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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

14: Principles relating to local authorities

You could also call this:

“Rules for local councils to follow when serving their communities”

When a local authority does its job, it needs to follow some important rules:

You should run your local authority in a way that is open and clear. Everyone should be able to see what you’re doing and why. You should also work on the things that are most important for your area and do them well.

You need to listen to what everyone in your community thinks. This includes all the different groups of people who live there.

When you make decisions, you need to think about a few things. You should consider how different parts of your community might be affected. You also need to think about how your choices might affect people in the future, not just now. You should think about how your decisions might impact people’s well-being, as mentioned in section 10.

You should give Māori people chances to help make decisions.

You should try to work with other local authorities and groups to do a better job and save money.

If your local authority does any business, you should do it in a smart way. You should regularly check if the money you might make from a business activity is worth the risks.

You need to take good care of your area’s resources and plan ahead for looking after things like buildings and parks.

When you’re planning for the future, you should think about making people’s lives better in different ways. This includes their social lives, their jobs and money, and their culture. You also need to look after the environment and think about what people in the future might need.

If any of these rules clash with each other, or with the well-being ideas in section 10, you should solve the problem by being open and clear about what you’re doing.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM171810.

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

14Principles relating to local authorities

  1. In performing its role, a local authority must act in accordance with the following principles:

  2. a local authority should—
    1. conduct its business in an open, transparent, and democratically accountable manner; and
      1. give effect to its identified priorities and desired outcomes in an efficient and effective manner:
      2. a local authority should make itself aware of, and should have regard to, the views of all of its communities; and
        1. when making a decision, a local authority should take account of—
          1. the diversity of the community, and the community's interests, within its district or region; and
            1. the interests of future as well as current communities; and
              1. the likely impact of any decision on each aspect of well-being referred to in section 10:
              2. a local authority should provide opportunities for Māori to contribute to its decision-making processes:
                1. a local authority should actively seek to collaborate and co-operate with other local authorities and bodies to improve the effectiveness and efficiency with which it achieves its identified priorities and desired outcomes; and
                  1. a local authority should undertake any commercial transactions in accordance with sound business practices; and
                    1. a local authority should periodically—
                      1. assess the expected returns to the authority from investing in, or undertaking, a commercial activity; and
                        1. satisfy itself that the expected returns are likely to outweigh the risks inherent in the investment or activity; and
                        2. a local authority should ensure prudent stewardship and the efficient and effective use of its resources in the interests of its district or region, including by planning effectively for the future management of its assets; and
                          1. in taking a sustainable development approach, a local authority should take into account—
                            1. the social, economic, and cultural well-being of people and communities; and
                              1. the need to maintain and enhance the quality of the environment; and
                                1. the reasonably foreseeable needs of future generations.

                                2. If any of these principles, or any aspects of well-being referred to in section 10, are in conflict in any particular case, the local authority should resolve the conflict in accordance with the principle in subsection (1)(a)(i).

                                Notes
                                • Section 14(1)(c)(iii): replaced, on , by section 7(1) of the Local Government (Community Well-being) Amendment Act 2019 (2019 No 17).
                                • Section 14(1)(e): replaced, on , by section 8(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).
                                • Section 14(1)(fa): inserted, on , by section 6 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).
                                • Section 14(1)(g): replaced, on , by section 8(2) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).
                                • Section 14(1)(h)(i): amended, on , by section 7(2) of the Local Government (Community Well-being) Amendment Act 2019 (2019 No 17).
                                • Section 14(2): amended, on , by section 7(3) of the Local Government (Community Well-being) Amendment Act 2019 (2019 No 17).
                                • Section 14(2): amended, on , by section 8(3) of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).