Finance Act 1988

1: Short Title and commencement
1: This Act may be cited as the Finance Act 1988.
2: Subject to section 6(5)
2: Act binds the Crown
This Act binds the Crown.
1: Substantive provisions
3: Authorising Crown shareholding in Fletcher Challenge Limited
1: Subject to subsection (2), the Minister of Finance—
a: may from time to time, on behalf of Her Majesty the Queen, subscribe for or otherwise acquire shares in Fletcher Challenge Limited:
b: out of money appropriated by Parliament for the purpose, pay for any such shares so acquired:
c: on behalf of Her Majesty, exercise all or any of Her Majesty's rights as the holder of any such shares.
2: The Minister shall not acquire shares under subsection (1) except—
a: pursuant to the contract described in subsection (4); or
b: by the exercise of a right to do so arising out of Her Majesty's already holding or having a right to hold shares acquired under this section.
3: For the avoidance of doubt,—
a: to the extent that the contract described in subsection (4) requires or empowers Her Majesty to acquire shares in Fletcher Challenge Limited, the actions of the Ministers of Finance and Energy in entering into it are hereby declared to have been lawful; and
b: to the extent that the contract requires or empowers Her Majesty to acquire shares in Fletcher Challenge Limited, it is hereby declared to have been and to continue to be lawful.
4: The contract referred to in subsections (2) and (3) is the contract dated 3 March 1988, between Her Majesty the Queen, Rossport Investments Limited, and Fletcher Challenge Limited.
5: Amendment(s) incorporated in the Act(s)
4: Authorising Crown shareholding in company performing functions of Government Stores Board
Section 4 repealed 1 December 1988 section 19(6) Finance Act (No 2) 1988
5: Amendment to Dairy Board Amendment Act 1988
Section 5 repealed 16 October 2001 section 165(4) Dairy Industry Restructuring Act 2001
6: Pension to widow of late Norman Eric Kirk
Section 6 repealed 16 December 2013 section 66 Members of Parliament (Remuneration and Services) Act 2013
7: Payment of fringe benefit tax on payments made by Crown into certain superannuation funds
There may be paid out of public money FBT (within the meaning of the Income Tax Act 2007 Government Superannuation Fund Act 1956 National Provident Fund Act 1950 Section 7 amended 1 April 2008 section ZA 2(1) Income Tax Act 2007 Section 7 amended 26 July 1989 section 86(1) Public Finance Act 1989
2: Merger of banking businesses of Trust Bank Wanganui and Trust Bank Eastern and Central
8: Interpretation of terms used in this Part
1: In this Part, unless the context otherwise requires,— appointed day section 9 excluded assets instrument
a: any instrument (other than an enactment) of any form or kind that creates, evidences, modifies, or extinguishes rights, interests, or liabilities or would do so if it or a copy thereof were lodged, filed, or registered under any enactment; and
b: any judgment, order, or process of a court instrument by way of security section 2 of the Chattels Transfer Act 1924 land section 2 liabilities property
a: choses in actions and money:
b: goodwill:
c: rights, interests and claims of every kind in or to property, whether arising from, accruing under, created or evidenced by, or the subject of, an instrument or otherwise and whether liquidated or unliquidated, actual, contingent, or prospective reserves section 41 of the Trustee Banks Act 1983 rights security undertaking
a: excluded assets:
b: rights and liabilities relating to excluded assets:
c: reserves.
2: For the purposes of this Part, the value of the reserves of Trust Bank Wanganui shall be the value of the reserves as determined by resolutions of the boards of trustees of Trust Bank Wanganui and Trust Bank Eastern and Central not being a value less than the value of the Reserve Fund as shown in the audited financial statements of Trust Bank Wanganui as at 31 March 1988.
3: In this Part a reference to Trust Bank Eastern and Central includes a reference to that bank under any other name.
9: Transfer of undertaking of Trust Bank Wanganui to Trust Bank Eastern and Central
On a date to be appointed by the Governor-General by Order in Council the undertaking of Trust Bank Wanganui shall, by virtue of this Part, vest in Trust Bank Eastern and Central.
10: Consequential provisions on transfer of undertaking
Without limiting the generality of section 9
a: a reference (express or implied) to Trust Bank Wanganui in any instrument made, given, passed or executed before the appointed day shall be read and construed as a reference to Trust Bank Eastern and Central:
b: the relationship between Trust Bank Wanganui and a customer or depositor shall become the same relationship between Trust Bank Eastern and Central and that customer or depositor and the same rights and liabilities, including rights of set-off, shall exist between Trust Bank Eastern and Central and a customer or depositor as existed immediately before the appointed day between Trust Bank Wanganui and that customer or depositor:
c: all contracts, agreements, conveyances, deeds, leases, licences, and other instruments, undertakings, and notices (whether or not in writing), entered into by, made with, given to or by, or addressed to Trust Bank Wanganui (whether alone or with any other person) before the appointed day and subsisting immediately before the appointed day shall, to the extent that they were previously binding on and enforceable by, against, or in favour of Trust Bank Wanganui be binding on and enforceable by, against or in favour of Trust Bank Eastern and Central as fully and effectually in every respect as if, instead of Trust Bank Wanganui Trust Bank Eastern and Central had been the person by whom they were entered into, with whom they were made or to or by whom they were given or addressed, as the case may be:
d: an instruction, order, direction, mandate, or authority given to Trust Bank Wanganui and subsisting immediately before the appointed day shall be deemed to have been given to Trust Bank Eastern and Central:
e: a security held by Trust Bank Wanganui as security for a debt or other liability to Trust Bank Wanganui incurred before the appointed day shall be available to Trust Bank Eastern and Central as security for the discharge of that debt or liability and, where the security extends to future or prospective debts or liabilities, shall be available as security for the discharge of debts or liabilities to Trust Bank Eastern and Central incurred on or after the appointed day; and, in relation to a security, Trust Bank Eastern and Central shall be entitled to all the rights and priorities (howsoever arising) and shall be subject to all liabilities to which Trust Bank Wanganui would have been entitled or subject if this Act had not been passed:
f: all the rights and liabilities of Trust Bank Wanganui as bailor or bailee of documents or chattels shall be vested in and assumed by Trust Bank Eastern and Central:
g: a negotiable instrument or order for payment of money which before the appointed day is drawn on or given to or accepted or indorsed by Trust Bank Wanganui or payable at a place of business of Trust Bank Wanganui shall, unless the context otherwise requires, have the same effect on and after the appointed day as if it had been drawn on or given to or accepted or indorsed by Trust Bank Eastern and Central instead of Trust Bank Wanganui or was payable at the place of business of Trust Bank Eastern and Central:
h: a reference (express or implied) to the holder for the time being of a particular office (other than the office of trustee, secretary, or auditor) within Trust Bank Wanganui in any instrument made, given, passed, or executed before the appointed day shall be read and construed as a reference to the person for the time being holding office as the chief executive of Trust Bank Eastern and Central or such other officer of Trust Bank Eastern and Central as is designated from time to time by the chief executive or by any other person acting under delegation from the chief executive:
i: nothing effected or authorised by this Part—
i: shall affect the existence or status of Trust Bank Wanganui or, except as provided in this Act, any of its powers; or
ii: shall be regarded as placing Trust Bank Wanganui or Trust Bank Eastern and Central or any other person in breach of contract or confidence or as otherwise making any of them guilty of a civil wrong; or
iii: shall be regarded as giving rise to a right for any person to terminate or cancel any contract or arrangement or to accelerate the performance of any obligation; or
iv: shall be regarded as placing Trust Bank Wanganui or Trust Bank Eastern and Central or any other person in breach of any enactment or rule of law or contractual provision prohibiting, restricting, or regulating the assignment or transfer of any property or the disclosure of any information; or
v: shall release any surety wholly or in part from all or any obligation; or
vi: shall invalidate or discharge any contract or security; or
vii: shall affect the area of operations of Trust Bank Wanganui; or
viii: shall affect the right of the trustees of Trust Bank Wanganui to receive any remuneration they would have been entitled to receive if this Act had not been passed:
j: any action, arbitration or proceedings or cause of action which immediately before the appointed day is pending or existing by, against, or in favour of Trust Bank Wanganui or to which Trust Bank Wanganui is a party may be prosecuted, and without amendment of any writ, pleading or other document, continued and enforced by, against, or in favour of Trust Bank Eastern and Central.
11: Employees
Notwithstanding any other provisions of this Part—
a: on the appointed day each employee of Trust Bank Wanganui shall become an employee of Trust Bank Eastern and Central but, for the purposes of every enactment, law, award, determination, contract, and agreement relating to the employment of each such employee, the contract of employment of that employee shall be deemed to have been unbroken and the period of service with Trust Bank Wanganui shall be deemed to have been a period of service with Trust Bank Eastern and Central:
b: the terms and conditions of employment of each such employee shall, until varied, be identical with the terms and conditions of that employee's employment with Trust Bank Wanganui immediately before the appointed day and be capable of variation in the same manner:
c: no such employee shall be entitled to receive any payment or other benefit by reason only of that employee ceasing by virtue of this Part to be an employee of Trust Bank Wanganui.
12: Superannuation rights
On and after the appointed day—
a: property held on trust or vested in any person under any provident, benefit, superannuation, or retirement fund or scheme for the employees of Trust Bank Wanganui or their dependants or other persons immediately before the appointed day, shall be deemed to be held on trust or vested in that person for those employees in their capacity as employees of Trust Bank Eastern and Central or their dependants or other persons on the same terms and conditions; and
b: every reference in any instrument constituting that fund or scheme to Trust Bank Wanganui or an employee of Trust Bank Wanganui or a dependant of that employee or any other person shall be read and construed as a reference to Trust Bank Eastern and Central or to that employee as an employee of Trust Bank Eastern and Central, or a dependant of that employee or any other person, as the case may be; and
c: a superannuation scheme to which this section applies that was, immediately before the appointed day, an approved superannuation scheme within the meaning of the Superannuation Schemes Act 1976
13: Books and documents to remain evidence
1: Any document, matter, or thing, which, if this Part had not been passed, would have been admissible in evidence in respect of any matter for or against Trust Bank Wanganui shall, on and after the appointed day, be admissible in evidence in respect of the same matter for or against Trust Bank Eastern and Central.
2: In this section, document section 2(1)
14: Registers
1: The Registrar of Deeds, District Land Registrar, or any other person charged with the keeping of any books or registers is not
2: The presentation to any registrar or other person of any instrument, whether or not comprising an instrument of transfer, by Trust Bank Eastern and Central—
a: executed or purporting to be executed by Trust Bank Eastern and Central; and
b: relating to any property held immediately before the appointed day by Trust Bank Wanganui; and
c: containing a recital that that property has become vested in Trust Bank Eastern and Central by virtue of the provisions of this Part— shall, in the absence of evidence of the contrary, be sufficient proof that the property is vested in Trust Bank Eastern and Central. Section 14(1) amended 12 November 2018 section 250 Land Transfer Act 2017
15: This Part not limited by Trustee Banks Act 1983
1: Nothing in the Trustee Banks Act 1983
a: preventing the vesting of the undertaking of Trust Bank Wanganui in Trust Bank Eastern and Central under this Part; or
b: limiting or affecting this Part.
2: Notwithstanding anything contained in the Trustee Banks Act 1983 section 28 of that Act
16: Application of Trustee Banks Restructuring Act 1988
1: The excluded assets, or any assets into which they may become converted, and the reserves of Trust Bank Wanganui shall, with effect from the appointed day, be deemed to constitute the undertaking of Trust Bank Wanganui within the meaning and for the purposes of the Trustee Banks Restructuring Act 1988
2: For the purposes of the Trustee Banks Restructuring Act 1988
3: Validation, amendments, and repeals
17: Hornby Licensing Trust: validating borrowing
1: Notwithstanding that the Hornby Licensing Trust may not have obtained the consent of the Minister of Finance (as required by section 37(2) of the Licensing Trusts Act 1949
a: the actions of the Trust in raising the loans are hereby declared to have been as valid and effectual; and
b: the loans are hereby declared to be and continue to be as valid,— as if consent had been obtained.
2: The loans concerned are—
a: a loan of $2,000,000 raised from the Development Finance Corporation on 27 January 1987; and
b: a loan of $3,000,000 raised from Westpac Securities Limited on 31 March 1988.
18: Dissolving National Research Advisory Council
1: The National Research Advisory Council is hereby dissolved.
2: The following enactments are hereby repealed:
a: the National Research Advisory Council Act 1963
b: the National Research Advisory Council Amendment Act 1976
c: the National Research Advisory Council Amendment Act 1986
d:
e:
3: Amendment(s) incorporated in the Act(s)
4: Section 18(2)﻿(d) repealed 10 April 1998 section 48(1) Crown Research Institutes Act 1992 Section 18(2)﻿(e) repealed 1 April 2005 section YA 2 Income Tax Act 2004 Section 18(4) repealed 2 August 1990 section 14(2)﻿(b) Foundation for Research, Science, and Technology Act 1990
19: Statutory amendments consequential on disposal of Petroleum Corporation of New Zealand Limited
1:
2: Amendment(s) incorporated in the Act(s)
3: Notwithstanding subsection (2), the Petroleum Corporation of New Zealand Limited shall, as soon as is practicable after the commencement of this section, send to the Minister of Energy a report on its operations for the year ending with 31 March 1988 together with a copy of its financial statements for the year; and the Minister shall lay copies of the report and statements before the House of Representatives. Section 19(1) repealed 1 April 2005 section YA 2 Income Tax Act 2004
20: Repeals
1: Amendment(s) incorporated in the Act(s)
2: The repeal by subsection (1) of sections 13(4) 14(3) Housing New Zealand Corporation
3: The repeal by subsection (1) of sections 15 to 18 Section 20(2) amended 1 July 2001 section 24(1) Housing Corporation Amendment Act 2001