The Brookfields Lawyers legal firm is advising care with respect to contracts with any Auckland council, as plans for a single super-council for the region are drawn up.

Brookfields says as part of the legislation which will restructure local government in Auckland, the Local Government (Tamaki Makaurau Reorganisation) Act 2009 is now in effect.

This Act applies to certain arrangements entered into during the ‘transition period’ which runs from May 24 this year  to October 31 next year for the region's local authorities: Auckland Regional Council, Auckland City Council, Franklin District Council, Manukau City Council, North Shore City Council, Papakura District Council, Rodney District Council and Waitakere City Council. 

A decision to enter into contracts, for example leases, extending beyond June 30 2011 with a value of $20,000 or more is automatically covered and will be subject to confirmation by the Transition Agency, says Brookfields.

The Act affects all contracts that will impose any obligation on a local authority beyond that date, including contracts for services or to buy or dispose of assets.

Until the Transition Agency confirms the decision to enter into a contract, that arrangement is void and of no effect.

Any contract with any affected local authority will need to take this requirement for confirmation into account. 

Further information: Linda O'Reilly