Regulatory Standards Board makes first findings

Minister for Regulation David Seymour welcomed the Regulatory Standards Board’s inaugural report, which recommends aligning council disclosure rules with those of other government bodies. Seymour emphasized that flawed regulations can directly harm individuals’ rights and livelihoods, framing the Board’s work as a safeguard for democratic processes. The inquiry focused on the Local Authorities (Members' Interests) Act 1968, which governs financial conflicts of interest in local government and carries penalties including disqualification or criminal conviction for breaches.

The Board assessed the 1968 Act against principles of good regulation under the Regulatory Standard Act 2025, finding it inconsistent with standards for clarity, accessibility, and proportionality. It noted that the law’s complexity creates compliance challenges for candidates and elected members despite severe potential consequences. The Board also highlighted provisions that may prevent qualified individuals from standing for office or participating in decisions they were elected to make.

Recent cases illustrated the law’s real-world impact. In Wellington, an elected member was barred from voting on the Golden Mile project due to owning a small business on Courtenay Place, raising concerns about whether the legislation unduly restricts democratic representation. In Nelson, a family-owned transport business subcontracting to council contractors prompted questions about disqualification risks, even where no misconduct occurred.

The Board acknowledged the need for reasonable conflict-of-interest management but recommended clearer definitions, disclosure mechanisms, and withdrawal protocols. Seymour urged the Minister of Local Government and MCERT to review the findings and explore opportunities to address the identified concerns while maintaining proportionate oversight.