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Local Government Act 2002

Purpose of local government, and role and powers of local authorities - Co-ordination of responsibilities of local authorities

16: Significant new activities proposed by regional council

You could also call this:

“Rules for big councils starting new projects”

When a regional council wants to start a big new activity, or if a group it controls wants to do this, they need to follow some rules. This applies if a local council in the area is already doing this activity or has said they will do it.

The regional council must tell all the local councils in its area and the Minister about their plan. They also need to include it in a special document for people to read about.

In this document, the regional council needs to explain why they want to do this new activity, how it might affect the local councils, and if any local councils disagree with it.

If the regional council still wants to go ahead, but not everyone agrees, they can try to sort it out through mediation. This is where someone helps them talk it through.

If mediation doesn’t work, they can ask the Minister to make a final decision. Before deciding, the Minister will get advice and talk to other important people.

These rules don’t apply to some things, like regional parks, changing who does what, or working with the government.

The law explains what some words mean, like ‘affected territorial authority’ and ‘new activity’. It also describes what a ‘regional council-controlled organisation’ is, which can be a bit complicated but basically means a group that the regional council has a lot of control over.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM171813.

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Part 2 Purpose of local government, and role and powers of local authorities
Co-ordination of responsibilities of local authorities

16Significant new activities proposed by regional council

  1. This section applies if,—

  2. in the exercise of its powers under section 12(2), a regional council proposes to undertake a significant new activity; or
    1. a regional council-controlled organisation proposes to undertake a significant new activity; and
      1. in either case, 1 or more territorial authorities in the region of the regional council—
        1. are already undertaking the significant new activity; or
          1. have notified their intention to do so in their long-term plans.

          2. When this section applies, the regional council—

          3. must advise all the territorial authorities within its region and the Minister of the proposal and the reasons for it; and
            1. must include the proposal in the consultation document referred to in section 93A.

              1. A proposal included in the consultation document referred to in section 93A must include—

              2. the reasons for the proposal; and
                1. the expected effects of the proposal on the activities of the territorial authorities within the region; and
                  1. the objections raised by those territorial authorities, if any.

                    1. If, after complying with subsection (2), the regional council indicates that it intends to continue with the proposal, but agreement is not reached on the proposal among the regional council and all of the affected territorial authorities, either the regional council or 1 or more of the affected territorial authorities may submit the matter to mediation.

                    2. Mediation must be by a mediator or a mediation process—

                    3. agreed to by the relevant local authorities; or
                      1. in the absence of an agreement, as specified by the Minister.

                        1. If mediation is unsuccessful, either the regional council or 1 or more affected territorial authorities may ask the Minister to make a binding decision on the proposal.

                        2. Before making a binding decision, the Minister must—

                        3. seek and consider the advice of the Commission; and
                          1. consult with other Ministers whose responsibilities may be affected by the proposal.

                            1. This section does not apply to—

                            2. a proposal by a regional council to establish, own, or operate a park for the benefit of its region; or
                              1. a proposal to transfer responsibilities; or
                                1. a proposal to transfer bylaw-making powers; or
                                  1. a reorganisation under Schedule 3; or
                                    1. a proposal to undertake an activity or enter into an undertaking jointly with the Crown.

                                      1. For the purposes of this section,—

                                        affected territorial authority means a territorial authority—

                                        1. the district of which is wholly or partly in the region of a regional council; and
                                          1. that undertakes, or has notified in its long-term plan its intention to undertake, the significant new activity

                                            new activity—

                                            1. means an activity that, before the commencement of this section, a regional council was not authorised to undertake; but
                                              1. does not include an activity authorised by or under an enactment

                                                regional council-controlled organisation means a council-controlled organisation that is—

                                                1. a company—
                                                  1. in which equity securities carrying 50% or more of the voting rights at a meeting of the shareholders of the company are—
                                                    1. held by 1 or more regional councils; or
                                                      1. controlled, directly or indirectly, by 1 or more regional councils; or
                                                      2. in which 1 or more regional councils have the right, directly or indirectly, to appoint 50% or more of the directors of the company; or
                                                      3. an organisation in respect of which 1 or more regional councils have, whether or not jointly with other regional councils or persons,—
                                                        1. control, directly or indirectly, of 50% or more of the votes at any meeting of the members or controlling body of the organisation; or
                                                          1. the right, directly or indirectly, to appoint 50% or more of the trustees, directors, or managers (however described) of the organisation.

                                                        Notes
                                                        • Section 16(1)(c)(ii): amended, on , by section 6(1) of the Local Government Act 2002 Amendment Act 2019 (2019 No 54).
                                                        • Section 16(1)(c)(ii): amended, on , by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).
                                                        • Section 16(2)(b): replaced, on , by section 10(1) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).
                                                        • Section 16(3): amended, on , by section 10(2) of the Local Government Act 2002 Amendment Act 2014 (2014 No 55).
                                                        • Section 16(8)(d): amended, on , by section 6(2) of the Local Government Act 2002 Amendment Act 2019 (2019 No 54).
                                                        • Section 16(8)(d): amended, on , by section 9 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).
                                                        • Section 16(9) affected territorial authority paragraph (b): amended, on , by section 6(3) of the Local Government Act 2002 Amendment Act 2019 (2019 No 54).
                                                        • Section 16(9) affected territorial authority paragraph (b): amended, on , by section 49 of the Local Government Act 2002 Amendment Act 2010 (2010 No 124).
                                                        • Section 16(9) annual plan: repealed, on , by section 6(4) of the Local Government Act 2002 Amendment Act 2019 (2019 No 54).