserve within the meaning of the Reserves Act 1977.

(3) No rail network land may be sold under subsection (1)(d) without the prior written consent of the Minister, who must have due regard to the future development of the rail network.

(4) Subsection (1) does not limit sections 16 and 17 of the Crown Entities Act 2004.

(1) The entity may—

• (a) grant to a railway operator leases, licences, easements, and permits or rights of any kind in respect of rail network land on any terms and conditions that the responsible Minister or the entity (as the case may be) may agree with the railway operator:

• (a) grant leases, licences, easements, and permits or rights of any kind to any person (including, but not limited to, any railway body corporate) in respect of, and receive income from, any rail network land:

• (b) accept the total or partial surrender of any lease, licence, easement, or permit or right of any kind in respect of rail network land.

(2) Section 11(1) of the Resource Management Act 1991 does not apply in respect of—

• (a) the granting of a lease to a railway operator body corporate under subsection (1) unless the land in respect of which the lease is granted is used, or is intended to be used, solely or principally for—

  • (i) car parking; or

  • (ii) administration or residential purposes; or

  • (iii) any purpose that is not connected with railway operations:

• (b) the total or partial surrender of any lease that was granted to a railway operator body corporate under subsection (1):

• (c) the variation of any lease that was granted to a railway operator body corporate under subsection (1).

(1) If any land has become vested in the Crown or the entity for railway purposes so that the fee simple estate and all other estates and interests in the land of any person other than the Crown are extinguished,—

• (a) the Registrar-General of Land, on the completion of such surveys (if any) as may be necessary, must, at the request of the entity, issue a certificate of title for the estate in the land or part of the land specified in the request in the name of either the Crown or the entity; and

• (b) that certificate of title must include a reference to the purposes for which the land is held.

(2) The entity must not, without the prior consent of the Minister, request the Registrar-General of Land to issue a certificate of title in the name of the entity for land vested in the Crown for railway purposes.

(3) An instrument that relates to the land in any such certificate of title and is duly executed by a person having the necessary authority under this Act the chief executive of the entity, or a person that the chief executive has authorised to execute the instrument, may be registered in accordance with the Land Transfer Act 1952.

(3A) A person that the chief executive has authorised to execute an instrument may not delegate the power to execute the instrument.

(4) A certificate of title issued before the commencement of this section in the name of the Crown and any instrument which that is duly executed by a person having the necessary authority under this Act or under the corresponding provisions of any former Act and which relates to the land in any such certificate of title is deemed to have been lawfully issued or executed.

(5) Any land declared by section 26 of the Public Works Act 1981 to be vested in the Crown in fee simple is for the purposes of this section deemed to be vested in the Crown so that the fee simple in the land is extinguished.

(1) For each financial year, commencing with the 2006/2007 2007/2008 financial year, the entity must, in accordance with a process approved by the Minister, prepare a rail network development plan, to be included in its Statement of Intent, which includes the following:

• (a) a statement of its priorities in relation to the rail network for the current financial year and the 9 following financial years:

• (b) a forecast of its proposed capital expenditure in relation to the rail network for the current financial year and the 9 following financial years.

(2) The entity must, in preparing its rail network development plan, take into account any current national land transport strategy, the National Energy Efficiency and Conservation Strategy, and any relevant regional land transport strategies.

(1) Despite anything in any other Act, a person who, immediately before becoming an employee of the entity, is a contributor to the Government Superannuation Fund under Part 2 or Part 2A of the Government Superannuation Fund Act 1956 is, for the purposes of that Act, deemed to be employed in the Government service so long as that person continues to be an employee of the entity.

(2) The Government Superannuation Fund Act 1956 applies to that person in all respects as if that person's service as an employee of the entity is Government service.

(3) Nothing in subsections (1) and (2) entitles any person to become a contributor to the Government Superannuation Fund after that person has once ceased to be a contributor.

(4) For the purposes of applying the Government Superannuation Fund Act 1956, in accordance with this section, to all employees of the entity who are contributors to the Government Superannuation Fund, controlling authority, in relation to those employees, means the entity's board.

(1) For the purposes of section 169 of the Crown Entities Act 2004, the entity is not a public authority for the purpose of the Inland Revenue Acts (as that term is defined in the Tax Administration Act 1994).

(2) Subsection (1) applies to amounts of income derived by the entity on and after 1 July 2004 2006.

(1) The powers and duties conferred and imposed on the Minister of Lands in respect of the compulsory acquisition of land by the Public Works Act 1981 are, so far as they are applicable, and with any necessary modifications, conferred and imposed on the Minister in respect of all matters and works under the control of, or being carried out by, the entity.

(2) The powers and duties conferred and imposed on the following persons are conferred and imposed on the entity in respect of all matters and works under the control of, or being carried out by, the entity:

• (a) the Minister of Lands under any provision of the Public Works Act 1981 (other than the powers and duties conferred and imposed on that Minister in respect of the compulsory acquisition of land):

• (b) the Minister of Transport under any provision of that Act (other than the powers and duties conferred and imposed on that Minister in respect of motorways and limited access roads):

• (c) any Minister of the Crown under any provision of that Act:

• (d) any chief executive under any provision of that Act.

(3) Despite subsections (1) and (2), nothing in sections 40 to 42 of the Public Works Act 1981 applies to affected rail network land.

(4) The powers and duties conferred and imposed on the Minister and the entity by this section do not in any way limit or interfere with the powers and duties conferred on any Minister of the Crown or on any chief executive under the Public Works Act 1981.

Despite section 6(2)(b) (6)(1)(b), the entity is not an instrument of the Executive Government of New Zealand for the purposes of the Resource Management Act 1991.

Despite section 6(2)(b) 6(1)(b), or any other enactment or rule of law, proceedings for any offence committed on or after 1 November 1989 against any of the following Acts, or any regulations or bylaws made under any of those Acts, may be brought against the entity as if the entity were not an instrument of the Executive Government of New Zealand for the purposes of those Acts:

• (a) Land Transport Act 1998:

• (b) Land Transport Management Act 2003:

• (ba) Railways Act 2005:

• (c) Road User Charges Act 1977:

• (d) Transport Act 1962:

• (e) Transport Services Licensing Act 1989:

• (f) Transport (Vehicle and Driver Registration and Licensing) Act 1986.

(1) If the entity proposes to sell any affected rail network land, it must offer to sell the land by private contract to the person from whom it was acquired by the Crown or the entity, or to the successor of that person, at the current market value of the land determined by a valuation carried out by a registered valuer appointed by the entity.

(2) Subsection (1) does not apply if—

• (a) the entity considers that it would be impracticable, unreasonable, or unfair to do so; or

• (b) there has been a significant change in the character of the land for the purposes of, or in connection with, the public work or other activities for which it was acquired or is held; or

• (c) the person from whom it was acquired, or the successor of that person, was, or is, a local authority.

Despite anything in section 18, if the entity believes on reasonable grounds that, because of the size, shape, or situation of the land it could not expect to sell the land to any person who did not own land adjacent to the land to be sold, the land may be sold to an owner of adjacent land at a price negotiated between the parties.

(1) The person to whom an offer is made under section 18 may, within 20 working days after receipt of the offer, give notice to the entity that the person requires the current market value of the land to be determined by the Land Valuation Tribunal.

(2) The entity must, on receipt of the notice, refer the matter to that Tribunal for determination.

The entity may sell or otherwise dispose of the affected rail network land to any person on any terms and conditions that it thinks fit if—

• (a) an offer under section 18 is not accepted within 40 working days after the making of the offer or, if an application is made to the Land Valuation Tribunal, within 20 working days after the determination of the Tribunal, whichever is later, and the parties have not agreed on other terms for the sale of the land; or

• (b) section 18(2) applies.

The entity may, instead of making an offer under section 18, apply to the Maori Land Court for an order under section 134 of Te Ture Whenua Maori Act 1993 if the affected rail network land was, immediately before it became affected rail network land,—

• (a) Maori freehold land or general land owned by Maori (as those terms are defined in section 4 of Te Ture Whenua Maori Act 1993); and

• (b) beneficially owned by more than 4 persons; and

• (c) not vested in any trustee or trustees.

(1) Any affected rail network land that is disposed of under this subpart (except section 22) may be transferred by a memorandum of transfer under the Land Transfer Act 1952.

(2) The transfer may state that the land being transferred is to be amalgamated with any other land in an existing certificate of title; and that statement is sufficient authority to the Registrar-General of Land to amend the certificate of title accordingly, without fee.

(3) On the amendment of the certificate of title, the land transferred becomes subject to and, if applicable, receives the benefit of all encumbrances, easements, and other interests noted on the certificate of title.

Section 11 and Part 10 of the Resource Management Act 1991 do not apply to any subdivision undertaken by the entity to give effect to a transfer or disposal of affected rail network land under this subpart if that transfer or disposal (of all or part of an allotment) is to an owner of adjoining land.

Every transfer or other disposition to which section 24 applies, is deemed to be subject to a condition that—

• (a) the land being transferred or disposed of is held in 1 certificate of title with the owner's adjoining land; or

• (b) if section 26(2) applies, a covenant must be entered into between the owner of the adjoining land and the territorial authority that the land being transferred or disposed of must not, otherwise than in accordance with a subdivision consent under the Resource Management Act 1991, be transferred, leased, or otherwise disposed of except in conjunction with the owner's adjoining land.

(1) The entity must consult with the Registrar-General of Land as to the practicality of a condition of a kind referred to in section 25(a).

(2) If the Registrar-General of Land advises the entity that a condition of a kind referred to in section 25(a) is not practical, then any transfer or disposal of land to which section 24 applies is deemed to be subject to a condition of a kind referred to in section 25(b).

(1) Every condition of a kind referred to in section 25(a) or (b) is to be endorsed on the survey plan giving effect to the subdivision to which section 24 applies.

(2) The Registrar-General of Land must not deposit that survey plan unless—

• (a) he or she is satisfied that any condition of the kind referred to in section 25(a) has been complied with as fully as may be possible in an office of the Registrar-General of Land; or

• (b) a covenant of a kind referred to in section 25(b) has been lodged for registration.

If a condition of a kind referred to in section 25(a) has been complied with—

• (a) the separate parcels of land included in the certificate of title in accordance with the condition are not capable of being disposed of individually or being held under separate certificates of title, otherwise than in accordance with a subdivision consent under the Resource Management Act 1991; and

• (b) on the issue of a certificate of title, the Registrar-General of Land must enter on the certificate of title a memorandum that the land is subject to this section.

Every covenant of a kind referred to in section 25(b)—

• (a) must be in writing; and

• (b) must be signed by the owner of the adjoining land; and

• (c) must have affixed to it the common seal of the territorial authority; and

• (c) must be signed by a duly authorised officer of the territorial authority; and

• (d) is deemed to be an instrument capable of registration under the Land Transfer Act 1952, and, when so registered, to create in favour of the territorial authority an interest in the land, in respect of which it is registered, within the meaning of section 62 of that Act; and

• (e) is deemed to run with the land and bind subsequent owners.

(1) The territorial authority may, at any time, after a survey plan giving effect to a subdivision to which section 24 applies has been deposited in the Land Registry Office, cancel in whole or in part—

• (a) any condition of a kind referred to in section 25(a); or

• (b) any covenant of a kind referred to in section 25(b).

(2) If a territorial authority cancels, in whole or in part, a condition or covenant in accordance with subsection (1), the territorial authority must forward an authenticated copy of the resolution of the territorial authority cancelling or partially cancelling that condition or covenant to the Registrar-General of Land, who must note the records accordingly.

(1) The consequences specified in subsection (2) apply if—

• (a) for the purpose of complying with conditions of a kind referred to in section 25—

  • (i) a covenant of a kind referred to in section 25(b) is registered in accordance with this section; or

  • (ii) the land being transferred or disposed of is amalgamated in 1 certificate of title with adjoining land in accordance with this subpart; and

• (b) the adjoining land is already subject to a registered instrument under which a power to sell, a right of renewal, or a right or obligation of purchase is lawfully conferred or imposed; and

• (c) that power, right, or obligation becomes exercisable but is not able to be exercised or fully exercised because of section 27 or section 28.

(2) The consequences are—

• (a) the land being transferred or disposed of is deemed to be and always to have been part of the adjoining land that is subject to that instrument; and

• (b) all rights and obligations in respect of, and encumbrances on, that adjoining land are deemed to be rights and obligations in respect of, or encumbrances on, the land being transferred or disposed of; and

• (c) the Registrar-General of Land must enter on all relevant certificates of title a memorandum to the effect that the land in those certificates of title is subject to subsection (1).

(3) If any instrument to which subsection (1) applies is a mortgage, charge, or lien, it is deemed to have priority over any mortgage, charge, or lien against the land being transferred or disposed of which is registered after the issue of the certificate of title under section 28, or the registration of a covenant entered into under sections 27 and 29, as the case may be.

(4) The Registrar-General of Land must enter on all relevant certificates of title a memorandum to the effect that the land in those certificates of title is subject to subsection (3).

Assets that have been The Crown or the entity may hold assets that are fixed to, or placed under or over, any land may vest in the Crown or the entity even though no interest in the land also vests is vested in the Crown or in the entity (as the case may be), and in any such case—

• (a) the assets and the land are to be treated as separate assets each capable of separate ownership; and

• (b) for the purposes of this Act and any other enactment or rule of law, the assets are to be treated as personal property, and not as land or an interest in land, even though the assets are affixed to, or under or over, land.

A certificate by the entity of any of the following matters is sufficient evidence of the matter certified unless the contrary is proved:

• (a) any specified land belonging to either the Crown or to the entity or forming part of a public reserve, or any specified fixed or movable property belonging to the entity, is part of a railway or the rail network:

• (b) a railway is open for traffic:

• (c) the specified distance between any 2 points on a railway or on the rail network.

The Governor-General may, by Order in Council, declare a body corporate to be a railway operator body corporate for the purposes of this Act or a provision of this Act.

Railway operations carried on by a railway operator body corporate or the entity are deemed for the purposes of the law of nuisance to be authorised by Act of Parliament.

(1) No railway line that is for the time being under the control of the entity may be permanently closed without the prior written consent of the Minister.

(2) The entity must notify the Minister if it intends to close a railway line to traffic.

(1) No railway line or turning facility that is for the time being under the control of the entity may, without the prior written consent of the Minster, be—

• (a) permanently closed; or

• (b) managed in a manner that permanently prohibits passenger railway carriage.

(2) If the entity intends to close a railway line or turning facility, or permanently prohibit passenger railway carriage, the entity must—

• (a) notify the Minister; and

• (b) consult with—

  • (i) any local authority affected by the closure or prohibition; and

  • (ii) any rail participant affected by the closure or prohibition.

(3) Subsections (1) and (2) do not apply to any of the following:

• (a) a siding:

• (b) a crossing loop:

• (c) a marshalling yard:

• (d) a railway line that—

  • (i) was permanently closed to traffic, or managed in a manner that permanently prohibited passenger railway carriage, before the commencement of this Act; or

  • (ii) is temporarily closed to traffic on or after the commencement of this Act for—

    • (A) rail safety purposes; or

    • (B) carrying out repairs.

(4) If the Minister withholds consent under subsection (1), the entity may enter into an agreement with the Minister with respect to the recovery of direct and indirect costs associated with retaining the railway line.

(5) For the purposes of this section, rail participant has same meaning as in section 4(1) of the Railways Act 2005.

The Governor-General may, by Order in Council, make regulations providing for any other matters contemplated by this Act or necessary for its administration or necessary for giving it full effect.

The Governor-General may, by Order in Council, make regulations providing—

• (a) a process for preparing rail network development plans:

• (b) for any other matters contemplated by this Act or necessary for its administration or necessary for giving it full effect.

The following Acts are repealed:

• (a) New Zealand Railways Corporation Act 1981:

• (b) New Zealand Railways Corporation Restructuring Act 1990.

The Acts specified in Part 1 of Schedule 1 are amended in the manner set out in that Part.

The regulations specified in Part 2 of Schedule 1 are revoked.

This Act is subject to the transitional and savings provisions set out in Schedule 2.

It is hereby declared that section 11(1) of the Resource Management Act 1991 does not apply, and has never applied, to any partial surrender by New Zealand Rail Limited or its successors with respect to the lease dated 20 December 1991 between the Minister of Finance, the Minister for State-Owned Enterprises, and New Zealand Railways Corporation as lessors and New Zealand Rail Limited as lessee.