Review team hope to quell ratepayer rebellion

Bruce Rogan and other ratepayers have put up strike signs, and want the Kaipara District Council declared insolvent. Photo / Northern Advocate

A review team will be assigned to Kaipara District Council to help quell a ratepayer rebellion over a proposed massive rate rise local say they won't pay.

"It has become apparent that the Kaipara District Council is dealing with some serious issues that it cannot cope with alone,'' Local Government Minister David Carter said today.

"The council has sought help from central Government and the wider local government sector. We have agreed to work with the council and Local Government New Zealand to set up a small team to assist Kaipara to work through its issues.

"The council recognises that the assistance the Government can provide is very limited. It also realises that it must work closely with its community to resolve any problems. However, it is clear that the situation in Kaipara is urgent and that action is now needed,'' Mr Carter said in a statement.

The Mangawhai Ratepayers and Residents' Association wrote to Mr Carter earlier this month, claiming the council had a "ruinous level of debt'' and urging him to take action after the council proposed a 31 per cent average rate increase.

The council says the increase, for 2012-13, is to cover its $80.7 million debt, which includes about $60 million for the Mangawhai sewerage scheme.

Angry Mangawhai ratepayers have put signs on their homes defying the council and have refused to pay their rates.

More than 2000 people in the small town - population around 800 in the 2006 Census - protested on May 12 before meeting the council to oppose its long term plan and to question $9.5 million in rates which the council has admitted was collected incorrectly.

Mr Carter said today the council would continue consultation and hearings in order to adopt its long term plan by the end of June and set its rates for the 2012/13 financial year.

"The review team will assist the council with its consideration of critical issues, including setting appropriate rating levels for Kaipara ratepayers for subsequent years. Continuing to borrow to pay interest and operating costs is simply not sustainable,'' Mr Carter said,

The review would not affect the Auditor-General's current investigation into the Mangawhai Community Wastewater Scheme.

"The review team's work will be future-focused rather than retrospective. I will, however, consider carefully the implications of the Auditor-General's report when it is released,'' he said

An announcement on the review team members and the terms of reference would be made as soon as possible.