NEW ZEALAND GAZETTE, No. 63 — 15 JUNE 2017

On 15 May 2017, Cabinet agreed to the appointment of a Crown Manager to assist the Kaipara District Council.

There are current legal actions relating to the development of the Scheme, and the setting or collection of rates during the Kaipara Commission’s term. These legal actions could inhibit the ability of the recently elected Council to make immediate decisions on behalf of the community and provide effective governance. These legal cases may distract the Council from its governance role. Pursuant to Part 10 of the Act, this creates concerns of probable adverse consequences for residents and ratepayers.

Pursuant to section 258D of the Act, the Crown Manager is being appointed to assist the Council on any outstanding and future legal actions relating to the development of the Scheme, and the setting or collection of rates during and prior to the Kaipara Commission’s term on the Council’s behalf.

The Associate Minister of Local Government considers that the assistance of a Crown Manager is important to the success of Council members in providing effective governance. Pursuant to section 258D(1)(a) of the Act, and in accordance with the Minister of Local Government’s delegation of all matters relating to the Council, the Associate Minister of Local Government appoints a Crown Manager to assist the Council.

Section 258O of the Act requires the Minister of Local Government (“Minister”) to publish in the New Zealand Gazette a list of matters relevant to determining what action, if any, to take under subpart 1 of Part 10 of the Act, which relates to Ministerial powers of assistance and intervention in relation to local authorities. Section 258P of the Act requires the Minister to have regard to the list of matters published in the New Zealand Gazette, 28 March 2013, No. 38, page 1140.

The list of matters to which the Minister must have regard comprise:

(a) Guiding principles:

In making decisions under Part 10 of the Act and determining what action, if any, to take under Subpart 1 of Part 10 of the Act, the Minister is likely to adopt the following guiding principles:

• Ministerial action should be informed by the purpose of local government and the role of, and principles relating to, local authorities, as set out in Subparts 1 and 2 of Part 2 of the Act;
• local authorities are responsible for preventing and solving their own problems;
• local authorities’ accountability is to their ratepayers and residents;
• elections are the primary mechanism for communities to express satisfaction or dissatisfaction with elected representatives;
• Ministerial assistance or intervention should have regard to:
  • what the local authority has done, is doing, or plans to do about the problem; and
  • the costs and benefits of assistance or intervention;
• Ministerial assistance or intervention should be proportionate to:
  • the nature and magnitude of the problem;
  • its potential consequences; and
  • its duration to date and its likely duration if not addressed;
• Ministerial assistance or intervention should endure for only as long as necessary to resolve the problem and provide for a transition back to normal democratic processes; and
• Ministerial decisions regarding assistance or intervention should be transparent.

(b) Matters likely to detract from the ability of local authorities to give effect to the purpose of local government:

The matters or circumstances relating to management or governance of local authorities that the Minister considers are likely to detract from the ability of local authorities to give effect to the purpose of local government within their districts or regions are:

• financial mismanagement;
• a significant failure in service delivery;
• dysfunctional governance, which includes:
  • failure or breakdown of key relationships; and/or
  • serious capability deficiencies of elected members or the chief executive of the local authority.

(c) Types and sources of information:

When making decisions under Part 10 of the Act, the Minister is likely to consider the following types and sources

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