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DRAFT ANNUAL PLAN

VALIDATION BILL

JUDICIAL REVIEW

 

                       RATE STRIKE

Do not pay your rates.

Council has confirmed that the current LTP is invalid which means that the rates are also invalid.

The matter is now before the High Court.

Withhold all payments and let the Court rule whether the rates are legal or not.

LATEST NEWS

THE VALIDATION BILL

The commissioners at work

LETTER TO YOUR BANK  25.05.13
Several people have advised that they are being pressured by their banks to pay the rates that they have been withholding.as part of the rates strike.  I have therefore redrafted a standard reply to the banks that include alll the latest information.  Simply modify the standard letter to suit your own circumstances.

MISLEADING RATEPAYERS SHOULD BE A CRIME 23.05.13
What is it about local government? Whilst in the real world company directors are being sent to jail for making untrue statements in offer documents and misleading investors, their counterparts in local authorities - the councillors - are free to make any fanciful promises that they wish, be as dishonest as they like, and yet the regulatory authorities simply turn a blind eye to them, and they get off scot free............(more)

ANOTHER CON 23.05.13.
In a recent blog Joel Cayford highlighted the absolute absurdity of the financial projections that the commissioners have included in the draft annual plan (DAP).

Ratepayers in Kaipara should have learnt the lesson by now that financial projections put together by so-called experts are utterly meaningless. Those who wield the power start with the outcome that they want, then get the pundits to hobble together some statistics that superficially appear to justify the outcome.....(more scroll down)

LOCAL BILL IN PARLIAMENT  20.05.13
Notice of the validation billl has been filed in parliament (here).

HAVING YOUR CAKE AND EATING IT 10.05.13
I have pointed out on several occasions that the commissioners have got themselves into one those dreadful Catch 22 situations in respect of the validity of the current LTP.

In the face of claims from ratepayers that the 2012/22 LTP was obviously invalid because of several clear instances of non-compliance with legislation, the commissioners maintained that they had a legal opinion confirming that the LTP was valid. But they refused to disclose that opinion.

They then turned full circle by including the LTP in the Validation Bill. This was a clear acknowledgement that the LTP had always been invalid.

However they tried to fudge the issue, and have a bet both ways, by including a provision in the Bill to the effect that the inclusion of the LTP and certain other matters in the Bill was "for the avoidance of doubt". In other words they weren't sure whether it was invalid or not but were throwing it in, just in case.

The folk in Wellington would have none of it and demolished that provision. I presume on the basis that being valid is very much like being a virgin, you either are, or you aren't. There is no half way.

So the Bill now states quite categorically in section 3 that the purpose of the Act is to:

validate the rates and to validate actions or omissions the Council relating to the late adoption of its annual report for the 2011/2012 financial year and its long-term plan for 2012-2022.

That means that the LTP is not valid until the validation takes effect when the Bill is enacted by parliament, which will at best be many months down the track.

The commissioners are therefore faced with the difficult situation of not having an LTP and not being able to set or collect rates or do many of the things that councils need to do.

It is an insurmountable problem that everyone is trying to ignore because quite simply there is no legal solution. Council is effectively in legal limbo and is utterly hog-tied.

The way out for the commissioners is to turn a blind eye to the situation. John Robertson is still insisting that the LTP is legal and that it was only included in the Bill "for the avoidance of doubt", when he knows full well that the Clerk of the House and the Parliamentary Counsel Office have completely rejected that view.

The whole situation is totally farcical and the rule of law is being kicked around like a Machiavellian football. It is time the regulatory authorities - and that includes the Minister - got off their regulatory back-sides and put an end to all this cynical abuse of power by the Kaipara Council.

If they don't, then it may mean another trip to the High Court for an injunction to stop the commissioners operating outside the law.

Anyone interested?

POLITICAL PRESSURE ON THE MINISTER 10.05.13
Northland based Green MP David Clendon, who spoke at the recent meeting of the MRRA in Mangawhai, has recently written to the Minister of Local Government encouraging him to reconsider his decision not to accept an invitation to meet with the MRRA, to hear the concerns of residents and ratepayers first-hand and to provide leadership in reassuring them that the government’s best efforts are being applied to finding a fair, affordable and a sustainable resolution.

Retroactive legislation in the form of a Validation Bill does not sit comfortable with most MPs. In addition, the failure of the Minister and his commissioners to consult with or engage in any way with the community before pursuing the validation process, as required by the terms of reference and the basic rules of good governance, will be frowned upon throughout parliament.

MPs see that the validation process as a last resort and only after there been meaningful, constructive and robust consultation with ratepayers.

The failure to consult or engage with the community becomes far more relevant where there are no elections and when government appointed commissioners are involved with a clearly government-driven agenda. It has all the appearances of democracy and the interests of the community being completely hijacked.

It looks as if David Clendon may be the first of many to go knocking on the Minister's door.

AARON GILMORE - ALL IS FORGIVEN 10.05.13
Beleaguered National MP Aaron Gilmore could be the saviour of Kaipara. If he becomes an independent, and we can persuade the opposition parties to vote against the Validation Bill, his one vote could be the critical vote that stops the Bill in its tracks.

Remember that the Second Reading of the Plumbers Validation Bill only passed by a majority of one.

Such is politics. 

THE SEAT OF POWER?   10.05.13
The new seat of power for the commissioners?  The development of the KDC new offices in the Hub at Mangawhai is taking shape.

Four new chairs from Briscoes ($119.99 each) and new air conditioning.


Thanks to Doug Bone

THE WORD IS SPREADING   09.05.13
The Kaipara commissioners' autocratic actions in pursuing a validation bill, and at the same time trying to deny Kaipara ratepayers access to the High Court, is starting to send ripples out beyond the Kaipara district. 

The MRRA, which has lodged an application for a judicial review with the High Court, has just received a substantial donation from the Russell Ratepayers' Association to help fund their action.

Clearly ratepayers across the country are beginning to realise that what is happening in Kaipara has major significance for all ratepayers.  There are some very important legal principles at stake and the feeling is growing that, given the total failure of the regulatory authorities, there is need for a watershed decision of the High Court defining the exact limits of a local authority's powers. 

Ratepayers have had enough of their councils running amock and ignoring the law.

OAG INQUIRY   09.05.13
The OAG's report on EcoCare is not yet available.  That is the gist of the update (?) just posted on the OAG's website here.

There is no indication of when the report will be available.

The update states:

As with all of our major inquiries, we will now ensure that we comply with our natural justice obligations by giving those affected an opportunity to comment on the draft report before we finalise our views.

Two points:

+  Ratepayers, the victims in all this, and the ones who are being forced to carry the can for the incompetence of others, are deemed not to be affected persons

+  Natural justice for the perpetrators it seems, but no natural justice for ratepayers. How could the OAG be allowed to carry out this inquiry when many consider that that Office bears a large responsibility for the EcoCare debacle?

RATE STRIKE 09.05.13
It is good to see that the MRRA has restated its support for the rate strike in its latest message to members.

Not only is the KDC in a precarious situation financially, it has now acknowledged that it has no valid long term plan (LTP).  The LTP is included in the validation bill because Council has finally conceded that it is invalid.

All councils have to have a valid LTP as it is the document that enables a local authority to operate legally, to set and collect rates and make charges for all other matters.  Without a valid LTP the KDC is operating outside the law.

It is a bizarre situation having a local authority operating illegally but that is the extent of the Kaipara problem.  Rather than resolving the underlying problems, the commissioners have gone for totally ineffective band-aid fixes, and the problems have just got worse and more complicated.

It has now reached the situation where there is no legal fix in anyone's tool-box.  No one ever contemplated that a local authority could get itself in such a mess.

To pay rates to an organisation that is effectively insolvent, is operating outside the law, and has gone to parliament in the hope that it will wash away all the illegalities, is not to be recommended.

If you want further encouragement to join the rate strike just consider that all the rates that you pay will go to pay for the costs of the ridiculous validation bill and to fight the MRRA judicial review.

The commissioners are using ratepayers monies to deny ratepayers the right to have their legal case examined by the court.  They are also going ahead with an incredibly stupid, confrontational and futile validation bill that will create absolute mayhem in the district,

If they had pursued their obligations in the Minister's terms of reference to consult with the community and to engage with the community, the validation bill would have had the endorsement of the ratepayers, if it was reasonable, and if it included ALL the legal problems that need to be resolved. 

Given the total indifference to the illegalities of the Council by the Minister and the OAG - the so-called watchdog - ratepayers have no alternative but to apply to the court for a ruling and to withhold their rates.

The High Court decision is only a few months away.  Do not pay your rates.  Put them into a separate account.  And let's wait for the High Court to tell us one way or another whether the rates are legal. 

LEGAL BOOBOO 2  09 05.13
The Winder validation bill is a shabby piece of work that is heading for disaster. 

Let me tell you why....(more)

LEGAL BOOBOO   08.05.13
Has commissioner Winder, the legal brains behind the Validation Bill, committed a major bungle?

The Bill only goes back six years, presumably because of the Limitation Act.  But the six year period in that act can be extended when the problems were unknown.

It is interesting that the Tasman Bill going through parlaiwmtn at the moment goes back further than six years.  And, given that Peter Winder has admitted tha ALL rates have been invalid since the Kaipara Council first commenced way back whenever - unbelievable but true - would it not be advisable to include all of the rates ever set by the KDC in the validation bill?

If the Council is going to spend $200,000 on this farce then it may as well get it right.

A BLIGHT ON THE HISTORY OF KAIPARA  08.05.13
The commissioners have decided on the form of the validation bill that will be notified publicly and then lodged with parliament.

Ratepayers have all been sent a notice advising of the proposal and the bill can be viewed at Council offices or here.

The fact that the Kaipara Council has committed this litany of incompetence - which runs to thirty page - is bad enough, but, when you consider .......(more)

FUDGING THE DEBT   05.05.13
Council cannot pay monies promised to the Mangawhai Activities Zone because it has used the monies in the reserves fund for other purposes and cannot repay it without going futher into debt.

Legal Eagle (here) casts some light on the situation and suggests that it reflects a Council that cannot cope with its debt.  He calls for government intervention before the commissioners destroy Kaipara trying to impose their will on the people of the district.

VOICES OF KAIPARA 3  05.05.13
John MacDonald of Dargaville reflects on the validation bill here.

VOICES OF KAIPARA 2  04.05.13
Neil Tolich of Maungauturoto reports (here - scroll down) on the recent Council meeting that confirmed that the validation bill was to proceed, He also articulates his concerns about where the commissioners are taking Kaipara.

Bruce Rogan of Mangawhai points out (here) the arrogance of the commissioners who are doing all they can to block ratepayers from accessing the courts (with ratepayers' money) when in fact they themselves are going to the highest court in the land - parliament - to validate all their rating blunders (with ratepayers money).

VOICES OF KAIPARA 1  04.05 13
Ratepayers are incensed by the actions of the commissioners in trying to stop the MRRA judicial review and railroading a totally unjust validation bill through parliament. 

We are therefore opening a special page for ratepayers to have their say on these matters. 

We need to show the commisioners they they are acting alone, as unelected appointees, and do not represent the people of Kaipara.

Send posts to contactus@kaiparaconcerns.co.nz

Doug Bone kicks off here (scroll down).

UNCLE JOE'S POINT OF VIEW  03.05.13
Uncle Joe from Kaiwaka has written to MRRA's Bruce Rogan and espressed his views in no uncertain terms about the judicial review proceedings issued by the MRRA.  A copy of his letter can be viewed here.

GOVERNANCE FALLS FOUL OF POLITICAL EXPEDIENCY 03.05.13
Anyone who has any understanding of governance and the fundamental principles underlying local government legislation in New Zealand must be cringing at some  ....(continued here

DESPERATE MEASURES 03.05.13
The commissioners are feeling the pressure. In an attempt to justify their dictatorial, unilateral moves to validate the gross incompetence of the past and to stop ratepayers getting the justice they deserve in the High Court, they are digging themselves into a bigger hole with their ridiculous scare-mongering tactics.....(continued here)

APPALLING GOVERNANCE/PETTY SPITE   03.05.13
In a display of appalling governance bordering on petty spite the commissioners have knocked back the application for a grant from reserve funds of $131,704 for the Mangawhai Activities Zone.

The following resolution is recorded in the minutes of the Council meeting.

Delays the consideration of the application until the outcome of the Statement of Claim seeking Judicial Review taken by the Mangawhai Ratepayers and Residents Association is known;

The monies that had been promised come for the reserves fund which are to be used solely for purposes such as this.  They are not there to finance Council's cover up of its own past delinquencies. 

All in all it looks like a petty display of spite by the commissioners making the ratepayers of Mangawhai "pay" for having the audacity to challenge the commissioners powers in the High Court.

MORE SEWERAGE WOES  01.05.13
Wonder why the commissioners are fighting a desperate rearguard action to stop ratepayers getting access to the court? 

They are worried that the court will lay bare the illegalities and incompetence of the KDC and raise some very serious questions about how local government functions in this country.  It might also highlight the abject failure of the regulatory authorities to perform their functions.

Ratepayers across the country are having serious doubts about local authorities running out of control and operating in secret.

Take a look at these two NZ Herald articles on incompetence and lack of transparency and you will realise why Kaipara is just the tip of the iceberg.

Note the comment in the first article from former Mayor Michael Laws about Wanganui's disastrous sewerage system:

"The liability goes back to those engineers and designers and senior council management who informed the governance team that it would work. Just as worrying is the fact those experts had their assumptions peer-reviewed by other experts and they got it wrong too.

A repeat of the Kaipara situtation, except that in Kaipara the decision was made in secret and in defiance of the law.

It is very rare that ratepayers have the money and the cojones (google it if you don't know) to stop local authorities exceeding their statutory powers.  Thanks to the MRRA that is now happening in Kaipara.

Those who are part of the the cosy, laissez faire arrangement whereby local authorities operate with impunity outside the law will shudder at the thought of an independent judicary cutting through years of spin and misinformation and simply stating that local authrities MUST comply with the law.

REASONS FOR DELAYING THE VALIDATION BILL  30.04.13
The reasons why the validation bill should not proceed at this stage can be seen here.

These reasons were presented to the commissioners by the MRRA to try and get them to be fair and reasonable and to consult with ratepayers before taking this unilateral action.

The MRRA has impressd on the commissioners that the issue of legal liability for the illegal debts must be decided either by agreement or by the court.  Indications are that a court hearing could be held as early as June or July. 

To have the High Court rule on this matter, independently, fairly and in accordance with the law, would bring some finality to this long festering dispute.

After years of being told repeatedly by Council that issues of legality could only be decided by the courts, it would be a denial of ratepayers' rights if the Council and parliament united to deny them access to the court.

The MRRA has also made it clear that it would take all reasonable steps to help put Kaipara back on its feet again.  If agreement could be reached on legal issues then ratepayers would support the validation of all matters in the validation bill except for penalties on unpaid rates by rate strikers, EcoCare annual rates for one year when there was no service, and the charges on untis of demand and SUIPs which were totally outside the law.

Validation bills are having a rocky passage through parliament at the moment and the Sabin bill will push parliament's tolerance to the limit. How preferable it would be if it were delayed  until all the problems of Council are identified by the court and the OAG report (which should be out soon) so that All the problems facing Council are included in the bill.  Not only that, it would have the support of ratepayers as part of a negotiated settlement.

COUNCIL ENDORSES VALIDATION BILL  30.04.13
At yesterday's Council meeting the commissioners resolved to go ahead with the validation bill without consulting with the community.  The Council now has to comply with the public notice requirements before the matter goes before parliament.

RICHARD BOOTH   30.04.13
It is interesting that commissioner Richard Booth was again absent from yesterday's Council meeting and did not vote on the validation issue.  For such an important issue one would have though that all commissioners woud be casting their vote.

The other three commissioners are dyed in the wool political animals well versed in the mysterious arts of local government in New Zealand and have very definite views about the role of ratepayers in the local government system. 

Commissioner Booth is a local resident with a well-earned reputation and one wonders how he copes with the appalling governance of the commissioners and the denial of basic consultation over such a major issue as this. 

VALIDATION BILL STEAMROLLERS ON  28.04.13
The commissioners are holding a special meeting on Monday to confirm that the validation bill will proceed and be presented to parliament.  The Council agenda can be seen here.

The draft bill is Attachment A at page 15.

The bill that will go before parliament is version 2.  This has never been made available to ratepayers.  However, in a surprise move it was made available to the executive of the MRRA on the basis that it was not shown to anyone else. The MRRA was asked if it wished to make any comments on the content of the draft bill.

The MRRA suspected, rightly as it turned out, that this was a ruse by the commissioners so that they could claim to parliament that they had "consulted" on the bill.

The MRRA declined to comment on the content of the bill for that reason, but did respond with a list of reasons why the validation bill should not proceed at this stage.

Like most ratepayers, the MRRA acknowledges that the KDC has got itself in such a legal mess that a validation bill will be necessary to put it back on a legal footing, However, it is pointless for a validation bill to proceed until ALL problems have been identified and consulted with ratepayers.

All ratepayers should read the MRRA's submissions - Attachment B at page 46 - as these are the sorts of issues that will become very relevant if the bill gets to parliament.

KAIPARA KONNECTION  28.04.13
The latest comments from John MacDonald can be seen here.

STEVE RURU'S SPIN 23.04.13
In the article referred to below Chief Executive Steve Ruru suggests that there would be widespread implications for ratepayers if the judicial review proceedings go ahead:

“........given that ultimately they are the ‘owners’ of the council and would need to fund the costs of any relief granted."

It is interesting that when it comes to paying all the debts then ratepayers are conveniently considered to be the actual owners of Council and therefore totally responsible for all the years of incompetence.

But, if they are owners, they are owners who have absolutely no rights. The ratepayers appointed Councillors as trustees to act for them and to run Council professionally and competently, and in the best interests of the owners.

That trust was betrayed time and time again, and that betrayal has been acknowledged by the Councillors themselves and the Chief Executive.

But rather than recognise the concerns and claims of the ratepayers/owners, all of which have been accepted, and take some remedial steps, the government has stepped in and appointed commissioners, who, without any democratic mandate, are now sweeping all the errors of the past under the carpet by forcing a validation bill through parliament.

And, to addd insult to injury, they are forcing the ratepayers to foot the massive legal bill for doing so.

No other sector in New Zealand would put up with such arrogant and tyrannical behaviour by those who are supposed to be trustees.

And why is the government acting as the "enforcer" for such autocratic and unconscionable behaviour?

No wonder the ratepayers are asking the High Court to bring some sanity, and the rule of law, back to Kaipara.

COMMISSIONER'S CROCODILE TEARS   23.04.13
See Bob Dey's article here about tears being shed by commissioner John Robertson over ratepayers' response to his dictatorial and ruthless validation bill. 

WE ARE NOT ALONE  23.04.13
Take a look at the article by Carl du Fresne in the Dominion Post here.  He suggests that the Wellington Council is run by its staff and the councillors play little part. 

Flashbacks to the previous Kaipara Council.

That's not a problem with the commissioners. They are well and truly driving the steamroller.

INTRANSIGENCE OR NEGOTIATION? 22.04.13
Some good sound comments from John MacDonald in Kaipara Konnection this week.

He comments about the commissioners mock indignation at the MRRA having the temerity to issue legal proceedings.:

Clearly it has come as something of a shock to the Commissioners to discover that we actually live in a supposed democracy here in the Kaipara.

Very true. We were promised collaborative commissioners who would regain the trust of the community and work transparently and cooperatively in the best interests of the ratepayers.

We have seen little of that.

Sadly the commissioners have adopted a secret and dictatorial approach. They have reneged on agreements to consult, have been arrogant and authoritarian, and the unilateral and draconian validation bill was the last straw for ratepayers.

The MRRA has made a mark in the sand. It refuses to let the commissioners - who are imposed not elected - to continue to deny ratepayers of all their democratic and legal rights. For years now Council has ducked and dived and avoided accountability and dumped all liability for its appalling incompetence on innocent ratepayers. The MRRA has said "Enough".

Ratepayers should be elated that after years of being bullied and denied their rights, the High Court will be making a decision, within a few months, on liability for the debt and the legality of rates. That decision will be honest, fair, independent and binding. Qualities that have been remarkably absent in Kaipara for many years.

John MacDonald expresses concerns about the costs of litigation and no one would disagree with him. But resorting to the court is always a last resort that sometimes is unavoidable. The commissioner have shown that they will not modify their approach in any way through consultation, so ratepayers have little alternative but to take more extreme action.

Ratepayers across the district need to get behind the MRRA. Express their support for their legal action and tell the commissioners to listen to what is being said.

If we can make them do that then they might abandon their intransigence and, rather than go head-to head with ratepayers in court, sit down at the table with them and actually respond to their concerns.

A negotiated settlement is far preferable to a war of attrition in the courts, but that can only eventuate if the commissioners decide, or are forced, to come to the negotiating table.

SUBMISSONS TOTHE DAP   20.04.13
Submissions have now closed.  Those submissions made can be viewed on line here. Bear in mind that those submisions emailed to Council rather than using their on line submission process may not be shown.

John Dickie's comprehensive submission can be seen here.  You can also see his response to the commissioners' $500,000 fighting fund here.

KCRA FIRES BROADSIDE  20.04.13
Ron Manderson, chair of the Kaipara Citizens and Ratepayers Association has taken a swing (here) at that Kaipara commissioners and their press release announcing a $500,000 budget to fight the judicial review proceedings.

In what looks like another case of cynical manipulation, the press release (here) was issued the day before submisions on the DAP closed, so ratepayers have yet again been denied the opportunity to make submissions, not only on the cost but on whether the proceedings should be defended.

Ron Manderson pulls no punches:

This is surely grossly overstated unacceptable deceptive scaremongering

He looks at the logic behind the commissioners' approach:

Council has admitted many illegalities, so why should they spend ratepayers money to defend what should have been rectified already? Commissioners credibility and integrity becomes most questionable when they admit illegalities exist to the extent they seek Parliament to legislate the illegal to become in effect legal, yet oppose the ratepayers taking Court action to seek the required corrections legally.

He throws his whole support behind the MRRA:

This has gone too far, Ratepayers should Take Back Kaipara by withholding rates until this is sorted by out of Court negotiations with Ratepayer groups, including MRRA, and Commissioners.

It is heartening to see another ratepayer group endorsing the MRRA's stance.  Ratepayers have the law, equity and fairness on their side but they need to be united and support each other and not allow the commissioners to drive wedges between them.

KDC IN SCHTOOK 19.04.13
Finance and Policy Analyst Larry Mitchell, who wrote a couple of reports for Council a few years ago, has written a paper called Councils in schtook. It can be viewed in full here.

He highlights the deceptiveness of local authorities' financial practices.......More here.

MAI CHEN  19.04.13
In an article in the NZ Herald public lawyer Mai Chen takes a swing at the poor performances in the public sector in recent months.  She refers to comments in reports such as "dysfunctional and ineffectual" and monitoring as being "light-handed and perfunctory".

She comments:

Any quality audit, finding errors of this kind, would conjecture that they are just the tip of the iceberg and as the government is 40 per cent of the economy, that should worry the rest of us who pay for that government. What other breaches are occurring that we never hear about?

Kaipara ratepayers know the answer to that.  They have suffered years of the same sort of incompetence.  Mai Chen should read up on Kaipara and scratch the surface a little.  That would be a reality check.

Alarming signs of state incompetence

Pike River, Kim Dot Com, EQC, David Bain, GCSB

and now

Kaipara

SELECTIVE NATURAL JUSTICE   19.04,13
Rumours from the golf course have it that the marathon inquiry by the OAG into Wastewatergate  - over 12 months now - is getting to the pointy endJohn Robertson has been advising a select few of progress whilst the ratepayers in general remain in ignorance.

A notice on the Council website would have dispelled the accusation of arrogance.  Or perhaps even an announcement from the OAG, heaven forbid! 

It appears that the report following the inquiry has been sent to affected parties so that they have the opportunity to respond.  Affected parties are those who may have some negative comments made about them.

This is all part of the OAG's adherence to the principles of Natural Justice which seem to apply only when ratepayers are not involved.  Thus we do not get a copy of the report because we are deemed not to be affected.

The fact that the OAG has breached a whole swag of principles of Natural Justice by holding an inquiry into a matter in which that Office was deeply involved (and widely peceived to have been negligent), does not appear to matter because that involves ratepayers and in the scheme of local government in New Zealand ratepayers do not matter.

It's a topsy-turvy world out there.  Oh for some straight shooting from the High Court. 

LAST DAY FOR SUBMISSIONS 19.04.13
Make sure that your submissions on the DAP are filed with Council prior to 4 pm today. You can do it simply on line by going here.

Legal Eagle has done his bit and his submissions can be seen here.

It is all a farce really because Council has stated in its draft validation bill that its current LTP is invalid. That means that it is in breach of the LGA because it has to have a valid LTP at all times.

The effect is that the draft annual plan is invalid and also the amendments to the LTP because they are both based on an invalid LTP. Council therefore cannot set rates and is operating outside the law.

That has not troubled Council in the past when the regulatory authorities were asleep but it is going to be very hard for the OAG to turn a blind eye to the latest digression from the path of legal compliance.

The problem that the Council faces is that the LTP remains invalid until the validation bill is enacted by parliament and that is several months at least down the track.

This may be the first instance in New Zealand history where a local authority has stepped totally outside the law into uncharted territory. It is the Armageddon that Greg Gent warned of last year.

MRRA MEETING  19.04.13
All ratepayers in Kaipara should have been at the MRRA meeting last Sunday.  Planner Joel Cayford disccussed the DAP and barrister Kitt Littlejohn gave a run down on the judicial review proceedings. This was followed by a question and answer session.

I am sure that everyone left the meeting assured that the legal action was necessary and in very competent hands.  They would have also been assured that the aim was to resolve all concerns with Council cooperatively for the benefit of the whole of Kaipara without fighting the matter out in court. 

COMMISSIONERS PANIC  19.04.13
There are indications of panic coming from the commissioners They have tried to frighten ratepayers by planning to find $500,000 to defend the MRRA legal proceedings.  More here

PLUMBERS BILL SECOND READING17.04.13
The Plumbers, Gasfitters and Drainlayers Validation Bill passed its second reading in parliament by a vote of 61 to 60.

Comments made by speakers are very relevant ot the Kaipara Validation Bill.

Maryan Street Labour, Holly Walker Greens, Andrew Williams NZ First, Trevor Mallard Labour and Brendan Horan Independent.

PLUMBERS BILL READING ADJOURNED   12.14.13
The second reading of the Plumbers validation bill was adjourned in parliament yesterday evening.after the Labour Party indicated that it would oppose the bill.  The report is here.

Kaipara ratepayers should listen to the speech by Ruth Dyson explaining some of the principles that are very relevant to the Kaipara validation.

PLUMBERS ETC AGAIN 12.04.13
All Kaipara ratepayers should read this letter relating to the validation bill going through parliament at the moment.

It shows how parliament is being used as a rubber stamp to validate all sorts of jiggery-pokery, but only for those entities like local authoities and regulatory boards that are deemed to to have a special status that places them above the law and in need of special protection.

THE BELLIGERENCE CONTINUES   11.04.13
The commissioners are now threatening ratepayers with legal action unless they pay rate arrears within 14 days.

Legal Eagle expresses the view (here) that this is deplorable given that Council has acknowledged that the rates are illegal and that it is operating without a valid LTP.

Ratepayers are advised to withhold paying any further rates until either the court or parliament makes a ruling on the legality of the rates.

THE LOCAL MP AND VALIDATION    11.04.13
Legal Eagle (here) considers the conventions of parliament in respect of validation.

He also suggests that the bulldozer approach by the local MP and the commissioners is not appropriate.

SELECT COMMITTEE WARNING TO COMMISSIONERS  10.04.13
The select committee of parliament has sounded a warning to those local authorities that believe that they can use the validation process to rubber-stamp their illegalities. 

Legal Eagle reports here on the progress of the Plumbers. Gasfitters, and Drainlayers bill and some of the comments made by the select committee.

Legal Eagle suggests that the commissioners are heading for two major battles, in court and in parliament, and it may be time for a third party, such as local MP Mike Sabin, to step in and broker an accord between the parties.

COMMISSIONERS STUFF UP AGAIN   08.04.13
The Kaipara commisioners made few friends at their meeting with Kaiwaka ratepayers last month.  Legal Eagle (here) refers to the report in the Kaiwaka Bugle that is highly critical of the commissioners.

He also asks if it is time for the Minister and the commissioners to reassess their approach and actually listen to ratepayers' concerns.  If they do that then they may be able to reach some accord to resolve the current impasse.

MRRA MEDIA RELEASE   08.04.13
The MRRA media release on the application for judicial review can be seen here.

ROOM FOR AGREEMENT? 08.04.13
Carrying on from the post immediately below, Legal Eagle examines (here) whether this is the time for both parties in the Kaipara dispute to come together and resolve their difficulties.  Ratepayers have shown that they are not going to be bulldozed.  Rather than fight a pitched battle it would be far better for the commissioners to listen to the reasonable requirements of ratepayers and accommodate them in return for cooperation in other areas.  

VALIDITY OF DAP    06.04.13
Legal Eagle considers here whether the DAP is invalid.  He suggests that ratepayers withhold their rates until the whole question of invalid rates and plans has been resolved one way or another. 

However, he suggests that there is an opportunity for a change of direction by the commissioners.  An agreed independent assessment of the legal problems, and an agreed independent scrutiny of Council's financial situation, could see ratepayers and commissioners heading in the same direction.

"CONNECTABLE" AGAIN    05.04.13
Doug Bone has alerted me to section 459 of the Local Government Act 1974 which adds to the confusion over the definition of what is a "connectable" property.  See more here.

MORE "CONNECTABLE" ISSUES   05.04.13
John Dickie (here) joins the fray and expresses his concerns about the "connectable" issue, about the current status of the Mangawhai sewerage scheme and the lack of honesty from the commissioners.

"CONNECTABLE ISSUES"  05.04.12
If your property is within 30 metres of the sewer and you are not connected then you are deemed to be "connectable" and have to pay 75 per cent of the standard charge.

Legal Eagle looks at the details and asks if this is fair (here).

COUNCIL AND MANGAWHAI COME TOGETHER  04.04.13
They may be far apart in terms of the future of Kaipara but the KDC and Mangawhai are getting closer together physically.  The KDC is moving its Kaiwaka office to The Hub in Mangawhai Village and expects it to be open for business in May.

The Lifestyler article can be seen here.

IS THE PLAN A SUCCESS?   04.04.13
The commissioners have six new criteria to guide them on their way in the DAP.  Legal Eagle expresses his view (here) as to whether they have succeeded.

WATER RATE INCREASES  04.04.13
Council has changed the whole basis of charging for water rates so that there is now a substantial standing charge that is payable regardless of how much water is used.  Accordingly, water rates have risen dramatically.

Council was clever enough to introduce this increase a few months ago to get some degree of separation from the increases in the property rates in the DAP.

Water rates are rates and should be included in with property rates when calculating the affordability of rates.

It would be worthwhile to see the sort of water rate increase that people are having to pay. 

Examples please.  Before and after.  Then add the water rates to the proposed property rates and see if you still come with the 5% affordability threshold.

A CAPITAL OFFENCE?   04.04.13
Council is being unfair in its application of the new captial charge for Mangawhai properties and is disadvantaging some of those who have already paid.  And it is trying to validate the irregularity in the validation bill by cleverly slippping it in.  Read more here.

AFFORDABLE RATES?   04.04.13
Council believes that even after two successive massive rate rises the rates in Kaipara are 'affordable'.  And it has the statistics to prove it.  See what Legal Eagle has to say here, and see if your rates meet the 'affordable" test.

Q & A ON JUDICIAL REVIEW   03.04.13
Legal Eagle looks (here) at the MRRA's application to the court, the reasons for it, and the options for the future.

MANGAWHAI WASTEWATER (ECOCARE) CAPITAL CHARGE 01.04.13
Legal Eagle has had some problems trying to understand the new Mangawhai capital wastewater charge in the DAP.  He has now seen through the smoke and mirrors and found out what it is all about and reports here

It looks promising initially but he suspects that it is a trap to lure ratepayers in and get over the current hurdles facing the commissioners, then they can be socked with the big bills later.

All part of the Ponzi plan.

JUDICIAL REVIEW  
01.04.13
There is a new page (refer to Link Box above) for the Judicial Review that has been filed in the High Court by the MRRA.  Those interested can have a look at the statement of claim which sets out the various decisions of Council that are being challenged, and the orders that are being sought.

Note that this is simply an application to review the decisions.  Council is not being sued for damges or anything like that.

At his stage it is unknown whether Council intends to defend the application.  It is a little hamstrung in that it has already acknowledged the illegality of most decisions in the claim by including them in the draft validation bill.  The court will be simply confirming what Council already publicly acknowledges.

In the next day or so we will also include a full guide to the proceedings, the background, the reasons, and the effect that they will have.

SUIPS    01.04.13
Residential ratepayers throughout the district are being charged wastewater rates for SUIPs or separate units on their properties.  Rating separate units in Kaipara has been a total rip-off in the past.  Council has finally got it right but will still charge you for an extra SUIP even though you do not come within the definition.  Legal Eagle (here) walks you through the DAP to ensure that you are not being overcharged for a SUIP.

LIES, DAMNED LIES AND STATISTICS 31.03.13
Legal Eagle looks at the manipulation of figures in the DAP to arrive at an average rate increase (here).

SUBMISSIONS TO THE DAP 31.03.13
Submissions on the DAP are due by 19 April.

Ratepayers should be careful if they are using the submission form attached to the Annual Plan Summary headed the "Big Picture". It is full of leading questions that are designed to limit the responses that you can give...(continued here.)

WAIT BEFORE YOU SUBMIT   31.03.13
There is a separate page on this website (here) dedicated to the DAP which you should read. New contributions will be posted daily

Legal Eagle and the MRRA are combining to produce a summary of what they believe to be the defects in the DAP. It should be out later this week.

All comments from ratepayers gratefully received for publication.  Send to: contactus@kaiparaconcerns.co.nz

When sending them in please advise the name (real or pseudonym) the post is to appear under.

Ratepayers are advised to hold back on their submissions until they have read all the different views expressed.

EASTER FOLLY?   31.03.13
It's Easter time and the papers are full of the breaches of the Easter Trading Laws by defiant retailers.

The NZ Herald reports here that:

Labour inspectors from the Ministry of Business, Innovation and Employment were checking in on retailers today to monitor compliance with a law prohibiting them from opening on Good Friday and Easter Sunday.

It is ironic that the inspectors actually work on the prohibited days to stop others working on those days.

The law is described as archaic and yet is being vigorously enforced by the government.

It is a great pity that the government does not apply the same enthusiasm to law enforcement in local government where it allows errant councils total freedom to flout the law and act outside their legal powers.

Having the government watchdogs trying to stop people buying a few plants over Easter seems ludicrous when the same government's local government watchdogs have sat by and watched the Kaipara Council pilfer tens of millions of dollars illegally from its ratepayers.

Judge Neave is quoted as saying the breaking of the law by the shop owners is "cynical". I am sure he is right. The rule of law must prevail and rules must be obeyed.

But if selling a few plants in breach of the law is regarded by the judge as cynical then one wonders what will be the reaction of the courts when they are presented with the total abuse of power by the Kaipara Council when it secretly, and in breach of the law, doubled the size of the EcoCare scheme, and the debt, and. effectively destroyed the financial base of the whole Kaipara district..

The well-being of all the people of Kaipara is more important than a few plants, isn't it?

RATES FOR 2013/14  30.03.13
You can see the proposed new rates for your property here.  Just type in your address and then click on the appropriate valuation reference on the left if there are several options.  The screen will automatically show the rates for the current 2012/13 year.  To see the proposed rates for next year click (Next year - 2013/14)

VALIDATION BILL - STANDING ORDERS  30.03.13
The commissioners are busy seeking support from political parties for their disgraceful Validation Bill.  But they have many obstacles to overcome before it even gets to parliament.  The draft bill is riddled with errors (which they are keeping quiet about) and will have to go through a fundamental revamp.

Parliament's Standing Orders set out the very detailed and precise procedure that have to be followed before a bill enters parliament and then during the parliamentary process.

This Council, in all its different guises, is not too sharp when it comes to compliance with rules and regulations (which the Validation Bill itself proves) and I suspect that it will come a cropper again in spite of $150,000 dollars of legal advice.

One bright suggestion is that the Validation Bill itself is actually included in the Validation Bill so that the inevitable defects in the Bill can then be validated.

The Council has shown that it is almost incapable of doing anything in compliance with the law and Bruce Rogan of the MRRA has suggested that they open a validation "tab" with parliament, very much like a bar tab in a pub.  Every time that they make some important decision that requires strict compliance with the law, John Robertson can ring up parliament and "put in on the tab".

"Put it on the tab"

WHAT PLAN? 29.03.13
Have you seen the draft annual plan?  It is hard to access it through the computer and hard copies are as scarce as hens' teeth.

Legal Eagle wonders if it is a conspiracy so that ratepayers can only have access to the plan through the highly biased and spin-laden supplement in the Kaipara Lifestyler.

Read the full article here.

"THE COUNCIL IS NEITHER INSOLVENT NOR BANKRUPT"    27.03.13
These are the worda of John Robertson to counter what he sees as innuendos and incorrect statements relating to Council.

Is Council insolvent or bankrupt?  Legal Eagle looks (here) at the facts and the financial fantasyland that passes for accounts in the DAP.

JUDICIAL REVIEW  27.03.13
Mike Barrington's article in the Northern Advocate on the MRRA's application for a judicial review can be seen here.

It is interesting that commisioner John Roberston has slated the move and argued that ratepayers will have to pay the bill for both sides.

As usual with John Roberston's comments, not quite correct.  The legal costs of the MRRA are being met by those who have personally contributed monies to fight the illegal activities of the Council. There is no bill for ratepayers.

It is true that ratepayers will have to pay the legal costs of Council, if Council decides to defend the action. 

However, such costs should be put in context.  Ratepayers have been denied justice for many years under a corrupt and incompetent Council.  Commisioners have taken over but have indicated with the validation bill that they shun consultation with the community and intend to force all the past illegalities on to unwilling ratepayers.  They have given ratepayers little option.

The validation bill is going to cost probably in the region of $200,000.  That is the cost of the sheer incompetence of the Council staff and Councillors.  The innocent ratepayers are being forced to foot that bill rather than Council seeking it from those legally responsible under the provisions of the LGA.

Over the past few years council has wasted over $100,000 on legal opinions to counter allegaltions of illegalities.  It also handed $240,000 on a platter to the previous Chief Executive without any legal obligation to do so.

Paying a few thousand dollars to front up in court to face, for the first time, a truly indepndent appraisal of its actions is small beer compared to the tens of millions that it has squandered in the last few years and worth every penny .

LARRY MITCHELL IN NZ TRUTH  27.03.13
Financial analyst Larry Mitchell is predicting a "huge stoush" and civil disorder in "up North" with the conflict between the commisioners' validation bill and the judicial review procedings filed by ratepayers.

His article, published in this week's NZ Truth can be seen here.

KAIPARA'S PLACE IN HISTORY   25.03.13
Robespierre was responsible for the Reign of Terror during the French Revolution when thousands were guillotined.

Kaipara is vying for its place in history with financial and legal bungles stretching over many years, costing the ratepayers enormous sums of money, and effectively destroying the financial fabric of the district.

No single regime is responsible. Several mayors have been involved but the eminence grise was Jack McKerchar the Chief Executive who controlled the Council like a mediaeval despot for eighteen years. But even on his forced departure the illegalities and the bungles have continued, even under the government appointed commissioners.

There appears to be no end to the incompetence, the illegalities, the misrepresentations and the lies.

In years to come, in hindsight, this disgraceful period in Kaipara's history may be seen as the Reign of Error.

CYPRUS AND KAIPARA 24.03.13
The Cyprus financial crisis has dominated the news for the past few days. The Greek government proposed to "tax" monies held by citizens in bank accounts to pay for its own financial incompetence.

There has been some conjecture that New Zealand is heading in the same direction with the OBR (open bank resolution) being proposed by the government, whereby bank depositors would lose some of their monies deposited with a bank if there was a financial crisis.

Kiwis are affronted to think that something like Cyprus could happen here and that their savings could be "taxed" by the banks with government approval.

But what people do not realise is that we already have a situation far worse than what is happening in Cyprus.

Continued here.

MRRA FILES LEGAL PROCEEDINGS 22.03.13
The MRRA has filed legal proceedings against the Kaipara Council. A full report from Lois Williams on yesterday's Morning Report can be heard here.

The Association has applied for a judicial review of many of the decisions made by Council.

Both Bruce Rogan of the MRRA and chief commissioner John Robertson comment about the proceedings.

The MRRA is being represented by barristers Doctor Matthew Palmer and Kitt Littlejohn.

ECOCARE - THE CHEAPER OPTION

VALIDATION AND THE GOVERNMENT 22.03.13
The government's view on validation bills and the opinions of the Ombudsman are clearly spelt out in Adam Bennett's article in the NZ Herald (here).

Minister Maurice Williamson is railroading through parliament a validation bill to legalise monies that were collected illegally by the Plumbers and Gasfitters Board.

The Ombudsman's Office recommended that the monies should be repaid. But that did not sit too well with the Minister:

"I think the Ombudsman's Office is wrong. The board would be technically insolvent if they had to pay this money back".

That raises a couple of points.

What relevance does insolvency have? If an organisation acts outside the law and as a result it becomes insolvent then that is a fact that has to be accepted. It happens to individuals and businesses throughout the world all the time.

Why then are some organisations - including the Kaipara Council - afforded special treatment and government protection from their own incompetence?

The other point is the attitude of this Minister to the recommendations of the Ombudsman. We have already seen the same dismissive comments from fellow Minister Judith Collins in respect of an independent review, and the Prime Minister dismissed the criticism of the Sky City proposals in the OAG report, saying that "he would lose no sleep over it".

What hope do we have of the OAG report into EcoCare and its recommendations making the slightest impact on this government?

WATCHDOG CRISIS 22.03.13
Clare Curran of Labour reckons that: "There is an emerging crisis with our watchdog agencies". She goes on to say:.

"It is a paralysis of democracy."

An article by David Fisher in the NZ Herald (here) reports on the decision of the Ombudsman's Office to begin its own investigation into the way the public service is responding to the Official Information Act.

The Office is bogged down with complaints as government agencies delay or refuse requests under the Act.

Constitutional lawyer Mai Chen is reported as saying that the government expected citizens to comply with laws and it should do so with the Act.

"If they don't mean to do it, they should repeal it."

Ratepayers in Kaipara would endorse those sentiments. They are expected to comply with legal requirements and pay their rates whilst the government and all its watchdogs allow the Council itself to completely ignore the requirements of the law.

Why have rules in the LGA and the LGRA if local authorities can ignore them at will and, if anyone complains, they can always get parliament to validate the illegalities?

MORNING REPORT 22.03.13
Lois William's comments on the draft annual plan can be heard here. There are also comments from John Robertson about reducing the KDC debt by $30 million in ten years.

Steve Ruru does little for his credibility when he says that most Mangawhai ratepayers will get a reduction of $100 in their sewerage charges. Absolutely untrue. The annual sewerage charge itself may decrease slightly but the general rate is being increased substantially to incorporate charges for the Mangawhai sewerage system.

Not only that but ratepayers will have to pay massive new capital charges for the sewerage system that are being introduced this year.

This is one of the crafty tricks that Council uses each year to misrepresent the percentage increase in rates. It treats what it calls "capital charges" as separate to rates. The truth is that there is no such thing as capital charges as such. They are targeted rates like all the others and should be treated the same as the others.

That is unless you want to pull the wool over ratepayers' eyes.

BANKS MUST BEAR LOSS 22.03.13
Prime Minister John Key has made it clear (here) that banks that lend to state owned enterprises do so at their own risk and have to pay their share of losses.

State owned enterprise Sold Energy is in financial difficulties and owes $390 million.

Mr Key is reported as saying that commercial banks making loans to SOEs must realise that there is no government guarantee.

It will be interesting to see if the Prime Minister will extend the same logic to local authorities. There is little doubt that banks are sucked in to lending to local authorities because they are part of local government, and, although it is clear that there is no government guarantee, the government does promote local authorities as cast-iron securities.

It looks pretty clear that when advancing funds to the KDC to finance the EcoCare scheme the bank involved (ABN Amro) was very cavalier in its approach. It failed to do due diligence, and completely ignored the clear requirements of the Local Government Act.

The original bank, and the banks that subsequently bought the debts (BNZ and ANZ), will find it difficult to argue that they acted in good faith.

If the original bank had applied the same sort of scrutiny to the KDC's proposal as it affords to most loan applications by ratepayers then the KDC might never have been able to launch its EcoCare Ponzi scheme.

The banks involved gambled, and lost. It is perhaps time for them to take a hair cut.

AMALGAMATION AND RATEPAYERS 20.03.13
The Far North District Council has proposed two unitary authorities for the whole of Northland (here). This would mean the Regional Council, the FNDC, the Kaipara Council and the Whangarei Council all amalgamating.

The Local Government Commission is taking the proposal seriously and has called for alternative proposals. The deadline date for proposals is 15 April (here).

Farmers of New Zealand has come out strongly in favour of Kaipara keeping its own separate identity. That appears unlikely given the failure of the democratic process in the district, and the push from government for unitary authorities.

There will either be one unitary authority for the Far North, or perhaps two with the western part of Kaipara joining the FNDC, and the eastern part of Kaipara joining Whangarei.

There is also the remote possibility that the eastern side of Kaipara could be annexed to Auckland. That would make some sense given that the supply towns of Wellsford and Warkworth are both in Auckland and most absentee owners in the area live in Auckland.

The choice is not inspiring. Whichever is chosen it's a matter of out of the frying pan and into the fire.

DRAFT ANNUAL PLAN    20.03.13
A special page has been set up for comments on the Draft Annual Plan (DAP) here.

We are looking for comments from ratepayers on the DAP and also for specialists who can offer some special insights into the hidden "treasures" within the plan.  Please send to contactus@kaiparaconcerns.co.nz

Although the plan indicates an overall increase of 9.3% that is simply the percentage increase in the total rate take and is completely misleading when it comes to calculating individual rates asessments.  The method of calcualting the increase for Mangawhai ratepayers is based on a fundamental flaw which one suspects is deliberate.  More of that later.

There will be several articles on the DAP and the first, dealing with the treatment of the EcoCare debt, can be seen here.  It appears that the Council is up to its old tricks and basing the whole plan on a financial fantasy with the sole intention of covering up the fact that it is insolvent, and so that it can continue to plunder ratepayers for year after year to pay for the illegal debt.

MINISTER REFUSES HELP 20.03.13
The Minister of Local Government, Chris Tremain, has declined two approaches to work out a way to settle the Kaipara problems. Quite separately both Legal Eagle and the Mangawhai Residents and Ratepayers Association (MRRA) approached the Minister with ideas of resolving the ongoing battle between residents and the Kaipara Council.

The Minister dismissed both approaches with the same short letter.

It is also understood that the MRRA made a last minute appeal to the Minister to meet with his officials to try and achieve some common ground. The Minister declined again and referred the Association to the commissioners.

The matter is reported here in the Northern Advocate by Mike Barrington.

THERE'S TASMAN, AND CANTERBURY, AND KAIPARA, AND PLUMBERS, AND UNCLE TOM COBLEY AND ALL..... 18.03.13
It's all the rage at the moment. The validation process. Every man and his funding impact statement, or his spanner, is into it. Stuff-ups abound everywhere, especially in local government, but the Plumbers and Gasfitters Board is the latest to call upon parliament to use its magic powers to turn water into wine.

Adam Bennett's NZ Herald article can be seen here.

No doubt many of us will be reflecting on our own personal stuff-ups through life and wondering if we couldn't apply to parliament, cap in hand, with a bit of mea culpa, and have all our errors rectified.

Mind you, MPs are quickly going to get tired of playing the Fairy Godmother and making everything better for all the clueless incompetents who can't do their jobs properly, and I suspect that very soon there will be an almighty backlash.  One unlucky application for validation is going to get an absolute drubbing

Let's hope that it is the Kaipara validation bill that gets the drubbing.  It certainly deserves to.  It is an affront to every principle in the manual on democracy and natural justice, and a total abuse of the validation process. MPs will pick that very quickly.

The word "Kaipara" is beginning to become synonymous with "incompetence", and I suspect that MPs will decide that validating the Kaipara shambles is a bridge too far even for an accommodating parliament.  Turning water into wine is one thing, but turning fetid wastewater into wine may be beyond parliament's inclination.

TASMAN VALIDATION BILL   18.O3.13
The Tasman Validation Bill which has a lot in common with the draft Kaipara Bill is progressing through parliament.  The comments and criticisms of MPs give a clue as to the sort of reception that the Kaipara Bill will get when and if its turn comes.

The full post can be viewed here.

I have transferred all posts relating to the validation bill to the new Validation Bill page which can be viewed here.

Any comments from ratepayers welcome.  Email to:  contactus@kaiparaconcerns.co.nz

A LIE IN THE FIRST FEW WORDS 17.03.13
The KDC annual plan for 20013/14 (AP) incorporating amendments to the 2012/22 LTP, is finally available on the KDC website here with a summary here.

At 358 pages it is a big read and will be largely incomprehensible to most ratepayers. That, of course, is one of the main aims of the document.

I have yet to delve into the smoke and mirrors that I expect to find, but a quick squiz at the first few lines show that this is definitely the work of the commissioners.

Remember that transparency and consultation are the pillars on which local government in New Zealand is supposedly built - according to the Local Government Act - and compare with that the total disdain for those principles that the commissioners have shown in the last six months.

Remember how they reneged on the commitment to consult with ratepayers and form a focus group to consider the options for resolving the illegal rates problem?

They shunned that commitment and the views of ratepayers and proceeded with the draconian validation bill without any consultation.

At the same time they breached the clear terms of reference set by the Minister of Local Government requiring them to consult with ratepayers.

Or did they?

In the Foreword to the AP (on the first page) the commissioners set out the tasks they were required to perform under the Ministerial terms of reference. One of them is:

Address the problems created by invalidly set rates and other legal compliance issues

Most people would accept that statement at its face value. However it is totally incorrect. It is a lie.

As in many other cases the commissioners have misrepresented the situation by telling only half truths and missing out vital information.

The exact wording of the Terms of Reference (here) is:

Work with the Kaipara community and ratepayers and the Department of Internal Affairs to identify options for dealing with invalidly set rates and other legal compliance matters;

Note how the obligation to work with the community (highlighted in yellow) has been unilaterally removed from the terms of reference by the commissioners. which means that the commissioners can bury and ignore their blatant failure to comply with the Minister's clear requirements.

That is fundamental dishonesty.

A big lie in the first few lines does not bode well for the rest of the 358 pages..

IMMUNITY FOR PUBLIC SERVANTS 17.03.13
Ratepayers can be forgiven for thinking that all those involved with local government whether directly or indirectly are exempt from legal liability in New Zealand.

The ratepayers of Kaipara were the victims of a rort to the tune of tens of millions of dollars in a Ponzi-type scheme hatched by a deceitful Council that had no regard for legal requirements; a rort that was assisted by contractors, lawyers and auditors who failed dismally in their obligations, by government watchdogs that were asleep on the job, and by a government that delegated its power to local authorities but failed to comply with the attendant obligations to provide the machinery of government and competent regulatory authorities to protect the best interests of the people against the abuse of power by local authorities..

The ratepayers in Kaipara have learnt - and all ratepayers in NZ should take note - that ratepayers are the dumping ground for all the incompetence, negligence and even deliberate deception in local government in New Zealand.

That is the de facto situation as it stands, but the government is planning to legislate to enshrine immunity in the law. In a NZ Herald article Audrey Young reports on a proposed new lew law that would shield lax and incompetent officials:

But the Government, on the advice of the State Services Commission, wants to put public servants beyond the reach of the ordinary civil law that applies to everyone else.

The article goes on to say that Law Commission President and Court of Appeal judge, Justice Sir Grant Hammond, pleaded with a parliamentary select committee to scrap the proposal. He added that it was a matter of "grave and even constitutional importance".

For further comment on this article read John MacDonald's incisive comments in the Kaipara Konnection (here) and the post from Aardvark that he refers to.

Many believe that the Kaipara problem centres around the liability for rates. The truth is that this is a showdown about the Rule of Law and whether a determined government can run roughshod over one of the basic principles that underlies our democracy. It is one of the many matters that are causing huge concern amongst academics and those interested in protecting the freedoms that our fathers and grandfathers fought for.

The recent article by Professor Dame Anne Salmond in the NZ Herald, Time to defend democratic rights, sounds a very loud warning bell about the direction taken by John Key's government.

The people of New Zealand are waiting to see if the the Key government can force the ratepayers of Kaipara to bear the responsibiltity for an illegal debt for which they are not responsible, which they had no knowledge of, and where the Council (which supposedly represented them) totally misled them as to the nature and extent of the debt, whilst the of true culprits, including the government itself and its supposed watchdogs, get off scot free.

MISLEADING INFORMATION - THE ANSWER   11.03.13 
Legal Eagle explains why the draft validation bill is misleading (here- scroll down).

No one claimed the prize offered.

KAIPARA DISTRICT COUNCIL 

 WANTED

Bank robbers, burglars or any others guilty of acts of dishonesty who want to have their offences legalised should supply full details to the Kaipara District Council.

The Council is validating all of its own illegal acts and, as it is getting away with daylight robbery, it is giving the citizens of Kaipara the opportunity to do the same.

We can add your offences to the validation bill which is about to be placed before parliament.

Those who have defrauded others out of substantial sums of money may also be able to recover penalties on the monies that they have stolen.

Apply in the first instance to Chief Executive Steve Ruru.

THE VALIDATION RORT   10.03.13
Read John MacDonald's excellent article on the Validation Rort in the latest edition of the Kaipara Konnection (here).

CAN YOU SPOT THE MISLEADING INFORMATION?  10.03.13
No one has yet picked the misleading part of the validation bill referred to in the earlier post (three down), which suggests that the commissioners have done a good job of misleading ratepayers.  Will they be as successful in misleading parliament?

Answer tomorrow.

FLOUTING LEGAL REQUIREMENTS   10.03.13
Ratepayers in Kaipara, and in fact throughout New Zealand, must be bemused at the widespread flouting of legal requirements by local authorities. Thirty pages of illegalities in the Kaipara validation bill stands as a testimony to the parlous state of local government in this country, and the complete failure of the government to ensure that local authorities operate within the law.

Further, the cynical legalisation of all the illegalities underlines a total lack of principles within the government.

John Key's government is developing a reputation for an arrogant disregard for the rule of law. But it is widespread throughout he community. Take a look a the NZ Herald article by John Armstrong on Mighty River Power's refusal to respond to nearly 100 of the 133 written questions submitted by the very parliamentary committee to which those running the power generator are supposedly accountable.

Thumbing one's nose at legal requirements, and getting away with it, is becoming a national pastime.

BREACH OF BANKING COVENANTS   08.03.13
The beleagured KDC is facing a finance crisis.  It has acknowledged in the validation bill that the current LTP and the current rates are invalid and seeks to have them validated by parliament.  That means that it has no valid LTP and is therefore operating outside the law. 

The banks, which almost foreclosed on the Council last August when the commissioners were appointed, will be very nervous.  Council has clearly breached its banking convenants and the banks are entitled to  call up the loans.

It will be interesting to see whether the banks will take action or whether the government will step in again and give reassurances to the banks behind the scenes.

But whatever happens now the KDC is teetering towards self-destruction.

CAN YOU SPOT THE MISLEADING INFORMATION? 08.03.13
Readers are invited to have a look at clauses 9 and 10 of the Preamble to the validation bill (here, pages 6 and 7).

Can you see the errors in the sequence of events, and suggest a reason why the commissioners have done that?

The best response gets a parking ticket included in the validation bill.

Entries to: contactus@kaiparaconcerns.co.nz

COMMISSIONERS SLEIGHT OF HAND   08.03.13
John Roberston constantly states that the validation bill does not include the illegal EcoCare contract and the illegal EcoCare debts.

True or not? 

Legal Eagle suggests here - scroll down, that with some clever drafting the validation bill makes a clear statement to the world that the EcoCare debt is valid and enforceable.

LOCAL BILL PROCEDURE   06.03.13
The procedure for bills passing through parliament can be seen here.  Remember that the Kaipara bill is a local bill.

A BRIDGE TOO FAR 06.03.13
Many of us have suspected the motivation and competence of the commissioners from the start. Others saw their hollow, obsequious performance at the recent meetings with ratepayers and came to the same conclusion.

We all suspect that they are in power for one purpose only and that is to extract the last cent out of the people of Kaipara for the benefit of the banks and to protect at all costs the crumbling local government fantasy of John Key and his government.

Our worst fears have now been confirmed. The draft validation bill, which is designed to validate all the wrongs and illegalities committed by this utterly incompetent Council, has been released and can be viewed here.

For the ratepayers of Kaipara this is a bridge too far.(continued here - scroll down)

ILLEGAL RATES - OZ STYLE   02.03.13
The State Government of Western Australia (here) has taken legal action against 22 councils after it found that they have levied illegal rates of more than $27 million on 10,000 properties.  The invalid rates will be quashed.  Some of the rates will be able to recharged once the correct procedures are followed but nearly half a million dollars will have to be refunded because there is little likelihood of the defects being remedied.

Note how the Australians do it correctly.  The rates are deemed to be invalid and repaid.  Once they are set correctly they are then collected again, but without penalties. 

WELCOME TO ARMAGEDDON 
01.03.13
In a surprise move the commissioners have finally conceded that the current LTP and the current year's rates are invalid.  They are going to include both of them in the validation package to go before parliament. 

This means that Council is not operating under a valid LTP and is effectively functioning outside the law.

It also means that the rates for the current year are invalid.

This is the Armageddon promised by Greg Gent when last August he pressured the previous Councillors to adopt the LTP before the commissioners took over.

Legal Eagle's comments can be seen here - scroll down.

NO HONEST SHOVEL FOR KAIPARA   28.02.13
A must read is Chris Trotter's article: Corruption exists by the shovel load (here).

He quotes Warren Berryman the American editor of the old Independent Business Weekly as saying:

"This is one of the most corrupt countries I've ever lived in. It's everywhere you look - but you Kiwis just don't see it. New Zealand tops all these surveys not because it's corruption-free, but because New Zealanders have become experts at looking at corruption and calling it something else."

Trotter cites recent examples, including the latest report from the OAG,  and suggests that we Kiwis dig for the truth with ornamental teaspoons rather than a shovel.

How much longer, I wonder, is the rest of the world going to be hoodwinked by Kiwis' perverse willingness to substitute an ornamental teaspoon for a spade?

He finishes with the comment:

And once the tradition of digging with teaspoons becomes established, the use of a spade becomes even more dangerous. Who knows what dirty deals, sleazy quid-pro-quos and ghastly miscarriages of justice might be uncovered if an honest shovel was ever allowed to turn over the topsoil of "corruption-free" New Zealand?

It is as if Chris Trotter is talking directly about Kaipara - one of the biggest rorts in recent history - but which still lies beneath the soil undisturbed by an honest shovel

And that is exactly why there is no independent inquiry into the Kaipara District Council, because all the "dirty deals, sleazy quid-pro-quos and ghastly miscarriages of justice" might be revealed to the embarrassment of people who are far more important than the ratepayers.

You can guarantee that there will no honest shovel in Kaipara unless ratepayers see the reality of the situation, stop allowing themselves to be victims, and stand up to those who are intent on destroying them.

MORE WISDOM FROM THE TOP   28.02.13
John Roberston is at it again with his buttery spiel (here - scroll down).

ATTACK ON RATE STRIKE SIGNS  27.02.13
Annette Lambly's article on the attack on the rate striker signs in the Northern Advocate can be seen here.

Note the somewhat equivocal response from commissioner John Robertson:

While we don't condone the "bludger" stickers, the commissioners also don't condone the non payment of rates.

The implication is there that he feels there was some justification for the vandalism.

He also takes advantage of the opportunity to make the Council sound squeaky clean.  He takes the high moral ground, and, in true Roberston style, he chooses to overlook all the relevant facts. The reason that ratepayers are not paying the rates is because THEY DO NOT CONDONE:

*The negligent rates process over 6 years at least, with twenty pages of errors that John Robrtson himself calls "a dog's breakfast", and $17.3 million dollars of illegal rates collected and not refunded.

*The repudiation of a clear undertaking (and the breach of terms of reference) to consult with ratepayers about options to fix the problems.

*The failure to comply with the LGA before signing both the first EcoCare contract and the second EcoCare contract with the result that the contracts and the debts incurred are illegal and ultra vires. 

*Deliberately misleading the ratepayers as to the cost of the EcoCare scheme for 5 years, the amount of the debt incurred, and the cost to ratepayers in annual rates and capital rates.  This was one of the biggest rorts perpetrated on ratepayers in New Zealand local government history.

*Fudging the financial accounts for 6 years to totally misrepresent the true financial status of the Council and still continuing to do so.

*Continuing to operate as a going concern when it is absolutely clear that the KDC is no longer financially viable.  This would be a criminal offence if it was in the public arena.

*Failing to get independent forensic experts in to follow up all the improprieties and "irregularities" that are clearly evident and which the commissioners continue to ignore.

*Operating under an LTP that is clearly invalid, and continuing to charge illegal rates.

*Inflicting rate rises that will effectively destroy the individuals, families, businesses and communities within the Kaipara district, all in breach of the basic principles underlying the LGA, and in breach of the fiduciary obligations that are owed to ratepayers under the common law.

I won't go on to mention the shame of the Hakaru landfill (which the commissioners have never heard of), the Dargaville Pool, the monies paid to Jack McKerchar, and all the other massive blunders that the KDC has made in its reign of ineptness.

And, John Robertson, don't tell us that you are not responsible.  Don't tell us that you inherited the mess. Legally the KDC continues as the same Council as it always was.  It is still the same legal entity. It is irrelevant who is at the helm.  So when the KDC finally becomes before the court to front up to its shameful litany of illegalities, it is John Robertson and his commissioners who willl have to front those charges.

KAIPARA COMMISSIONERS - THE ONLY SHOW IN TOWN   25.02.13
Chris Sellars - "Worzel" to the readers of the Mangawhai Focus - comments in his own inimitable style on the meeting with commissioners at Maungaturoto last week (here).

A VIEW FROM THE WEST    24.02.13
John MacDonald, editor of the Kaipara Konnection, has some interesting comments in the latest edition (here - scroll down) on the developments in the Kaipara rates mess.  John tends to be the barometer of public opinion in the west and it is interesting to read his comments on the usefulness of the Minister's commissioners. 

He also mentions the A word - amalgamation.  There is absolutely no doubt that the task of the commisioners is to get the rates paid, the illegal debt firmly sheeted home to the ratepayers, and then Kaipara can be carved up and allocated to whatever unitary authority/authorities emerge from the jungle of the Far North.

But John MacDonald's comments suggest a swing in sentiment across the district.

The tipping point has almost been reached.  More and more ratepayers are beginning to wake up to the fact that the illegal debt is not theirs and they have to reject all attempts to inflict it on them.  They are the only really innocent parties in this whole fiasco. 

Those truly responsible are skulking in the shadows hoping and praying that the ratepayers will succumb to the pressure and blandishments of the government and the commissioners and will "take the rap".  If that happens the prime-movers in this rort will be laughing all the way to the bank.

More and more ratepayers are also beginning to see that the unctuous utterings of the commissioners are totally hollow and false.  The meeting in Mangawhai illustrated the level of superficiality and incompetence of the commissioners and their complete failure to grasp the essence of Kaipara's problems.  

They have no idea where they are going.  The only clear message that they have is that the debt belongs to the ratepayers.  Full stop. Nothing else.  They have no understanding or knowledge of the dreadful things that have gone on in Kaipara, and it is patently obvious that they do not care.

It is also absolutely clear that Kaipara cannot continue to function as a local authority under the Local Government Act.  It is not a "going concern" and cannot meet its day to day debts out of income. 

The commissioners are fudging the figures. Note the acknowledgement that the figure the commissioners bandy about for "total debt" is not total at all.  It only includes external debt owed to third parties.  It completely overlooks the monies that have been filched from the Reserve funds and the Mangawhai Endowment fund, which have been used for other purposes and have to be repaid.  They have also ignored the $20 million or so that they owe ratepayers for the illegal rates and development contributions that have been charged.

Ratepayers at the Mangawhai meeting will have been horrified to hear that only ten per cent of the interest on the debt was actually being paid each year.  The rest was being capitalised.  In other words they are borrowing to cover 90% of interest repayments.  Steve Ruru corrected this and said that it only applied to the proportion of the debt (just under 50%) which is allocated to development contributions. 

That in itself reflects a council that cannot meet its commitments out of income.  But worse is to come.  The commissioners indicated that in future ALL interest on the whole debt is to be paid out of income. 

If Council cannot balance its books now, how is going to find the monies to meet the annual interest bill? 

Development contributions have reduced to a dribble, and they are more than likely going to dry up completely in the future following the government inquiry into the affordability of land.  So who is going to pay the interest on the part of the debt allocated to development contributions?

The answer is quite obvious.  The ratepayers will now be billed for the interest on that part of the debt. And ......it will not be long before ratepayers will be obliged to pay the capital as well, because there will be no development contributions.

A massive rate hike for the next rating year (from 1 July 2013) is waiting just around the corner.  Just like last year.  And just like the year after next.

The choice for ratepayers is simple.

If you believe that you should pay for the illegal acts of others, and that they should get off scot free, then continue paying your rates.

If you believe that the commissioners are competent and in control, and will look after your best interests and Kaipara's best interests, then continue paying your rates.

If you believe that ratepayers are not responsible for the illegal debt, that those responsible should pay, that Kaipara is a financial cot-case, and that rates will continue to rise dramatically every year, then stop paying rates now and let the commissioners and the government know how you feel.

They will only listen if we all make a stand.

BLUDGER STICKERS  23.02.13
The offenders have not been identified yet but police are following strong leads, as they say.

Some of the stickers have been taken away for fingerprinting.

There is a feeling of fear and apprehension in the village given that in some cases the offenders entered some distance on to private property in the dead of night to carry out their attack.

If they are prepared to do that, then what else are they prepared to do?

Joel Cayford's post on the matter can be seen here.

MCKERCHAR SETTLEMENT 23.02.13
The Northern Advocate article by Mike Barrington (here) states that the paper has obtained a copy of Jack McKerchar's employment contract under the Official Information Act.

According to the article both the Council and the Chief Executive had the right to terminate the contract on the giving of three months notice, with Council having the right to pay the Chief Executive instead of him working out his notice.

If that was the case (see* comment below) then there was no need legally for the Council to agree to any payment to the Chief Executive, except for the three months notice period.

Which means that Council paid to the Chief Executive a considerable sum of money that he was not entitled to receive and which Council was not entitled to pay.

Under sec 44 LGA the Auditor-General has the power to take action where:

"money belonging to, or administrable by, a local authority has been unlawfully expended."

And can then recover the monies from the individual Councillors who voted to support the signing of the deed of settlement (sec 46).

It will be interesting to see if the Auditor-General will act to protect the best interests of ratepayers.

* These comments are made based on the employment contract being in the form indicated in the Advocate article. It is hard to believe that the Council had the right to terminate the contract on the giving of three months notice. 

WHO PAYS FOR VALIDATION? 23.02.13
Legal Eagle believes that the costs of validation should be borne by those responsible for the illegal ratesThis especially applies to the Auditor-General and Audit New Zealand who between them failed to pick up any of the errors in the 20 pages of errors recently identified by Council in the rating documents.

He believes that the commissioners have no choice but to issue legal proceedings against the two auditors for negligence and breach of their duty of care.

See the full post here.

RATE STRIKERS' PROPERTIES ATTACKED   22.02.13
During the hours of darkness last night a person or persons unknown attached stickers to many of the rate striker signs that are displayed on properties in Mangawhai.

     

It was a concerted and widespread attack and it is suspected that several people were involved.   

A custom-made black vinyl sticker with BLUDGER in large white letters was stuck over the signs so that they read Another Bludger.

Ratepayers, or more correctly rate strikers, are incensed, especially as the offenders had to go to some trouble to enter on properties and reach the rate striker signs.

Most of the affected property owners suspect that private individuals were responsible but some do not dispel the Council having a hand in it. At the meeting with the commissioners on Monday it became apparent that the commissioners are rapidly losing control of the situation and are using every trick that they can to force ratepayers to pay the illegal debts of Council.

Many suspect that the commissioners' meetings across the district were stacked with National Party supporters who did all they could to persuade ratepayers to pay their rates and trust the commissioners.

There are also stories of Council staff putting undue pressure on elderly and disadvantaged rate strikers to get them to pay their arrears.

The commissioners and Steve Ruru need to respond immediately and assure ratepayers that they were not involved either directly or indirectly in the attack.

Rate strikers are concerned that this type of attack could escalate.

The police have been inundated with complaints and are investigating.

If you have any information in helping the police track down the offenders then please contact the Mangawhai station on 4231060.

One eye witness reports that the offenders were in a dark coloured Japanese saloon car, possibly a Mitsubishi.

Someone might have a lead as to the source of the stickers which clearly are professionally made.

Set out below are the possible criminal charges that the offenders may face.

Summary Offences Act 1981

11A Graffiti vandalism, tagging, defacing, etc
A person is liable to a community-based sentence (within the meaning of section 4(1) of the Sentencing Act 2002) or a fine not exceeding $2,000, or to both, if he or she damages or defaces any building, structure, road, tree, property, or other thing by writing, drawing, painting, spraying, or etching on it, or otherwise marking it,—

(a) without lawful authority; and

(b) without the consent of the occupier or owner or other person in lawful control

33 Billsticking
E
very person is liable to a fine not exceeding $200 who, without the consent of the owner or occupier,—

(a) affixes any placard, banner, poster, or other material bearing any writing or pictorial representation to any structure, or to or from any tree;

Crimes Act 1961

269 Intentional damage
(1) Every one is liable to imprisonment for a term not exceeding 10 years who intentionally or recklessly destroys or damages any property if he or she knows or ought to know that danger to life is likely to result.

(2) Every one is liable to imprisonment for a term not exceeding 7 years who—

(a) intentionally or recklessly, and without claim of right, destroys or damages any property in which that person has no interest; or

(b) intentionally or recklessly, and without claim of right, destroys or damages any property with intent to obtain any benefit, or with intent to cause loss to any other person.

(3) Every one is liable to imprisonment for a term not exceeding 7 years who intentionally destroys or damages any property with reckless disregard for the safety of any other property.

A REWARD OF $100 HAS BEEN OFFERED TO THE PERSON WHO IDENTIFIES THE CULPRIT/S

COUNCIL RATED WORST  
21.02.13
An article in the Rodney Times (here) has reported on Larry Mitchell's Local Government League Table in which Kaipara comes 67th out of 67.  It dropped from 65th last year.  Kaipara is so bad that Larry Mitchell says that "If I could have gone any lower than 67th, I would have.  We'll see what happens next year."

That may not happen.  Most pundits seem to agree that Kaipara has little chance of surviving until next year.  The commissioners clearly do not have the competence or the right approach to deal with the financial problems and the complex legal situation that the Council has landed itself in.  Kaipara can only be saved by the ruthless intervention of experts, a change in thinking and direction, and major surgery.  The tinkering of amateurs, slapping on bandaids, fudging figures, avoiding legal problems, and mouthing meaningless mantras, will only prolong the inevitable.

The full article of Larry Mitchell can be seen here

TWO-FACED JOHN? 19.02.13
The Northern Advocate article on the commissioners' meeting with ratepayers at Maungaturoto can be seen here.

At both Maungaturoto and Mangawhai John Robertson made similar comments. He emphasised that any outstanding issues had to be addressed at speed, they had to be resolved, and remedies had to be put in place. He acknowledged that there was so much anger and grievance and added:

"Until you have this satisfied, you really cannot move forward."

I am sure that these comments struck a chord with everyone in the room.   For a moment we all thought that the commissioners had suddenly grasped the essence of the problem and were going to announce immediate independent inquiries.

But that was not the case. The financial fiasco is going to drift on in the same way with no independent analysts, with the lumps in Steve Ruru's carpets getting bigger, and the gaps between reality and the fudged figures in the Council plans getting bigger as well.

As for the legal problems being addressed at speed, the commissioners have, not surprisingly, thrown their hats in with the OAG inquiry. Almost a year and no sign of any outcome. Not quite the high speed decision-making that John Robertson says is necessary.

The question remains: why did he make such statements if he had no intention of following through on them?

All it did was show him up to be a man who says one thing and does another.

One ratepayer had it off pat. She had met with him over her problems, received assurances and was let down. "A man with two faces", she called him, and she told him to his two faces as well.

RICHARD BOOTH EARNS HIS KEEP 19.02.13
The Advocate article mentioned above reports some comments on the quietest of the commissioners, Richard Booth.

He is reported as saying that the commissioners had to work on the basis that debt had to be met by ratepayers, which sounds like direct instruction from the Minister.

He also added that while another increase was in the pipeline for this year, rates would stabilise for the next ten years.

Which means that ratepayers are in for a massive rise this year and after that no one has a clue. Remember that only a couple of years ago Council was promising that the debt was under control and the capital costs of EcoCare had already been paid.

He finished off his comments with this pearler:

"(The commissioners) believe that even with recent increases, Kaipara rates were not above average for other areas."

No facts no figures, just a vague unfounded "belief" that would not be difficult to disprove. The very stuff of the smart salesman selling a dud car and the sort of comment that destroys the credibility of a man who should know better.

JOEL CAYFORD ON MEETING WITH COMMISSIONERS  19.02.13
Joel Cayford's comprehensive report on the Mangawhai meeting with the commissioners can be viewed here.

ENDOWMENT FUND 19.02.13
There was one matter that exposed the true abilities of the commissioners. They spoke a lot about the competence that they had brought to the financial affairs of Council and how, under their watch, they were resolving all the problems and looking to a rosy future.

Unfortunately that was all words and lather. There is absolutely no evidence that they have been effective in any way at all.

Perhaps the crunch was the management of the Endowment Fund. There are a lot of rumours circulating about this Fund and suggestions that it has inappropriately been acquired by Council for its general purposes. That is fine provided that the correct procedure is used, that it is documented, and that appropriate interest is paid to the Fund.

Several relevant questions were asked by ratepayers at the meeting. The commissioners were like a squirming bunch of schoolboys, caught red-handed and trying to put the blame on each other. None of them had any idea about the whereabouts of the monies from the Fund, or what interest was being paid. They were clearly embarrassed.

These are monies held by Council on trust for ratepayers. It is absolutely clear that they have breached that trust because quite simply they do not know what has happened to the fund.

These are the financial gurus who want us to believe that they can manage the Council and resolve the problems of a $100 million debt, and yet they are totally incapable of managing a fund of a mere $5 million on behalf of the ratepayers. Trust and accountability clearly have no relevance in their operations.

There is absolutely no future with these four guys handling the finances of Council. The only "way forward" is to get independent forensic experts in to do an independent examination. Until that happens they will simply fudge the situation and paper over the cracks, minimise liabilities and the debt and exaggerate the income from development contributions.

The new plan will be a financial charade that would be ripped apart by forensic accountants if they were ever allowed the opportunity to get near it.

And it is perfectly clear from their demeanour that the commissioners are very aware of that.

DISPARITY IN RATES 19.02.13
One ratepayer at the meeting had done a lot of homework on the disparity of rate increases under this year's LTP. There seemed to be no rhyme or reason for the differences. In some streets there was a huge difference in percentage increases. Kaiwaka appeared to have been dealt a hefty blow, whereas, surprisingly, a lot of rates for farmland appear to have dropped.

The commissioners struggled to explain the situation except to say that the previous rates were complicated and not applied appropriately. Perhaps another insignificant error.

They went on to assure ratepayers that the whole rating system will be revamped in the draft annual plan which will include substantial amendments to the LTP and the rating system.

Prepare for the worst. They are going to eke out every last cent from ratepayers and everyone is going to be hit with massive rises. This time no one will escape through the cracks.

The draft annual plan is in its last stages and yet when asked to put a figure on the proposed average rate rise all the commissioners became surprisingly shy, shuffled, and looked at each other uncomfortably. Collectively they could not even hazard a guess. When asked, Steve Ruru said he did not carry the figure in his head.

They knew, of course, but did not want to introduce any negative figures to destroy their sales spiel. A bit like those TV ads where they hook you into the product with superlatives but only reveal the price when you are hooked and ring up.

LIMITATION ACT AND VALIDATION 19.02.13
The commissioners were adamant that any defects in rates older than six years were irrelevant because of the Limitation Act, which limits legal actions after six years. The validation bill is therefore going back only six years.

Peter Winder acknowledged somewhat surprisingly that the rates assessments across the whole district were all invalid for the past six years and that probably they had always been defective. He seemed to think that this was one of those cute, little idiosyncrasies of the old Council. No doubt, just another minor technical irregularity.

He also let it slip that the draft validation bill, "which is well under way", lists twenty pages of errors for the past six years. All minor technical irregularities, no doubt.

The problem with his comments about the six year limitation period is that it is not correct. That rule does not apply if the act or omission giving rise to the liability has been kept secret from the claimant.

One suspects that Peter Winder knows a lot about the law relating to local bodies, but, sadly for his own credibility, he only discloses what best serves the strategy of the commissioners, the government and the banks. Anything that could favour the ratepayers he leaves hidden away in the bottom drawer.

I bet that after the pasting that he received at the meeting he will be running back to Council's lawyers to reassess the validation process and will take a greater look at the 20 pages of errors that he believes he can validate.

He had better do his job thoroughly because if he proceeds with his ad hoc, misguided attempt to sweep incompetence and dishonesty under the carpet, and minimise the utter incompetence and dishonesty of the Council, he will be met with a barrage of evidence that will make a mockery of his validation proceedings.

And that will be another $150,000 down the tubes.

RING-FENCING THE ILLEGAL DEBT 19.02.13
At the meeting one ratepayer came up with the very good idea of ring-fencing the illegal debt until a full inquiry has been held into how it came about and who is liable.

The debt would be isolated and no interest paid on it in the interim. This would allow the commissioners to get on with what they profess to be good at, getting the Council back on track without the problem of THE DEBT.

Such an approach would need to be driven by the government and while ratepayers continue to pay rates and meekly submit to their own financial destruction the government is unlikely to intervene. But if ratepayers showed a little more spunk and fought for their rights it could be a very different sorry.

If ratepayers accept the debt they will be done like a dog's dinner. If they stand up and fight then they have a chance to ring-fence the debt, get Council back on foot and also shaft home responsibility for the debt where it belongs.

OAG INQUIRY 19.02.13
At yesterday's meeting the commissioners seemed confident that the report from the OAG inquiry would not be published "for several months". That ties in nicely with their plans of destruction. It is absolutely essential that they get the draft annual plan, with the promised fundamental amendments to the LTP, adopted and in place, and the errant ratepayers well in the fold, before the OAG report becomes available.

If the report and its inevitable criticism were available at the consultation stage of the draft plan then ratepayers could become a bit bolshie, and, heavens forbid, refuse to pay their rates.

If the plan is a done deal it also allows the OAG to say that although there were some dreadful acts of incompetence it will not recommend any action as the commissioners now have the situation "under control".

Note that Council is an "affected" party and will be allowed access to the report before it is published to comment on any criticism contained in the report. The OAG does this, according to its website, to comply with the requirements of natural justice. However, it does not give ratepayers the same opportunity, and that Office clearly turned a blind eye to the requirements of natural justice when it undertook an inquiry to investigate its own incompetence.

It seems that in New Zealand the principles of natural justice do not apply to ratepayers.

So, even in the highly unlikely event that the report was completed prior to the adoption of the plan, Council, as an affected party, could delay its publication, by dithering and objecting, until the ratepayers are all shackled and chained.

Are we not pawns in some great conspiracy?*

*I do not believe in conspiracy theories, however,,,,,,,

MANGAWHAI MEETS THE COMMISSIONERS 18.02.13
Legal Eagle comments on the meeting with commissioners in Mangawhai today.  He was less than impressed.  
A lot of spin and meaningless platitudes but no substance.  They are clearly working for the Minister and the banks, papering over the cracks of the past and ensuring that ratepayers are dumped with all the illegal debt. 

The draft annual plan - due out next month - looks as if it will be the final cruncher that destroys Kaipara.  And it became clear at the meeting that the commissioners do not give a damn about that, or the  suffering of the ratepayers.  Payment of the debt is their sole priority.

The full post can be seen here.

GOING CONCERN?  GOING, GOING, GONE   
12.02.13
With the announcement of almost certain changes to the development contributions regime, the Council's financial viability, which was teetering on the brink, has taken a dramatic step for the worse.  Legal Eagle considers that the Council no longer qualifies as a going concern and that the government and the banks will not be prepared to prop it up any longer.

Ratepayers need to consider very carefully whether they are prepared to pour more monies into a Council that is on its last legs.

The full post can be seen here.

THE HUMAN COST OF FRAUD   12.02.13
Ratepayers should make sure that they read the article in the Herald (here) by Jamie Gray about counting the true cost of fraud to a community as a result of various Ponzi schemes and other fraudulent activities.

He quotes Harry Markopolos, the fraud investigator who uncovered the infamous Bernie Madoff Ponzi scheme in the United States, who points to stress and sometimes suicide.  He adds:

 "So we do have a body count from white collar fraud but it is overlooked and hidden. The damage to society and the loss of trust is incalculable."

There are many people in Kaipara who will who will have been affected in a similar way by the KDC's onslaught on the community.

The final comment in the article about large Ponzi schemes is very interesting and relates directly to the Kaipara situation:

"Everyone has to have failed to [do] their job - the bankers, the accountants and the due diligence professionals. Everyone has to have failed before they get that big," he said.

"That seems to be the commonality," he said. "And of course the regulators have to miss it all as well."

Amen to that.  But why in the Kaipara situation are all those who failed to do the job let off whilst the innocent party and the victim - the ratepayer - has to bear responsibility for all the losses?

AND NOW ITS THE TURN OF THE WATER...    12.02.13
The new KDC water rort commenced in January, to the dismay of many ratepayers.  Obviously modelling itself on the Auckland water rort, the KDC is now charging a standard charge of up to $349 (which includes the first cubic meter), and then a charge for each subsequent cubic metre.  In addition, no doubt in pursuance of the principle of non-user pays, those close to a pipe, but not connected, have to pay 75% of the standing charge.  That is the same unjustifable charge that was introduced for wastewater. 

This pressure to connect to the system is ironic given the Council warning on the back of the Mangawhai Focus that there is an extreme water shortage and conservation measures are encouraged.

I would have thought that not connecting to the system would be the best conservation measure. 

MISINFORMATION FROM THE TOP 10.02.13
Chair of commissioners, John Robertson, included a personal letter with the latest rate demand full of the misrepresentations and half-truths that we have come to expect from him.

Legal Eagle comments (here - scroll down) on some of the inaccurate information in the letter.

STEVEN JOYCE, WE NEED YOU    09.02.13
Talking of Mainzeal (see post below), Brian Gaynor in the NZ Herald (here) suggests that it is imperative that the receiver and the regulators of that company carry out a wide-range investigation into the collapse. He cites several reasons including inadequate corporate disclosure.  No doubt that will happen.

Compare that to the Kaipara Council which illegally contracted to build a sewerage scheme, and raised monies to do so, in clear breach of legislation, and without consulting ratepayers. It also set rates for six years that flouted the law and in some cases were little more than an extortion racket.  Not only that, some monies have clearly not been accounted for, and there are serious questions about how the contractual side of the sewerage scheme was handled.  

All of that, and yet no independent inquiry has been held. The Council first, and then the commissioners, both with the blessings of the government, have swept all problems, concerns and illegalities under the carpet and refused to bring in independent experts.

Take a look also at the Novopay fiasco where the government finally awoke from its slumbers and appointed Mr Fixit - Minister Steven Joyce - to unravel that particular Gordian knot.

According to John Armstrong in the NZ Herald (here) things are happening quickly. The Minister has personally taken control and in a few days isolated the major issues. He has to decide whether to ditch Novopay and start again or whether it is salvageable. He has therefore instituted a technical audit to see if Novopay can be "stabilised" or whether it is past saving. That will take three to four weeks.

At the same time he has instigated another inquiry to assess all aspects of the Novopay project from go to whoa. That will also take a few weeks, unlike the OAG's EcoCare inquiry which has taken almost a year so far. The Joyce inquiry will, I bet, be totally independent, and pull no punches. Again that will be in stark contrast to the type of report that we expect from the OAG.

Steven Joyce, Kaipara needs you. Compared to Novopay this is a cakewalk. A couple of months and you would have the whole debacle well and truly sorted and Kaipara well on its way to normality.

MAINZEAL TODAY, KAIPARA TOMORROW   09.02.13
Mainzeal has gone into receivership because it was no longer financially viable. Kaipara is in exactly the same situation. The debts that it has incurred, illegally and recklessly, are so large that the Council can no longer function as a local authority by providing the appropriate services to ratepayers and, at the same time, meet its commitments under the debts.

The income from fair and reasonable rates is simply insufficient to meet its liabilities.

Everyone in the country seems to acknowledge the situation, except of course the government and its agents, the commissioners.

In the normal world, when such circumstances apply then receivership is the only real option. Local government, however, has its own rules. The government believes that ratepayers who are totally innocent of any blame, should bear full responsibility for the illegal debts and be forced to repay the banks, irrespective of the inequity and financial ruin that such an outcome would result in.

It is like the government insisting that investors in South Canterbury Finance who have already lost all their own monies, be obliged to repay SCF's debts to the banks.

No one would tolerate such a thing. No one would tolerate it if the same thing was happening to a council in Auckland. But Kaipara is a backwater and unimportant, and the government can dump on the Kaipara people as effectively as the Kaipara Council has done over the last six years.

Well at least it thinks it can. The problem is that unless radical action is taken very soon Kaipara is going to descend into financial chaos, and that will happen in the next few months.

The new Minister, Chris Tremain, has inherited a poisoned chalice. If he heads down the commissioners' present route then he and Kaipara are both custard. He needs to act now to salvage the situation. And, this time, let us hope that the Minister takes on board the views of the community. There are some wise heads here who believe that Kaipara can be a viable entity. Far better to ditch the failed dictatorial approach and make the future of the district a cooperative venture between the ratepayers and government.

SOME FRANK COMMENTS 09.02.13
Frank Newman, ex- Whangarei councillor and local government commentator, makes some Frank comments in two articles on the Kaipara debacle on the Property Plus website.

The first article here starts with the dramatic statement:

The Kaipara District Council (KDC) is a shambles.

He then explains how it got into a financial mess and how the commissioners are effectively acting as receivers. He quotes the concerns of the auditors about the Council's financial viability and doubts whether Kaipara will be able to survive:

The figures are ugly, and unsustainable.

In the second article here he emphasises that ratepayers are the innocent parties and yet they are getting dumped with all the debt:

There is no doubt gross negligence has occurred, and not corrected by the councils statutory regulators. There is also no doubt ratepayers had no part in the debacle – they are the innocent party. Ratepayers were not even consulted about the fateful decision to expand the Mangawhai sewerage scheme – yet it is ratepayers who are being asked to pick up 100% of the cost - it seems for no other reason than ratepayers are an easy target! It’s an injustice and ratepayers are correct to protest.

He also sets out a list of those that he considers could bear the liability for what he calls "gross negligence". This includes the Councillors, the former Chief Executive, the banks, Central Government, and the Auditor-General.

In respect of Central Government he says:

Central government, on the grounds that the Minister of Local Government is the regulator who failed to adequately monitor the council’s performance;

In respect of the Auditor-General he says:

The Council’s auditor (Audit NZ) is a government agency who act for the Auditor General. The Auditor-General’s role is to give Parliament independent assurance over the performance and accountability of public sector organisations. Is Audit NZs role any different to the role of an auditor in the case of a finance company collapse and are they any less accountable?

He then considers an independent inquiry:

It would be totally appropriate for central government to initiate an independent enquiry into liability (independent because it may be that the government itself is found to be liable in full or part).

Unfortunately central government and its agencies do not have clean hands on this issue. They would probably like to take a do-nothing approach and let the cost fall upon ratepayers. The last thing they would want to do is admit liability lest Kaipara opens up a raft of claims from other negligent councils. That enquiry should also look into the possibility that some actions may have been fraudulent and may give rise to criminal prosecution.

Having stated that Kaipara's massive debt is unsustainable, he ends with the following comment:

.There are lots of unknowns in all of this but one thing is for sure – it is absolutely and totally unfair that ratepayers are being hit with 100% of the liability for fault which they can’t be blamed for. If there was ever an issue that justified ratepayers marching on Town Hall, this is it.

A final article, What's in store for Kaipara, will appear soon.

_______________________________

What can ratepayers take from this?  The fact that the truth about Kaipara is finally emerging.  What the commissioners are doing, as agents for the government and for the banks whose monies are at risk, is unlawful, inequitable and unfair.  Ratepayers are being victimised for a debt that is not theirs whilst the real culprits are allowed to escape liability.

Starving the commisioners of money is a simple way in which ratepayers can force the government to reconsider is options and hold independent inquiries into the financial and legal mess that has been created. 

Kaipara can only survive if the real problems can be tackled by independent experts and proper long term procedures put in place. 

Putting one's head in the sand, denying realities, and slapping on Band-aids will only court financial disaster.

Those are pretty good reasons to stop paying rates if you have not joined the rate strike already.

WHY IS VALIDATION NEEDED?  04.02.13
Council has maintained strongly that all rates are valid until a court issues a formal ruling to the contrary.  That is the advice that it says has received from its lawyers, Simpson Grierson. 

That is why it is telling ratepayers that the rates are valid and must be paid. 

But, if that is the case, why is there any necessity to go through the validation procedure at a cost of hundreds of thousands of dollars?  Why validate something that Council says is already valid?

I find the argument hard to follow.

And if the rates need validating then surely that means that they must be invalid to start with.  And if they are invalid then it means that ratepayers have no obligation to pay them.

Am I missing something?

It doesn't make sense.

John Robertson needs to step up here and offer and explanation for a further waste of ratepayers' monies.

According to our MP Mike Sabin, parliament, as the highest court in the land, is going to make a ruling on the matter after considering evidence from Council, ratepayers and himself.  Given the confusion, it therefore makes sense for all ratepayers to stop paying rates until parliament decides which rates are legal and which are not, and ratepayers know exactly where they stand legally.

MIKE SABIN STICKS OUT HIS NECK 03.02.13
Local MP Mike Sabin has put his hand up and thrown in his lot with the Kaipara commissioners.

The commissioners have ignored their obligations under the Minister's terms of reference and at the same time reneged on Council's commitment to ratepayers, both of which required them to consult with ratepayers on options for the illegal rates. They have stated that consultation with ratepayers does not not "add value to the governance process", and have unilaterally decided to pursue the validation option.

Mike Sabin has ignored this blatant breach of the terms of reference and the repudiation of the agreement with ratepayers - and the affront to good governance - and has surprisingly endorsed the commissioners' approach.

In an article headed MP's Corner in the Dargaville & District News of 23 January 2013 (here) he regurgitates much of the spin about validation that he has taken directly from the commissioners' propaganda releases. For instance he emphasises that the bill is to remedy "largely technical deficiencies". He also emphasises that "services have been provided" which suggests that the rates were justified.

This, of course, is absolute rubbish. The reality is that there was a total abuse of the rating process by the Council and every step of the process was littered with utter incompetence and meaningless provisions that made a mockery of legal compliance. Many of the rates were completely ultra vires, which means that Council had no right in law to levy the rates.

When the true facts are revealed, along with the incompetence and dishonesty of those involved in setting the original rates, the application to validate will be laughed out of parliament. MPs are not fools. When they are made aware of the true situation they will not only reject any validation application but they will be less than pleased with a Council and sponsoring MP that have wasted parliament's time and ratepayers monies by misleading parliament as to the background to the illegalities.

Mike Sabin is an ex policeman and it is disappointing that he did not examine the evidence before throwing his hat into the ring and endorsing the commissioners misleading propaganda.

Ratepayer Pete Grierson is less than impressed with Mike Sabin's comments and his response can be seen here in Ratepayer's Forum.

Mike Sabin can avail himself of this column if he wishes to respond.

RATE STRIKE A GREAT SUCCESS 30.01.13
It is amazing how statistics can be used to prove anything that you want them to prove.

There have been headlines in a few papers in the last few days about how more ratepayers are paying their rates. This is clearly the latest propaganda move by the commissioners to try and downplay the success of the rate strike.

I have yet to see any accurate figures come out of the KDC. If its figures for the rate strike are as reliable as its financial models for virtually anything it does then we can give them wide berth.

In spite of that, Council's figures state that 21,2 per cent of Mangawhai properties have not paid any rates for the current year and a further 16.4 per cent have only made part payments. That adds up to 37.6 per cent who are on a rate strike of some kind.

In my book that is a resounding success for the rate strike. Well over a third of people in Mangawhai are withholding rates. And that is in spite of all the pressure that has been exerted on them by the commissioners.

Ratepayers are sending a message loud and clear to the government that what is happening in Kaipara is totally unacceptable, that the commissioners are not doing their job, and that there has to be proper dialogue with ratepayers if Kaipara is going to survive.

In the next couple of months the draft annual plan will be out and ratepayers will see for themselves the full horror of the new Rates Bomb. Most households in Mangawhai in particular will have at least $2,000 added to their rates for the next rating year starting on 1 July. It will be beyond the pocket of many to pay.

John Robertson may be the master of spin, and able to convince many that black is actually white, but there is nothing he can do to disguise the reality of a massive and unsustainable rates rise arriving in the letter box.

Another run of Rate Strike notices is being ordered ready for the rush when the new Rates Bomb hits.

THE CHAMP

According to an article by Mike Barrington in the Northern Advocate, commissioner Colin Dale is now known as the "Community Champion" because of all his great work on community issues. Does the name reflect the regard of an appreciative community? Scarcely. According to the story, the name was bestowed on him by his fellow commissioners.

While he was working on commmunity issues he could have taken the time to consult with ratepayers about the options for dealing with the illegal rates, as was promised. He might then have earned the title of Champ.

AUDIT NZ GIVEN THE BOOT 30.01.13
After years of complaints about the dismal performance of Audit NZ as the OAG's appointed auditor of the KDC, it has finally been given the boot. According to the Chief Executive's latest report (here) the appointment has expired and Audit NZ has been replaced with Deloitte, effective immediately

It is interesting that calls to replace Audit NZ have been ignored, but now the OAG inquiry is well under way action has finally been taken.

Has the inquiry discovered something that we should know about?

AUDITOR GENERAL INQUIRY 30.01.13
This is the latest report on the OAG inquiry:

Originally, it had been anticipated that the report from the Office of the Auditor-General (OAG) into its Inquiry into the Mangawhai Community Wastewater Scheme might be able to be released by the end of the 2012 calendar year. This has not been achieved and it is understood that there is still a reasonable level of work to be completed before the Inquiry process will be completed and the report is able to be released.

The inquiry was announced on 28 Februrary 2012, so it is almost a year old. The rumour mill suggests that the report is being delayed to give the commissioners a chance to beat the Kaipara ratepayers into submision. When the report does emerge it will tell a sorry story of incompetence, but no action will be taken because of the need to "move on". But no doubt the experience will provide valuable lessons for the future.

In short those responsible for the Kaipara rort will get off scot free and the poor ratepayers will have their role as the scapegoats for local government incompetence reconfirmed.

ROBERTSON REPLIES 30.01.13
Chair of commissioners John Robertson has responded in an article by Mike Barrington in the Northern Advocate (here) to criticism by Legal Eagle (Robertson runs for cover - here) of his rescinding the right of ratepayers to be consulted on the options for resolving the illegal rates problems.

Mr Robertson is proving to be the match of ex Mayor Tiller when it comes to fancy footwork and deflecting questions.

In response to the claim that the commissioners breached the requirement in the Minister's terms of reference that they work with the Kaipara community and ratepayers to identify the options, he advises:

"We have considered these options in depth, including with members of the community and representatives of ratepayer groups".

Sounds good but I have yet to find anyone that has been consulted. Perhaps John Robertson would like to enlighten us and let us have a list of those he consulted.

In respect of the commitment to set up focus groups with ratepayers to discuss the options, he advised that it had been rescinded by the commissioners because he did not believe that it would "add value to the governance process".

Those are the words of the man entrusted with getting Kaipara back on the road and mending relations with ratepayers.

We are learning about this man very quickly. Any problem is not the commissioners' problem, but the responsibility of the previous Council. And now commitments to consult with ratepayers do not "add value to the governance process".

Can you feel the hairs standing out on the back of your neck?

WHY WAS JACK PUSHED? 25.01.13
In Mike Barrington's article in today's Northern Advocate (here) Bruce Rogan of the MRRA says that the reason for ending Jack McKerchar's employment contract must be disclosed. Council needed to explain why McKerchar had left and why he was paid the sum of $240,000.

ROBERTSON RUNS FOR COVER 25.01.13
In the Northern Advocate article mentioned above (see here), Chairman of commissioners, John Robertson, is reported as saying that the McKerchar settlement was made a year before the commissioners were appointed and he had no idea why the Council had paid out Mr McKerchar, nor how they established what had been a sizeable amount to pay him..... (continued here)

This side-stepping of the commissioners' clear responsibilities does not sit well with Legal Eagle and he calls for the Minister to replace the commissioners. He suggests that if the commisioners remain in office then they will continue to alienate ratepayers and the financial situation will get worse. Sooner or later the banks will be forced to pull the plug on the KDC.

PETER BULL AGAIN 25.01.13
Peter Bull. ex councillor. has come out swinging again (Kaipara Lifestyler here) in support of the views of Lyall Preston and the commissioners' decision to proceed with the validation of rates. Read the full story here.

MORE ON MCKERCHAR 25.01.13
Ron Manderson of the Kaipara Citizens and Ratepayers Association comments on the contents of the McKerchar Deed here.

SUE THE AUDITOR, THE COUNCILLORS, THE CHIEF EXECUTIVE, THE CONSULTANTS AND THE LAWYERS ? 25.01.13
The receivers of Belgrave Finance are suing the company' solicitors and auditor for negligence and breach of their duty of care. According to Legal Eagle, that is what should be happening with the Kaipara Council.

The full article can be seen here.

A BAD SMELL COMING FROM KAIPARA 23.01.13
A concerned ratepayer (here) reckons the release of the Mc Kerchar Deed has created a result that "smells as bad as a toilet door on a prawn trawler".

CHRIS TREMAIN THE NEW MINISTER 23.01.12
David Carter, the Minister of Local Government, is to be the new Speaker of parliament. He has worn his role as Minister of Local Government like a badly made suit and it must come as a great relief to him to escape the complexities of the Kaipara problem.

The new Minister is Chris Tremain.

Little is known about him but his website is here.

EMPLOYMENT CONTRACT 23.01.12
Jack McKerchar's right to terminate his employment agreement with the KDC can be seen here.

If he terminated the agreement himself then he was not entitled to any monetary settlement. It therefore appears that Council wanted him to go and negotiated a settlement figure to persuade him to quit.

The questions therefore follow:

Why did Council want Jack to go?

Why did Council not terminate his employment without a monetary settlement, if they had just cause?

Why did Council allow Jack to work out his notice when he could have required to leave immediately?

ADVOCATE'S COMMENTS 23.01.13
Mike Barrington's article in the Northern Advocate on the Deed of Settlement can be seen here. He quotes an expert on employment law who raises some questions about the terms of the agreement.

One also wonders what happened to Jack McKerchar's stated reasons for quitting, namely health reasons. Not a dicky bird about that in the agreement. That suggest that it played no part in the resignation and was just another smokescreen created by the parties to hide the truth.

But what is the truth? The disclosure of the details of the Deed raises more questions than it answers. Jack McKerchar ended his letter to accompany the release of the Deed with the words:

"I trust this will be the end of the matter."

Jack must be very naive or have his head in the clouds if he thinks that his letter will draw down a veil on this matter. This is a veritable can of worms and the worms are going to squirm for a long time until the truth comes out.

In a way it epitomises everything that has gone wrong in Kaipara over the years. Total incompetence, an arrogant attitude towards legal compliance, and covering up all the defects.and problems with lies and smokescreens.

MCKERCHAR DEED 23.01.13
Kaz's comments on the McKerchar Deed of Settlement can be seen here.

MCKERCHAR DOCUMENTS RELEASED 22.01.13
Steve Ruru has released the McKerchar Deed of Settlement. It can be seen here with accompanying letters.

Any comments to:contactus@kaiparaconcerns.co.nz

A VIEW FROM THE WEST 21.01.13
Lyall Preston from Ruawai took a swing at the Mangawhai Residents and Ratepayers Association in a letter to the editor published in the Kaipara Lifestyler last week. He raises some issues which he suggests that the members of the MRRA should consider whilst "enjoying their beach environs".

The issues raised are important because they reflect the views of many ratepayers west of State Highway 1. They consider that ratepayers in Mangawhai should bear the cost of their inflated sewerage scheme and have little sympathy for the rate strike.

Legal Eagle comments on the issues here.

DEAR MINISTER 20.01.13
Legal Eagle's letter to Minister, David Carter, about the decision by the commissioners to uniterally seek the validation of the illegal rates without consulting with ratepayers as per Council's commitment, and in breach of the commissioners' terms of reference.(here - scroll down)

OAG'S ROSE COLOURED GLASSES
17.01.13
The Office of the Auditor-General (OAG) has come up with a bizarre initiative.....(read more here - scroll down)

JACK'S BIG SECRET 17.01.13
We are still waiting to hear whether details of Jack's farewell package are to be revealed or whether Jack has gazumped the Council with his threat of an injunction.

There was a lot of drama just before Christmas. It was like the final episode of Shortland Street at the end of a season with everything up in the air. Would Steve decide to reveal the document? Would Jack's threat to injunct be carried out? Would Steve and the commissioners call his bluff? Would the injunction go before the tribunal, and, if so, what would it decide? And, finally, what would the dastardly document reveal?

So far in the new year there have been no further developments, at least that we know about.

Looking back on it all I get the distinct impression that this whole drama has been orchestrated by the Council to achieve an outcome that I find hard to fathom.........(continued here - scroll down)

MISLEADING RATEPAYERS 16.01.13
An investigation into Allan Hubbard's companies has found that he misled investors in his companies. How does that differ from the Kaipara Council? It also misled its ratepayers to the tune of tens of millions of dollars. But why did the Hubbard case get an independent investigation to find out who was at fault while the losses in the Kaipara case were all dumped on the innocent ratepayers?

Legal Eagle asks these questions (here -scroll down) and wonders why the SFO failed to investigate the Kaipara District Council when it was presented with clear evidence of irregularities that could indicate fraud.

He also questions, yet again, the role of the Auditor-General in the whole Kaipara debacle The Auditor-General was the auditor for the Council yet failed to pick up any of the procedural, legal and financial irregularities that have cost the ratepayers of the District so dearly. And yet it is the same Auditor-General that is holding an inquiry into the fiasco and at the same time investigating the competence of its own audit.

A LOAD OF BULL
09.01.13
Ex Kaipara and Otamatea Councillor, Peter Bull, comes out in favour of the commissioners in the Northern Advocate (here) and urges ratepayers who have been "sucked in " to join the rate strike to reconsider and to pay their rates.

But has he got it completely wrong and is he simply regurgitating the spin of the commissioners? Is it Peter Bull who has been "sucked in"?

Legal Eagle (here) counters Peter Bull's claims and introduces some facts to dispel all the spin.

HARK THE HERALD ANGELS SING 09.01.13
Legal Eagle is predicting that the story of the corrupt Kaipara Council will be one of the big news stories this coming year. We are only a few days into January and the Kaipara Council has been mentioned twice in consecutive days in the NZ Herald. Nothing consequential, but it does show that the word Kaipara is uppermost in peoples' minds and that the association between the worrds "Kaipara" and "Corruption" is being readily made.

The first mention of the K word was in yesterday's Herald in the summer quiz. Let's see how good you are:

5. John Robertson, Richard Booth, Colin Dale and Peter Winder run which local body?

Ten out of ten if you guesssed Kaipara. And eleven out of ten if you queried the word "run"and asked if that word is appropriate, especially as the commissioners are now operating outside their terms of reference imposed pursuant to the LGA and refusing to consult with the natives.

The second mention is in today's Sideswipe and relates to to three poles that were erected to display flags for the Rugby World Cup by the Whangarei Council at Langs Beach at a cost of $39,000, but sadly the work was not completed until after the World Cup finished. Over a year later the poles are still there. A protest banner is now flying from the poles with the following message:

MANGAWHAI GET A SEWERAGE SCHEME WITHOUT CONSULTATION

ALL WE GET ARE CRAP POLES AND BUGGERED FOOTPATHS

THE RATEPAYERS AND THE RATETAKERS REMAIN POLES APART

IF THESE UGLY $39,000 POLES ARE HERE TO STAY PLEASE GIVE US SOME DANCERS - PRETTY ONES

RATEPAYERS' FORUM 04.01.13
Ratepayer Dave McGillivray offers some personal views on the Kaipara Council and commissioners here.

FIRST TERM REPORT CARD 03.01.13
The commissioners have completed their first phase of their term in office and Legal Eagle offers his assessment (here - scroll down) of their performance based on the tasks that they were required to perform under their terms of reference.

The commissioners have been given a dismal 0/10 which reflects their failure to comply with the terms of reference, and especially their failure to engage with and consult with the community. In failing to consult with ratepayers on options to resolve the illegal rates debacle the commissioners have not only broken trust with ratepayers but have also breached their terms of reference.

________________________________

Archives
Posts for 2011 can be seen here.

 

LATEST NEWS

THE DRAFT VALIDATION BILL CONFIRMS THAT MANY OF THE RATES FOR THE PAST 6 YEARS ARE INVALID.

IT ALSO CONFIRMS THAT THE CURRENT LONG TERM PLAN IS INVALID AND THAT THE RATES FOR THE CURRENT 2012/13 YEAR ARE ALSO INVALID.

THEY ARE GOING TO ASK PARLIAMENT TO VALIDATE THEM.

UNTIL VALIDATION IS FINALISED YOU ARE NOT OBLIGED TO PAY THE RATES

DO NOT PAY ANY FURTHER RATES

Legal Eagle's posts are on a separate page here.

RATEPAYERS FORUM

Ratepayers can now have their views published on the
Ratepayers Forum page (here)

Links
Kaipara District Council
Local Government Act (LGA)
Local Government Rating Act (LGRA or Rating Act)
MRRA
KCRA

Auditor-General
 

"It is a convenient fiction for those indoctrinated in the ways of local government that ratepayers have to bear all the financial burdens of a local authority even though they arise from the incompetence or the illegal actions of those in power."

Legal Eagle  

In other words, the consultants, the contractors and the lawyers make all the money and the ratepayers pay all the costs, bear all the risks, and fund all the losses.

 
Dave Wolland