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Local Government Act 2002

Purpose of local government, and role and powers of local authorities - Role of local authorities and related matters

12: Status and powers

You could also call this:

“Local authorities: Special groups that help and serve communities”

A local authority is a special type of organisation that lasts forever. It can do many things to help your community. You can think of it like a big helper for your area.

The local authority can do almost anything it needs to do its job. It’s allowed to run businesses, do activities, and make agreements with other people or groups.

However, the local authority must follow the rules set out in this law and other laws. It can’t just do whatever it wants.

If you live in a city or town, your local authority (called a territorial authority) must use its powers mainly to help your area. If you live in a larger region, your regional council must use its powers to help most or all of the region, not just one small part.

These rules don’t stop local authorities from working together or sharing jobs. They can also give control of some activities to special organisations they create.

Your local authority can give money or other help to another local authority or to people or groups outside your area. They can even help places in other countries. But they need to have good reasons for doing this, like thinking it will help your area or all local authorities in New Zealand. They can also give help in emergencies.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM171806.

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Part 2 Purpose of local government, and role and powers of local authorities
Role of local authorities and related matters

12Status and powers

  1. A local authority is a body corporate with perpetual succession.

  2. For the purposes of performing its role, a local authority has—

  3. full capacity to carry on or undertake any activity or business, do any act, or enter into any transaction; and
    1. for the purposes of paragraph (a), full rights, powers, and privileges.

      1. Subsection (2) is subject to this Act, any other enactment, and the general law.

      2. A territorial authority must exercise its powers under this section wholly or principally for the benefit of its district.

      3. A regional council must exercise its powers under this section wholly or principally for the benefit of all or a significant part of its region, and not for the benefit of a single district.

      4. Subsections (4) and (5) do not—

      5. prevent 2 or more local authorities engaging in a joint undertaking, a joint activity, or a co-operative activity; or
        1. prevent a transfer of responsibility from one local authority to another in accordance with this Act; or
          1. restrict the activities of a council-controlled organisation; or
            1. prevent a local authority from making a donation (whether of money, resources, or otherwise) to another local authority or to a person or organisation outside its district or region or outside New Zealand—
              1. if the local authority considers, on reasonable grounds, that the donation will benefit its district or region, or the communities within its district or region; or
                1. if the local authority considers, on reasonable grounds, that a benefit will be conferred on the local government sector as a whole; or
                  1. for emergency relief; or
                  2. prevent a local authority from making a donation (whether of money, resources, or otherwise) to a local government body outside New Zealand to enable it to share its experience and expertise with that body.

                    Notes
                    • Section 12(6)(c): amended, on , by section 6 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).
                    • Section 12(6)(d): added, on , by section 6 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).
                    • Section 12(6)(e): added, on , by section 6 of the Local Government Act 2002 Amendment Act 2006 (2006 No 26).