Local Government Organization and Finance: New Zealand

Abstract

New Zealand local government originated with the passage of the Municipal Corporations Ordinance through the Legislative Council in 1842. This legislation provided the legal basis for establishing a borough in any district with a population exceeding 2,000 people; the resulting borough would be governed by an elected council with the power to raise revenues through rates and with an obligation to provide fire services, jails, roads, sewers, and water (Bush 1995). However, constitutional difficulties led the British imperial government to disallow the ordinance in 1843. That original legislation was later replaced by similar legislation in the form of the 1845 Public Roads and Works Ordinance. Nevertheless, 'local government as we understand it today proceeded in fits and starts until the passage of the Municipal Corporations Act 1867, which provided for a uniform urban territorial authority structure, although its application was not mandatory' (Palmer and Palmer 2004, p. 247). Further development of municipal governance in New Zealand was hampered by the tensions that existed between the provincial system and a centralist tradition until the abolition of the provinces and the introduction of the Municipal Corporations Act 1876, as well as the subsequent passage of the Counties Act 1876. This legislation brought all existing local authorities under uniform legal standards and provided for the creation of new municipal entities. Accordingly,'from 1876 onwards, local bodies multiplied, with many ad hoc authorities being added, such as harbour boards, rabbit boards, and water boards' (Palmer and Palmer 2004, p. 247).