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Local Government Act 2002

Powers of Minister to act in relation to local authorities - General provisions applying to Ministerial powers conferred under subpart 1

258W: Recovery of expenses from local authority

You could also call this:

“Local councils must pay back money the government spends to help fix their problems”

If the Crown (government) appoints a Crown Manager or a Commission to your local authority, your local authority must pay back all the expenses the Crown incurs. This includes the pay and expenses of the Crown Manager or Commission members.

The Crown might also appoint a Crown Observer or a Crown Review Team to your local authority. In this case, the Crown might ask your local authority to pay back the expenses. This can only happen if the Minister thinks it’s fair, and if the terms of reference allow it.

If the Crown decides to recover these expenses from your local authority, they can do so as if it were a debt owed to them.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4925997.

Topics:
Government and voting > Local councils
Money and consumer rights > Taxes
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“Payment and costs for people chosen by the Minister to help with government work”

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“Minister can stop special groups or people from working for the government”

Part 10 Powers of Minister to act in relation to local authorities
General provisions applying to Ministerial powers conferred under subpart 1

258WRecovery of expenses from local authority

  1. A local authority owes as a debt to the Crown any expenses that the Crown incurs for the appointment of a Crown Manager or a Commission to the local authority, including the payment of remuneration and expenses to the Crown Manager or a member of the Commission.

  2. Any expenses that the Crown incurs for the appointment of a Crown Observer or a Crown Review Team to a local authority, including the payment of remuneration and expenses to the Crown Observer or a member of the Crown Review Team, may be recovered by the Crown from the local authority if—

  3. the Minister decides that to do so is reasonable in the circumstances; and
    1. the terms of reference authorise the recovery.

      1. The Crown may recover expenses under subsection (2) as a debt to the Crown.

      Notes
      • Section 258W: inserted, on , by section 31 of the Local Government Act 2002 Amendment Act 2012 (2012 No 93).