Plain language law

New Zealand law explained for everyone

Fisheries Act 1996

Performance of services by approved organisations

296D: Minister must require payment of bond

You could also call this:

"The Minister needs organisations to pay a bond to cover transfer costs to the Crown."

Illustration for Fisheries Act 1996

The Minister needs you to pay a bond if you are an approved service delivery organisation. You must give the chief executive a monetary deposit or bond, or make an alternative arrangement. This arrangement must show the Minister that the organisation's functions can be transferred to the Crown at no cost. If you pay a bond, it must be enough to cover the Crown's transfer costs. The Minister can ask you to increase the bond if it is not enough. The Minister can also reduce the bond if it is too much. The chief executive will use the bond money to pay the Crown's transfer costs. You are entitled to receive any interest earned on the money. The chief executive will pay you back any remaining money after using it to pay the transfer costs. The Crown's transfer costs are the costs of transferring your organisation's functions to the Crown. These costs do not include the value of any property or rights transferred. You can find more information about this in section 296B and Part 7 of the Public Finance Act 1989.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM399514.

Topics:
Money and consumer rights > TaxesBusiness > Industry rulesGovernment and voting > Government departments
Previous

296C: Effect of transfer of specified functions, duties, or powers, or

"What happens when tasks are given to another organisation to do"

Next

296E: Revocation of order transferring functions, duties, or powers to approved service delivery organisation, or

"The Governor-General can cancel an order that gives jobs to an organisation."

Part 15APerformance of services by approved organisations

296DMinister must require payment of bond

  1. The Minister must require each approved service delivery organisation—

  2. to provide the chief executive with a monetary deposit or bond; or
    1. to establish and maintain an alternative arrangement that satisfies the Minister that the specified functions, duties, or powers to be performed or exercised by the approved service delivery organisation can be transferred, at no cost to the Crown, to the Crown or an approved service delivery organisation on the expiry or earlier revocation of an order made under section 296B.

      1. If a monetary deposit or bond is required under subsection (1), it must be sufficient, in the opinion of the Minister, to meet the Crown's transfer costs.

      2. If a monetary deposit or bond is provided by an approved service delivery organisation under subsection (1) and the Minister is satisfied, during the period for which the order under section 296B is in force, that the amount of that deposit or bond is no longer sufficient to meet the Crown's transfer costs, the Minister may require the organisation to increase the amount of the monetary deposit or bond accordingly; and the organisation must comply with that requirement.

      3. If a monetary deposit or bond is provided by an approved service delivery organisation under subsection (1) and the Minister is satisfied, during the period for which the order under section 296B is in force, that the amount required to meet the Crown's transfer costs is less than the amount of the monetary deposit or bond, the Minister may remit the amount of the monetary deposit or reduce the amount of bond accordingly.

      4. Part 7 of the Public Finance Act 1989 applies to any money paid to the chief executive by an approved service delivery organisation under this section.

      5. Any money paid to the chief executive under this section must be applied by the chief executive towards the payment of the Crown's transfer costs.

      6. The approved service delivery organisation is entitled to receive all interest from time to time earned on the money while it is held by the chief executive.

      7. The chief executive must pay the balance remaining, after applying the money in accordance with subsection (6), to the approved service delivery organisation or the surety under the bond, as the case may be.

      8. In this section, the Crown's transfer costs—

      9. means any costs to the Crown arising from the transfer of specified functions, duties, or powers from the approved service delivery organisation to the chief executive or to another approved service delivery organisation on the expiry or earlier revocation of an order made under section 296B; but
        1. does not include the value to the Crown of any property, rights, or obligations transferred under section 296H.

          Notes
          • Section 296D: inserted, on , by section 65 of the Fisheries Act 1996 Amendment Act 1999 (1999 No 101).