Local Government Act 2002

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The purpose of the Local Government Act is to provide for democratic and effective local government that recognises the diversity of New Zealand communities.
 To that end, the Act states the purpose of local government, provides a framework and powers for local authorities to decide which activities they undertake and the manner in which they will undertake them, promotes the accountability of local authorities to their communities and provides for local authorities to play a broad role in promoting the social, economic, environmental, and cultural well-being of their communities, taking a sustainable development approach.

Principles relating to local authorities

In performing its role, a local authority should:
  • be open, transparent, and democratically accountable
  • consider the views of all of its communities
  • take account of the diversity of the community, and the community's interests (including future communities)
  • provide opportunities for Maori to contribute to decision-making processes
  • act in a collaborative and co-operate manner to make efficient use of resources
  • use sound business practices
  • be good stewards of local resources
  • take into account the social, economic, and cultural well-being of people and communities; the need to maintain and enhance the quality of the environment; and the reasonably foreseeable needs of future generations
Further information on the Local Government Act can be found at the Local Government New Zealand website

Governance, Management and Decisions

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Governance and Management of Local Authorities

Part 4 of the LGA provides principles for the governance and management of local authorities. These principles and other provisions are intended to ensure that elected members are responsible, open, transparent, and democratically accountable in their decision-making, as well as making clear the role of the chief executive.

Part 4 also requires for the preparation of a local governance statement that includes information on the conduct for elected members, including a requirement for local authorities to adopt a code of conduct, information on the electoral system and representation arrangements, and key council policies and structures.

This Part also specifies the constitution and purpose of community boards, outlines processes for disestablishing community boards and requires systems to be in place for giving advice to community boards.


Council-controlled and council organisations

Part 5 of the LGA provides a governance and accountability framework for a local authority’s involvement in arm’s-length organisations.  The Act provides a comprehensive framework that applies to all forms of arm’s-length entity.  Arm's-length entities are accountable to the local authority for their performance, and the local authority is, in turn, accountable to the community for both the local authority’s involvement with the arm’s-length entity and the performance of the arm’s-length entity.


Decision-making, consultation and accountability

Part 6 of the LGA requires certain decisions, such as commencing a significant activity, to be undertaken in accordance with the LTCCP or by way of an amendment to the LTCCP.

The extent to which local authorities comply with decision-making requirements can be proportional to the significance of the matter under consideration. Local authorities are required to develop a policy on significance to indicate when an issue is important to the council or community.

Local authorities must identify all reasonably practicable options for achieving the objective of a decision and assessing those options by considering the benefits and costs in terms of the present and future well-being of the community, and the extent to which community outcomes would be promoted.

When a local authority undertakes public consultation, it must do provide easy-to-understand summaries of proposals and plans, identify who will be affected by decisions and encourage them to make their views known to the council, give reasons for their decisions, and find out what all the practical options are for dealing with issues and carefully assess them.

Local authorities are required by section 92 of the Act to monitor, not less than once every 3 years, and report on, the progress made by the community in achieving the community outcomes for the district or region. Local authorities’ intended and actual activities and performance in relation to LTCCP objectives continue to be set out in annual plans and reports, which also must state how councils have involved Māori in council processes.

What happens if a Council breaks the law?

Despite the far-reaching powers of local bodies in this country (i.e. the power to tax through rates, the power of search and seizure, the power to impose fines and pass bylaws) there is very little balance placed on Councils through the Local Government Act. If you want to take a legal remedy against a Council your options are limited to:
  • The Office of the Ombudsmen
  • High Court judicial review
  • Auditor General's office

So can the Police prosecute a Council?  No.  Can individual take a private prosecution against a local body for a breach of the Local Government Act?  No.  In fact only one person in the entire country can intervene and that is the Minister of Local Government, who may appoint:
  • a review authority
  • a Commissioner to perform and exercise powers and duties of local authority or call general election
  • a person to act on behalf of local authority, or initiate a review