General policy statement

Generally, under section 38 of the State Sector Act 1988, public service chief executive remuneration is determined by agreement between the chief executive and the State Services Commissioner, subject to the agreement of the Prime Minister and the Minister of State Services.

At present, the remuneration of local authority chief executives is a matter for negotiation between the chief executive and the local authority. No statutory method exists to require that local authority chief executive remuneration be moderated by reference to other comparable positions.

This Bill proposes an amendment to the Local Government Act 2002 to add such a requirement by specifying that the terms and conditions, including the remuneration, of the chief executive of a local authority, must be approved in advance by the State Services Commissioner.

Clause by clause analysis

Clause 1 is the Title clause.

Clause 2 is the commencement clause and provides for the Bill’s provisions to come into force on the day after the date on which it receives the Royal assent.

Clause 3 provides that the Local Government Act 2002 is the principal Act.

Clause 4 describes the purpose of the Bill.

Clause 5 amends Schedule 7, clause 34, of the Local Government Act 2002 by adding a requirement that the terms and conditions, including the remuneration, of the chief executive of a local authority, must be approved in advance by the State Services Commissioner.