Regulatory Standards Board finds NZ local government disclosure rules inconsistent

The Regulatory Standards Board has released its first report, examining the Local Authorities (Members’ Interests) Act 1968 (LAMIA). The inquiry found that the legislation, which governs financial conflicts of interest in local government, is inconsistent with the principles of responsible regulation established under the Regulatory Standard Act 2025.

Minister for Regulation David Seymour noted that the Board found the Act difficult for candidates and elected members to understand and comply with. Despite the complexity, breaches can lead to serious consequences, including criminal convictions and disqualification from office. The report also highlighted that certain provisions may prevent qualified candidates from standing for election or participating in decisions they were elected to influence.

Specific instances were cited to illustrate the real-world impact of the current rules. In Wellington, an elected member was unable to vote on the Golden Mile project due to owning a small business on Courtenay Place, a situation critics argued denied voters representation on a central campaign issue.