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Progress on Bill chance for future say commissioners

 

Kaipara District Council Commissioners have welcomed news that legislation aimed at fixing historical rating errors in the District is back before Parliament.

The Local Bill, which was sponsored by MP for Northland Mike Sabin, has now been considered by a Select Committee and was tabled in Parliament for its second reading on November 12.

The Local Bill aims to fix errors made when former Kaipara District Councillors set rates between 2006 and 2012. The services the rates paid for were still supplied.

Chair of Commissioners John Robertson said he appreciated the very careful and in-depth consideration Members of Parliament had given an extremely complex range of issues in the Bill. He noted that MPs had taken particular care to hear first-hand the concerns of local people.

“This Bill is extremely important to the District because, when passed, it will provide absolute clarity around a number of fundamental issues. Without that clarity and certainty, Kaipara has been stymied and unable to move forward so it is very, very pleasing to see progress.”

In its report to Parliament the Select Committee confirmed that the late adoption of the Long Term Plan 2012/2022 (LTP) and Annual Report 2010/2011 did not invalidate rates demands set for the 2012/2013 year, meaning those rates must be paid.

Once the Bill is passed into law, Mr Robertson said the Council expected to finally receive the bulk of the $3.5 million in rates currently still owed by those who were disputing their rates demands – around 1,000 out of 13,000 ratepayers.

The payment of overdue rates would open the way to Council finally being able to reinvest in the District, he said.

“We currently have $9 million worth of roading projects either on hold or being substantially delayed because some rates have been withheld. Finally, the Council will be able to begin investing in critical infrastructure again and start focusing on the future.”

Mr Robertson noted that the Select Committee believed some of the penalties applied to those who had withheld their rates should be forgiven. Commissioners had undertaken to remove some penalties for overdue rates to meet the Select Committee’s request, an amount equating to around $950,000. Instalment penalties on the original rates would still be payable.

If the Bill is enacted into law before January 1, 2014, Commissioners have also committed to waiving further penalties due on that date, but only if all outstanding rates were brought up-to-date.

“It is now important to move forward and focus on the future,” Mr Robertson said.

 
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