LGA Decision-Making NZ – Sections 76–82 Compliance Guide
This guide covers the core decision-making requirements under the Local Government Act 2002 (LGA), sections 76–82. It is written for NZ council staff who need to apply the law in plain English. All references are to the LGA 2002 as at May 2026.
1. Significance and Engagement Policy (s 76A)
Every local authority must adopt a significance and engagement policy. This policy sets out how the council determines the significance of decisions and how it will engage with communities and Māori.
Key rule (s 76A(3)): The policy must include criteria for assessing significance, and must state when the special consultative procedure will be used. It must be reviewed at least once every three years.
The policy must also describe how the council will provide opportunities for Māori to contribute to decision-making processes (s 76A(3)(c)).
2. When Consultation is Required (s 78)
Section 78 sets out the general duty to consult. A local authority must consult when making a decision that is significant under its significance and engagement policy, or when required by any other enactment.
Warning: Consultation must be undertaken in accordance with the principles set out in s 82 (see below). Failure to consult properly can lead to judicial review and invalidation of the decision.
Section 78(2) lists specific matters that always require consultation, including:
- Adopting or amending a long-term plan (LTP)
- Adopting or amending a significance and engagement policy
- Making a decision that is inconsistent with an existing policy or plan
- Deciding to proceed with a significant activity or project
3. The Special Consultative Procedure (ss 83–89)
The special consultative procedure (SCP) is a formal, enhanced consultation process. It is required for certain decisions, such as adopting or amending a long-term plan (s 93) or a significance and engagement policy (s 76A(4)).
Key rule (s 83): The SCP requires the council to:
- Prepare a statement of proposal (s 83(1)(a))
- Make the proposal publicly available
- Provide at least one month for submissions
- Consider all submissions and hear those who wish to be heard
- Prepare a report on submissions
The SCP is more rigorous than ordinary consultation. It must be used whenever the significance and engagement policy says it will be used, or when the LGA specifically requires it.
4. Māori Engagement (ss 4, 76A, 81)
The LGA recognises the Crown’s responsibility to take account of Māori interests and to provide opportunities for Māori to contribute to decision-making.
Key rule (s 81): A local authority must:
- Establish and maintain processes for Māori to contribute to decision-making
- Consider ways to foster Māori capacity to contribute
- Provide relevant information to Māori
Section 76A(3)(c) requires the significance and engagement policy to include how the council will provide opportunities for Māori to contribute. This may include iwi liaison, Māori standing committees, or mana whenua representation on decision-making bodies.
Warning: The duty under s 81 is ongoing and applies to all significant decisions. It is not limited to decisions that directly affect Māori land or resources. Courts have held that councils must engage early and meaningfully.
5. Principles of Consultation (s 82)
Section 82 sets out the principles that apply to all consultation under the LGA. These principles are derived from common law and are binding.
Key rule (s 82): Consultation must:
- Be undertaken genuinely and with an open mind
- Occur before the decision is made
- Provide sufficient information to enable informed comment
- Allow reasonable time for submissions
- Give genuine consideration to submissions received
These principles apply whether the consultation is ordinary or under the SCP. They are not negotiable.
6. Recording and Reporting (ss 76–77)
Section 76 requires that every decision be made by or on behalf of the local authority in accordance with its delegations policy. Section 77 requires that the council identify and assess all reasonably practicable options, including the option of doing nothing.
Key rule (s 77): For every significant decision, the council must:
- Identify the problem or issue
- Identify all reasonably practicable options
- Assess the benefits and costs of each option
- Assess the impact on Māori
- Document the reasons for the decision
These records must be kept and made publicly available (subject to privacy and commercial sensitivity).
7. Practical Steps for Staff
When preparing a report or recommendation for a decision, follow this checklist:
- Check the significance and engagement policy – is the decision significant?
- If significant, does the policy require the special consultative procedure?
- Has Māori engagement occurred or been planned?
- Have all reasonably practicable options been identified and assessed?
- Is the consultation genuine and in line with s 82 principles?
- Are the reasons for the decision clearly documented?
Warning: Do not shortcut the process. Courts have quashed decisions where councils failed to follow their own significance and engagement policy or the s 82 principles. Always seek legal advice if in doubt.
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Frequently Asked Questions
What is the difference between ordinary consultation and the special consultative procedure?
Ordinary consultation follows the s 82 principles but has no fixed format. The SCP is a formal process with a statement of proposal, a minimum one-month submission period, and a hearing stage. The SCP is required for certain decisions (e.g., LTP adoption) and whenever the significance and engagement policy says so.
Does the significance and engagement policy need to be reviewed every year?
No. Section 76A(5) requires review at least once every three years. However, if the council’s circumstances change significantly (e.g., a merger or major reform), an earlier review is advisable.
What happens if we don’t follow the significance and engagement policy?
The decision may be challenged by judicial review. A court can set aside the decision if the council failed to follow its own policy or the s 82 principles. It can also award costs against the council.
How do we engage with Māori under s 81?
There is no one-size-fits-all approach. Common methods include: establishing a Māori advisory committee, holding hui with iwi and hapū, using mana whenua representatives on council committees, and providing information in te reo Māori. The key is to engage early, meaningfully, and with an open mind.
Can we delegate decision-making under s 76?
Yes, but only in accordance with the council’s delegations policy. Section 76 requires that every decision be made by or on behalf of the council in accordance with that policy. Delegations must be documented and must not be inconsistent with the LGA or other enactments.
Frequently asked questions
What is the difference between ordinary consultation and the special consultative procedure?
Ordinary consultation follows the s 82 principles but has no fixed format. The SCP is a formal process with a statement of proposal, a minimum one-month submission period, and a hearing stage. The SCP is required for certain decisions (e.g., LTP adoption) and whenever the significance and engagement policy says so.
Does the significance and engagement policy need to be reviewed every year?
No. Section 76A(5) requires review at least once every three years. However, if the council’s circumstances change significantly (e.g., a merger or major reform), an earlier review is advisable.
What happens if we don’t follow the significance and engagement policy?
The decision may be challenged by judicial review. A court can set aside the decision if the council failed to follow its own policy or the s 82 principles. It can also award costs against the council.
How do we engage with Māori under s 81?
There is no one-size-fits-all approach. Common methods include: establishing a Māori advisory committee, holding hui with iwi and hapū, using mana whenua representatives on council committees, and providing information in te reo Māori. The key is to engage early, meaningfully, and with an open mind.
Can we delegate decision-making under s 76?
Yes, but only in accordance with the council’s delegations policy. Section 76 requires that every decision be made by or on behalf of the council in accordance with that policy. Delegations must be documented and must not be inconsistent with the LGA or other enactments.