Residents' group loses rates appeal

An attempt by angry Mangawhai residents to overturn a retrospective legislation that validated irregularities in the setting and assessing of rates for a controversial wastewater scheme has failed in the Court of Appeal.

The judgment is a blow for the Mangawhai Ratepayers and Residents' Association (MRRA) whose members are refusing to pay their rates in protest over their setting and assessment despite an earlier ruling against them by the High Court.

Association chairman Bruce Rogan said his members would discuss the Court of Appeal ruling and said there was a possibility of appealing the judgment in the Supreme Court.

With 991 members, the association sought $1000 per member, or $991,000 in total, from the council through the Court of Appeal for allegedly breaching their right to seek justice for their cause.

The association challenged a High Court ruling that said the Kaipara District Council had the power to impose rates, that the Validation Act - passed retrospectively by Parliament - validated rates for all purposes, and that there was no breach of the Bill of Rights.

Court of Appeal judge Forrest Miller ruled accountability of those responsible for the council's past failings could be exacted in other ways, as had happened with the issue of proceedings against some of those involved. In such circumstances, little was achieved by denying the council the ability to set rates itself.

Two other judges - Justice Rhys Harrison and Justice Mark Cooper - agreed with Justice Miller that the association's appeal must be dismissed but issued separate reasons.

Association lawyer Matthew Palmer QC argued the official advice to the Parliamentary Local Government and Environment Select Committee which received submissions on the Bill was to the effect the legislation would remedy procedural illegalities only and would not deal with every failure of the council's governance. However, Justice Miller said the point of validation was to ensure the council may collect rates and that ratepayers must pay them, in full.

The court accepted the council's submissions that the Validation Act needed to be enacted as its finances needed to be urgently put in order because the Mangawhai wastewater scheme's costs had been incurred and nothing could be done about that. The other judges agreed.

Council's chairman of commissioners, John Robertson, welcomed the court's decision.