These guidelines provide a formal framework for legal compliance in New Zealand local authorities. These are
not intended to be legal compliance programmes, but to serve as overarching principles or the context in
which individualised legal compliance programmes can be developed.
Local Authorities are creatures of statute. They are created by law and limited by what laws regulations or
other directives Parliament allow them to do. Elected representatives and staff are tasked to
deliver the functions and services in accordance with community wishes, but within the mandate provided
by Parliament. It is therefore important that each local authority provide a systematic and demonstrable
process by which the general public and local authority ratepayers can have confidence that local authority
actions comply with legal requirements. The purpose of a systematic, demonstrable legal compliance
process in NZ Local Government is to minimise risk or exposure to a local authority and its community. Risk or
exposure could include:
- Civil damages or restitution;
- Criminal fines or penalties;
- Loss of reputation of local authority;
- Business disruption and loss of morale;
- Increases in costs (insurance, legal costs);
- Loss of opportunity.
The legal compliance process is an integral part of a local authority's management system. Although legal
compliance has particular characteristics, the processes that support legal compliance should be part
of a local authority's overall governance and risk management.
There is a widespread expectation that, as public bodies, local authorities will meet the highest standards
in regard to legal compliance. Everyone is a 'part owner' of a local authority; no one wants the local authority
that they part own to have standards less than they would desire themselves. Moreover, as the public are
obliged to comply with local authorities district and regional plans and by-laws, they expect their local authority
to know and observe the law.
Compounding the public expectation is the extent of legal requirements with which local authorities
have to be conversant. Local Authorities not only have to comply with laws of a 'generic' nature, but also
with legal requirements which prescribe the local authority's functions and mandate its activities.
Legal compliance is an important element of integrated risk management. The systematic approach
to risk management is outlined in the Australian and New Zealand Standard 4360:1999 (Risk Management).
This provides the recognised industry standard on the approach to integrated risk management. This has been
augmented by the SNZ 4360:2000, the New Zealand handbook of Risk Management for Local Government.