ARC told late rate change not advised

By CLAIRE TREVETT

A report outlining legal advice given to the Auckland Regional Council suggests it was too late to reset rates and would be unjustified, unfair and costly.

The council will consider the legal advice on resetting the rates and listen to ratepayer representatives at today's extraordinary meeting.

The report on the legal advice said there did not seem to be any grounds for resetting the rates, introducing an instalment system for payment, changing the due date of rates, or moving the penalty dates.

It said there had been no miscalculations or irregularities in setting the original rates.

While the position might have been different if no bills had yet been sent, to change parts of that system now could be unfair on people who had already paid.

Resetting the rates was estimated to cost $4.5 million and would mean the council would have to borrow money and put "severe financial restrictions" in place until the replacement rates started to come in.

They said the only reason they could see for resetting rates was the level of public opposition.

"It seems to us that any desire to reset the rates in such circumstances would be largely a political decision coming very close to the council simply wanting to change its mind, rather than arising out of a true change of circumstances."

It also gave a warning against changing due dates, removing penalties for overdue payments and changing the methods of making instalment payments.

All three were part of the original rates resolution, and it was not possible to change one aspect in isolation.

While the wording of the rates resolution meant the council could refrain from adding penalties, to do so now would be unfair on people who had already paid to avoid the penalties, the report said.

Chairwoman Gwen Bull said she hoped the meeting would be positive and might allay some people's concerns with the rates.

"I think there is a lot of misinformation about there."

Councillor Mike Lee said that "continuing to nothing was no longer an option".

"We are under a heavy moral obligation to do something to lessen the burden on residential ratepayers.

"Failure to take corrective action now would do serious damage to the ARC as an institution."

However, Councillor Craig Little said people expecting serious changes to come from the meeting would be "seriously disappointed" as the council was restricted to items listed on the agenda.

"The only thing I'm pleased about was that we forced the chair at last to call a meeting that should have happened weeks ago. I am relieved finally the council is prepared to be openly accountable for what it has done."

Michael Barnett said he could not attend the meeting because of prior commitments in Wellington.

"I think there are some positives there for ARC, in the way they have gone about the process of setting the rates, from the Auditor-General's report."

ARC deputy chairman Philip Sherry said he could not comment before the meeting.

Today's meeting

* The Auckland Regional Council's extraordinary meeting is at the Pitt St council chambers, on the ground floor, at 2pm today. Ratepayer representatives are invited to meet councillors for a cup of tea before the meeting.

* The meeting will be chaired by Gwen Bull. Items on the agenda include whether the council can reset the 2003-2004 rates, costs involved with withdrawing the present rates demands and issuing new ones, how an instalment plan for payment could be introduced, whether the due date can be pushed out, and how those having difficulty paying can be helped.

* The meeting is open to the public, and a ratepayer delegation will have the chance to speak.

* Seating is limited in the council chamber, so a television screen will be set up outside the chamber so everyone can see what's going on.

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