65Process for considering application for exemption

1. On receipt of an application under section 64, the Secretary must—

2. consult the Water Services Authority, the Commerce Commission, and the Inland Revenue Department in relation to the application; and
3. advise the Minister whether to recommend granting an exemption, including—
   1. whether the exemption should be subject to any terms and conditions; and
   2. whether the exemption should be granted in full or in part.

4. After receiving the Secretary’s advice, the Minister must—

5. recommend that an exemption be granted by order under section 66; or
6. decline the application.

7. The Minister may recommend that the exemption be granted—

8. subject to any terms or conditions; or
9. in full or in part.

10. The Minister must not recommend an exemption unless satisfied on reasonable grounds that the exemption—

11. would not prevent the water organisation or the trustees of the consumer trust (as applicable) from complying with this Act; and
12. would not adversely affect—
    1. the ability of the water organisation to meet its objectives; or
    2. the financial sustainability of the water organisation.

13. If the Minister decides to decline an application for an exemption, the Minister must direct the Secretary to notify the following parties that the exemption has been declined:

14. the shareholders:
15. the territorial authority that applied for the exemption.

16. After an exemption order is made granting an exemption, the Secretary must notify the following parties that the exemption has been granted:

17. the shareholders:
18. the territorial authority that applied for the exemption.