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Local Government (Auckland Council) Act 2009

Water supply and wastewater services for Auckland - Auckland water organisations

57: Obligations of Auckland water organisation

You could also call this:

"Auckland water organisations must run efficiently, keep costs low, and prioritise public safety"

Illustration for Local Government (Auckland Council) Act 2009

If you are part of an Auckland water organisation, you must manage your operations efficiently. You need to keep the costs of water supply and waste-water services as low as possible. You must also think about public safety, like keeping children safe in urban areas. You cannot pay dividends or distribute surplus money to owners or shareholders. There is more information about what this means in the Local Government Act 2002, but you do not have to follow section 68(b). You can make a taxable bonus issue, as defined in the Income Tax Act 2007, without breaking any rules. If you give an infrastructure endorsement under the Infrastructure Funding and Financing Act 2020, or accept a transfer of eligible infrastructure under section 90 of that Act, you are not breaking your obligation to manage operations efficiently. You can also contribute funding to the construction of eligible infrastructure without breaking any rules.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3338630.

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Part 5Water supply and wastewater services for Auckland
Auckland water organisations

57Obligations of Auckland water organisation

  1. An Auckland water organisation—

  2. must manage its operations efficiently with a view to keeping the overall costs of water supply and waste-water services to its customers (collectively) at the minimum levels consistent with the effective conduct of its undertakings and the maintenance of the long-term integrity of its assets; and
    1. must not pay any dividend or distribute any surplus in any way, directly or indirectly, to any owner or shareholder; and
      1. is not required to comply with section 68(b) of the Local Government Act 2002; and
        1. must have regard for public safety (for example, the safety of children in urban areas) in relation to its structures.

          1. However, subsection (1)(b) does not prevent an Auckland water organisation from making a taxable bonus issue (as defined in section YA 1 of the Income Tax Act 2007).

          2. An Auckland water organisation does not breach its obligation under subsection (1)(a) merely by—

          3. giving an infrastructure endorsement under section 20 of the Infrastructure Funding and Financing Act 2020; or
            1. accepting a transfer of eligible infrastructure under section 90 of that Act; or
              1. contributing funding to the construction of eligible infrastructure that has been, or is intended to be, transferred to that organisation under that section.

                Notes
                • Section 57: added, on , by section 31 of the Local Government (Auckland Council) Amendment Act 2010 (2010 No 36).
                • Section 57(3): inserted, on , by section 161 of the Infrastructure Funding and Financing Act 2020 (2020 No 47).