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MRRA still defiant despite Court ruling

 

By Rob Pooley

What were in some cases implicit in his interim report on the Mangawhai EcoCare issue became explicit in the final decision delivered on Friday 25 July by Justice Heath. While clarified, it changed very little from the interim report despite pleadings (arguments) from Mangawhai Ratepayers & Residents Association (MRRA) counsel. Some points raised by the MRRA in the telecast hearing on July 18 got a sympathetic ear but not sufficient to alter any decision.

Justice Heath therefore ruled that the Validation Act operated retrospectively rendering rates charges legal. Though the MRRA submitted the earlier loan contracts undertaken by Kaipara District Council (KDC) were illegal and therefore unenforceable, this too was rejected by the Judge being covered by the ‘protected transaction’ status.

This, in essence, means that rates owed, current and historic, must be paid and KDC is within its right to move towards collection of the arrears. Justice Heath stated that ‘Just like any other entity the Council has the ability to negotiate to restructure the loan arrangements and repayments in the best interests of the ratepayers.’

The judge also refused the MRRA application for an interim injunction to stop the council collecting withheld rates pending hearing of the appeal it filed just before this most recent hearing.

However he did concede that, if the Validation Act hadn’t been passed, the association would have succeeded in its claim relating to invalidity of council rating decisions arising out of the EcoCare agreements.

Justice Heath confirmed the awarding of indemnity costs in favour of the MRRA, and said while he was satisfied that the Association has spent a considerable amount on the case his order would be costs for most of the time leading up to the first hearing in December and standard court costs for the period to his May decision. This figure is to be confirmed but believed to be in the vicinity of $200,000.

John Robertson, Chairman of Commissioners for KDC said the Council now had a clear mandate to collect rates, that the MRRA had had its day in court (a move it had instigated) and due process had been served. He invited the MRRA to accept the court rulings and to withdraw its appeal lodged in the Court of Appeal.

However MRRA Chairman Bruce Rogan says that the fight is not yet over and while the MRRA had lodged an appeal prior to this final judgment, they now have to consider advice from their Counsel based on closer examination of the decision and the interpretation of the Local Government law as to whether an appeal should proceed and on what specific grounds. As this would involve further expense it would be necessary to have full support of its members and those who had the most to lose if the court decision was to be challenged further, and in the event of it being unsuccessful. The association will appeal to its members for feedback before deciding its future options.

“Either way,” says Bruce Rogan “we are not concerned with the past but having come this far we are very much concerned about future protection of the rights of all New Zealand ratepayers under

Local Government laws and the freedom that Councils have had in creating situations like this without any legal rights.”

There is still considerable tidying up to be done over the next year or so within the term of the Commissioners commencing with the appointment of an acting CEO. Following that will be the local body elections when the Kaipara ratepayers will again need to put their trust in civic-minded members of the public to manage Council affairs. Add to this ongoing discussions on the possibility of a unitary authority over the north, its associated boundary changes and how a northern ‘Super City’ might effect us all. In the foreseeable future, life for Kaipara ratepayers will not be dull.
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