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Arms Bill

Miscellaneous provisions - Cost recovery

367: Criteria for cost recovery

You could also call this:

"How the Minister decides if fees are fair and cover costs"

Illustration for Arms Bill

The Minister in charge can suggest making new rules under section 371 if they think the fee covers the actual costs. You need to consider if the fee is fair and if people using the service are paying a fair share. The Minister must also think about if the costs are reasonable and if it's clear how long the activity will take. The Minister looks at if the costs are efficiently spent. You have to consider if the people using the service are paying a fair amount based on how much they use it. The Minister must be satisfied with these things before suggesting new rules. The Minister checks if the fee is related to the activity and if it's clear how the costs work. You have to think about if the costs are fair and reasonable for the activity. The Minister makes sure of these things before making new rules under section 371.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1534141.

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Topics:
Money and consumer rights > Consumer protectionGovernment and voting > Government departments
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366: Activities that may be subject to cost recovery, or

"When you might have to pay a fee for things like getting a gun licence"

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368: Methods of cost recovery, or

"How the government will charge you for things"

Part 8Miscellaneous provisions
Cost recovery

367Criteria for cost recovery

  1. The responsible Minister may recommend that regulations be made under section 371 only if the responsible Minister is satisfied that,—

  2. subject to the provisions of section 371, the fee or charge recovers no more than the actual and reasonable costs (including both direct and indirect costs) of the activity to which the fee or charge relates; and
    1. the fee or charge for the activity or class of activities to which the fee or charge relates is generally obtained from the users or beneficiaries of the service or class of services to which the activity relates at a level commensurate, as far as practicable, with their use of the service; and
      1. the costs of the activity to which the fee or charge relates are efficiently incurred; and
        1. the relationship between the costs of the activity to which the fee or charge relates and the nature and duration of the activity is clear.