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LOCAL GOVERNMENT ACT 1995 - SECT 3.59

3.59 .         Commercial enterprises by local governments

        (1)         In this section —

        acquire has a meaning that accords with the meaning of dispose ;

        dispose includes to sell, lease, or otherwise dispose of, whether absolutely or not;

        land transaction means an agreement, or several agreements for a common purpose, under which a local government is to —

            (a)         acquire or dispose of an interest in land; or

            (b)         develop land;

        major land transaction means a land transaction other than an exempt land transaction if the total value of —

            (a)         the consideration under the transaction; and

            (b)         anything done by the local government for achieving the purpose of the transaction,

        is more, or is worth more, than the amount prescribed for the purposes of this definition;

        major trading undertaking means a trading undertaking that —

            (a)         in the last completed financial year, involved; or

            (b)         in the current financial year or the financial year after the current financial year, is likely to involve,

        expenditure by the local government of more than the amount prescribed for the purposes of this definition, except an exempt trading undertaking;

        trading undertaking means an activity carried on by a local government with a view to producing profit to it, or any other activity carried on by it that is of a kind prescribed for the purposes of this definition, but does not include anything referred to in paragraph (a) or (b) of the definition of land transaction .

        (2)         Before it —

            (a)         commences a major trading undertaking; or

            (b)         enters into a major land transaction; or

            (c)         enters into a land transaction that is preparatory to entry into a major land transaction,

                a local government is to prepare a business plan.

        (3)         The business plan is to include an overall assessment of the major trading undertaking or major land transaction and is to include details of —

            (a)         its expected effect on the provision of facilities and services by the local government; and

            (b)         its expected effect on other persons providing facilities and services in the district; and

            (c)         its expected financial effect on the local government; and

            (d)         its expected effect on matters referred to in the local government’s current plan prepared under section 5.56; and

            (e)         the ability of the local government to manage the undertaking or the performance of the transaction; and

            (f)         any other matter prescribed for the purposes of this subsection.

        (4)         The local government is to —

            (a)         give Statewide public notice stating that —

                  (i)         the local government proposes to commence the major trading undertaking or enter into the major land transaction described in the notice or into a land transaction that is preparatory to that major land transaction; and

                  (ii)         a copy of the business plan may be inspected or obtained at any place specified in the notice; and

                  (iii)         submissions about the proposed undertaking or transaction may be made to the local government before a day to be specified in the notice, being a day that is not less than 6 weeks after the notice is given;

                and

            (b)         make a copy of the business plan available for public inspection in accordance with the notice; and

            (c)         publish a copy of the business plan on the local government’s official website.

        (5)         After the last day for submissions, the local government is to consider any submissions made and may decide* to proceed with the undertaking or transaction as proposed or so that it is not significantly different from what was proposed.

        * Absolute majority required.

        [(5a)         deleted]

        (6)         If the local government wishes to commence an undertaking or transaction that is significantly different from what was proposed it can only do so after it has complied with this section in respect of its new proposal.

        (7)         The local government can only commence the undertaking or enter into the transaction with the approval of the Minister if it is of a kind for which the regulations require the Minister’s approval.

        (8)         A local government can only continue carrying on a trading undertaking after it has become a major trading undertaking if it has complied with the requirements of this section that apply to commencing a major trading undertaking, and for the purpose of applying this section in that case a reference in it to commencing the undertaking includes a reference to continuing the undertaking.

        (9)         A local government can only enter into an agreement, or do anything else, as a result of which a land transaction would become a major land transaction if it has complied with the requirements of this section that apply to entering into a major land transaction, and for the purpose of applying this section in that case a reference in it to entering into the transaction includes a reference to doing anything that would result in the transaction becoming a major land transaction.

        (10)         For the purposes of this section, regulations may —

            (a)         prescribe any land transaction to be an exempt land transaction;

            (b)         prescribe any trading undertaking to be an exempt trading undertaking.

        [Section 3.59 amended: No. 1 of 1998 s. 12; No. 64 of 1998 s. 18(1) and (2); No. 16 of 2019 s. 11.]



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