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Local Government (Water Services) Act 2025

Structural arrangements for providing water services - Water organisations - Exemptions relating to water organisations and consumer trusts

64: Applications for exemptions

You could also call this:

"Asking to be excused from some water service rules"

Illustration for Local Government (Water Services) Act 2025

If you are a territorial authority, you can apply to the Secretary for an exemption from certain rules under this law. You can apply for your water organisation to be exempt from the rule that it must be a company incorporated under the Companies Act 1993. You can also apply for an exemption from the rule that your water organisation can only provide water services and related services.

You can apply for an exemption from the rule that trustees of a consumer trust who own your water organisation cannot have an ownership interest in any other type of organisation. If you intend to establish a water organisation, you can apply for an exemption from the rule that only local authorities and trustees of consumer trusts can be shareholders in a water organisation. This exemption can be granted if you intend for your water organisation to be owned by local authorities, trustees of consumer trusts, or consumer shareholders in a co-operative company.

In this context, a co-operative company is a company registered under the Co-operative Companies Act 1996, and a consumer shareholder is a person who uses the services provided by your water organisation and is a transacting shareholder in the co-operative company. You can find more information about these terms in the relevant laws. These exemptions can help you establish and run your water organisation in a way that works for you and your community.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1004354.

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63: Ministerial powers, or

"The Minister has special powers to help or get involved with water services trusts."

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65: Process for considering application for exemption, or

"How the government decides if you can be exempt from a water services rule"

Part 2Structural arrangements for providing water services
Water organisations: Exemptions relating to water organisations and consumer trusts

64Applications for exemptions

  1. This section allows a territorial authority that establishes, intends to establish, or has established a water organisation (whether or not the authority owns or co-owns, or intends to own or co-own, the water organisation) to apply to the Secretary for an exemption from specified requirements under this subpart.

  2. The authority may apply for the water organisation to be exempted from the requirement that a water organisation must be a company incorporated under the Companies Act 1993 (see section 45(1)).

  3. The authority may apply for the water organisation to be exempted from the requirement that a water organisation must not provide services other than—

  4. water services; and
    1. services that are related to, or necessary for, providing water services (for example, services relating to the management or maintenance of water services networks) (see section 46).

      1. The authority may apply for an exemption from the requirement under section 51(3) that trustees of a consumer trust who own or co-own, or who are to own or co-own, the water organisation must not have an ownership interest, in their role as trustees of the consumer trust, in any type of organisation other than a water organisation.

      2. A territorial authority that intends to establish a water organisation may apply to the Secretary for the water organisation to be exempted from the requirement that only local authorities and trustees of consumer trusts may be shareholders in a water organisation (see section 45(2)) if the authority intends that the water organisation will be owned by—

      3. 1 or more local authorities or trustees of 1 or more consumer trusts as set out in section 45(2); and
        1. consumer shareholders in a co-operative company holding only a nominal number of non-transferable shares in the water organisation.

          1. In subsection (5),—

            consumer shareholder means a person who is—

            1. a consumer of the services provided by the water organisation; and
              1. a transacting shareholder in the co-operative company within the meaning of section 4(1)(b) and (d) of the Co-operative Companies Act 1996

                co-operative company means a company registered as a co-operative company under the Co-operative Companies Act 1996.