37. Transitional provisions relating to persons deemed employees of
 Vehicle Testing New Zealand Limited---(1) Notwithstanding any other
 provision of this Act or any provision of the State Sector Act 1988,---
   (a) Every person employed in the Ministry immediately before the
         commencement of this section and engaged principally in duties
         that relate to functions that are functions of Vehicle Testing
         New Zealand Limited is hereby deemed to be an employee of
         Vehicle Testing New Zealand Limited (in this section referred to
         as the Company); and
   (b) The terms and conditions of employment of every person who, by
         virtue of paragraph (a) of this subsection, becomes an employee
         of the Company shall, until varied or until a new contract of
         employment is entered into, be based on the employment contract
         that applied to that person immediately before the commencement
         of this Act in respect of that person's employment in the
         Ministry.

   (2) For the purposes of every enactment, law, award, determination,
 contract, and agreement at any time relating to the employment of a
 person who, by virtue of subsection (1) of this section, becomes an
 employee of the Company,---
   (a) The contract of employment that applied immediately before the
         commencement of this section in respect of that person's
         employment in the Ministry shall be deemed not to have been
         broken by that person having so become a person employed by the
         Company; and
   (b) Any period recognised by the Secretary as continuous service in
         the Ministry shall be deemed to have been a period of continuous
         service in the Company.

   (3) No person who becomes, by virtue of subsection (1) (a) of this
 section, a person employed by the Company shall be entitled to any
 payment, benefit, or compensation whether for redundancy or otherwise by
 reason only of that person having ceased to be a person employed in the
 Ministry.

   (4) Any person who, immediately before the commencement of this
 section, was an officer or employee appointed under the State Sector Act
 1988 and was a contributor to the Government Superannuation Fund under
 the Government Superannuation Fund Act 1956 shall, if the person becomes
 an employee of the Company, be deemed to be, for the purposes of the
 Government Superannuation Fund Act 1956, employed in the Government
 service so long as that person continues in the service of the Company
 and the Government Superannuation Fund Act 1956 shall apply to that
 person in all respects as if the service with the Company were
 Government service.

   (5) Subject to the Government Superannuation Fund Act 1956, nothing in
 subsection (4) of this section shall entitle any such person to become a
 contributor to the Government Superannuation Fund after that person has
 ceased to be a contributor.

   (6) For the purposes of applying the Government Superannuation Fund
 Act 1956, in accordance with subsection (4) of this section, to a person
 who is in the service of the controlling authority and is a contributor
 to the Government Superannuation Fund, the term ``Company'', in relation
 to that person, means the Company.

   (7) This section shall come into force on a date to be appointed by
 the Governor-General by Order in Council.