Commencement: 11 July 1994

REPUBLIC OF VANUATU

DECENTRALIZATION AND LOCAL GOVERNMENT REGIONS
ACT NO. 1 OF 1994

Arrangement of Sections

PART I
DEFINITION

1.	Legal Authorities
2.	Institutions

PART II
CREATION OF LOCAL GOVERNMENT REGIONS

3.	Establishment of Local Government Regions
4.	Establishment of Local Government Councils

PART III
COMPOSITION, NAME AND DUTIES OF
LOCAL GOVERNMENT COUNCILS

5.	Composition of Local Government Councils
6.	Election of members of the Local Government Councils
7.	Appointment of Members of the Local Government Councils
8.	Conduct of Business
9.	Procedure for enacting by-laws
10.	Standing Orders
11.	Setting up of a Committee
12.	Voting and Quorum
13.	New Election, Dissolution of Local Government Councils and Delegation of Responsibility
14.	Dissolution of Local Government Councils and Election for a New Assembly
15.	Approved by-laws
16.	Publication and Commencement of by-laws
17.	Supreme Court to assess the legality of by-laws
18.	Procedure on receipt of by-laws by the Minister

PART IV
THE LOCAL GOVERNMENT REGION EXECUTIVE OFFICER

19.	Local Government Executing Officer to represent Minister

PART V
POWERS OF THE LOCAL GOVERNMENT
COUNCILS TO MAKE BY-LAWS

20.	Power to make by-laws
21.	Power to make by-laws fixing Rates and Taxes for issue of Licences
22.	Power to make by-laws specifying Rates and Taxes for Local purposes

PART VI
ALLOWANCES

23.	Allowances to members
24.	Payment of Gratuities

PART VII
FUNDING OF LOCAL GOVERNMENT COUNCILS

25.	Revenue
26.	Determination of Administration subsidy
27.	Grants for Material Supplies
28.	Loans

PART VIII
LOCAL GOVERNMENT COUNCIL BUDGET

29.	Preparation and Approval of Budget
30.	Council to approve true balanced Budget
31.	Failure to approve Budget

PART IX
MISCELLANEOUS AND TRANSITIONAL PROVISIONS

32.	Election and Appointment of members
33.	Department of Local Government to assist and advise the Minister
34.	Provisions not to be applicable within Municipalities and their Boundaries
35.	Regulations made by the Minister
36.	Repeal and savings
37.	Commencement

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REPUBLIC OF VANUATU

Assent: 13/06/94
Commencement: 11/07/94

DECENTRALIZATION AND LOCAL GOVERNMENT REGIONS ACT
NO. 1 OF 1994

An Act to make provisions for the decentralization and establishment of Local Government Regions and for matters connected therewith:

BE IT ENACTED by the President and Parliament as follows: -

PART I
DEFINITIONS

LEGAL AUTHORITIES

1.	In accordance with this Act:

-	the term Constitution means the current Constitution of the Republic of Vanuatu. It is the supreme legal instrument.

-	the term Act means an act approved by Parliament in compliance with the procedures provided for in the Constitution.

-	the term by-law means a by-law approved by the Council of each Local Government Region. The by-law shall be subordinate to the Constitution and to an Act of Parliament. A by-law contradicting the essence of an Act or the Constitution shall be ruled null and void. The validity or otherwise of a by-law shall be determined by the Supreme Court.

INSTITUTIONS

2.	In accordance with this Act:

-	the term Local Government means the body of representatives of each Local Government Region.

-	the term Local Government Regions means the territorial community being a unit of decentralization. The Local Government Regions shall be legal entities and shall possess their own fields of jurisdiction which shall permit its agencies to freely run their affairs under the control of the Government and the judicial authority and in compliance with the Constitution and laws of the Republic of Vanuatu.

-	the term Local Government Region Executive Officer means the representative of the Government of the Republic of Vanuatu appointed by the Minister.

-	the term Minister means the Minister responsible for all matters relating to the decentralization.

PART II
CREATION OF LOCAL GOVERNMENT REGIONS

ESTABLISHMENT OF LOCAL GOVERNMENT REGIONS

3.	(1)	The Prime Minister may by Order:

(a)	declare a Local Government Region;

(b)	give a name to a Local Government Region;

(c)	define the boundaries of a Local Government Region and alter them.

(2)	The number of Local Government Regions to be so declared under subsection (1) shall not be less than 4 and not more than 6.

ESTABLISHMENT OF LOCAL GOVERNMENT COUNCILS

4.	When the Prime Minister declares a Local Government Region under section 3(1), he shall in the Order establish a Local Government Council for that Region.

PART III
COMPOSITION, NAME AND DUTIES OF
LOCAL GOVERNMENT COUNCILS

COMPOSITION OF LOCAL GOVERNMENT COUNCILS

5.	Each Local Government Council shall be composed of elected members and appointed members.

ELECTION OF MEMBERS OF THE LOCAL GOVERNMENT COUNCILS

6.	(1)	Election of the members of the Local Government Council shall be on the basis of direct universal franchise which shall include an element of proportional representation.

(2)	The number of elected members in each Local Government Region shall be such that each member shall represent not less than a population of 1,500 people in that Region.

(3)	The term of office of the elected members shall be for a period of four years. They shall be eligible for re-election.

(4)	The territory of each Local Government Region may be divided into several constituencies by an order signed by the Minister.

APPOINTMENT OF MEMBERS OF THE LOCAL GOVERNMENT COUNCILS

7.	(1)	The Minister may by Order provide for appointed members of each Local Government Council in respect of its Local Government Region and such members shall consist of:

(a)	chiefs appointed by the Minister from among persons nominated by representative bodies of chiefs;

(b)	women appointed by the Minister from among persons nominated by representative bodies of women;

(c)	youth representatives appointed by the Minister from among persons nominated by representative bodies of youth;

(d)	church representatives appointed by the Minister from among persons nominated by representative bodies of churches.

(2)	The appointed members -

(a)	shall hold officer for a period of four years and shall be eligible for reappointment; and

(b)	shall be consulted on any matter, question or issue coming before the Local Government Council for its decision.

(3)	The appointed members shall not be entitled to vote at the meetings of the Local Government Councils.

(4)	The appointed members shall not be more than half the number of elected members.

CONDUCT OF BUSINESS

8.	(1)	The Local Government Council shall hold its meetings in public at the Head-quarters of the Local Government Region. The Head-quarters shall be designated through an order to be issued by the Minister upon the recommendation of the Local Government Council.

(2)	The Local Government Council shall hold two ordinary meetings during one calendar year. The first ordinary meting, being the budgetary meeting, shall commence on the first working day in the month of November and may last for a period not exceeding forty-five days.

(3)	The second ordinary meeting being the administrative meeting shall commence on the first working day in the month of May and may last for a period not exceeding sixty days.

(4)	Apart from such meetings, the Local Government Council may hold extraordinary meetings at the request of the Minister or if more than half of the elected members so request.

(5)	The duration of an extraordinary session shall not exceed three days.

(6)	The Local Government Council shall meet by right on the first Thursday following the publication of the official results of the Local Government Council election. Members of the Local Government Council shall appoint among themselves a Chairman and no more than three deputy-chairmen. They shall be appointed by a majority voting. The voting shall be done by secret ballot.

(7)	The Chairman and deputy-chairmen shall hold office for a term of two years.

(8)	The Chairman shall be the Chief Executive Officer of the Council.

(9)	The Chairman shall preside at all meetings in compliance with the provisions of the Standing Orders of the Council. Upon evidence of this absence or incapacity, one of the deputy-chairmen shall, in the order of their appointments, replace him. The Chairman or the deputy-chairman substituting for him may, if he deems necessary, request the assistance of any Police Officer to restore order in the meeting chamber.

(10)	Members of Parliament elected within the Local Government Region may at the request of the Local Government Council of that region attend and address any meeting of that Council on any specific matter or issue.

PROCEDURE FOR ENACTING BY-LAWS

9.	(1)	The Local Government Council shall deal with draft by-laws tabled by any member of the Local Government Council with the Chairman of the Council.

(2)	Draft by-laws and proposals shall be voted on by the Council after having heard the opinion of the appointed members.

STANDING ORDERS

10.	(1)	Each Local Government Council shall make its own standing orders.

(2)	The Local Government Council shall vote on the approval of the standing orders of the Council after having heard the views of the appointed members. The Chairman shall draw up the Order of Business.

SETTING UP OF A COMMITTEE

11.	A Local Government Council may, from time to time, from among its members, appoint and dissolve, a committee responsible for matters relating to draft by-laws or for any general or specific purposes which in the opinion of the Local Government Council would be better regulated and managed by a committee. The composition of such a committee shall be proportional to the various opinions held within the Council.

VOTING AND QUORUM

12.	(1)	All decisions shall be determined by a majority of the votes of the elected members present. Each elected member present shall have the right to cast only one vote.

(2)	The quorum required for meetings of the Council shall be more than half of the total number of elected members.

(3)	In case of a tie vote, the Chairman shall have a casting vote.

NEW ELECTION, DISSOLUTION OF LOCAL GOVERNMENT COUNCILS AND DELEGATION OF RESPONSIBILITY

13.	(1)	If for any reason half of the seats of a Local Government Council become vacant, a new election shall be called within the two months following the date the latest seat became vacant.

(2)	If this latest vacancy occurs in the last six months of the normal term of the Council, the Prime Minister shall, upon the recommendation o the Minister, issue an order to dissolve the Local Government Council.

(3)	Day-to-day on-going business shall then be attended to by the Minister or he may delegate this responsibility to a public servant.

DISSOLUTION OF LOCAL GOVERNMENT AND ELECTION FOR A NEW COUNCIL

14.	(1)	Should the normal running of a Local Government Council be impeded, such as being unable to sit for three consecutive sittings for lack of a quorum, the Prime Minister shall, upon recommendation from the Minister, issue an order to dissolve the Council for cause.

(2)	Elections for a new Council shall be held not later than two months following the date on which the order was published in the Official Gazette. During this period, the day-to-day on-going business shall be attended to by the Minister or he may delegate this responsibility to a public servant.

(3)	No dissolution shall be made within the next twelve months following the election of a new Local Government Council which is taking over from the one dissolved. However, if during this period the running of the council is again impeded on similar grounds as those in subsection (1) of this section, the Prime Minister may, upon recommendation of the Minister, issue an order to temporarily suspend the Council for a period not exceeding six months. During this period of suspension the day-to-day on-going business shall be attended to by the Minister or he may delegate this responsibility to a public servant.

APPROVED BY-LAWS

15.	(1)	The Chairman of the Local Government Council shall submit at the earliest opportunity a copy of all approved by-laws to the Local Government Region Executive Officer and shall have a copy displayed on the Local Government Region head-quarters notice board.

(2)	During fifteen days following the display of the by-law on the notice board, the population of the Local Government Region concerned and the Local Government Region Executive Officer may submit their complaints on the legality or relevancy of the said by-law to the Chairman of the Local Government Council.

(3)	At the end of this fifteen day period the Chairman of the Local Government Council may then either:

(a)	submit the by-law to the Minister for publication in the Official Gazette if no compliant has been received;

(b)	if a compliant is received in that period -

(i)	and he thinks that the complaints made may be justified, convene a meeting of the Council to debate the issue;

(ii)	but if he thinks that the complaint is not justified or is substantially similar to matters already considered, he shall notify the complainant in writing and may then submit the by-law to the Minister as in subparagraph (a) at the expiry of 15 days from such notification.

PUBLICATION AND COMMENCEMENT OF BY-LAWS

16.	(1)	Subject to the provisions of section 18 upon receiving the by-law submitted to him under section 15(3)(a), the Minister shall ensure its publication in the Official Gazette. This by-law shall come into force as from the date of its publication in the Official Gazette.

(2)	Within the fifteen days following the commencement date of the by-law, if a person feels that the by-law was unfair to him or if he feels that the content of the said by-law contradicts the essence of the Constitution or existing laws, he may request for an enquiry to be conducted on the legality of the said by-law by a competent court.

(3)	The filing of such a request shall not prevent the by-law from being implemented.

SUPREME COURT TO ASSESS THE LEGALITY OF BY-LAWS

17.	The Supreme Court shall be the competent judicial body to assess the legality of by-laws enacted by Local Government Councils.

PROCEDURE ON RECEIPT OF BY-LAWS BY THE MINISTER

18.	(1)	Where the Minister receives a by-law under the provisions of section 15(3) above, he may either:

(a)	proceed with the publication of the said by-law according to the conditions and with the consequences provided for under section 16 above; or

(b)	request the Supreme Court to assess its legality. In this case he shall not proceed with the publication of the by-law and shall immediately inform the Chairman of the Local Government Council which enacted the by-law in question.

(2)	The Supreme Court may either:

(a)	rule out the whole text or part thereof; or

(b)	confirm the legality of the said by-law. In the latter case the Minister shall therefore ensure the official publication of the by-law within eight days following the date of the Supreme Court's decision. The by-law shall henceforth be enforced according to the conditions specified under section 16, and no other request for assessment of the legality of the said regulation shall be received by the Supreme Court from any persons or body corporate.

PART IV
THE LOCAL GOVERNMENT REGION EXECUTIVE OFFICER

LOCAL GOVERNMENT REGION EXECUTIVE OFFICER TO REPRESENT MINISTER

19.	(1)	The Local Government Region Executive Officer shall represent the Minister and the Government within the Local Government Region.

(2)	He shall be appointed by order made by the Prime Minister after consultation with the Minister.

(3)	The Minister shall by order prescribe the functions and duties of the Local Government Region Executive Officer.

(4)	The Local Government Region Executive Officer shall perform and discharge all acts and responsibilities which are by this Act or by order or regulation made under this Act directed or empowered to be done by such officer.

PART V
POWERS OF THE LOCAL GOVERNMENT
COUNCILS TO MAKE BY-LAWS

POWER TO MAKE BY-LAWS

20.	As from the dates they are established, Local Government Councils are empowered to make by-laws, on the matters listed below:

(1)	Choose the location and be responsible for constructing, maintaining and managing public facilities such as:

-	primary schools, health facilities, bridges and roads (except road network under the responsibility of the national government), water supply, wharves and jetties, commercial centres, libraries, museums and cultural centres;

(2)	Management and control of public market places;

(3)	Rules and regulations governing matters relating to hygiene and public heath in compliance with the general conditions set out under the law;

(4)	Rules and regulations governing professional activities relating to the issuing of licences payable to Local Government Councils;

(5)	Rules and regulations governing fishing and conditions relating to the issuing of fishing licences covering six nautical miles as from the low tide foreshore of all islands making up the Local Government Region;

(6)	Set out conditions of the issuing of licences for operating cinemas, commercial businesses, individual or group land or sea transport services within the Local Government Region;

(7)	Draw up statutory regulations relating to terms and conditions of recruitment, careers and termination of service necessary for the proper administration of the Local Government Council service departments. In no way shall these officers be regarded as public servants;

(8)	Clearly set out the economic development policies and plans of the Local Government Region;

(9)	Outline, create and draw up regulations governing the environmental protection zones (natural parks, natural reserves or tourist-attraction areas) subject to any legislation creating environmental protected areas in the national interest;

(10)	Decide on penalties to be imposed on persons involved in breaking the by-laws approved by the Local Government Council. The maximum amount for such penalties shall not exceed Vatu 50,000 for each conviction.

POWER TO MAKE BY-LAWS FIXING RATES AND TAXES FOR ISSUE OF LICENCES

21.	(1)	The Local Government Councils shall have the power to make by-laws fixing:

(a)	rates and taxes payable for the issue of licences for professional activities as stated in section 20(5) and (6); and

(b)	rates and taxes payable for the landing and take-off of aircraft, landing of ships and boats.

(2)	Where the Government rates and taxes exist regarding international connections, the Local Government Councils shall have the power to make by-laws for additional amounts which may not exceed 10% of the existing tax. These by-laws must be specifically endorsed by the Minister after consultation with the Minister of Finance.

POWER TO MAKE BY-LAWS SPECIFYING RATES AND TAXES FOR LOCAL PURPOSES

22.	Local Government Councils shall have the power to make by-laws specifying rates and taxes for local purposes on the people, properties and services within their area of jurisdiction.

PART VI
ALLOWANCES

ALLOWANCES TO MEMBERS

23.	(1)	Members of Local Government Councils and the members of any committees set up by the Local Government Councils are entitled to an allowance the amount of which shall be determined by the council but shall not exceed the maximum amount of Vatu 2,500 per day's sitting.

(2)	Members of Local Government Councils and the members of any committees set up by the Local Government Councils are entitled to a refund of their travelling and accommodation expenses when travelling to attend Council or committee meetings as the case may be. Reimbursement shall not be paid unless proof of payment is provided. Procedures for reimbursement and calculation of attendance shall be specified in the Council's standing orders.

(3)	(i)	There shall be paid to elected and appointed members of the Local Government Councils, a monthly allowance not exceeding VT 10,000.

(ii)	The Chairman of each Local Government Council shall be paid in addition to the allowance specified in paragraph (i) a monthly allowance of VT5,000.

PAYMENT OF GRATUITIES

24.	(1)	Elected and appointed members of Local Government Councils shall receive, at the end of their term of office, a payment of gratuity and the rate of that gratuity shall be determined by the by-laws made by the Local Government Councils.

(2)	The gratuity payable to each elected and appointed member under subsection (1) shall not exceed an amount equal to 15 per cent of all monthly allowances received by such member during his term in office.

PART VII
FUNDING OF LOCAL GOVERNMENT COUNCILS

REVENUE

25.	The revenue of a Local Government Council shall consist of:

(a)	an administration subsidy from the Government;

(b)	an equipment grant from the Government;

(c)	loans;

(d)	proceeds from Local Government Council rates and taxes and added value taxes;

(e)	various subsidies;

(f)	donations and legacies.

DETERMINATION OF ADMINISTRATION SUBSIDY

26.	(1)	The administration subsidy shall be determined each year during the Government budget session in accordance with a substantiated request forwarded by each Local Government Council. For 1994 this budget shall be at least an equivalent of the running costs of public services and facilities already existing in each Local Government Region.

(2)	The distribution criteria for 1994 shall be based on a par formula. However, this may be amended in future by legislation taking into account matters such as changes in school age population, the scope and volume of communication network in each Local Government Region.

GRANTS FOR MATERIAL SUPPLIES

27.	(1)	The equipment grant shall be determine each year during the Government budget session. For 1994, it shall consist of a percentage of revenues collected during the 1992 financial year but this percentage shall not be less than 5%. It shall thereafter follow recorded variations of the total revenues collected each year.

(2)	The distribution of this grant between each Local Government Council in 1994 shall be based on a par formula. This distribution criteria may be altered in future pursuant to the provisions and in ways provided for in section 26(2).

LOANS

28.	Local Government Councils are hereby authorized to borrow money from national as well as international lenders. The total amount of such loans shall not exceed Vatu 20,000,000 (twenty million). The decision to proceed with a loan shall be recorded in a Local Government Council order of which terms and conditions are provided for in sections 9 to 17 of this Act. This order shall not be executed until it is expressly approved by an order issued by the Minister after consultation with the Minister of Finance.

PART VIII
LOCAL GOVERNMENT COUNCIL BUDGET

PREPARATION AND APPROVAL OF BUDGET

29.	The Local Government Councils shall approve their own budget in the form of an order. The draft budget, as has been prepared by the Chairman, shall be tabled with the Local Government Council not later than 1st October of each year.

COUNCIL TO APPROVE TRUE BALANCED BUDGET

30.	The Council shall approve a true balanced budget. No additional expenditure shall be allowed unless it is offset by new revenue or an equivalent cut in the approved budget.

FAILURE TO APPROVE BUDGET

31.	(1)	If the Local Government Council fails to approve the budget during its budgetary meeting or, at the latest, by midnight on 31st December, the Minister shall issue an order duly counter-signed by the Minister responsible for Finance to release the draft budget.

(2)	The ministerial order shall come into force on the date of its publication in the Official Gazette.

PART IX
MISCELLANEOUS AND TRANSITIONAL PROVISIONS

ELECTION AND APPOINTMENT OF MEMBERS

32.	(1)	Elections for Local Government Councils shall be held during 1994.

(2)	Appointment of members of the Local Government Councils shall be made within 3 weeks following the date of the election under subsection (1).

(3)	The Prime Minister may in order to provide for election for the Local Government Councils under this Act, dissolve any Local Government Council which continues to be in existence after the commencement of this Act, in pursuance of section 36 of this Act.

(4)	The date for the elections of the Local Government Councils shall be established by the Electoral Commission in consultation with the Minister.

DEPARTMENT OF LOCAL GOVERNMENT TO ASSIST AND ADVISE THE MINISTER

33.	The Department of Local Government shall be responsible for assisting the Minister and advising Local Government Councils on matters relating to this Act.

PROVISIONS NOT TO BE APPLICABLE WITHIN MUNICIPALITIES AND THEIR BOUNDARIES

34.	(1)	The provisions of this Act shall not apply within Municipality boundaries and Municipalities are deemed not to be included in any Local Government Region.

(2)	In subsection (1) "Municipality" means a municipality established under the Municipalities Act [CAP. 126].

REGULATIONS MADE BY THE MINISTER

35.	The Minister may make regulations not inconsistent with this Act, for an in respect of matters necessary for the better carrying out of the provision of this Act.

REPEAL AND SAVINGS

36.	(1)	Decentralization Act [CAP. 127] is hereby repealed.

(2)	Notwithstanding the repeal of the Decentralization Act [CAP. 127].

(a)	Local Government Councils established under that Act shall continue to be in existence and the members of those Councils shall continue to remain in office until those Councils are dissolved by the Prime Minister under section 32(3) of this Act;

(b)	All regional laws and any statutory orders made under the Decentralization Act [CAP. 127] and in force immediately prior to the coming into operation of this Act, shall so far as they are not inconsistent with the provisions of this Act, continue in force until amended or replaced by by-laws or statutory orders, as the case may be, made under this Act.

COMMENCEMENT

37.	This Act shall come into force on the date of its publication in the Gazette.

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