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Historic rates valid confirms court

 

Kaipara District Council has welcomed the recent High Court decision confirming that historic rates have been effectively validated.

Chair of Commissioners John Robertson said he was pleased there was now “absolute clarity” around the issue of historic rates. He said the rates are enforceable and must now be paid.

The decision released related to court action taken by the Mangawhai Ratepayers and Residents Association (MRRA) against the Council.

The Court has confirmed that the borrowing arrangements entered into by Kaipara District Council for the Mangawhai Community Wastewater Scheme are enforceable.

The debt for the scheme was incurred by previous councils and a small number of ratepayers have been refusing to pay, however the judgement confirmed that historical rating errors had been validated with the passing of the Kaipara District Council (Validation of Rates and Other Matters) Act 2013, and therefore the rates are enforceable and must be paid.

"As we have consistently said, significant errors were made by previous councils in approving the development of the scheme,” said Mr Robertson. “This was also acknowledged in the Court decision which confirmed that some of the decisions entered into by previous councils were invalid,” said Mr Robertson.

“However it was always the view of the Commissioners that the debt was enforceable and that Council had a legal obligation to repay the debt. The Court has agreed with this view and I hope it is now crystal clear to everyone so that as a district, Kaipara can move forward.

“We now hope that this matter can be put to rest and and that those people still withholding rates will realise their position is simply not legal nor is it fair on the rest of the District.”

Mr Robertson acknowledged that the judge has raised some issues about the Council’s decision-making in the future.

“We have yet to consider that part of the decision in great detail but that will be a matter of urgency for us over coming weeks.”

Mr Robertson also noted that costs have been awarded to the MRRA to cover the actions they had taken. Determination of the amount payable will follow.

“It was unfortunate that the matters of concern to the MRRA were not able to be resolved without the need for Court proceedings – that was always our preference. But the Commissioners have a responsibilty to act in the interests of the District as a whole.”

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