Local authorities will be allowed to offer bonds to small investors without providing a full prospectus signed by every councillor, says Commerce Minister Lianne Dalziel.
The Government will give councils an exemption so they require only an investment statement and a certificate signed by two councillors to offerbonds to retail investors.
Local councils planned to spend $30.8 billion in the next 10 years on roads, bridges and airports, Dalziel said yesterday.
The relaxed rules were intended to make it easier for them to raise money from the public and take the pressure off using land taxes to fund projects.
A similar exemption operated until 1998. Since it was removed, only Auckland City had issued bonds to small investors.
