Councillor Philippa Baker-Hogan, chair of the strategy and policy committee and arch critic of the sale of legal highs, said a paper will go to the February 24 committee meeting recommending a much wider consultation with Safer Whanganui, iwi and the community.
Mrs Baker-Hogan said she was especially pleased the Ministry wanted the LAPPs to be given "the highest regard" when retail outlets are being licensed.
"Although it is not a directive, it is much stronger than the original intent."
Even though about five psychoactive substances had been withdrawn from sale since the Act came into force she believed all products must be proven safe before they were let into the market at all.
"I'm looking forward to the submissions on issues such as location, sensitive sites including schools, and proximity to other approved retailers.
"As I've said before these products should be banned, as they are in at least a dozen countries. But if we can't ban them, we must ensure they are strongly restricted and kept well away from places where our youth congregate."
Mrs Baker-Hogan said the draft LAPP should be "really robust" by the time council signs it off in March next year.
Currently two city stores - Stardust Creations at 148 Victoria Ave and A and V Holdings at 78a Victoria Ave - hold interim retail licences to sell legal highs.
Dr Donald Hannah, Psychoactive Substances Regulatory Authority manager, said while the Act regulated the availability of the legal highs, it was a response to the worldwide problem of unregulated importation, manufacture and sale of synthetic psychoactive substances.
"With synthetic substances, the chemical composition can be quickly and easily changed so simply banning these substances will no longer work."
The ministry estimates that since the Act was implemented, the number of outlets selling legal highs had dropped from between 3000-4000 to less than 170, while the number of products available had reduced from several hundred to 46.
