Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698847408913.pdf (New Zealand)
Local Government Amendment Act 1989 Public Act Date of assent 1989 No 1 6 March 1989 Contents Title Short Title and commencement Interpretation Transitional committees Power to appoint transitional committee Chairperson and deputy chairperson Membership Change in composition of transitional committee Extraordinary vacancies Powers of transitional committee Powers and duties of councils in relation to transitional committee Execution of contracts and other documents Application of other enactments Right to object to Local Government Commission against decision of transitional committee Power of local authority to reject or vary decision of transitional committee Obligation to act in interests of local authority to be formed Administration and costs of transitional committees Funding of transitional committees Remuneration of members of transitional committees Page 2 2 3 3 4 4 4 5 5 6 6 7 7 8 9 9 9 10 11 1 Local Government Amendment Act 1989 1989 No 1 25A 25B 25C 25D 25E 26 26A 26B 27 28 29 29A 30 Provisions relating to constitution and procedure of transitional committees Deputies of members Subcommittees Delegation of functions or powers Revocation of delegations Discharge of transitional committees Special provision in respect of appointment by transitional committee of senior executives of local authority to be formed Deﬁnitions of former authority and successor authority Special provision in relation to transfer of employees to local
 authorities to be formed Application of Local Authorities (Employment Protection) Act 1963 Terms and conditions of employment of employees transferred Continuation and negotiation of awards and agreements Continuous service Continuous service of employees transferred as a result of reorganisation Conditions of employment of persons employed after 1 November 1989 Employment contracts of local authorities Obligation of local authorities to make and levy rates and assessments for full year to 31 March 1990 Closing off of accounts Special provisions in relation to taxation Protection for persons acting in relation to transitional matters 12 13 13 14 14 15 15 16 17 18 18 19 21 21 22 22 23 25 25 25 An Act to amend the Local Government Act 1974 BE IT ENACTED by the Parliament of New Zealand as follows: Short Title and commencement This Act may be cited as the Local Government Amendment Act 1989, and shall be read together with and deemed part of 1 (1) 2 1989 No 1 Local Government Amendment Act 1989 s 3 (2) 2 the Local Government Act 1974 (hereinafter referred to as the principal Act).
This Act shall be deemed to have come into force on the 19th day of December 1988.
Interpretation In this Act, unless the context otherwise requires,— Draft scheme means a reorganisation scheme which has not been completed but which, for the purposes of the opportunity granted to the local authorities affected by it to meet with and be heard by the Local Government Commission as required by section 15E(2) of the principal Act, is available to those local authorities in draft form Draft scheme: section 15E(2) of the principal Act was impliedly repealed, as from 1 November 1989, by section 3(1) Local Government Amendment Act (No 2) 1989.
Final reorganisation scheme means a ﬁnal reorganisation scheme that has been given effect to by an Order in Council made under section 36 of the principal Act as if it were a ﬁnal scheme Local authority to be formed means a local authority that, in any draft scheme, is proposed to be formed for the purpose of giving effect to any ﬁnal reorganisation scheme prepared under section 15B of the principal Act Local authority to be formed: section 15B of the principal Act was impliedly repealed, as from 1 November 1989, by section 3(1) Local Government Amend­ ment Act (No 2) 1989.
Senior executive position, in relation to a local authority to be formed, means— (a) The position of principal administrative ofﬁcer of that local authority; and (b) Any other senior position with that local authority to which, in the opinion of a transitional committee, an appointment should be made before that local authority is formed.
3 Transitional committees Where a draft scheme or a ﬁnal reorganisation scheme pro­ vides for the appointment of a transitional committee, the local 3 s 4 Local Government Amendment Act 1989 1989 No 1 authorities affected by that scheme shall unite in appointing that committee as a joint committee.
Power to appoint transitional committee 4 (1) A transitional committee may be appointed— (a) Only where a draft scheme or a ﬁnal reorganisation scheme so provides; and (b) Only in accordance with the provisions of a draft scheme or a ﬁnal reorganisation scheme and the provi­ sions of this Act.
(2) Where a local authority fails to unite with others in appointing a transitional committee, the other local authorities may unite in appointing that committee under section 3 of this Act; and the validity of the appointment and the validity of the actions of the transitional committee shall not be affected by the failure of that local authority to unite with the other local authorities for the purpose of the appointment.
Every transitional committee is hereby deemed to be a com­ mittee of every local authority that is entitled to appoint a member of it.

(3) Chairperson and deputy chairperson 5 (1) A draft scheme or a ﬁnal reorganisation scheme may provide for the chairperson of a transitional committee to be elected by the voting members of the transitional committee.
Subject to the draft scheme or the ﬁnal reorganisation scheme, the voting members of a transitional committee may,— (a) (2) From time to time elect one of its members to be the chairperson of the transitional committee; and From time to time appoint one of its members to be the deputy chairperson of the transitional committee (which deputy chairperson shall act in the absence of the chair­ person).
(b) Membership 6 (1) Notwithstanding anything in sections 3 and 5 of this Act,— (a) The chairperson of the transitional committee may, if the draft scheme or the ﬁnal reorganisation scheme so 4 1989 No 1 Local Government Amendment Act 1989 s 8 (b) provides, be an independent person elected by the vot­ ing members of the transitional committee; and The New Zealand Council of Trade Unions may, if the draft scheme or the ﬁnal reorganisation scheme so pro­ vides, appoint one member of the transitional commit­ tee, which member shall be an employee of a local au­ thority that is entitled to appoint a member of the tran­ sitional committee.
Every appointed member of a transitional committee shall hold ofﬁce at the pleasure of the body or bodies by which the member was appointed.

Every chairperson and every deputy chairperson of a transi­ tional committee shall hold ofﬁce at the pleasure of the voting members of the transitional committee.
Change in composition of transitional committee Where a ﬁnal reorganisation scheme provides for a change in the composition of a transitional committee, the local author­ ities affected by that scheme shall vary the membership of the transitional committee accordingly.
(2) (3) 7 (2) 8 (1) Extraordinary vacancies If any member of a transitional committee dies, or resigns, or is removed from ofﬁce or ceases to hold any qualiﬁcation necessary for his or her appointment to ofﬁce as a member of the transitional committee, his or her ofﬁce shall become vacant and the vacancy shall be deemed to be an extraordinary vacancy.
Except where a ﬁnal reorganisation scheme provides for a change in the composition of a transitional committee, an extraordinary vacancy shall be ﬁlled in the manner in which the appointment to the vacant ofﬁce was originally made.

(3) Notwithstanding subsection (2) of this section, where an extra­ ordinary vacancy is not ﬁlled forthwith, the transitional com­ mittee may, if it considers it appropriate, appoint a person to ﬁll the vacancy in its membership.
The powers of a transitional committee shall not be affected by any vacancy in its membership.
(4) 5 s 9 9 (1) Local Government Amendment Act 1989 1989 No 1 Powers of transitional committee Subject to section 13 of this Act, a transitional committee has power to decide any transitional matter relating to a local au­ thority to be formed, which power includes the power— (a) To decide on stafﬁng arrangements and management structures for the local authority to be formed: (b) Notwithstanding the Public Bodies Contracts Act 1959, but subject to section 25 of this Act, to appoint persons to positions with the local authority to be formed and to ﬁx the conditions of employment of any such persons: To decide budgeting matters in relation to the local au­ thority to be formed.
(c) (2) Where the transitional committee appoints a person to a position with the local authority to be formed, the transitional committee shall, until local authority is formed, be deemed to be the employer of that person.

Subject to section 13 of this Act, decisions made under sub­ section (1) of this section shall be binding on local authorities without the need for any delegation from, or conﬁrmation or ratiﬁcation by, the local authorities.
that (3) 10 Powers and duties of councils in relation to transitional committee (1) Where a draft scheme or a ﬁnal reorganisation scheme pro­ vides for the appointment of a transitional committee, the council of any local authority affected by that scheme— (a) May refer to the transitional committee any matters for consideration or inquiry or management or regulation; and (b) May delegate to the transitional committee any of the powers and duties conferred or imposed upon the coun­ cil, except— (i) (ii) (iii) The power to institute an action for the recovery The power to make a rate: The power to make a bylaw: of any amount in excess of $500: (iv) The power to borrow money: 6 1989 No 1 Local Government Amendment Act 1989 s 12 (v) The power to enter into a contract otherwise than in accordance with the provisions of section 4 of the Public Bodies Contracts Act 1959: (vi) The power to declare a regional road or to vary, alter, or revoke any such declaration: (vii) The power to make assessments upon contribut­ ing authorities: (c) (viii) The powers and duties conferred or imposed on the council by the Public Works Act 1981; and Shall assist the transitional committee to exercise its powers by providing the transitional committee— (i) With such resources as the transitional committee may reasonably request; and (ii) With such information held by the council as the transitional committee may request.
Every transitional committee to which any powers or duties are delegated under subsection (1)(b) of this section may, with­ out conﬁrmation by the council, exercise or perform the same in like manner and with the same effect as the council could itself have exercised or performed the same.
Execution of contracts and other documents Every contract that a transitional committee executes on behalf of a local authority to be formed and every other document re­ quiring execution or authorisation by a transitional committee may be signed on behalf of the transitional committee by any 2 members of the transitional committee acting with the au­ thority of the transitional committee.
(2) 11 (2) Application of other enactments 12 (1) Nothing in sections 104 to 106 of the principal Act shall apply in respect of a transitional committee or subcommittee of a transitional committee.
Subject to subsection (1) of this section and to the other pro­ visions of this Act,— (a) (b) The provisions of the principal Act; and The provisions of other enactments (including, without limitation, the Local Authorities (Members’ Interests) Act 1968, the Ombudsmen Act 1975, and the Local 7 s 13 Local Government Amendment Act 1989 1989 No 1 Government Ofﬁcial Information and Meetings Act 1987),— shall, with all necessary modiﬁcations, apply in respect of every transitional committee and its members as if the tran­ sitional committee had been appointed under section 105 of the principal Act.
13 (1) (2) Right to object to Local Government Commission against decision of transitional committee Two or more members of a transitional committee, being members appointed by different local authorities or different groups of local authorities, may, within 7 days after the mak­ ing by a transitional committee of a decision under section 9 of this Act, lodge with the Local Government Commission notice in writing objecting to that decision.
Every notice under subsection (1) of this section— (a) Shall specify— (i) (ii) The decision to which the objection relates; and The grounds of the objection, which grounds shall be speciﬁed with such reasonable par­ ticularity as to give full advice to the Local Government Commission of the issues involved; and (b) May be accompanied by copies of any relevant docu­ ments.
(3) A decision of a transitional committee under section 9(1)(b) or section 25 of this Act may not be the subject of an objection under subsection (1) of this section.

The Local Government Commission shall, after conducting such investigation and consultation (if any) as it considers de­ sirable, issue a written determination upholding or dismissing the objection and that determination shall be ﬁnal.
(4) (5) Without limiting the grounds on which the Local Government Commission may uphold an objection, it is hereby declared that the Commission shall uphold an objection where it is sat­ isﬁed that the decision objected to is not in the best interests of the local authority to be formed.

8 1989 No 1 Local Government Amendment Act 1989 s 16 (6) A decision in respect of which an objection is lodged under subsection (1) of this section shall remain in full force pending the determination of the objection.
14 Power of local authority to reject or vary decision of transitional committee (1) Nothing in sections 3 to 13 of this Act prevents a local author­ ity to be formed from rejecting or varying any decision of a transitional committee or the Commission once the local au­ thority is formed; but any such decision shall, until rejected or varied, be binding on that local authority as from the date of its formation, as if it were a decision of that local authority.
The rejection or variation by a local authority of any decision of a transitional committee shall not affect the validity of any­ thing done pursuant to the decision before its rejection or vari­ ation.
(2) 15 Obligation to act in interests of local authority to be formed Every member of a transitional committee and every member of any local authority considering any recommendation or de­ cision of a transitional committee shall act in the interests of the local authority to be formed, and no such member shall, in so doing, be in breach of any declaration made by that member under section 103 of the principal Act.
Section 103 of the principal Act was repealed, as from 1 November 1989, by section 17(1) of the Local Government Amendment Act (No 2) 1989.
16 Administration and costs of transitional committees (1) Where a draft scheme or a ﬁnal reorganisation scheme pro­ vides for the appointment or continuance of a transitional com­ mittee, that scheme shall designate a principal local authority in respect of the committee, and that local authority shall be responsible for providing administrative services to the transi­ tional committee.
Subject to section 18 of this Act, the costs of a transitional committee shall be borne and paid by the local authorities af­ fected by the scheme in accordance with a formula agreed to by the transitional committee or, if there is no such agreement, (2) 9 s 17 Local Government Amendment Act 1989 1989 No 1 (3) in accordance with the formula prescribed by the draft scheme or the ﬁnal reorganisation scheme.
The costs of a transitional committee include, among other costs,— (a) The costs of providing administrative services to the transitional committee: The costs of the appointment and employment of staff by the transitional committee: (b) (c) (e) (d) (ba) The costs of conducting the election of the Mayor (if any) and members of the local authority to be formed: The costs of loans raised pursuant to section 17(1) of this Act: The costs of any remuneration paid to the chairperson of the transitional committee pursuant to section 18(2) of this Act and of any travelling allowances and expenses paid to that chairperson pursuant to section 18(4) of this Act: Any costs incurred before the commencement of this Act by any committee acting as a transitional commit­ tee in relation to an indicative scheme (being a scheme of that name which was provided for in a document is­ sued by the Local Government Commission and which would have affected any of the local authorities affected by the draft scheme or the ﬁnal reorganisation scheme).
(4) Where a dispute arises between 2 or more transitional commit­ tees concerning the amount to be included, under subsection (3)(e) of this section, as costs of any of those transitional com­ mittees, that dispute shall be determined by the Local Govern­ ment Commission, whose decision shall be ﬁnal.
Funding of transitional committees 17 (1) A transitional committee may from time to time direct its prin­ cipal authority to raise a loan, of such amount as the transi­ tional committee shall specify, for the purpose of obtaining money with which to meet transitional costs (including those of the transitional committee) and the principal authority shall comply with any direction so given by the transitional com­ mittee.
10 1989 No 1 Local Government Amendment Act 1989 s 18 (2) Money borrowed pursuant to a direction under subsection (1) of this section shall, if not repaid by the principal authority, be repayable not later than the 31st day of December 1992 by the local authority to be formed.

(3) Any local authority may make advances to a transitional com­ mittee for the purpose of enabling the transitional committee to meet transitional costs.
(4) Advances made pursuant to subsection (3) of this section shall be made on such terms and conditions as may be agreed between that local authority and the transitional committee, which terms and conditions may include a condition that the advance be free of interest.

The Local Authorities Loans Act 1956 shall not apply in re­ lation to any loan raised by a principal authority pursuant to a direction under subsection (1) of this section.
(5) 18 (1) (2) (3) Remuneration of members of transitional committees Each transitional committee shall have power to set the remu­ neration of its members.
The remuneration payable to the chairperson of the transitional committee shall, as the transitional committee determines, be either— (a) An honorarium at such rate as the transitional commit­ tee shall determine; or (b) A sum in respect of each day on which the chairperson attends a meeting in his or her capacity as the chairper­ son of the transitional committee, which sum shall not exceed $150 a day.
The remuneration payable to each member of a transitional committee (other than the chairperson) and to each deputy of such a member shall be a sum in respect of each day on which the member or deputy attends a meeting in his or her capacity as a member, or deputy of a member, of the transitional com­ mittee, which sum shall not exceed $100 a day.
(4) Where any member of a transitional committee or any deputy of such a member attends any meeting of that committee or, with the authority of the committee, travels in the service of the committee, that member or deputy shall be entitled to re­ 11 s 19 Local Government Amendment Act 1989 1989 No 1 (5) ceive travelling allowances and expenses as if that member or deputy were a member of the local authority that appointed that member or deputy, and the provisions of the Fees and Travelling Allowances Act 1951 shall apply accordingly.
Subject to section 16(3)(d) of this Act, the remuneration and the travelling allowances and expenses payable under this sec­ tion— (a) Shall be payable by the body or bodies that appointed or were entitled to appoint the person as a member of the transitional committee or as a deputy of such a member; and Shall be payable irrespective of any other remuneration or allowances or expenses payable to any member of the transitional committee or any deputy of any such member in any other capacity; and Shall not affect the entitlement of any member of the transitional committee or any deputy of any such mem­ ber to remuneration or allowances or expenses as mem­ bers of any local authority or any other committee of a local authority.
(b) (c) (6) No ex ofﬁcio member of a transitional committee and no mem­ ber of a transitional committee who is not entitled to vote shall be entitled, under or by virtue of this section, to any remuner­ ation.
19 Provisions relating to constitution and procedure of transitional committees (1) A draft scheme or ﬁnal reorganisation scheme may provide, in respect of a transitional committee,— (a) (b) For the appointment of ex ofﬁcio members: That, notwithstanding section 108(5) of the principal Act, a member may have more than one vote or a mem­ ber (including an ex ofﬁcio member) may not have a vote: That, notwithstanding section 108(6) of the principal Act, the chairperson shall not have a casting vote in the event of an equality of votes: (c) 12 1989 No 1 Local Government Amendment Act 1989 s 21 (d) That any or all of the ex ofﬁcio members and any or all of the members who are not entitled to a vote may be excluded from any meeting or part of a meeting.
(2) An ex ofﬁcio member of a transitional committee or a member of a transitional committee who is not entitled to vote may move or second a motion at any meeting of the transitional committee at which the member is present.

Subject to this Act and the principal Act, every transitional committee may regulate its own procedure.
(3) 20 (1) (2) (3) Deputies of members The body or bodies by which any member of a transitional committee is appointed may from to time by resolution ap­ point any other person to act as the deputy of that member at any meeting of the committee or of any subcommittee of the transitional committee.
The deputy of any member of a transitional committee shall have authority to act as a member in the event of the absence of the member from any meeting of the transitional committee or of any subcommittee of the transitional committee.

Every such deputy shall hold ofﬁce during the pleasure of the body or bodies by which the deputy was appointed.
(4) No act done by any deputy appointed under this section in that capacity and no act done by the transitional committee or by any subcommittee of the transitional committee while any such deputy is so acting, shall in any proceedings be ques­ tioned on the ground that the occasion for so acting had not arisen or had ceased.
21 Subcommittees A transitional committee may from time to time appoint sub­ committees consisting of 2 or more members of the transi­ tional committee, and every such subcommittee may— (a) Inquire into such matters as are referred to it by the transitional committee: Report on any such matter to the transitional committee.
(b) 13 s 22 Local Government Amendment Act 1989 1989 No 1 Delegation of functions or powers 22 (1) A transitional committee may delegate to any person or to any subcommittee appointed by it any of its functions, duties, or powers, including functions, duties, or powers delegated to the transitional committee: Provided that a transitional committee shall not delegate any functions, duties, or powers delegated to it by a local authority without the written consent of the local authority.
(2) Every delegation under this section shall be in writing.

(3) No delegation under this section shall include the power to (4) (5) delegate under this section.
Subject to any general or special directions given or conditions imposed by the transitional committee, the person to whom or the subcommittee to which any functions, duties, or powers are delegated under this section may exercise those functions or powers in the same manner and with the same effect as if they had been conferred on that person or subcommittee directly by this Act and not by delegation.
Every person or subcommittee purporting to act pursuant to any delegation under this section shall, in the absence of proof to the contrary, be presumed to be acting in accordance with the terms of the delegation.

(6) Any delegation under this section may be made to a speciﬁed person or to persons of a speciﬁed class, or to the holder or holders for the time being of a speciﬁed ofﬁce or speciﬁed class of ofﬁces.
(7) No such delegation shall affect or prevent the exercise of any function, duty, or power by the transitional committee, nor shall any such delegation affect the responsibility of the tran­ sitional committee for the actions of any person or subcom­ mittee acting under the delegation.

23 (1) Revocation of delegations Every delegation under section 22 of this Act shall be revoc­ able in writing at will.
(2) Any such delegation, until it is revoked, shall continue in force according to its tenor, notwithstanding any changes in the membership of the transitional committee.

14 1989 No 1 Local Government Amendment Act 1989 s 25 24 25 Discharge of transitional committees A transitional committee, unless sooner discharged, shall be deemed to be discharged as from the commencement of the ﬁrst meeting of the council of the new local authority in respect of which the transitional committee was established.
Special provision in respect of appointment by transitional committee of senior executives of local authority to be formed (2) (1) Notwithstanding the Public Bodies Contracts Act 1959 and the fact that a local authority to be formed is not yet a legal entity, where any draft scheme or ﬁnal reorganisation scheme pro­ vides for the constitution of a new local authority, the tran­ sitional committee may enter into contracts appointing per­ sons to senior executive positions with the local authority to be formed, and ﬁxing the conditions of employment of those persons.
The transitional committee shall not enter into a contract under subsection (1) of this section appointing a person to the pos­ ition of principal administrative ofﬁcer of the local author­ ity to be formed unless the Remuneration Authority has ﬁrst agreed in writing to the conditions of that contract which ﬁx the remuneration of that person.

In this subsection remuner­ ation has the meaning given to that term by section 2 of the Remuneration Authority Act 1977.
If the local authority is not formed on terms substantially the same as those set out in the draft scheme, the local authorities that appointed the members of a transitional committee and any other local authorities that were entitled to appoint a mem­ ber of that committee shall be liable in proportions speciﬁed by the transitional committee for the obligations expressed in any such contract to be those of the local authority to be formed.
(4) Where a contract is entered into under this section and the local authority to be formed is formed on terms substantially the same as those set out in the draft scheme, the local authority so formed shall decide, before the 30th day of June 1990, whether or not to ratify the contract.
(3) (5) Where a local authority, being a local authority formed on terms substantially the same as those set out in a draft scheme, 15 s 25A Local Government Amendment Act 1989 1989 No 1 (b) decides, before the 30th day of June 1990, not to ratify a con­ tract entered into under this section,— (a) The contract shall be cancelled as from the close of that day; and Compensation shall be payable to the person appointed to a senior executive position with the new local author­ ity, which compensation shall be an amount equal to 12 months’ salary of that person or such lesser amount as may be speciﬁed in the contract.
(6) (7) By the senior executive concerned; or By the transitional committee;— Every contract entered into under this section shall contain a condition that, if the local authority is not formed on terms substantially the same as those set out in the draft scheme, the contract shall be capable of being cancelled— (a) (b) and, if the contract is so cancelled, the compensation payable to the person appointed as a senior executive of the local au­ thority shall be an amount equal to 12 months’ salary of that person or such lesser amount as may be speciﬁed in the con­ tract.
Subject to subsection (2) of this section, nothing in the Local Authorities (Employment Protection) Act 1963 or the Remuneration Authority Act 1977 shall apply in respect of any person employed under any contract entered into under this section.

(8) Nothing in this section limits the right of any transitional com­ mittee or local authority to dismiss for good cause or in ac­ cordance with any contract any person appointed under this section.
Section 25 was amended, as from 1 April 2003, by section 4(1) Remuneration Authority (Members of Parliament) Amendment Act 2002 (2002 No 54) by sub­ stituting the words “Remuneration Authority” for the words “Higher Salaries Commission” in every place where they appear.
25A Deﬁnitions of former authority and successor authority In sections 25B, 25C, 25D, and 25E of this Act, unless the context otherwise requires,— Former authority means a local authority that is a former au­ thority for the purposes of any Order in Council made under 16 1989 No 1 Local Government Amendment Act 1989 s 25B section 36 of the Local Government Act 1974 and giving ef­ fect to any ﬁnal reorganisation scheme prepared under section 15B of the principal Act Successor authority means, in respect of any former author­ ity, a local authority constituted by an Order in Council made under section 36 of the Local Government Act 1974 and giving effect to a ﬁnal reorganisation scheme prepared under section 15B of the principal Act (being an Order in Council in which the former authority is deﬁned as a former authority).
25B Special provision in relation to transfer of employees to (1) local authorities to be formed Subject to any contract of employment, every employee em­ ployed by a former authority as at the 31st day of October 1989 shall be transferred, in accordance with this section, to a suc­ cessor authority.
(2) Where there is more than one successor authority, the local au­ thority to which an employee is to be transferred pursuant to subsection (1) of this section shall be determined by the prin­ cipal administrative ofﬁcers designate of the successor author­ ities and, in any case where there is no principal administrative ofﬁcer designate for any such successor authority, the transi­ tional committee of that successor authority shall, for the pur­ poses of this subsection, act in the place of the principal ad­ ministrative ofﬁcer designate for that successor authority.
(3) Where the local authority to which an employee is to be trans­ ferred is not determined in accordance with this section be­ fore the 1st day of September 1989, the ofﬁcers or committees charged with determining the matter under subsection (2) of this section shall refer the matter to the Local Government Commission for determination.
(4) Where a matter is referred to the Commission under subsection (3) of this section, the Commission shall, subject to subsection (5) of this section, determine the matter not later than the 14th day of October 1989.
(5) Where the Commission, after considering any matter referred to it under subsection (3) of this section, is satisﬁed that, but for that subsection, the matter could have been determined under 17 s 25C Local Government Amendment Act 1989 1989 No 1 subsection (2) of this section, the Commission may refer the matter back to the persons charged with determining the matter under subsection (2) of this section and those persons shall determine the matter accordingly.
If they fail to do so, the matter shall be determined by the Commission.

Except as provided in section 37A of the principal Act, the determination of the Commission on any matter referred to it under subsection (3) of this section shall be ﬁnal.
(6) 25C Application of Local Authorities (Employment Protection) Act 1963 (1) Where the provisions of subsections (2) to (6) of section 25B of this Act apply in respect of an employee, the successor au­ thority to which that employee is to be transferred shall be determined in accordance with those subsections and not in accordance with subsections (1) and (2) of section 4 and sub­ sections (1) and (2) of section 5 of the Local Authorities (Em­ ployment Protection) Act 1963.
Subject to subsection (1) of this section, the Local Authorities (Employment Protection) Act 1963, to the extent that it would otherwise apply, shall have effect in relation to a transfer under subsections (2) to (6) of section 25B of this Act as if it were a transfer under the Local Authorities (Employment Protection) Act 1963.

(2) 25D Terms and conditions of employment of employees transferred The terms and conditions of employment of each employee transferred pursuant to .

.
.

section 25B of this Act shall, unless varied by agreement, continue until the close of the 31st day of March 1990: .

Provided that every person so transferred shall perform such duties and hold such ofﬁce as are directed from time to time by the successor authority.

The expression “subsections (2) to (6) of” was omitted, as from 16 December 1989, by section 26 of the Local Government Reform (Transitional Provisions) Act 1990 (1990 No 27).
18 1989 No 1 Local Government Amendment Act 1989 s 25E 25E Continuation and negotiation of awards and agreements (1) Notwithstanding the provisions of this Act or any other enact­ ment,— (a) The principal administrative ofﬁcer designate of a local authority to be formed under an Order in Council made under section 36 of the principal Act and giving effect to a ﬁnal reorganisation scheme prepared under section 15B of the principal Act; or (b) After the 1st day of November 1989, any ofﬁcer author­ ised pursuant to section 119C(2) of the principal Act,— shall, until the close of the 31st day of March 1990, be author­ ised pursuant to this section to negotiate on behalf of the local authority, awards or agreements in terms of the Labour Rela­ tions Act 1987.
For the purposes of any negotiations undertaken pursuant to subsection (1) of this section before the 1st day of Novem­ ber 1989, every local authority to be formed, as described in the Order in Council, shall, for all the purposes of the Labour Relations Act 1987, be deemed to be an employer and an em­ ployer party in terms of that Act, notwithstanding that the local authority has not yet been formed.
(2) (3) Where, on or after the 1st day of November 1989, any award that binds as a subsequent party any successor authority is cur­ rent or in force, the following provisions shall apply: (a) The union party to any such award or the successor au­ thority may at any time before the 31st day of March 1990, notwithstanding that negotiations for a new award have not been initiated under the Labour Relations Act 1987, create a dispute of interest to procure an agree­ ment to cover any employees of the successor authority, and section 164 of the Labour Relations Act 1987 shall apply accordingly: (b) Notice of claims served under section 164(2) of the Labour Relations Act 1987 (as applied by paragraph (a) of this subsection) may be served by the union party in its own right or in conjunction with another union or unions: (c) Where, in respect of a dispute of interest created pur­ suant to paragraph (a) of this subsection, a settlement 19 s 25E Local Government Amendment Act 1989 1989 No 1 is arrived at and is forwarded to the Arbitration Com­ mission for registration, the Arbitration Commission may register the agreement notwithstanding that sec­ tion 164(6)(c) of the Labour Relations Act 1987 would apply in relation to the award which binds the relevant successor authority: (d) Where the Arbitration Commission registers an agree­ ment in accordance with this subsection, the coverage of any award which then overlaps with the coverage of the agreement shall be deemed to be amended accord­ ingly to prevent the overlapping coverage and, when that award is replaced, any subsequent award shall not be registered if it overlaps in coverage with the cover­ age of that agreement while that agreement remains in force.
(4) Notwithstanding any other provisions of this Act or of the Labour Relations Act 1987 or of any other enactment,— (a) Every agreement in terms of the Labour Relations Act 1987 relating to the terms and conditions of em­ ployment of employees of any former authority and in force immediately before the 1st day of November 1989, shall, unless sooner replaced pursuant to this section, continue to regulate the terms and conditions of employment of those employees and be enforceable under the Labour Relations Act 1987 in respect of those employees against the successor authority until the close of the 31st day of March 1990; and (b) Any award limited in coverage to the original parties in terms of section 160(3) of the Labour Relations Act 1987 relating to the terms and conditions of em­ ployment of employees of any former authority and in force immediately before the 1st day of November 1989, shall, unless sooner replaced pursuant to this section, continue to regulate the terms and conditions of employment of those employees and be enforceable under the Labour Relations Act 1987 in respect of those employees against the successor authority as if it were an original party until the close of the 31st day of March 1990.
20 1989 No 1 Local Government Amendment Act 1989 s 26A 26 Ss 25A­25E were substituted for the former sections 25A and 25B (as inserted by section 51 of the Local Government Amendment Act (No 2) 1989) by section 4 of the Local Government Amendment Act (No 3) 1989.

In subsection (1)(a) of section 25E, sections 15B and 36 were impliedly re­ pealed, as from 1 November 1989, by section 3(1) of the Local Government Amendment Act (No 2) 1989.
Continuous service For the purposes of section 6 of the Finance Act (No 2) 1941 and for the purposes of the Local Authorities (Employ­ ment Protection) Act 1963, where any employee’s period of service with a local authority is immediately preceded by a period of service with a transitional committee, that employee’s period of service with that local authority shall be deemed to include— (a) That employee’s period of service with the transitional committee; and (b) Where that employee was employed by a local authority immediately before that employee’s period of service with the transitional committee, that employee’s period of service with that local authority.
26A Continuous service of employees transferred as a result (1) of reorganisation The contract of employment of every person, being— (a) A person who is an employee of a local authority and who, pursuant to section 25B of this Act, becomes an employee of another local authority; or (b) A person in respect of whom section 26 of this Act ap­ plies,— shall, for the purposes of every enactment (except the Local Authorities (Employment Protection) Act 1963), and every law, award, determination, contract, and agreement relating to the employment of that person, be deemed not to have been broken by that person’s change of employer, and the period of service with the local authority or transitional committee by which the person was employed before he or she became an employee of the new local authority shall be deemed to have been a period of service with the new local authority.
21 s 26B Local Government Amendment Act 1989 1989 No 1 (2) No person to whom subsection (1) of this section applies shall be entitled to receive any payment or other beneﬁt by reason only of that person ceasing to be an employee of the local authority or transitional committee by which that person was employed before he or she became an employee of the new local authority.

Section 26A was inserted, as from 1 November 1989, by section 52 Local Gov­ ernment Amendment Act (No 2) 1989.
Subsection (1)(a) was substituted, as from 16 December 1989, by section 25 Local Government Reform (Transitional Provisions) Act 1990 (1990 No 27).
26B Conditions of employment of persons employed after 1 November 1989 Any person who commences employment on or after the 1st day of November 1989 with a local authority constituted by an Order in Council made under section 36 of the Local Government Act 1974 and giving effect to a ﬁnal reorgan­ isation scheme prepared under section 15B of the principal Act, shall be deemed, for the purpose of determining which award or agreement for the time being regulates the terms and conditions of employment of that person, to have been an employee of the principal authority designated in the ﬁnal reorganisation scheme and to have been transferred pursuant to section 25B of this Act.
Section 26B was inserted, as from 1 November 1989, 25 September 1989, by section 5 Local Government Amendment Act (No 3) 1989 (1989 No 72).
Employment contracts of local authorities 27 (1) No local authority that is affected by any draft scheme or ﬁnal reorganisation scheme shall enter into any contract for the em­ ployment of any person as a senior executive employee of, or consultant to, that local authority or any other local authority (whether or not then in existence) unless that contract— (a) Does not bind or purport to bind any local authority beyond the 30th day of June 1990; or Contains express provisions that the contract may be reviewed before the 30th day of June 1990 by any local authority to be formed that assumes any liability under it and may be cancelled by that local authority without penalty before that date.
(b) 22 1989 No 1 Local Government Amendment Act 1989 s 28 (2) Except as provided in subsections (3), (4), and (6) of this sec­ tion, subsection (1) of this section shall apply in respect of every contract entered into on or after the 18th day of Novem­ ber 1988.

(3) Nothing in subsection (1) of this section shall affect the rights of any person under sections 3 to 6 of the Local Authorities (Employment Protection) Act 1963, but section 9 of that Act shall apply subject to this section.
(4) A transitional committee may, in writing, exempt any local au­ thority affected by the draft scheme or the ﬁnal reorganisation scheme in respect of which the transitional committee is estab­ lished from the application of subsection (1) of this section in respect of any particular contract where the transitional com­ mittee is satisﬁed— (a) That the exemption is necessary to ensure the proper administration and functioning of the local authority en­ tering into the contract; and That there will not be signiﬁcant disadvantage to any other local authority (whether or not then in existence); and That, in the particular circumstances of the case, it is reasonable to do so.
(b) (c) (6) (5) No exemption shall be granted under subsection (4) of this section after the contract to which it relates has been entered into by a local authority.

This section shall not apply in respect of any contract entered into by a local authority after the 31st day of October 1989.

As to subsection (3) see the note to section 25 of this Act.
In subsection (6) the expression “31st” was substituted, as from 1 November 1989, for the expression “14th” by section 53 of the Local Government Amend­ ment Act (No 2) 1989 (1989 No 29).
28 (1) Obligation of local authorities to make and levy rates and assessments for full year to 31 March 1990 Every local authority to which a draft scheme or a ﬁnal re­ organisation scheme relates shall, in respect of the period of 12 months ending with the 31st day of March 1990,— (a) Cause estimates to be prepared; and 23 s 28 Local Government Amendment Act 1989 1989 No 1 (b) If it ordinarily makes and levies rates, make and levy rates,— as if the local authority were going to continue to perform all its functions and duties and exercise its powers for the whole of that period.
(2) Notwithstanding anything in sections 121 and 126 of the prin­ cipal Act, every united council to which a draft scheme or a ﬁ­ nal reorganisation scheme relates shall, in respect of the period of 13 months ending with the 31st day of March 1990,— (a) Cause estimates to be prepared under section 121 of the principal Act; and (3) (4) (b) Assess, under section 126 of the principal Act, the con­ tributions payable for that period by constituent author­ ities and other territorial authorities,— as if the united council were going to perform all its functions and duties and exercise its powers for the whole of that period.
The Auckland Regional Authority shall, in respect of the ﬁ­ nancial year ending on the 31st day of March 1990,— (a) Prepare, under section 58 of the Auckland Regional Authority Act 1963, an estimate of the estimated ex­ penditure and estimated income of the Auckland Re­ gional Authority; and (b) Assess, under section 60 of the Auckland Regional Authority Act 1960, the contributions payable for that ﬁnancial year by contributing authorities,— as if the Auckland Regional Authority were going to continue to perform all its functions and duties and exercise its powers for the whole of that ﬁnancial year.
Every harbour board shall, in respect of the period beginning on the 1st day of October 1989 and ending with the 31st day of March 1990, plan the management of its ﬁnancial affairs and collect revenue as if the harbour board were going to continue to perform all its functions and duties and exercise its powers for the whole of that period.
(5) No local authority to which a draft scheme or a ﬁnal reorgan­ isation scheme applies (including a body to which subsection (1) or subsection (2) or subsection (3) or subsection (4) of this section applies) shall, on the grounds that it is likely to go out 24 1989 No 1 Local Government Amendment Act 1989 s 30 of existence before the 31st day of March 1990, reduce the ﬁ­ nancial provision usually made by it.
29 Closing off of accounts A transitional committee may, with the agreement of every local authority that is entitled to appoint a member of the tran­ sitional committee, recommend to the new local authority that it close off the accounts of the abolished local authorities as from the close of the 31st day of October 1989.
29A Special provisions in relation to taxation For the purposes of the Income Tax Act 2004, the Accident Compensation Act 1982, and the Goods and Services Tax Act 1985, every local authority constituted pursuant to a ﬁnal re­ organisation scheme shall be deemed to be the same local au­ thority as each of the local authorities whose district, region, or functions are wholly transferred to that local authority.
Section 29A was inserted, as from 1 November 1989, by section 54 Local Gov­ ernment Amendment Act (No 2) 1989.

Section 29A was amended, as from 1 April 1995, by section YB 1 Income Tax Act 1994 (1994 No 164) by substituting the words “Income Tax Act 1994” for the words “Income Tax Act 1976”.

Section 29A was amended, as from 1 April 2005, by section YA 2 Income Tax Act 2004 (2004 No 35) by substituting the words “Income Tax Act 2004” for the words “Income Tax Act 1994”.
30 Protection for persons acting in relation to transitional matters (1) A person who does any act, whether before or after the com­ mencement of this Act, in pursuance or intended pursuance of— (a) (b) Any direction or proposal contained in a draft scheme; Any of the provisions of this Act; or (c) or Any document issued by the Local Government Com­ mission, whether before or after the commencement of this Act, for the purposes of section 15E(2) of the prin­ cipal Act (as enacted by section 6 of the Local Govern­ ment Amendment Act (No 3) 1988); or 25 s 30 Local Government Amendment Act 1989 1989 No 1 (d) Any document which was issued by the Local Gov­ ernment Commission before the commencement of this Act and which provided for a scheme called an indica­ tive scheme,— shall not be under any civil or criminal liability in respect thereof, whether on the ground of want of jurisdiction, or mis­ take of law or fact, or on any other ground, unless that person has acted in bad faith or without reasonable care.
(2) No proceedings, civil or criminal, shall be brought against any person in any Court in respect of any such act except by leave of a Judge of the High Court and such leave shall not be granted unless the Judge is satisﬁed that there is substantial ground for the contention that the person against whom it is sought to bring the proceedings has acted in bad faith or with­ out reasonable care.
(4) (3) Notice of any application under subsection (2) of this section shall be given to the person against whom it is sought to bring the proceedings, and that person shall be entitled to be heard against the application.

Leave to bring such proceedings shall not be granted unless application for such leave is made within 12 months after the act complained of, or, in the case of a continuance of injury or damage, within 12 months after the ceasing of the injury or damage.
In granting leave to bring any such proceedings as aforesaid, the Judge may limit the time within which such leave may be exercised.

(5) 26