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Defence Act 1990

Terms and conditions of service in the armed forces - Unit funds, messes, etc

58: Unit and other non-public funds

You could also call this:

"Rules about money for Armed Forces members and their families"

Illustration for Defence Act 1990

The Defence Act 1990 has rules about unit and other non-public funds. You need to know what a service authority is. It is the Chief of Defence Force, Chief of Navy, Chief of Army, or Chief of Air Force. They can set up funds for the benefit of members of the Armed Forces or their dependants. The Chief of Defence Force can also spend money from these funds to buy land, with the consent of the service authority. You can read more about the rules for these funds in the Defence Act 1990, and about the Public Finance Act 1989 and section 27. The Auditor-General can audit the accounts of these funds if they want to. The Crown is not responsible for any losses from these funds. These rules also apply to funds that were already set up before the Defence Act 1990 started.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM206412.

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Part 4Terms and conditions of service in the armed forces
Unit funds, messes, etc

58Unit and other non-public funds

  1. For the purposes of this section, the term service authority means—

  2. in relation to funds established pursuant to subsection (2), the Chief of Defence Force; or
    1. in relation to funds established pursuant to subsection (3), the Chief of Navy; or
      1. in relation to funds established pursuant to subsection (4), the Chief of Army; or
        1. in relation to funds established pursuant to subsection (5), the Chief of Air Force.

          1. The Chief of Defence Force may from time to time establish, or authorise the establishment of, such funds under such names as the Chief of Defence Force thinks fit for—

          2. the benefit of members of the Armed Forces or discharged members of the Armed Forces generally or of members of the Armed Forces or discharged members of the Armed Forces of 2 or more Services, or of the dependants of members of the Armed Forces or discharged or deceased members of the Armed Forces, or the benefit of visiting members of the Armed Forces; and
            1. any other object of any kind that the Chief of Defence Force considers beneficial to the Armed Forces or to members of the Armed Forces.

              1. The Chief of Navy may from time to time establish, or authorise the establishment of, such funds under such names as the Chief of Navy thinks fit for—

              2. the benefit of any naval ship or naval establishment, or of members or discharged members of the Navy generally or members or discharged members of any part of the Navy, or of the dependants of any such members or discharged or deceased members; and
                1. any other object of any kind that the Chief of Navy considers will be beneficial to the Navy or to members of the Navy.

                  1. The Chief of Army may from time to time establish, or authorise the establishment of, such funds under such names as the Chief of Army thinks fit for—

                  2. the benefit of any army camp or unit of the Army, or of members or discharged members of the Army generally or members or discharged members of any part of the Army, or of the dependants of any such members or discharged or deceased members; and
                    1. any other object of any kind that the Chief of Army considers will be beneficial to the Army or to members of the Army.

                      1. The Chief of Air Force may from time to time establish, or authorise the establishment of, such funds under such names as the Chief of Air Force thinks fit for—

                      2. the benefit of any Air Force base or unit of the Air Force, or of members or discharged members of the Air Force generally or members or discharged members of any part of the Air Force, or of the dependants of any such members or discharged or deceased members; and
                        1. any other object of any kind that the Chief of Air Force considers will be beneficial to the Air Force or to members of the Air Force.

                          1. Without limiting the provisions of subsections (2) to (5), money forming part of any fund established under this section may from time to time, with the prior consent of the appropriate service authority, be spent on the acquisition of any land (whether Crown land or otherwise) to be held for any of the objects of the fund. Notwithstanding anything in any enactment or rule of law, any land so acquired may be vested in and held in the name of the Sovereign for the purposes of this section.

                          2. Any land so acquired may, with the prior consent of the appropriate service authority, be disposed of for valuable consideration, and on any such disposal, the land shall cease to be subject to this section. The proceeds of any such disposition shall be held for the purposes of the fund from which the money for the acquisition of the land was expended.

                          3. All documents required to be executed for the purposes of subsection (6) or subsection (7) by or on behalf of the Crown may be executed by the Chief of Defence Force.

                          4. Without limiting the power of the Chief of Defence Force to issue orders under section 27, orders may be issued under that section prescribing rules for the administration, supervision, accounting, and auditing of any fund established under this section.

                          5. The appropriate service authority may from time to time vary the objects of any such fund, or abolish any such fund and transfer its assets to any other such fund, having due regard to the purposes for which the varied or abolished fund was established and to any conditions specifically imposed by any person from whom any money in the fund was received.

                          6. Notwithstanding anything in the Public Finance Act 1989, the assets of any fund established under this section shall be deemed not to be public money within the meaning of that Act, except that the accounts of any such fund may, if considered desirable by the Controller and Auditor-General, be audited by the Auditor-General, who for that purpose has all of the powers that he or she has under the Public Audit Act 2001 for the purposes of exercising or performing his or her functions, duties, or powers.

                          7. The Crown shall not be liable in respect of any loss sustained by any fund established under this section, whether arising out of any act or omission of an employee of the Crown or by reason of any other cause.

                          8. The provisions of this section shall apply with respect to all funds established before the passing of this Act for any of the purposes specified in subsections (2) to (5) and in existence at the passing of this Act as if they had been established under this section. If any question arises as to whether any fund is a fund to which this subsection applies, it shall be decided by the Minister, and that decision shall be final.

                          9. Where any part of any Service of the Armed Forces has been abolished, altered, or reconstituted, whether before or after the commencement of this Act, its non-public funds and all of its other property shall be disposed of, transferred, or held by the appropriate service authority for such purposes as are authorised by subsections (2) to (5), as the authority may determine, having due regard to the purposes for which the funds were established or the property was given or acquired, as the case may be, and to any conditions specifically imposed by any person from whom any property or any money in the funds was received.

                          Notes
                          • Section 58(1)(b): amended, on , by section 7(1)(a) of the Defence Amendment Act 2005 (2005 No 49).
                          • Section 58(1)(c): amended, on , by section 7(1)(b) of the Defence Amendment Act 2005 (2005 No 49).
                          • Section 58(1)(d): amended, on , by section 7(1)(c) of the Defence Amendment Act 2005 (2005 No 49).
                          • Section 58(3): amended, on , by section 4 of the Defence Amendment Act 2007 (2007 No 51).
                          • Section 58(3): amended, on , by section 7(2) of the Defence Amendment Act 2005 (2005 No 49).
                          • Section 58(3)(b): amended, on , by section 4 of the Defence Amendment Act 2007 (2007 No 51).
                          • Section 58(4): amended, on , by section 4 of the Defence Amendment Act 2007 (2007 No 51).
                          • Section 58(4): amended, on , by section 7(3) of the Defence Amendment Act 2005 (2005 No 49).
                          • Section 50(4)(b): amended, on , by section 4 of the Defence Amendment Act 2007 (2007 No 51).
                          • Section 58(5): amended, on , by section 4 of the Defence Amendment Act 2007 (2007 No 51).
                          • Section 58(5): amended, on , by section 7(4) of the Defence Amendment Act 2005 (2005 No 49).
                          • Section 58(5)(b): amended, on , by section 4 of the Defence Amendment Act 2007 (2007 No 51).
                          • Section 58(6): editorial change made by the PCO, on , under sections 86(1) and 87(a) of the Legislation Act 2019 (2019 No 58).
                          • Section 58(11): amended, on , by section 4 of the Defence Amendment Act 2010 (2010 No 61).
                          • Section 58(11): amended, on , pursuant to section 52 of the Public Audit Act 2001 (2001 No 10).