Provision of Regional Council Functions
for the Chatham Islands Council
Proposal
The Local Government Commission ("the Commission") is required to consider, report on, and make recommendations in respect of matters relating to the Chatham Islands Council ("the Council") obtaining tenders for the delivery of its regional council functions.
Background
The Council has had significant financial difficulties for some time. The main reasons for the Council's financial position are: the wide range of functions the Council is required to undertake, the very small population base, and geographic isolation, which imposes significant additional costs for both the Council and its community.
The Government has agreed, in principle, to provide the Council with financial assistance, sufficient for the Council to meet the operating costs of all of its statutory responsibilities. The Council will be required to contract with a mainland local authority for the delivery of its regional council functions.
Process for Obtaining Tenders for Regional Council Functions
The process for the Council obtaining tenders for the delivery of its regional council functions shall be as follows:
1. The Council will prepare a request for proposal to obtain tenders for the provision of regional council services on the Council's behalf, and will then forward the draft request for proposal to the Minister of Local Government and the Commission;
2. The Commission will consider and report to the Minister of Local Government on the draft request for proposal to ensure that it would be in the interests of good local government;
3. Once the Minister of Local Government has notified the Council that he is satisfied with the draft request for proposal, the Council will seek tenders from the relevant local authorities;
4. Once tenders are received, the Council will decide which is the preferred tender and will then forward the tender to the Commission;
5. The Commission will report to the Minister of Local Government on whether the Council's decision on the preferred tender will be cost effective and will be in the interests of good local government;
6. The entering into of any contract between the Council and the preferred tenderer will be subject to the concurrence of the Minister of Local Government.
Specific Tasks for the Local Government Commission
Pursuant to section 31 (2) of the Local Government Act 2002, the Minister of Local Government requests
the Commission to consider, report on, and make recommendations on:
(a) The draft request for proposal for the provision of regional council functions to the Council to ensure that it is in the interests of good local government.
The report under (a) above, including recommendations, shall be provided to the Minister of Local Government within 10 working days of receipt of the draft request for proposal by the Commission from the Council.
(b) Whether the Council's decision on its preferred tender for the provision of regional council functions will be cost effective and will be in the interests of good local government.
The report under (b) above, including recommendations, shall be provided to the Minister of Local Government within 20 working days of receipt of all relevant information relating to
the preferred tender and other tenders by the Commission from the Council.
Signed at Wellington this 24th day of July 2003.
CHRIS CARTER, Minister of Local Government.