Decisions, decisions for judge in rates case

Following on from the August court decision to allow the Mangawhai Ratepayers & Residents Association (MRRA) to bring its action against the Kaipara District Council (KDC) to the High Court, a full gallery of MRRA supporters brought their evidence of charges of illegalities, misdemeanours and shonky trading by KDC and Commissioners to the Whangarei Court last week in what many considered a ‘David and Goliath’ confrontation.

Believing the Rule of Law to be on their side, the veracity of the MRRA claims will be decided by the Court though,depending on the outcome could bring about some radical changes in the composition, duties and obligations of not only Local Government bodies but also corporations, banks, bureaucrats, and the politicians of this country.

This is a complicated case having many tentacles such as debts incurred without consultation, security for loans, the ‘Validation of rates and other Matters’, the performance of the Audit Department and inconsistencies which have snowballed since the Mangawhai Wastewater Scheme was mooted almost 20 years ago.

Last weeks latest proceedings lasted three days with MRRA Counsel Matthew Palmer QC outlining the steps that brought the matter firstly to the attention of the MRRA, then actions thereafter bringing into question the legality of the scheme, the financing, the subsequent rates hike and the KDC attempts to recover these costs from ratepayers by means of the Validation Act made by Parliament. This Act which, by definition, has an overriding power makes it doubtful the court has the power to usurp Parliament.

Palmer’s opening reference to dealing with an ‘extraordinary saga of incompetence’ was not in dispute. However he questioned that, while the KDC is obliged to pay it’s creditors via it’s rates take, that if the rating process was considered illegal the KDC was unable to shelter behind the Local Government Act or the Rating Act which authorises Councils to give security over rates.

Day two looked closer at the retrospective Validation Bill, the possibility of it being breached given the timing of its passing and the rights of the public to question the decision. However, David Goddard QC for KDC submitted the application into the Wastewater Scheme should be struck out as Councillors involved in the decision making had been removed and replaced by Government appointed Commissioners.

Day three was principally summing up by both parties which was basically more of the same jousting and endorsements of oft quoted points of law with a number of finer points brought to the surface which need careful deliberation and consideration. The case ended predictably with judge Justice Heath reserving his decision and due to the weight of evidence this could be some time away.

- Rob Pooley