Transit New Zealand Amendment

Transit New Zealand Amendment 1995 ANALYSIS

[Items 1 to 12 deal with changes to TNZ]

Provisions Coming into Force on 1 July 1996

13. Interpretation

14. New Part IA inserted

PART IA TRANSFUND NEW ZEALAND

3A. Constitution of Transfund New Zealand

3B. Principal objective of Board

3C. Functions and powers of Board

3D. Functions and powers of Board in relation to alternative forms of transport

3E. Board to have powers of natural person

3F. Board to comply with policy directions

3G Use of words 'Transfund New Zealand'

3H Board to consider delegating or contracting out functions and powers

3I Delegation of Board's functions or powers to employees of Board

3J Delegation of Board's functions or powers to persons outside Board

[Items 15 to 17 deal with changes to TNZ]

18. New Parts II and III substituted

PART II FUNDING OF CAPITAL PROJECTS AND OUTPUTS

Land Transport Funding

8. Interpretation

9. Payment of roading revenue to Crown Bank Account

10. Crown's authority to incur certain land transport expenditure

11. Payment of roading revenue into Crown Bank Account

12. Payment of roading revenue from Crown Bank Account

National Roads Account

13. Board to operate National Roads Account

14. Management and investment of National Roads Account

15. Payments from National Roads Account

16. Payments by Board

17. Board may approve outputs and capital projects

18. Approved projects to form part of national roading programme

Payments from National Roads Account to Authority

19. Payments to Authority

20. Authority to operate State Highways Account

21. Management and investment of State Highways Account

22. Payments from State Highways Account

Payments from National Roads Account to Local Authorities

23. Payments to local authorities

24. Local authorities to operate Land Transport Disbursement Accounts

Restrictions on Payments from State Highways Account and Land Transport Disbursement Accounts

25 Interpretation

26. Competitive pricing procedure

27. Expenditure subject to competitive pricing procedure

28. Special provisions relating to in-house professional services

29. Special provisions relating to minor and ancillary works during 1997 and 1998

30. Certain payments for minor and ancillary works deemed to comply with section 27

31. Information to be provided by local authority in respect of certain payments

32. Determinations by Minister

33. Board may reduce payments in certain cases

34. Board may require certain information from Authority and local authorities

35. Payments may be conditional on projects being carried out to satisfactory standard

36. Certain payments prohibited

[The remainder of the Act deals with road safety and miscellaneous provisions relating to TNZ]

1995, NO. 42 AN ACT TO AMEND THE TRANSIT NEW ZEALAND ACT 1989 29 JULY 1995

BE IT ENACTED by the Parliament of New Zealand as follows:

1. Short Title and commencement—

(1) This Act may be cited as the Transit New Zealand Amendment Act 1995, and shall be read together with and deemed part of the Transit New Zealand Act 1989 (hereinafter referred to as the principal Act).

(2) Except as provided in subsection (3) of this section, this Act shall come into force on the day on which it receives the Royal assent.

(3) Sections 13 to 40 (except section 37 (1)) of this Act, and the Schedules to this Act, shall come into force on the 1st day of July 1996.

Provisions Coming into Force on 1 July 1996

13. Interpretation—

[This initial section deals with definitions.]

14. New Part IA inserted—

The principal Act is hereby amended by inserting, before Part I, the following Part:

PART IA TRANSFUND NEW ZEALAND

3A. Constitution of Transfund New Zealand—

(2) The Board shall consist of—

(a) Two members, each of whom shall be an employee or member of the [Transit New Zealand] Authority; and
(b) One member who shall represent local government; and (c) One member who shall represent road users; and
(c) One member who shall represent an aspect of the public interest that is not represented by the other members of the Board.

(4) The Minister shall not make any recommendation under subsection (3) of this section unless he or she has consulted with such persons, representative groups within the land transport industry or elsewhere, Government departments, and Crown entities as he or she considers appropriate.

5) A person may hold office as a member concurrently with any other office, except any office or appointment under the Transport Accident Investigation Commission Act 1990.

(6) The Board shall be a body corporate with perpetual succession and a common seal.

(7) The seal of the Board shall be judicially noticed in all courts and for all courts and for all purposes.

(8) The Board is hereby deemed to be a Crown entity for the purposes of the Public Finance Act 1989.

(9) The provisions of Schedule 1A to this Act shall apply in relation to the Board and its proceedings, members, consultants, agents, specialists, committees, and any employee.

3B. Principal objective of Board—

The principal objective of the Board shall be to allocate resources to achieve a safe and efficient roading system.

3C. Functions and powers of Board—

(1) The functions of the Board shall be— (a) To approve and to purchase a national roading programme in accordance with section 42A of this Act [attached as Annex 1]:

(b) To approve capital projects and to purchase outputs under section 17 of this Act:

(d) To review and revise the national roading programme in accordance with its most recent performance agreement:

(e) To approve competitive pricing procedures under section 26 of this Act:

(f) To audit the performance of the Authority as compared with its State highways programme:

(g) To assist and advise local authorities in relation to their functions, duties, and powers under this Act and the Land Transport Act 1993:

(h) To audit the performance of every local authority as compared with its regional programme or district roading programme, as the case may be:

(i) To provide the Minister with such information and advice as the Minister may from time to time require:

(j) To carry out such other functions and duties, in relation to roading, as the Minister may from time to time prescribe by notice in the Gazette.

(2) For the avoidance of doubt, it is hereby declared that in performing or exercising any functions or powers in relation (a) The inclusion of outputs and capital projects in the national roading programme; and

(b) The making of payments from the National Roads Account—the Board shall act independently of the Minister and the Authority.

3D. Functions and powers of Board in relation to alternative forms of transport—

Without limiting any other provision of this Act, it is hereby declared that—

(a) The power of the Board to fund any outputs under this Act authorizes the Board to fund outputs that consider or develop efficient alternatives to the provision or maintenance of roading; and

(b) Any such output may relate to one or more of the following, namely, passenger services, rail transport, and maritime transport; and, for the purposes of this paragraph, the terms 'passenger services', 'rail transport, and 'maritime transport' include the carriage of freight and the carriage of passengers.

3E. Board to have powers of natural person—

(a) The rights, powers, and privileges of a natural person; and

(b) The power [o do any thing it is authorized to do by or under— (i) This Act; or
(ii) Any other enactment; or
(iii) Any rule of law.
(2) The Board shall not exercise any of its rights, powers, or privileges except for the purpose of performing its functions. Cf. I993, No. 88, s. 19

3F. Board to comply with policy directions—

In the exercise of its functions, duties, and powers under this Act, the Board shall have regard to the policy of the Government in relation to land transport, and shall comply with any general directions relating to that policy given in writing signed by the Minister. Within 12 sitting days after any such direction is given, the Minister shall publish in the Gazette and lay before the House of Representatives a copy of that direction.

Cf. 1989, No. 75, s. 7

3G. Use of words "Transfund New Zealand"—

(2) Nothing in subsection (1) of this section shall apply to the Board or to any person who is appropriately authorized by the Board.

3H. Board to consider delegating or contracting out functions and powers—

Subject to this Act, the Board shall, in the course of performing its functions and powers, consider whether it could most efficiently and effectively perform those functions and powers by means of its own operations or by delegating or contracting out those operations to appropriate persons selected after an appropriate competitive process.

Cf. 1993, No. 88, S. 20

3I. Delegation of Board's functions or powers to employees of Board—

(2) Every delegation under this section shall be in writing.

(3) The Board shall not delegate any functions or powers delegated to the Board by the Minister without the written consent of the Minister.

(4) In any case where the Board has delegated any functions or powers to an employee of the Board under this section, that employee may, with the prior approval in writing of the Board, delegate to any other employee of the Board such of those functions or powers as are so approved.

(5) Subject to any general or special directions given or conditions imposed by the Board, any employee of the Board to whom any functions or powers are delegated under this section may perform those functions and exercise those powers in the same manner and with the same effect as if they had been conferred or imposed on that employee directly by this Act and not by delegation.

(6) Every employee of the Board purporting to act under 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.

(7) Any delegation under this section may be made to a specified employee of the Board or to employees of a specified class, or to the holder or holders for the time being of a specified office of the Board or a specified class of office of the Board.

(8) No delegation under this section shall affect or prevent the performance of any function or the exercise of any power by the Board, nor shall any such delegation affect the responsibility of the Board for the actions of an employee of the Board acting under the delegation.

(9) Every delegation under this section shall, until it is revoked, continue in force according to its tenor, notwithstanding the fact that the employee of the Board by whom it was made may cease to hold office, and shall continue to have effect as if made by the employee for the time being holding that office.

(10) Every employee of the Board purporting to act under any delegation under this section shall, when reasonably requested to do so, produce evidence of his or her authority to so act.

Cf. 1993, No. 88, s. 27

3J. Delegation of Board's functions or powers to persons outside Board—

(2) Every delegation under this section shall be in writing.

(3) No delegation shall be made under this section without the written consent of the Minister.

(4) In any case where the Board has delegated any functions or powers to any person under this section, that person may, with the prior approval in writing of the Minister, delegate to any other person such of those functions or powers as are so approved.

(5) Subject to any general or special directions given or conditions imposed by t e Board, any person may exercise any functions or powers delegated under this section in the same manner and with the same effect as if they had been conferred or imposed on that person directly by this section and not by delegation.

(6) Any delegation under this section may be made to a specified person or persons of a specified class or to the holder or holders for the time being of a specified office or specified class of office.

(7) Every delegation under this section shall be given for a specified period but in any event shall be revocable at will.

(8) No delegation under this section shall affect or prevent the performance or exercise of any function or power by the Board, nor shall any such delegation affect the responsibility of the Board, for the actions of any person acting under the delegation.

(9) Every delegation under this section shall, until it is revoked or it expires, continue in force according to its tenor, notwithstanding the fact that the person by whom it was made may cease to hold office, and shall continue to have effect as if it were made by the person for the time being holding that office.

(10) Every person purporting to act under any delegation under this section shall, when reasonably requested to do so, produce evidence of his or her authority to so act.

(11) Any person who exercises any function or power under a delegation made under this section may charge the person in respect of whom the function or power 1S exercised a reasonable fee in respect of the exercise of that function or power.

[Sections 15 to 17 deal with changes in the responsibilities of Transit New Zealand.]

18. New Parts II and III substituted ¾

(1) The principal Act is hereby amended by repealing Parts II and III, and substituting the following Parts:

PART II FUNDING OF CAPITAL PROJECTS AND OUTPUTS

Land Transport Funding

8. Interpretation—

In this Part of this Act, unless the context otherwise requires, 'roading revenue' means—

(a) All excise duty payable under section 100 of this Act; and

(b) All fees and charges payable under the Road User Charges Act 1977; and

(c) All fees and charges payable under Part I of the Transport (Vehicle and Driver Registration and Licensing) Act 1986; and

(d) All money receivable by the Crown from the sale of land acquired under the Public Works Act 1981 (or any enactment repealed by that Act) for the purposes of a State highway or any proposed State highway; and

(e) An amount equal to the goods and services tax payable on expenses, costs, and refunds payable under section 10 of this Act; and

(f) The proportion of the interest earned, or interest saved, from the investment of public money that relates to roading revenue; and

(g) Such amounts of public money as Parliament appropriates for the purpose from time to time; and

(h) All other public money that is required by any enactment to be treated as roading revenue for the purposes of this Act.

9. Payment of roading revenue to Crown Bank Account—

All roading revenue shall be lodged into the Crown Bank Account.

10. Crown's authority to incur certain land transport expenditure—

(2) The liability of the Crown under subsection (1) of this section shall be equal to the amount of roading revenue earned in that year and there shall be payable by the Crown—

(a) To the relevant collecting body, the negotiated amount for the outputs delivered in that year in— (i) Collecting roading revenue; and
(ii) Administering and enforcing the Road User Charges Act 1977; and
(b) To the relevant collecting body, refunds paid or payable in that year of— (i) Road user charges and additional charges in accordance with section 22 (2) of the Road User Charges Act 1977; and

(ii) Fuel excise duty in accordance with section 101 of this Act; and

(iii) Fees and charges in accordance with Part I of the Transport (Vehicle and Driver Registration and Licensing) Act 1986; and

(c) To the Land Transport Safety Authority, the negotiated amount for the outputs delivered in relation to the safety (administration) outputs contained in an approved safety (administration) programme for that year less any revenue received or receivable by that Authority from other sources applicable to outputs in the programme; and

(d) To the Commissioner, the negotiated amount for the outputs delivered in relation to the safety (administration) outputs contained in an approved safety (administration) programme for that year less any revenue received or receivable by the Commissioner from other sources applicable to outputs in the programme; and

(e) To Transfund New Zealand, an amount equal to the roading revenue for that year less the amount of the liabilities incurred for that year under paragraphs (a) to (d) of this subsection.

11. Payment of roading revenue into Crown Bank Account—All roading revenue shall be paid into the Crown Bank Account as soon as practicable after its receipt by the relevant collecting body.

12. Payment of roading revenue from Crown Bank Account—There shall be paid from the Crown Bank Account in each year—

(a) To the relevant collecting body, in such installments and on such terms and conditions as are from time to time agreed between the Secretary and that collecting body, the negotiated amount for the outputs delivered and the capital expenditure incurred in collecting the roading revenue or in administering and in enforcing the Road User Charges Act 1977; and

(b) To the relevant collecting body, as soon as reasonably practicable after request by that body, any refunds of—

(i) Road user charges and additional charges under section 22 (2) of the Road User Charges Act 1977; and

(ii) Excise duty under section 101 of this Act; and

(iii) Fees and charges in accordance with Part I of the Transport (Vehicle and Driver Registration and Licensing) Act 1986; and

(c) To the Land Transport Safety Authority, in such installments and on such terms and conditions as are from time to time agreed between the Minister of Finance and the Minister of Transport, the negotiated amount for the outputs delivered under the approved safety (administration) programmes for that year (net of revenue received by the Land Transport Safety Authority from other sources applicable to projects in that programme); and

(d) To the Commissioner, in such installments and on such terms and conditions as are from time to time agreed between the Minister of Finance and the Minister of Police, the negotiated amount for the outputs delivered under the approved safety (administration) programme for that year (net of revenue received by the Commissioner from other sources applicable to outputs in that programme); and

(e) To the National Roads Account of the Board, in such installments and on such terms and conditions as are from time to time agreed between the Minister of Finance and the Minister of Transport, the amount for the outputs delivered and the capital expenditure incurred in the national roading programme for that year.

National Roads Account

13. Board to operate National Roads Account—

(2) Each year, in addition to the amount paid into the Account under section 11 of this Act, there shall be paid into the Account the following amounts:

(a) All income derived from the investment from time to time of money in the Account, including any gains made on the sale of any investment of money of the Account, and interest or gains on that investment:

(b) All financial assistance refunded to the Account by a local authority under section 23 (3) of this Act:

(d) All other money that should lawfully be paid into the Account.

Cf. 1989, No. 75, s. 11

14. Management and investment of National Roads Account—

(2) The Board may invest any money held in the Account in accordance with section 25 of the Public Finance Act 1989.

Cf. 1989, No. 75, s. 12

15. Payments from National Roads Account—

Payments from the National Roads Account shall be made only by or on behalf of the Board and such payments shall be made only in accordance with the provisions of this Act.

Cf. 1989, No. 75, s. 13

16. Payments by Board—

Each year there shall be payable out of the National Roads Account—

(a) All costs and expenses of the Board arising out of the performance of its functions and duties and the exercise of its powers under this Act or any other Act:

(b) All compensation or damages payable by the Board. Cf. 1989, No. 75, s. 17

17. Board may approve outputs and capital projects—

(1) The Board may approve any output or capital project as qualifying for payments from the National Roads Account if— (a) The output or capital project has been evaluated to the satisfaction of the Board in accordance with the relevant provisions of the most recent approved performance agreement; and

(b) The Board considers that the budgeted expenditure on approved outputs and capital projects included in the national roading programme for the year concerned will not exceed—

(i) The sum of— A) The roading revenue for that year; and
B) Such other money as may be owing to the Board (including any liability of the Crown to the Board under section 10 of this Act); less (ii) The minimum balance of the Account for that year as provided in the performance agreement. (2) In considering whether or not to approve any output or capital project, the Board shall ensure that the granting of such approval will not be inconsistent with any national land transport strategy or any relevant regional land transport strategies.

(3) Where the Board decides not to approve under this section an output or capital project contained in a State highways programme, a regional programme, or a district roading programme, the Board shall—

(a) So advise in writing the Authority or the regional council or territorial authority submitting that programme; and

(b) Give reasons for its decision.

(4) Notwithstanding subsection (1) of this section, the Board may approve any output or capital project where in the opinion of the Board the output or capital project is— (a) In the urgent interests of public safety; or

(b) Necessary to effect immediate or temporary repair of damage caused by a sudden and unexpected event. Cf. 1989, No. 75, s. 14; 1992, No. 70, s 4

18. Approved projects to form part of national roading programme—

(2) No approved output or capital project shall be suspended or abandoned without the prior written approval of the Board.

Payments from National Roads Account to Authority

19. Payments to Authority—

(1) The Board shall pay to the Authority, out of the National Roads Account, the negotiated amount or the interim payments for the approved outputs and capital projects in accordance with the actual payment profiles of the State Highways Account.

(2) The Board shall make such adjustments as it thinks appropriate to the amount to be paid to the Authority under subsection (1) of this section to take account of the amounts said into the State Highways Account under paragraphs (a), (b), and (h) of section 20 (3) of this Act.

(3) Notwithstanding anything to the contrary in this section, whenever the Board is satisfied that the amount of payments requested from the Board in respect of any approved output or capital project in any year is based upon a factor which is incorrect for any reason, the Board may, if it thinks fit, make such adjustments to the amounts to be paid under subsection (1) of this section as it thinks reasonable.

(4) If any Payment received by the Authority under subsection (i) of this section is not paid or not fully paid in the year in which it is received, the unpaid portion shall, unless the Board otherwise agrees, be refunded to the Account.

Cf. 1989, No. 75, s. 16

20. Authority to operate State Highways Account—

(2) All money received by the Authority from the National Roads Account shall be paid into the State Highways Account.

(3) Each year, in addition to the amount paid into the account under section 19 of this Act, the following money shall be paid into the State Highways Account:

(a) All income derived from the investment from time to time of money in the State Highways Account, including any gains made on the sale of any investment of money of the Account, and interest or gains on that investment:

(b) All money received by the Authority for or from its management of Crown lands under section 61 (4) of this Act:

(d) All money derived from the provision of advisory and related services:

(e) All contributions made by developers to outputs and capital projects for which the Authority is responsible:

(f) All money received by the Authority under an order made by a Court under section 51 (3) of this Act:

(g) All money recovered by the Authority under section 55 (8) or section 57 (4) of this Act:

(h) All other money that is required by law to be paid into the Account.

21. Management and investment of State Highways Account— (1) The Authority shall manage the State Highways Account in accordance with the provisions of this Act and shall exercise the care, diligence, and skill that a prudent person of business would exercise in managing the affairs of others.

(2) The Authority may invest any money held in the Account in accordance with section 25 of the Public Finance Act 1989.

22. Payments from State Highways Account—

Each year there shall be payable out of the State Highways Account—

(a) All costs and expenses of the Authority arising out of the performance of its functions and duties and the exercise of its powers under this Act or any other Act:

(b) All compensation or damages payable by the Authority

(c) All compensation payable by the Crown under the Public Works Act 1981 in respect of the acquisition of any land for any of the purposes authorized by this Act.

Payments From National Roads Account to Local Authorities

23. Payments to local authorities—

(1) The Board shall pay to a local authority, out of the National Roads Account, the costs or the interim payments for any approved outputs or capital projects for which the local authority is responsible.

(2) Notwithstanding anything to the contrary in this section, whenever the Board is satisfied that the amount of the interim payments requested from the Board in respect of any approved output or capital project in any year is based upon a factor which is proved to the satisfaction of the Board to be incorrect for any reason, the Board may, if it thinks fit, make such adjustments to the amount to be paid under subsection (1) of this section as it thinks reasonable.

(3) If any payment received by a local authority under subsection (1) of this section is not paid or not fully paid by the local authority in the year in which it is received, the unpaid portion shall, unless the Board otherwise agrees, be refunded to the Account.

24. Local authorities to operate Land Transport Disbursement Accounts— (1) All money received by any local authority from the National Roads Account shall be paid into a separate account of the local authority to be known as the Land Transport Disbursement Account, and shall be expended only on approved outputs and capital projects.

(2) All expenditure from a Land Transport Disbursement Account shall be recorded in that account in a form that contains such details as are prescribed by the Board from time to time after consultation with the Controller and Auditor-General.

Restrictions on Payments from State Highways Account and Land Transport Disbursement Accounts

25. Interpretation—

(1) In this section, and in sections 26 to 32 of this Act, unless the context otherwise requires,— "'In-house professional services"—

(a) Means services carried out by a local authority—

(b) Does not include minor and ancillary works or services associated with a State highway:

"Minor and ancillary works"— (a) Means works associated with a local road that are determined by the Board to be minor and ancillary roading works; but

(b) Does not include in-house professional services or works associated with a State highway:

"1996 financial year" means the period commencing on the 1st day of July 1995 and ending with the close of the 30th day of June 1996:

"1997 financial year" means the period commencing on the 1st day of July 1996 and ending with the close of the 30th day of June 1997:

"1998 financial year" means the period commencing on the 1st day of July 1997 and ending with the close of the 30th day of June 1998.

(2) If there is any dispute or difference between a local authority and the Board as to whether any services are in-house professional services or whether any works are minor and ancillary works, the question shall be determined by a single arbitrator appointed by the Minister, and the following provisions shall apply: (a) No member or employee of the local authority or the Board shall be qualified to be an arbitrator under this subsection:

(b) The local authority and the Board shall be the parties to the arbitration:

(c) Sections 13 and 22 of the Arbitration Act 1908 (which relate to enforcement and remuneration respectively) shall apply in relation to an arbitration under this subsection as if this subsection were a submission to arbitration within the meaning of that Act, but no other provisions of that Act shall apply in relation to an arbitration under this subsection.

Cf. 1989, No. 75, s. 20A(6); 1991, No. 57, s. 3

26. Competitive pricing procedure—

(1) For the purposes of section 27 of this Act the Board shall from time to time approve a competitive pricing procedure for each output or capital project or class of output or capital project.

(2) In approving a competitive pricing procedure the Board may—

(a) Specify particular terms and conditions which shall be included in any contract formed under that procedure:

(b) Specify particular terms and conditions which shall be excluded from any contract formed under that procedure.

(3) In exercising its powers under subsection (1) or subsection (2) of this section, the Board shall have regard to— (a) The efficient application of the State Highways Account and Land Transport Disbursement Accounts:

(b) The safety and other interests of the public in respect of the output or capital project or the class of output or capital project:

(c) The desirability of encouraging competition in the sector of industry likely to supply goods or services in relation to the output or capital project or the class of output or capital project:

(d) The undesirability of excluding from competition for the output or capital project or the class of output or capital project any party who might otherwise be willing an able to compete:

(e) The costs of administration associated with the pricing procedure or of any contract formed under that procedure.

Cf. 1989, No. 75, s. 19

27. Expenditure subject to competitive pricing procedure—

(1) No payment— (a) In respect of any output or capital project carried out by the Authority under this Act, shall be made from the State Highways Account; or

(b) In respect of any output or capital project, shall be made from the Land Transport Disbursement Account of any local authority,—

unless the payment relates to an approved output or capital project, the price of which has been determined by a competitive pricing procedure, and no such payment shall be made to any local authority.
(2) Without limiting subsection (1) of this section, no payment from any source shall be made by any local authority in respect of any passenger service unless the amount of the payment has been determined by a competitive pricing procedure, and no such payment shall be made to any local authority.

(3) Without limiting subsection (1) or subsection (2) of this section,—

(a) No payment in respect of any output or capital project shall be made from the State Highways Account, or the Land Transport Disbursement Account of a local authority, to any local authority trading enterprise; and

(b) No payment in respect of a passenger service shall be made by a local authority from any source to a passenger transport company; unless

(d) The local authority trading enterprise, or the passenger transport company, is a company that has no fewer than 3 directors, of whom—

(i) Where there are fewer than 6 directors, not more than 1 is a member or employee of any local authority:

(ii) Where there are 6 or more directors, not more than 2 are members or employees of any local authority; and

(e) No equity securities or debt securities in the local authority trading enterprise, or the passenger transport company, are held directly or indirectly by any regional council (other than the Chatham Islands County Council or any regional council that is also a district council); and

(f) The Board is satisfied that—

(i) The local authority trading enterprise, or the passenger transport company, has been established, and an undertaking of a local authority has been transferred to it, in accordance with the requirements of Part XXXIV A of the Local Government Act 1974; and

(ii) The local authority trading enterprise, or the passenger transport company, is being operated in accordance with the requirements of the Local Government Act 1974; and

(iii) The local authority trading enterprise is being operated in accordance with the requirements of any determination under section 32 of this Act.

(4) Nothing in subsection (1) or subsection (2) or subsection (3) of this section applies in relation to any payment made in respect of— (a) Any approved output of administration; or

(b) Any special purpose road (within the meaning of section 104 of this Act) that is under the control of the Department of Conservation; or

(i) The withdrawal or proposed withdrawal of that operator from the provision of the service, or

(ii) The withdrawal of any other operator from the provision of the same or a similar service; or

(d) Any expenditure that is necessary in the urgent interests of public safety; or

(e) Any expenditure that is necessary for the immediate or temporary repair of damage caused by a sudden and unexpected event.

(5) Nothing in subsection (1) of this section prevents a local authority making payments from its Land Transport Disbursement Account m respect of minor and ancillary works carried out by any business unit established by it or any other local authority if that business unit has been formed and is operated in accordance with the requirements of a determination under section 32 of this Act.

(6) In the case of an output referred to in section 3D of this Act that is not an output in respect of a passenger service, the output shall be subject to the competitive pricing procedure for the time being determined by the Board as being appropriate in the circumstances.

Cf. 1989, No. 75, s. 20; 1990, No. 122, s. 2; 1991, No. 57, s. 2 (1)

28. Special provisions relating to in-house professional services—

(1) Notwithstanding any other provision of this Act,— (a) Payments may be made from the Land Transport Disbursement Account of a territorial authority in respect of in-house professional services and such payments may be made to that territorial authority; and

(b) Nothing in section 27 of this Act shall be read as requiring the price of any in-house professional services to be determined by a competitive pricing procedure.

(2) After the 30th day of June 1997, no payment in respect of the provision of a territorial authority's in-house professional services shall be made from its Land Transport Disbursement Account unless it has complied with subsection (3) of this section.

(3) Before performing, by using its own employees and in-house resources, any in- use professional services funded in whole or in part from its Land Transport Disbursement Account, the territorial authority shall give due consideration to the advantages and disadvantages of contracting out those services to any person or organization.

(4) Without limiting subsection (3) of this section, due consideration under that subsection requires due consideration of—

(a) The benefits of separating the functions of a purchaser and a supplier; and

(b) The desirability for work to be properly specified and monitored; and

(d) The cost effectiveness of each option; and

(e) The benefits of ensuring contestability of services; and

(f) The availability of resources to undertake the work; and

(g) Any other matters determined for the purpose by the Board after consultation with the Audit Office and territorial authorities (or any person or organization representing territorial authorities) and notified by the Board to territorial authorities.

(5) If professional services are performed by individuals other than employees of the territorial authority or by persons or organizations other than the authority, such services shall be subject to the competitive pricing procedure for the time being determined for the purpose by the Board. 29. Special provisions relating to minor and ancillary works during 1997 and 1998— (1) A local authority may, during the 1997 financial year, make payments from its Land Transport Disbursement Account that are not in accordance with section 27 (1) of this Act if— (a) Those payments are in respect of minor and ancillary works; and

(b) The local authority ensures that during the 1997 financial year it makes payments in respect of minor and ancillary works that—

(i) Are in accordance with section 27 (1) of this Act; and

(ii) Total not less than one-third of the total amount of payments made by it in respect of minor and ancillary works from its Land Transport Disbursement Account during the 1996 financial year.

(2) A local authority may, during the 1998 financial year, make payments from its Land Transport Disbursement Account that are not in accordance with section 27 (1) of this Act if— (a) Those payments are in respect of minor and ancillary works; and

(b) The local authority ensures that during the 1998 financial year it makes payments in respect of minor and ancillary works that—

(i) Are in accordance with section 27 (1) of this Act; and

(ii) Total not less than two-thirds of the total amount of payments made by it in respect of minor and ancillary works from its Land Transport Disbursement Account during the 1997 financial year.

30. Certain payments for minor and ancillary works deemed to comply with section 27—

Every payment in respect of minor and ancillary works that has been made by a local authority from its Land Transport Disbursement Account under a legally enforceable written contract—

(a) Shall, if the contract was signed before the 13th day of May 1994 and the payment was made during the minimum period of the contract (as expressed in the contract at the date of its execution), be deemed for the purposes of sections 27 and 29 of this Act to have been made in accordance with the provisions of section 27 of this Act; and

(b) Shall, if the contract was signed on or after the 13th day of May 1994 but before the commencement of this section, and the payment is made before the 30th day of June 1999, be deemed for the purposes of sections 27 and 29 of this Act to have been made in accordance with the provisions of section 27 of this Act.

31. Information to be provided by local authority in respect of certain payments—

If a local authority uses in any year its own staff or assets in providing in-house professional services, or performing minor and ancillary works, for which payments are made from its Land Transport Disbursement Account, the local authority shall report on those services and works in accordance with the requirements of any determination under section 32 of this Act in the local authority's annual report and audited financial statements under sections 223D and 223E of the Local Government Act 1974.

32. Determinations by Minister—

The Minister may from time to time, after consultation with the Board, by notice in writing—

(a) Determine the requirements for the operation of local authority trading enterprises to which payments may be made under section 27 (3) of this Act from the State Highways Account or from the Land Transport Disbursement Account of a local authority; and

(b) Determine the requirements for the formation and operation of business units of local authorities to which payments may be made under section 27 (5) of this Act for minor and ancillary works; and

(c) Determine the requirements for reporting under section 31 of this Act by a local authority in its annual report and audited financial statements on—

(i) Its use of staff and assets in providing in-house professional services; or

(ii) The provision of minor and ancillary works,—

for which payments have been made from its Land Transport Disbursement Account; and

(d) Vary or revoke those requirements.

33. Board may reduce payments in certain cases— (1) The Board may from time to time reduce the amount of any payments made by it— (a) To the Authority, by such amount as it considers appropriate, if the Board considers that— (i) The Authority has been or is, or will be likely to be, in breach of any of the provisions of this Act with respect to payments by the Authority from the State Highways Account; or
(ii) The Authority is in breach of the provisions of section 27 of this Act; or
(b) To a local authority, by such amount as it considers appropriate, if the Board considers that— (i) The local authority has been or is, or will be likely to be, in breach of any of the provisions of this Act with respect to payments by the local authority from its Land Transport Disbursement Account; or
(ii) The local authority is in breach of the provisions of section 27 or section 31 or section 34 of this Act.
(2) Subsection (1) of this section does not limit the provisions of section 35 of this Act. 34. Board may require certain information from Authority and local authorities— (1) The Board may from time to time require the Authority or a local authority to provide such information as the Board considers appropriate to enable the Board to determine whether the Authority or the local authority, as the case may be, is complying, and will continue to comply, with the provisions of this Act relating to payments made by the Authority from the State Highways Account or by the local authority from its Land Transport Disbursement Account.

(2) The Authority and a local authority shall promptly satisfy any requirement of the Board under subsection (1) of this section.

(3) Subsections (1) and (2) of this section do not limit the provisions of section 108 of this Act.

35. Payments may be conditional on projects being carried out to satisfactory standard—

Notwithstanding anything to the contrary in this Act, the Board, after consultation with the Authority or the local authority concerned, as the case may be, may refuse or withhold any payments or part of any payment to the Authority, or the local authority, for any approved output or capital project that has been constructed or undertaken or is proposed to be constructed or undertaken to standards that in the opinion of the Board are excessively high or unsatisfactory.

Cf. 1989, No. 75, s. 21

36. Certain payments prohibited—

Payments for an output referred to in section 3D of this Act may be made to any regional council or to any territorial authority that has any functions, duties, or powers of both a regional council and a territorial authority, but such payments shall not be made to any other person or body.

Annex 1

National Roading Programme

42A. National roading programme—

(1) In each year, the Board shall approve a national roading programme for the next year, which shall include— (a) Those outputs and capital projects recommended in the State highways programme, the regional programmes, and the district roading programmes forwarded to the Board under this Act that the Board considers should be included in the national roading programme; and

(b)The proposed funding of those outputs and capital projects for that financial year.

(2) Subject to subsections (3) and (4) of this section, a national roading programme shall be in accordance with the requirements of the performance agreement that is in force at t e time of approval of that roading programme.

(3) The national roading programme shall not be inconsistent with any national land transport strategy that is in force at the time of the preparation of the programme.

(4) The Board shall ensure that only outputs and capital projects that are not inconsistent with any relevant regional transport strategy are included in a national roading programme.

(5) In complying with the requirements of this section, the Board shall have regard to the State highways programme, the regional programmes, and district roading programmes, that have been forwarded to it under this Act but shall not be bound to adopt in whole or in part any outputs or capital projects recommended in such programmes.

(6) The Board shall forward to the Authority, the Land Transport Safety Authority, the Commissioner, the Secretary, and every local authority a copy of each national roading programme approved by it.