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Securities (Local Authority Exemption) Amendment Bill (Consistent) (Section 14) [2007] NZBORARp 24 (13 August 2007)

Last Updated: 2 January 2019

13 August 2007

_{ATTORNEY-GENERAL}

LEGAL ADVICE

CONSISTENCY WITH THE NEW ZEALAND BILL OF RIGHTS ACT 1990: SECURITIES (LOCAL AUTHORITY EXEMPTION) AMENDMENT BILL

1 We have considered the Securities (Local Authority Exemption) Amendment Bill (“the Bill”) for consistency with the New Zealand Bill of Rights Act 1990 (‘the Bill of Rights Act’). We understand that this Bill will be considered by the Cabinet Legislation Committee at its meeting on Thursday, 16 August 2007.

2 We considered whether the Bill may have engaged an issue of inconsistency with section 14 (freedom of expression) of the Bill of Rights Act, but have concluded that the Bill is consistent with the rights and freedoms contained in the Bill of Rights Act.

PURPOSE OF THE BILL

3 The Bill amends the Securities Act 1978 (“the Act”). The broad policy objective of the Securities Act is to promote investor confidence in the capital markets. The information disclosure regime in the Securities Act 1978 seeks to achieve that policy objective by ensuring that investors receive full, accurate, and timely disclosure from issuers of information material to their investment decisions.

4 Clause 5 of the Bill amends section 5 of the Act to provide local authorities with an exemption from the full disclosure requirements of that Act when issuing debt securities to the public. This reduced disclosure requirement will exempt local authorities from the requirement to produce a prospectus signed by all councillors when issuing debt securities to the public. They will still be required to produce an investment statement with a certificate signed by two councillors.

Section 14: Freedom of Expression

5 We have considered whether the Bill raises an issue of inconsistency with the right to receive information, which falls within the ambit of section 14 of the Bill of Rights Act. We have concluded that the Bill would not infringe upon the right of freedom of expression. This is because there are other existing avenues in place to ensure the public can access information relating to local authorities financial activities (including the requirement on local authorities to produce and

disclose an independently audited Long-Term Council Community Plan that complies with Generally Accepted Accounting Practice and Financial Reporting Standard 42).

6 It should also be noted the requirement on local authorities to produce only an investment statement simply brings them into line with similar existing exemptions for the Crown, the National Provident Fund Board, the Reserve Bank of New Zealand and Housing New Zealand Corporation.

CONCLUSION

7 We have concluded that the Bill appears to be consistent with the rights and freedoms contained in the Bill of Rights Act.

Jeff Orr Stuart Beresford

Chief Legal Counsel Acting Policy Manager, Bill of Rights/Human

Office of Legal Counsel Rights

Public Law Group

In addition to the general disclaimer for all documents on this website, please note the following: This advice was prepared to assist the Attorney-General to determine whether a report should be made to Parliament under s 7 of the New Zealand Bill of Rights Act

1990 in relation to the Securities (Local Authority Exemption) Amendment Bill. It should

not be used or acted upon for any other purpose. The advice does no more than assess whether the Bill complies with the minimum guarantees contained in the New Zealand Bill of Rights Act. The release of this advice should not be taken to indicate that the Attorney-General agrees with all aspects of it, nor does its release constitute a general waiver of legal professional privilege in respect of this or any other matter. Whilst care has been taken to ensure that this document is an accurate reproduction of the advice provided to the Attorney-General, neither the Ministry of Justice nor the Crown Law Office accepts any liability for any errors or omissions.