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Local Government Borrowing Bill (Consistent) [2011] NZBORARp 10 (18 March 2011)

Last Updated: 28 April 2019

Local Government Borrowing Bill

18 March 2011 ATTORNEY-GENERAL LEGAL ADVICE

CONSISTENCY WITH THE NEW ZEALAND BILL OF RIGHTS ACT 1990:

LOCAL GOVERNMENT BORROWING BILL

1. We have considered whether the Local Government Borrowing Bill (PCO 14976/3.4) (the Bill) is consistent with the New Zealand Bill of Rights Act 1990 (the Bill of Rights Act). We understand that the Bill is likely to be considered by the Cabinet Legislation Committee at its meeting on Thursday, 24 March 2011. We also understand that the Bill is likely to be subject to further minor amendments before it is considered by the Cabinet Legislation Committee. We will provide you with further advice should this prove necessary.
2. The purpose of the Bill is to allow for more cost effective borrowing by Local Authorities. To achieve this purpose, the Bill seeks to facilitate the operation of the New Zealand Local Government Funding Agency Limited (the Funding Agency). The Funding Agency will issue debt on behalf of all participating Local Authorities. The Bill:
   

• provides the Funding Agency with certain legislative entitlements and exemptions that allow it to be treated as if it were a Local Authority
• allows the Minister of Finance to lend to the Funding Authority if it is necessary or expedient in the public interest to do so and is for the specific purpose of meeting an exceptional and temporary liquidity shortfall, and
• specifies that the Crown does not guarantee the obligations of the Funding Authority.
  

The Bill also seeks to amend the Local Government (Auckland Council) Act 2009 to authorise the Auckland Council to borrow or enter into incidental arrangements in foreign currency.

We have concluded that the Bill appears to be consistent with the rights and freedoms affirmed in the Bill of Rights Act. This advice has been prepared by the Public Law Group and the Office of Legal Counsel.

Jeff Orr

Chief Legal Counsel Office of Legal Counsel

In addition to the general disclaimer for all documents on this website, please note the following: This advice was prepared to assist the Attorney-General to determine whether a report should be made to Parliament under s 7 of the New Zealand Bill of Rights Act 1990 in relation to the Local Government Borrowing Bill. It should not be used or acted upon for any other purpose. The advice does no more than assess whether the Bill complies with the minimum guarantees contained in the New Zealand Bill of Rights Act. The release of this advice should not be taken to indicate that the Attorney-General agrees with all aspects of it, nor does its release constitute a general waiver of legal professional privilege in respect of this or any other matter. Whilst care has been taken to ensure that this document is an accurate reproduction of the advice provided to the Attorney-General, neither the Ministry of Justice nor the Crown Law Office accepts any liability for any errors or omissions.