If councils did have that power, don’t you think they would have used it by now?

auckland city council 2Council told it has power to ban prostitution
NZ Herald 25 February 2015
Banning prostitution from Auckland’s troublespots will not be a job for the Government.

Instead, Auckland Council has been told it already has the power to pass a bylaw to address the problem.

There had been interest in the law change because other cities, in particular Christchurch, were keen to have similar powers to ban prostitution near schools, family homes or sports facilities.

But this afternoon a bill that was introduced by former Labour MP George Hawkins in 2010 was defeated on its second reading by 109-11.

NZ First was the only party to vote in favour.

The bill’s purpose was to authorise Auckland Council to make bylaws prohibiting prostitution in specified public places.
http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11407901

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