Chairman - No secret to tax refund

Northland Regional Council chairman Craig Brown has stoutly refuted claims from Cr Joe Carr that the $1 million tax refund receipted on June 15 was kept 'hidden' from elected members by council staff or anyone else. (NRC staff 'hide' $1m windfall, Northland Age July 31).

Cr Brown said Cr Carr's allegations were inaccurate and without foundation. The refund had been noted in the June 26 agenda, and everyone except Cr Carr, apparently, had been aware of it.

Cr Carr's complaint was that the rates for the new financial year had been struck without knowledge of the refund (of $1,018,623), but Cr Brown rejected that.

The long-term plan deliberations took place on May 22. The cheque arrived, unexpectedly, on June 15, was gratefully received banked that same day. The refund was notified in the agenda of the meeting of June 26, noting that a resolution regarding how the money would be used would be sought in July.

"No one else is saying that anything untoward has happened, because nothing did happen," Cr Brown said.

He agreed that Inland Revenue had ruled in March last year that the $3 million donation the council made to building the Northland Events Centre in Whangarei in 2008/09 would be tax deductable, but he was also aware that that decision had been disputed within the IRD.

"The council was not in a position to include money that we didn't know would be available when we completed the long-term plan process," he said.

"We knew the refund was in dispute, so we couldn't count on receiving it. By the time the refund was received the LTP decisions had been made."

Everyone except Cr Carr seemed to understand the process and the timing of it, and he could not see how any of that could be construed as suggesting that anyone had kept anything hidden.

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Tuesday's article did not make it clear that the staff recommendation, that the refund be used to reduce debt on the Northland Events Centre, did not go to a vote.

Cr Carr was quoted as saying the council's response was to accept the recommendation on the chairman's casting vote, but it was agreed to delay a decision until all councillors were present. Cr Carr told The Age it appeared that a vote would be carried on the chairman's casting vote but the debate did not reach that point.

The Northland Age apologises for any confusion arising from that.