The purpose of this Act is—

• (a) to specify the process that the South Taranaki District Council must follow to authorise a transfer of the Cold Creek Rural Water Supply Scheme to Cold Creek Community Water Supply Limited; and

• (b) to provide for certain related matters if the scheme is transferred to the Company.

In this Act, unless the context otherwise requires,—

(1) The Council must transfer the scheme to the Company if—

• (a) the Council has complied with subsection (2); and

• (b) the transfer is supported, in a referendum conducted under section 9 of the Local Electoral Act 2001 using the First Past the Post electoral system, by more than 50% of the votes cast by the persons eligible to vote under section 7.

(2) The Council complies with this subsection if—

• (a) the Council has consulted on the proposed transfer with—

  • (i) the Medical Officer of Health for Taranaki; and

  • (ii) every iwi authority in relation to each iwi whose rohe comes, wholly or in part, within the scheme distribution area; and

• (b) the Council has made publicly available in a balanced and timely manner prior to the referendum—

  • (i) the views of the Medical Officer of Health; and

  • (ii) the views of every iwi authority consulted under paragraph (a)(ii); and

  • (iii) the transfer plan and the proposed agreement outlining the roles and responsibilities of the Company and any contractors (including the Council) in relation to the scheme, as prepared by the Company under section 8; and

  • (iv) the assessments made by the Company under section 8.

(1) The Council is responsible for conducting the referendum under section 5(1)(b).

(2) The electoral officer of the Council must prepare a special roll of the persons eligible to vote under section 7.

(3) The provisions of the Local Electoral Act 2001 apply, with any necessary modifications, to the conduct of the referendum under section 5(1)(b).

A person is eligible to vote in a referendum conducted under section 5(1)(b) if the person is qualified as either—

• (a) a residential elector under section 23 of the Local Electoral Act 2001 and the address in respect of which the person is registered as a parliamentary elector is a property—

  • (i) serviced by the scheme or capable of being serviced by the scheme; and

  • (ii) within the scheme distribution area; or

• (b) a ratepayer elector under section 24 of the Local Electoral Act 2001 and the property, for the purposes of section 24(1)(a) or (b) of that Act, is a property—

  • (i) serviced by the scheme or capable of being serviced by the scheme; and

  • (ii) within the scheme distribution area.

(1) The Company must, to the Council's satisfaction,—

• (a) prepare a transfer plan which complies with section 9; and

• (b) prepare an analysis of the types of contractual arrangements that the Company will need to enter into with the Council and other parties to obtain goods and services in relation to the maintenance and operation of the scheme; and

• (c) assess the likely future capital and operating costs of the Company to maintain and operate the scheme for a period of 30 years from the proposed date the scheme is to be transferred to the Company; and

• (d) assess the ability of the Company to maintain and operate the scheme (including providing water to Opunake residents in certain emergencies) satisfactorily for a period of 30 years from the proposed date the scheme is to be transferred to the Company; and

• (e) prepare a protocol that provides for appropriate consultation by the Company with every iwi authority in relation to each iwi whose rohe, wholly or in part, comes within the scheme distribution area.

(2) The assessment under subsection (1)(d) must include an assessment of the Company's ability and commitment in relation to any property within the scheme distribution area if the property were to be transferred or leased to another person.

The transfer plan must contain the following:

• (a) a plan of the scheme; and

• (b) a description of the land or property that is serviced by the scheme and that is within the scheme distribution area; and

• (c) further details of any of the scheme assets, including specifying any permits or rights of any kind in respect of any of the scheme assets; and

• (d) any rights conferred by designations under the district plan applying to any land relating to the scheme; and

• (e) any rules in the regional plan relating to the scheme.

This Part applies if the Council transfers the scheme to the Company.

The transfer of the scheme to the Company—

• (a) does not constitute a breach of contract or agreement, or a civil wrong; and

• (b) is not to be regarded as giving rise to a right for any person to terminate or cancel any contract or arrangement or to accelerate the performance of any obligation; and

• (c) is not to be regarded as placing the Council, the Company, or any other person in breach of any enactment or rule of law or contractual provision prohibiting, restricting, or regulating the assignment or transfer of any property or the disclosure of any information; and

• (d) does not release any surety or guarantor wholly or in part from any obligation with respect to the scheme; and

• (e) does not invalidate or discharge any contract or security.

Subpart 2 of Part 7 of the Local Government Act 2002 does not apply to the scheme.

As soon as practicable after the scheme is transferred to the Company, the Council must notify the Taranaki Regional Council that the scheme has been transferred to the Company and the date of the transfer.

(1) For the purposes of the Goods and Services Tax Act 1985, the transfer of the scheme from the Council to the Company is a transfer of part of a taxable activity as a going concern that is capable of separate operation.

(2) For the purposes of the Estate and Gift Duties Act 1968, the transfer of the scheme from the Council to the Company is not a disposition of property.

(1) Subject to subsections (2) to (4), the Registrar, on written application, is authorised on payment of the appropriate fee to make such entries in the registers and do all such things as may be necessary to give effect to the transfer of the scheme to the Company.

(2) Nothing in sections 40 to 42 of the Public Works Act 1981 applies to the transfer by the Council of any land or interest in land to the Company so long as the land or interest in land continues to be used for the purposes of the scheme.

(3) However, if all or any part of the land or interest in the land is no longer required for the purposes of the scheme, sections 40 and 41 of the Public Works Act 1981 apply to the land or interest no longer so required as if the Company were the Council.

(4) The Registrar must endorse on every computer freehold register transferred to the Company the effect of subsections (2) and (3), when the land or interest in the land is transferred to the Company.