Penalties slashed for Kaipara

John Robertson

About $950,000 in rates penalties has been pruned from the bills of Kaipara property owners following recommendations by MPs considering retrospective legislation to validate the district's rates.

The Local Government and Environment select committee reported to Parliament on the Kaipara District Council (Validation of Rates and Other Matters) Bill on Monday, paving the way for a second reading.

Along with the recommendation to ensure payment would be sought only for penalties that would have been lawful had they been added to valid rates, the MPs also sought changes so not just the Kaipara District Council but also any other person could bring proceedings against anyone whose actions or omissions were associated with the council's financial problems.

The Auditor-General is soon to release a report on Kaipara issues and the select committee report said: "We trust that if parties are found culpable the Government and the council will ensure those parties are held accountable."

The bill aims to validate errors made when the council set rates from 2006 to 2012. It will also rule the late adoption of the Long Term Plan and annual report 2012/13 did not invalidate rates demands set for that year.

The government installed four commissioners to govern Kaipara in September 2012, following disclosures the council had run up an $80 million debt, primarily via the Mangawhai sewerage scheme.

Mangawhai ratepayers have led a strike against paying rates, but the chairman of commissioners, John Robertson, said that once the bill was passed into law, the council expected to receive most of the $3.5 million in rates owed by about 1000 of the district's 13,000 ratepayers disputing their rates.

Payment of overdue rates would open the way for the council to reinvest in the district.

"We have $9 million worth of roading projects either on hold or being substantially delayed because some rates have been withheld," Mr Robertson said.

Council community engagement manager Barbara Ware told the Advocate about $350,000 of the $950,000 in penalties for overdue rates being removed to meet the select committee's recommendation was included in the $3.5 million of owed rates.

The other $600,000 in penalties for overdue rates being removed was on top of the $3.5 million, she said.