Kaipara ratepayers win first round

 

In an action that had been simmering for over 12 months, the Mangawhai Residents & Ratepayers Association (MRRA) has emerged triumphant in their bid to stop a court challenge to rates allegedly struck unlawfully to pay for the Mangawhai wastewater treatment system.

That first cause of action was to review the council decision to build the wastewater system and borrow money to do it. The Commissioners’ attempt to strike out the first cause of action in the application for judicial review was rejected by Justice Paul Heath.

The other three causes, though not challenged by the council, were to review council decisions to extend the scope of the scheme and borrow more money to do it, then to set rates to meet the costs of borrowing.

In the Whangarei High Court last month, David Goddard QC, for the Kaipara District Council (KDC), said the application by the MRRA for judicial review was a waste of time and resources. Given that the councillors at the time of the works are not now in office plus the elapsed time, to divert time and resources of the court and council could serve no useful purpose.

However, in delivering his decision, Justice Heath said the validation bill in itself was acknowledgment that there were irregularities in the rate-fixing processes. Though he declined to go into reasons he concluded that it would be inappropriate to strike out the first cause of action but considered that the arguments put forward by the MRRA were sufficient to justify a substantive hearing.

He added that several of the points raised by the two experienced counsel raised questions of public importance, difficult to deal with sufficiently in the time allowed. This also applied to matters regarding delay and cost.

This is by no means a ‘fait accompli’ but goes some way to vindicate the stance of the MRRA. A case management conference has been called for the week of September 12 and the judicial process will continue with the judge endeavouring to secure a hearing date before the validation bill continues the process through Parliament.
 
- Rob Pooley