at risk from Richard Bull, D'Arcy Quinn, Peter Nicholas and 50 others

who have petitioned the Minister of Local Government to extend the Occupation of Kaipara by the Commissioners and to deny the return of democracy.


 The latest residential subdivision in Mangawhai that is fully compliant with the Commissioners' proposed secret changes to the district plan.  It consists solely of side yards, front yards, and rear yards, as per the plan, dedicated fire service tanks with appropriate set-back from the road, as per the plan, with hard stand and turning area on site for fire trucks, as per the plan. 

And, of course, no room for a reasonable sized house, as per the plan


No trees or vegetation within 20 metres of the proposed house, as per the plan.

The Commissioners autocratic regime terminates in 9 months with the massive illegal debt still intact, the Council insolvent, the coffers "robbed" of all OUR trust monies, and with a district plan that will make a mockery of the title "Magical Mangawhai".




John Key has just arrived back from Korea and will be holding a public meeting in Dargaville at 2:30 pm today.

SABIN PAGE    26.03.2015
A new page has been added on the Sabin mystery with the following posts:




The new page is here.

"Tell me, Mike,................."

TACTICAL VOTING     26.02.2015
When voting in the by-election it is important to remember what the various candidates have said about voting.  Several of the candidates have stated that voters should vote for other candidates with the aim of getting Winston Peters over the line.  That effectively makes it a two horse race.

Here's what they say:

Bruce Rogan, Independent:  Vote Winston Peters

Reuben Porter, Mana:  Vote Winston Peters

Joe Carr, Focus: Vote Winston Peters

Willow-Jean Prime, Labour:  Vote strategically

The latest TV 3 poll shows Winston Peters in the lead with 54% of the vote, Mark Osborne with 34%, and Willow-Jean Prime on 10 per cent.

In addition, 74% believe that the promise of bridge upgrades is a bribe.

See Whale Oil's comments here.

Whale Oil reports that 7,800 early votes have been cast so far in the Northland by election. .That compares to 9,400 votes cast overall in last year’s general election.

He says:

Early votes generally mean that people have a strong feeling and they are no longer listening.

There is an undercurrent, as if the Northland electorate has woken from a slumber.

Winston Peters party New Zealand First will introduce a bill that will allow publication of a paedophile's name where the consent of the victim is obtained.

Claire Trevett of the Herald reports:

"There have been so many cases of sexual violence in New Zealand where the offender hides behind a cloak of secrecy imposed on the basis that secrecy protects the victim."

He said his bill would remove that "legal cone of silence" in cases where the victim wanted the crime exposed.

See:  Cunning, cunning bastard

Claire Trevett is tracking Winston Peters throughout Northland and reports in the NZ Herald that there was something very special from the past:

His day was made after former Labour MP Colin Moyle went past and said he had voted for Mr Peters. Mr Moyle had beaten Mr Peters in the Hunua electorate in 1981 - the year he returned to Parliament after resigning in 1977 over Muldoon's accusations of homosexuality.

Yesterday Mr Moyle said he never thought he would see the day when he was voting for Mr Peters. However, he believed it was in the interests of Northlanders to do so and important to make Northland a more marginal seat.

Trailing in the polls, and with the pork-barrelling being recognised for what it is, poor Mark Osborne has taken another hit with revelations concerning his involvement with Te Ahu Trust in Kaitaia.

Whale Oil's blog I’m starting to sense National may be dodging a bullet comments:

It's clear the community centre was nothing but a tax payer troughing exercise, and it displays no specific eagerness to be fiscally prudent. A community centre that needs taxpayer support and doesn’t even return financial results to offset depreciation is nothing but a rort.

At this stage, Osborne will need luck to take the electorate on Saturday. Everyone is calling it “too close to call”, but the realisation that Steve Joyce has stuffed up in Northland has settled into the inner circle. They’re despondent, they’ve given up, and Osborne is essentially on his own.

When it gets to the point where the local membership refuse to put up election hoardings and the imported MPs and out-of-region helpers had to step up to do it, it signals that the brains trust and the grass roots are in a dysfunctional relationship.

Voters in Northland are miffed that they were not told about the police investigations into Mike Sabin until after the general election last September.

The TV3 Poll which came out earlier this month showed that 71% of those polled considered that they should have been told of Sabin's offences.

Clearly very few voters believe the protestations of John Key and the National Party that they themselves did not know until December last year.

If John Key manages to kep his big secret under wraps until after the election then there is little doubt that the electors of Northland will feel thoroughly cheated by the Prime Minister and the National Party for, yet again, pulling the wool over the eyes of the electors in Northland.


"Is the by-election over yet?"


It is good to see that the Mangawhai Focus has got a modicum of balance at last.  

In the latest edition it has printed almost verbatim the news release of Honest John about the shameful decision not to pursue Beca.  

Again, it is unadulterated propaganda to support the views of the newspaper's owners, masquerading as journalism.

But at least, on this occasion, it adds, at the end, the highly critical comments of Winston Peters on the matter.

But, sadly, the lesson has not been learnt.

The folksy-style editorial - Ed said - is not so balanced.  

It dismisses any criticism of National's pork-barrelling with the comment that : "The ends justify the means".

One can see why the Focus has been a staunch supporter of burying the Kaipara illegalities when it states:

Bribes, inducements, discounts, ‘two for the price of one’, these carrots are all part of everyday life from ‘specials’ at your local grocery store to the top of big business. As I have said before, all of life involves compromise and negotiation.

Bribes and inducements indeed?  Oh that seems like a tick of approval for the McKerchar/Tiller regime.

And what about this bizarre comment:

While the PM has come in for some criticism for ‘babysitting’ his candidate, the media still refers to him generally as ‘Honest John’. I notice no such tag has ever been attached to Winston.

What rubbish.

Since when do the media refer to John Key as "Honest John"?   They refer occasionally to him as "Teflon John", because many of the claims against him do not stick.

In any case, I think there are very few people in the country who still believe - honestly and at the bottom of their hearts -  that the John Key of 2015 is the honest man that many of us thought he was when he first came to power. 

Even those in his own party must have doubts, especially now given his dreadful handling of the Sabin issues.

"Honest John" in this neck of the woods is John Robertson, chair of the Commissioners. 

Honest John, John Robertson, is happy to boast of a blame-free past, and a record of complete transparency, total legal compliance, utter integrity and putting ratepayers' interests above all others, in carrying out his duties as chair of Commissioners.

The comment :  "I notice no such tag ("Honest John") has ever been attached to Winston."  is ridiculous and gratuitous.

It could not be applied to Winston because his name is not John.

But lurking there.... no, it doesn't lurk ...... there is a blatant suggestion that Winston is not honest.

That is just the start.  There follows the "dirty tricks", the dissing of Winston Peters.  All the old chestnuts that the National Party trots out: 

  • NZ First has over ten years of not caring about Northland yet all of a sudden Winston has developed an affinity for the place. 

  • Sure, he may own property in Dargaville, but I doubt he would ever be prepared to move from plush St Mary’s Bay in Auckland to live there.
  • I believe his competitive streak says he would like to win Northland but I question whether he would really commit to Northland – there’s is a difference.     
  • The prospect of the standard issue BMW is probably an inducement.

More utter rubbish follows:

None of the candidates are particularly well-known locally so regardless of who represents us, ‘we’ in Mangawhai are unlikely to receive the attention we have had in the past.

Where was the Focus team when Winston Peters made a public stand, many times, at meetings, in print, and on TV that he will to do all that he can to fix the Kaipara problems.  He has National running scared because they know that he means it.

We do not know what Winston Peters will do.  What we do know is that he will fight for the best interests of the ratepayers in Kaipara and Mangawhai, something the National party will never do.

If Winston can help bring about a fair settlement of the Mangawhai debacle, ensure that the illegal debt is shared by those who were culpable, stop us being swallowed up in the unitary authority, and return our democracy to us, then the whole population will be rejoicing.  

Except, of course, for those who want to bury the illegalities of the past that might incriminate them and expose them as the self-seeking hypocrites that they are.


Will the real "Honest John" please stand up

TIME FOR A CHANGE     25.03.2015
The letters to the editor in the latest Dargaville & District News reflect the feeling in Kaipara that it is time for a change.

National has four big secrets that it must keep under wraps until polling finishes on Saturday.

If they are leaked to the public then they could have a massive influence on the outcome of the election, with electors shying away from National.

The secrets are:

1. What did the former MP Mike Sabin do?
Prime Minister John Key has called Sabin's problems "family and personal issues" but it seems clear that he is being charged with serious criminal offences against third parties.

Whale Oil, Cameron Slater, said back on 21 December 2014 that what happened was "almost too horrible for words". The coming by-election in Northland

But the National Party has done everything that it can to ensure that the general public does not know what the offences are as this could be detrimental to its performance in the by election.

2. When did John Key and the National Party learn of Sabin's issues?
Many Parliamentarians know and have known of the rumours since before the general election in September last year.  Willow Jean Prime, Labour's candidate, has stated that she knew then, having heard it on the Northland grapevine.

The suggestion is that National knew before the general election and Sabin should never have been allowed to stand.  This by election, and its cost, is a direct result of that decision.

National party MPs have been well schooled.  They all state that they did not hear of the rumours until late December last year.  Mark Osborne was a friend and colleague of Sabin's but maintains that, in the words of Manuel: "I know nothing, Mr Fawlty".

John Key, after some fudging, says that he was advised on 1 December 2014.  

Others have suggested that he knew before he appointed Sabin as chair of the parliament's law and order select committee.

John Key's reputation will be at risk if it is revealed that he knew about the offending prior to last year's general election, or prior to the appointment of Sabin as chair of the parliamentary select committee.

Likewise, John Key's reputation will be at risk when Sabin's offences become public, given John Key's minimising of Sabin's offences, and giving the quitting MP a glowing  reference, when he knew the full nature of those offences.

3. Democracy is dead in Kaipara.
Associate Minister of Local Government, Louise Upston, was going to announce this month the denial of democracy in Kaipara by the extension of the Commissioners' regime.  

But, with Winston Peters ready to pounce on any example of National's autocratic approach to Northland, that has been delayed until after the election.

And, if Winston Peters wins, National will have to go back to the drawing board.

4.  The unitary authority is going to swallow up Kaipara.
Basil Morrison's Local Government Commission was due to announce before the end of this month that Kaipara was to be part of the Northland unitary authority.

That would mean even bigger debts, bigger rates, and absolutely no say in anything for the people of Kaipara.

That was too hot a potato to take out of the fire with Winston marauding, so it has been put on hold, awaiting the result of the election.


The last two have been taken out of the equation, but it will be interesting to see if National's soft under-belly relating to the Sabin affair is exposed before Saturday.  The sharks are circling.

Q & A TODAY   22.03.2015
Winston Peters and Mark Osborne go head to head on Q & A today.

Part One

Part Two

At an election meeting in Mangawhai last Thursday Winston Peters lambasted Chair of Commissioners, John Robertson, for his curt announcement that Beca would get off scot free for its part in the Mangawhai debacle because the limitation period had expired.

In Rob Stock's article on the Stuff website, he reported Peters as follows:

He criticised commissioner John Robertson, a former National MP, for not having filed a "holding action" shortly after the commissioners were appointed in September 2012.

Peters also pledged to put pressure on the council to reverse that decision, which he has dubbed as "extremely faulty", dismissing the commissioners' claims that a lawsuit is statute-barred as "bulldust".

Robertson's retort was:

I'm not going to get into a debate with Winston Peters on these matters."

He may well have to. If Peters becomes the local MP then he will be breathing fire down Honest John's neck and demanding explanations of the Commissioners' dodgy actions.

The Rob Stock article also highlights the Peter's pledge to pressure the government to stump up with its share of the illegal debt.

Peters said Audit New Zealand's failings meant the Government needed to take responsibility, and called for the debt to be shared "across the nation".

Those ratepayers who have fought long and hard for accountability warmed to the words. They do not want handouts from the government but believe that the government was negligent in two ways.

First, the two government appointed agencies that act as local government watchdogs, Audit NZ and the Auditor General, ignored persistent legal warnings about the illegality.

They allowed Kaipara and its ratepayers to be plundered by an out of control council, by its consultant, advisers and contractors. But it was worse. The Minister of Local Government, under its various incumbents, was also advised of the illegalities in detail but thumbed the Ministerial nose at the ratepayers.


 The Ministerial nose-thumb

Second, the Office of the Auditor General, the watchdog of the local government sector, and the KDC's auditor, (appointed by Parliament and answerable to Parliament) failed dismally to perform its legal duties. It then carried out a formal enquiry into its own negligence (unbelievable but true) and delayed its findings for so long that any claim for negligence against itself was largely statute barred.

Likewise the Commissioners, appointed by the Minister of Local Government, and controlled by the Minister, delayed taking action against any of those responsible for over two years, with the end result that any claim to recover the Council's losses from the guilty parties were severely prejudiced because of the Limitation Act.

If one believed in conspiracy theories, one could say that there was a conspiracy between central government and its National Party Commissioners to take steps to ensure that the innocent ratepayers, and ratepayers alone, were to be dumped with the illegal EcoCare debt, and to ensure that all the liable parties would be allowed to slope off into the shadows.

The MRRA and other protesting ratepayers have been beating this particular drum for years. Now we are within a whisker of having a local MP who, unlike the last one who shafted us with his validation bill, hears what we are saying, believes in what we say, and will do everything that he can to hold the government responsible for its appalling treatment of Kaipara ratepayers.

Coincidentally, Mark Osborne has refused to commit the government to funding any part of the illegal debt.  He said that the National government would concentrate on ensuring accountability for those culpable.  Which sounds very hollow and very naive given the National inspired Validation Act was passed to dump on the ratepayers, the decision no to pursue councillors and the KDC's legal advisers, and the recent announcement of National's Commissioners that they would not pursue Beca.

The "prominent New Zealander" who is fighting the lifting of name suppression for the charges that he is facing, has appealed the decision to end the name suppression.

The suppression order was cancelled by the court on February 19 February but he was given one month in which to appeal that decision. The appeal was lodged on 19 March, the last day of the appeal period, presumably to delay the matter as much as possible.

Read Whale Oil's comments here.

Note also Whale Oil's warnings about his readers making comments.

This is one of the most secret events ever to occur in New Zealand history, and, for various reasons, the government is doing everything that it can to delay the information getting into the public arena for as long as it can.

MORE SECRET COURTS    21.03.2015
Unrelated to the prominent New Zealander case above is the Court of Appeal's decision to pull up the drawbridge of secrecy on an important legal decision of the Court. Take a look at Jock Anderson's article in the NZ Herald.  Scroll down to More secret courts.

David Fisher reports in the NZ Herald that the "longest period it has taken for a sexual violence jury trial to reach a conclusion - from the date charges are filed to their outcome - has gone from just over three years to four and a half years in the past six years".

TIME FOR A LAUGH   19.03.2015
Cartoons on the Northland byelection (here).

Thanks to Ron Manderson


Northland Electorate Candidates' Question Time in Kerikeri, 13/3/15  

Winston Peters At Northland Candidates Meeting in Wellsford, March 12, 2015  

Watch the candidates for the Northland byelection here.

With Winston Peters taking a personal swing at Honest John and his Commissioners (see post below), new battle lines are being drawn.  The New Zealand First candidate for the Northland byelection makes no secret of his dislilke for Honest John and his cronies and what they represent.

If Winston Peters is returned as member for Northland then Kaipara ratepayers who have been rorted for years and are being compelled to take on even more debt, will have a voice in parliament that will not be silenced.

Kaipara ratepayers are not asking for any handouts.  All we want is a fair settlement.  The government was negligent and failed to protect the people of the district from the predation of its out of control council, consultants and contractors even though it was warned many times of the persistent illegalities.  It turned a blind eye and left ratepayers to their fate.

The government and its so-called watch-dogs need to compensate Kaipara for their failure to ensure that the delegated powers of central government were carried out in compliance with the law. 

They also need to compensate ratepayers for allowing their own appointed Commissioners to delay taking action against the perpetrators of the EcoCare rort so that the statutory time limit would expire.

And while they are at, Steven Joyce can cajole the banks who hold the debts to take a haircut on the shonky loans that they bought for a 40 per cent discount.

Winston Peters will address a public meeting at the Insley Street Rec Centre commencing 5.00pm this Thursday 19 March. He will also meet with local residents.

Candidates Meeting at the Kaiwaka Hall at 7;00pm on the same day.

This is Winston Peters response to the announcement that the Commissioners have decided not to pursue Beca for its role in the EcoCare rort:

Monday, 16 March 2015, 3:49 pm
Press Release: New Zealand First Party

Commission at Kaipara District Council Make Faulty Decision

The Commission for the Kaipara District Council have made an extremely faulty
decision not to assume legal action against consultants managing the $63 million
Mangawhai sewerage scheme blowout, says New Zealand First.

“This was a disgraceful episode in non-accountability, with elements of appalling misuse of
ratepayer funds and dismal oversight by the audit office in examining the
council books,” says New Zealand First Leader and Northland candidate Rt Hon
Winston Peters.

“Saying that there was ‘limited chance of success and
not a productive use of ratepayers funds’ is a total cop out.

“Mr Robertson, former National MP and Chairman of the Commission, should understand
his duty to have filed at least a holding action to get to the truth.

“Pleading the Limitation Act is also a pathetic excuse.

“He himself is in control of statute of limitation issues in this case.

“Once more Kaipara District ratepayers are being sold down the drain by a national
administration that doesn’t want its shortcomings exposed,” says Mr Peters.


"Once more Kaipara District ratepayers are being sold down the drain by a national
administration that doesn’t want its shortcomings exposed,”

John Key has cut short his trip to Japan to chaperone "Home Alone" National candidate Mark Osborne.   See Whale Oil's view of it here.

This mesage from the MRRA executive:

Campaign Meeting  Northland By Election

Winston Peters will address a public meeting at the Insley Street Rec Centre commencing 5.00pm this Thursday 19 March.  The meeting will conclude around 6.00pm.  There will be a focus on the Mangawhai/Kaipara issues at this meeting, and it would be valuable for anyone still undecided about their voting preference to come along and hear what is said.  Based on responses so far there will be a big turnout, so please come early.  We have the hall from 4:30 and it would be much appreciated if some able-bodied members could arrive early to help set out chairs and tables. 

If you have friends or acquaintances who are still making up their mind about who should be the next MP for Northland, encourage them to come along.   

Later, there is a candidates’ meeting in Kaiwaka, at the hall, commencing 7.00pm on the same day.  


MRRA Executive.

As predicted on this website, Beca, the guiding light behind the EcoCare shambles, is to get off scot-free.  The Commissioners have announced (here) that:

Kaipara District Council has decided not to take legal action against Beca Carter Hollings & Ferner Limited ("BCHF") in relation to its involvement in the Mangawhai Community Wastewater Scheme (MCWWS).

Beca is an important member of the club that controls most local authorities in New Zealand and the fundamental rule of the club is that members of the club are staunch and do not undermine fellow members in any way.

It was Beca that provided many of the models for the EcoCare project and provided the report that persuaded the Council into extending the EcoCare scheme so that, in the words of Jack McKerchar, it was almost "doubled in size".  Coincidentally, it was almost doubled in price.

We all know now that this Mark 2 version of EcoCare was never consulted with ratepayers as required by the LGA, that the KDC deliberately kept the deal secret, and even conspired with its lender ABN Amro to keep the EcoCare loan off its books.

Heath J had no hesitation in declaring the EcoCare scheme, and the loans, to be illegal because of the failure to consult with ratepayers.  It was glaringly obvious that the KDC had failed to comply with the LGA. 

But, and this question has never been answered, why did Beca and the council's solicitors Bell Gully, both no doubt very experienced in local authority law, not advise and warn the KDC of the illegality?  Why was the KDC allowed by their advisers to make such decisions and take such actions when they were blatantly illegal?

Perhaps they did advise the Council of the problems and were ignored, but I have not seen any evidence of that.

It all comes back to one thing.  In local government the ratepayer carries the can for everything.  Unless the MRRA's cases in the District Court and the Court of Appeal are successful, the ratepayers of Kaipara will have to shoulder the debt.  That is how the system works.

The only other hope is that the new Lone Ranger (played in this remake by Winston Peters) can force a rethink of the Kaipara solution from the government.

Matthew Hooton on National's promises in Northland with the finger prints of Steven Joyce all over the bribe.

IN CASE YOU MISSED IT   15.03.2015
Rod Emmerson's cartoon in Saturday's NZ Herald with his version of the Eagles' Hotel California.

Mike Butler's article on unitary authorities should be compulsory reading for all Kaipara, and for that matter, Northland ratepayers.

Note his comments on ginger groups that have been established to promote the views of the Local Government Commission and use all the dirty tricks at their disposal:

As already mentioned, the Local Government Commission works closely with the “Better . . . ” groups by sending press releases early and planning media initiatives. When it came time for the opinion survey in Hawke’s Bay, the Local Government commission unleashed a media blitz.

He explains the background and the reasons for these groups:

Another innovation that appeared with the 2012 amendment was that any “demonstrable support” for amalgamation in any region could trigger a proposal.

Unsurprisingly, pro-amalgamation groups started to appear including A Better HB, the Better Wellington group, and a similar group in Northland.

They pose as grassroots movements clamouring for salvation by amalgamation but they are small groups of wealthy individuals often with close ties to the Local Government Commission.

It is possible that these people are positioning themselves for lucrative roles in council controlled organisations to which responsibility for the regions’ resources are likely to be devolved.

In Kaipara we are well aware of such a group, that effectively controls the local press and feeds out propaganda unadulterated by any fairness or balance.

One of the biggest problems for Kaipara ratepayers is the question of the debt and how it would be treated.

This is what Mike Butler has to say about Hastings Council's debt:

In a vaguely worded statement, commission chair Basil Morrison proposed ring-fencing that would mean loans raised by the current councils would be repaid by their current ratepayers, through a targeted rate in those areas. Ring-fencing would be from the start date of an amalgamated council, should it proceed on November 1, 2016, for five years to 2021.

A big issue in Hawke’s Bay was how an amalgamated council would handle Hastings public debt of $55.7-million and internal debt of a further $32.1-million.

Hastings councillor Wayne Bradshaw in a letter to the editor of the Hawke’s Bay Today newspaper, interpreted the commission’s vague ring-fencing statement to mean that payment of Hastings combined internal and external debt of $87.8-million over five years would mean a 25 percent rates hike of around $550 a year for every Hastings ratepayer.

Note that the Hastings Council dicloses its internal debts to give an accurate figure of the total amount owed, something that the government-controlled Commissioners in Kaipara refuse to do.

If the acknowledged debt of Kaipara is $76 million, and the true debt about $100 million, that means that each ratepayer in Kaipara (a guess at 14,000)  would have to pay an additional special rate $1,428.47 for each of the next five years to clear the debt.

Forget all the meaningless verbiage in the Consultation document for the LTP about minimal percentage increases.  That is mere window-dressing that will never be actioned.  Basil Morrison's bulldozer will shift the goal posts to where the government wants them to be.

"Hi, John, Basil here.  Where do you want them?"

All of us look with horror at what the Auckland unitary authority is up to, a behemoth out of control that will eventually cost the residents of that City dearly, and all the other ratepayers in New Zealand.  (Don't foget that under the Local Government Funding Agency every ratepayer in New Zealand guarantees the debt of every council in New Zealand.)

Mike Butler also looks at how support for unitary authorites has changed.  Note carefully these comments from Mike Lee:

After years of silence, Auckland councillor and former head of the Auckland Regional Council Mike Lee has gone on record over the Auckland amalgamation, a proposal he initially supported.

“What we didn’t reckon on was the intensive back-door lobbying by vested interests and the emergence of a multiplicity of government appointed council-controlled organisations dominated by appointees of the new National-led government and devolving of key regional responsibilities to these bodies”, he wrote.

“Nor did we envisage the influence of the un-elected Independent Maori Statutory Board, with two votes on every committee, the result of a coalition deal between National, Act, and the Maori Party”.

According to Peter"smoke and mirrors" Nicholas, propagandist for the local ginger group, and Mangawhai Focus contributor, the Local Government Commission is scheduled to announce its determination for the future shape of Northland this month.

That was scheduled before the "Winston effect" became apparent.  National is now in total disarray over the Northland by-election and even Teflon John is beginning to look very vulnerable.  An announcement advising that democracy is to be denied to the people of Kaipara for another year would not go down well.  Likewise, an announcement that the Northland unitary authoiry was going ahead, contrary to the wishes of a clear majoiry of voters in Northland, would not be the most popular move.

And then, of course there is the Sabin factor.  But scroll down to  DESPERATE MEASURES 13.03.2015.   for more about that.

Jeremy Jones' animated version of the gunfight for the Northland seat, shown on The Nation on TV3 yesterday, can be seen here

Is National candidate Mark Osborne any relation to Hoss Cartwright of Bonanza fame?



COUNCIL LYING IS OK    14.03.2015
See Stephen Franks' article on lying by councils here.

A few days ago I wrote about the Solid Energy crisis (scroll down to SOLID ENERGY 03.03.2015) and the government virtually ordering TSB to write off its $54 million loan to the SOE.

Solid Energy is a cot-case and, like the KDC, hanging by a thread. Read the article by Brian Fallow in the NZ Herald and you will see what I mean.

In fact the KDC appears to be in a worse financial situation.

The KDC has breached several of its banking covenants and the banks could call up the loans immediately.

Certainly the KDC has substantial assets in the way of land and buildings and other holdings but the reality is that they cannot be sold because they are needed for the performance of the functions of local government in Kaipara, a statutory requirement under the Local Government Act.

Even if a local authority goes into receivership, it is still required to perform its statutory functions. And it is worth remembering that loans to a local authority are secured over the rates pool and not against the general assets of the authority.

The test applied to a local authority, by the OAG when it is not asleep, is whether it is a "going concern". That means that it must be able to meet its commitments out of income for the foreseeable future without government assistance.

The Commissioners represent that the KDC is a going concern but that is only by manipulating its accounts to that end. They disguise the Council's true debts by masking its internal debts - monies pilfered from ratepayers trust accounts - and they disguise monstrous amounts of interest that is not paid but capitalised on part of the external debt that has been allocated to future development. (Interest on $26.2 million, believe it or not.)

The current debt is represented by the Commissioners to be about $76 million but that does not include the capitalised interest on the debt that is accruing each year and the internal debts - monies pilfered or "borrowed", if you like, from the Mangawhai Endowment fund, the reserve funds, and all the other funds and reserves held by the Council. The cupboard has been stripped bare.  Not a cent left.

But the situation is much worse. The Commissioners reckon that the debt can be reduced to around 60 million by 2025. That is external debt so add another $10 to $20 million for "hidden" debts.

But that is just fanciful.

Consider that there are no depreciation funds, no reserve funds, no endowment funds to draw on. Monies have to be borrowed to fund those requirements.

Then consider the replacement of infrastructure. This is what the Consultation document for the LTP says:

Not much has been replaced in the past so there is a long list of work required that cannot be delayed much longer. There is a small risk that an asset may fail because of the lack of renewal works we have done in the past, and pipes (invisible to the eye) that are nearing their use by date.

The water, wastewater and stormwater infrastructure has not had enough money spent in it in the past and it is getting old and is in need of costly renewal (with the exception of Mangawhai stormwater and wastewater).

Why exclude the Mangawhai scheme? The EcoCare lemon has come to the end of its life and needs millions spent on it if more connections are to be made.(Note: We paid for 4,500 connections. We have only 1,600)

The Consultation document talks of additional borrowing of $2.7 million for "the extension of the network". But what of the disposal plant? That has come to the end of its life. The Browns Road one cost over $15 million. What will its replacement cost?

Now wait for it, or as Larry Mitchell says: "Hold onto your hats!"

The Consultation document states that the KDC expects to spend just shy of $700 million on "new or replacement infrastructure over the next 30 years - 2015/2045".

Yes, that is $700 million. You have not misread it. That is $23.33 million for each year of the next 30 years.

And the debt in ten years time, we are told, will be $60 million.


So how is the rest funded?

You won't find any detail in the Consultation document.   Nothing that is going to frighten the horses. Just subtle hints. This is one of the Commissioners' financial strategies:

Introducing additional funding phased in over time for renewal expenditure on water, wastewater and stormwater infrastructure assets.

"Introducing funding " is the Commissioners' way of saying that rates are going to rise or that more monies will be borrowed. And the amounts will be huge

It is an absolute horror story.

Government Intervention

Remember that to meet the going concern test there could be no intervention from the government.

Well, government passed the Validation Act to prevent the KDC being forced to refund 6 years of illegal rates, which would have tipped it into receivership.

The only thing that keeps the KDC afloat at the moment is an arrangement with its banks whereby the government has given some comfort and reassurance to the banks that their loans will be protected, or, as in the case of Solid Energy, it has simply instructed the banks not to call up the KDC loans.

The influence of the judiciary

The problem is that the District Court case arising from the issuing of proceedings against hundred of ratepayers might spoil the party. There is a good chance that many of the rates and penalties over the last half a dozen years will be found to be illegal and may have to be refunded.

That is going to tip the KDC over the edge and John Key and his banks can do nothing about it.

Likewise, if the Court of Appeal finds that ratepayers are not obliged to pay rates to meet an illegal debt.

An even worse scenario is that the status of the KDC's loans as "protected transactions" is challenged in the High Court. Deeming the loans to be "protected transactions "under the LGA means that the debts can be enforced against the Council even though they are illegal. (The EcoCare debts have been declared by the High Court to be illegal.)

To qualify as a protected transaction the lender has to act in good faith. It is clear that the KDC and ABN Amro (the lender) entered into an arrangement in respect of EcoCare and its financing that was designed to circumvent legal compliance in many respects and to keep the loans off its balance sheet.

There was no good faith.

It was a shonky loan right from the start and that is why the loan was bought at a 40 per cent discount when ABN Amro went bust.

If the High Court found that the lender had acted in bad faith then the loan would not be protected and the KDC would have no obligation to pay it.

Another scenario is that current loans, which are refinances of the original debt, are not protected transactions because the banks were aware at the time of the refinancing that the loans had been declared illegal by the High Court, that banking covenants has been breached and that the KDC was not a going concern and only relied on government intervention and pressure to keep it above water.

It could be messy and the auditor has added a warning to the Consultation document for the LTP about the possible effects of judicial rulings.

Time will tell which goes under first, Solid Energy or the KDC.  But what is absloutely certain is that Kaipara ratepayers are faced with a massive millstone of debt for decades to come, unless the whole fanciful charade of the Commissioners is brought to an end by political action or judicial decision.

The KDC ratepayer

"Desperate times call for desperate measures", so the old adage goes. And these are desperate times in Northland if you are a National Party supporter. Like Lazarus, Winston Peters has risen again and is giving National one hell of a run for its money.

National is so scared that the dirty tricks brigade, pork-barrel politics, and Machiavellian strategies have all been dusted off and brought up to the front line.

A worried John Key has virtually become a resident of the Northland as he chaperones and bolsters his lack-lustre candidate. If he lingers long enough he will be entitled to vote in the by-election.

Cabinet Ministers are burning up the tarmac heading to the North - and no doubt cursing that the Holiday Highway is not yet finished - laden with gifts for the peasants. Bridges promised by Bridges, the key to the future from Key. (But little is promised by Labour's Andrew Little.)

Even the Mangawhai Focus has moved up a notch and moved the propaganda of Peter "smoke and mirrors" Nicholas to the front page. He now reports that his mates in the National Party have amassed a petition of 1300 to support an extension of the enforced regime of the Commissioners.

No doubt this is all on the instructions of Wellington who wanted the Commissioners men to win the tit-for-tat bidding in this round of poker. In their first effort they only managed 55 pathetic signatures. The MRRA outdid this many-fold in a few days. Now the Commissioners men have raised the stakes again.

Here we are striving to have our democracy returned to us and we have these clowns playing poker-politics to deny us our birthright.

However, the Winston factor has swung the balance dramatically. Some things have become very certain:

• Associate Minister Louise Upston is not going to announce the cancellation of democracy during the campaign,. And if Winston Peters is elected as MP for Northland then the National Party will do so at its peril.

• National will be moving heaven and earth to stop details of Mike Sabin's offences being publicly revealed.

Mike Sabin has already left a shameful legacy in Kaipara because of his betrayal of the residents. Not only did he support the validation of the inept KDC illegalities, but he backed the imposition of utterly vindictive penalties to punish rate strikers.

With a bit of statesmanship he could have brokered a fair deal between the parties, but instead he jumped to the orders from on high and helped create a festering feud between ratepayers and the Council.

But his legacy will be much worse when the details of his alleged offending are revealed, and when questions are inevitably asked about the National party's hierarchy's handling of the whole matter.  John Key has already been under considerable pressure about the timing of his knowledge of the alleged offending, and that will become pivotal when the facts finally emerge. 

It is a very unsavoury business, not only the alleged offending, but also the cover up by National.  But that cover up has to remain in place until the by-election is over, otherwise all is lost.

Perhaps Peter "smoke and mirrors" Nicholas could organise another petition to stop the publication of details of the Sabin case until after all National's bribes have had their effect and the last vote has been cast.

Disclosure:  The author was brought up in a Labour household but has voted National for many years.  That is until the Kaipara scandal showed the true colours of John Key's government, its disdain for the rule of law, and its abysmal treatment of the people of Kaipara.

Rates activist Penny Bright has won her latest battle against Auckland City . The Council was trying to sell her house to recover over $30,000 of rate arrears.

Details can be seen in the NZ Herald report from Patrice Dougan.

The decision of Judge Harvey in the District Court is highly relevant to the proceedings issued by the Commissioners against many ratepayers in Kaipara, but unfortunately it is not reported verbatim and one can only rely on a journalist's interpretation.

The essence of the case, as reported in the Herald, is that the "rates statement", which is presumably a summary of how the debt is made up, did not include the original rates invoices which under the Local Government (Rating) Act (LGRA) create the liability to pay rates.

Another issue was the inclusion in the amount payable in the rates statement of legal costs that the Council was attempting to recover from Penny Bright. That is a fundamental flaw as it misrepresents the figure that is owing for rates alone.

It is quite astonishing that Auckland City made such fundamental mistakes. It spends an awful lot of money on top legal advice and one would have thought that, given the importance of this case, that the best of legal brains would have scrutinised these proceedings

To acknowledge that an "over zealous" council worker was responsible, sums up, perhaps, the ineptitude of councils in such matters.

Kaipara has the same problem. It is wasting hundreds and thousand of dollars that could be spent on roads and other services on legal advice to justify its illegalities and persecute ratepayers. But it still gets its fundamentals wrong.

The statement of defence in the KDC v Rogan has raised many matters of non-compliance on the part of the KDC in relation to the rates assessments and rates invoices delivered to all ratepayers. These are statutory documents that create the liability for rates (in the assessment), and the obligation to pay the rates specified (in the rates invoice).

Local authorities are obliged to include all the information in those documents that is listed in the LGRA (sections 45 and 46 for those interested).

Over the years since the LGRA took effect in 2003, compliance with the provisions of the LGRA has diminished throughout all local authorities in New Zealand, no doubt on the basis that anything local authority does is legal until a court decides otherwise. Compliance with the law is largely irrelevant in local government.

Peggy Bright has shown, and the Rogan case will show, that over a decade of flouting the law does not make the slightest difference. Likewise, the argument that most other councils in New Zealand adopt the same non-compliant procedure, will fall on deaf ears.

If a local authority wants to enforce payment of its rates in court then it has to show that the ratepayer has a liability for the rates and an obligation to pay the rates, and that means proving that its rates assessment and its rates invoices are legally compliant.

The Commissioners have already acknowledged two major blunders in the proceedings that they have issued against ratepayers.

1. They included in the latest rates invoice under Adjustments an amount which represented the legal costs of pursuing the arrears of rates from that ratepayer. As we have seen in the Bright case, this is illegal and nothing more than a money-grabbing exercise.

In this instance, the Commissioners were warned of their illegal actions and immediately cancelled the relevant invoices and issued new ones with the Adjustments amount omitted.

However, the problem is that the amounts claimed in the various statements of claim that they have issued include other unexplained miscellaneous costs under Adjustments in past invoices. More than likely, the inclusion of these other charges will defeat any claim for the recovery of rate arrears.

2. Under the LGRA a local authority has to include its "penalty regime" in its rates assessments. The KDC includes the following as part of its penalty regime:

"Any payment you make towards your rates will be credited first towards the oldest amount due."

This is a policy that is adopted by many local authorities in New Zealand. Effectively it states that a ratepayer does not have the right to nominate what the payment is to be applied to, and has no right to pay the current instalment only unless all arrears are paid as well.

The only problem is that the policy has never been formally adopted by the KDC, and, even if it had been, it is totally contrary to the provisions of the LGRA.

The LGRA is quite clear that a ratepayer is entitled to pay an instalment only without any penalty, if paid by the due date, irrespective of whether there are any arrears outstanding.

For endless years the KDC has been misrepresenting to ratepayers their legal rights and denying them their entitlement to pay the current instalment only without any penalty being accrued. In fact the KDC recently refused to accept payments nominating that only the current instalment was to be paid. They returned cheques and quoted the illegal policy of older debts first.

Realising that they have made a mistake the Commissioners have ordered the staff to advise that the policy would no longer be applied in the "circumstances", but still stipulated that a nomination had to be made.

Even if the policy is not applied in the future it still does not remove the illegality in the past and the illegal charging of instalment penalties and further penalties (each six months) over many years.

Those two major errors are just samplers of the multiple defects in the Commissioners' legal case against ratepayers. More will emerge as the Rogan representative case progresses. But what is startling, in both the Bright case and now in the Rogan case, is how two local authorities can spend some much money on legal advice and get it so fundamentally wrong.

I guess if you are a Commissioner and you are spending ratepayers money then it does not matter. There is no accountability in local government.

PS Well done Penny Bright. She has no legal training and she has shown the Super City that it too has to comply with the law and cannot trample on the rights of ratepayers.

Democracy is set to return to Kaipara on 17 October 2015, all being well.  That is when the election of a new council is being held, just seven months away.

But, like everything in Kaipara there are undercurrents, and certain individuals - see the comments in red above - are doing all they can to extend the regime of the Commissioners so that a newly appointed democratic council cannot  bring in independent experts and expose the rorts of the past and cast some daylight on the finances of the KDC and the shortcomings of the EcoCare Ponzi scheme.

Associate Local Government Minister Louise Upston, in the mould of Basil Morrison who is driving the Unitary Authority steamroller, is determined - no doubt on John Key's instructions - that democracy will not return to Kaipara.  She was supported in this view by Mike Sabin who shafted ratepayers over the Validation Bill and deprived them of their legal rights and who had no qualms about depriving them of their democratic rights as well. 

Mike Sabin has gone and there is no doubt that his replacement, Mark Osborne, if he assumed the mantle of power, would kow-tow to the requirements of his party in the same way that Mike Sabin did.  Banks and big business first and ratepayers last.

But then along came Winston Peters. He knows a lot about Kaipara and its shameful past, and being a lawyer he knows a lot about legal compliance, democracy and the rule of law.  He also knows that the Kaipara rort is still ongoing and that the denial of a return to democracy is all part of the ongoing scheme to deprive Kaipara ratepayers of their legal rights.

John Key will not announce the cancellation of democratic rights in Kaipara while a byelection is looming.  And if Winston Peters gets elected, and we support him in getting elected, then John Key is going to have to think very hard about chancing his arm by extending the Commissioners' regime.

Note:  The KDC's website states that that the elections are "currently" scheduled to be held on 17 October 2015.

Honest John's march on Moscow - his attempt to sue hundreds of ratepayers in the District Court - is slowly unfolding. He obviously expected that once he lined up his legal forces, with a bottomless pit of ratepayers' money to back them, then the enemy would be routed and surrender unconditionally.

As in all other marches on Moscow in history, the opposition sees it differently. It is the same in 2015 for Honest John as it was for Napoleon in 1813.

Honest John on his road to nowhere.

All he has done is to entrench the opposition and open another legal front that will give his opponents another opportunity to expose the incompetence and the illegalities of his regime whilst impoverishing Council's funds even more.

The District Court will have been less than impressed with his attempt to flood the Court with hundreds of cases based on the same grounds and has taken steps to rationalise Honest John's ill-considered strategy.

Judge de Ridder in the Whangarei District Court has issued a Minute, consented to by counsel for the defendants and the KDC, that states:

• The representative case - KDC v Rogan - will proceed on its own.

• All other proceedings that have the same defence as the Rogan case are stayed, pending the Court's decision in the Rogan case, no matter what court they were filed in

• All those other proceedings will be transferred to the Whangarei court.

• A fixture for the Rogan case has been set down tentatively for a two day hearing on 30 June / 1 July 2015.

For those who used the MRRA defence then no further action is required until the Rogan case is resolved.

There are other proceedings where ratepayers have employed other solicitors, with different defences, and at this stage it is uncertain what will happen to them.

The lawyers representing the Rogans have sought further discovery from the KDC and will be filing an amended statement of defence in early April. The original statement of defence highlighted illegalities and non compliance in the KDC's rates assessments and rates invoices and the amended statement of defence introduces more illegalities and failure to comply with statutory requirements.

Moscow is looking like a long way away.  I don't think the old hack that Honest John is riding will make it.

We all know how for years the government and its agencies covered up the illegalities and rorts that were going on in Kaipara.  When they were warned and given full details, and presented with irrefutable evidence, they did nothing.  They told us to go to court.  And, when we did that, they passed validating legislation to validate all the illegalities retrospectively.  They also used the OAG report to whitewash all the rorts.

This time it is concrete cancer that the government is trying to bury. (See Whale Oil article here.)  Minister Nick Smith is running for cover, denying liability and dumping blame when in fact the government was warned of the problem and took no action.  New Zealand First is demanding that the government obtains independent expert reports that are truly independent and not conflicted, and then takes firm action.

It is Kaipara all over again.  Why does the government allow an insolvent council to carry on incurring more and more debt, to lie about its financial status, and dump unsupporable debt on its ratepayers, when a simple independent report on the true state of the KDC's finances would give us all the information we need to take positive steps for the future based on fact and not fiction?

And why does the government allow the Commissioners to con ratepayers into pouring more money down the EcoCare Ponzi scheme, when everyone knows that it looks like a lemon, smells like a lemon, and squeezes like a lemon?  Only a fully independent report on EcoCare's fitness for purpose would resolve the issue once and for all.and confirm whether it is a lemon or not.

"Crusher" Collins may have been relegated to the back benches but she is a star in her own right.  See this video from Campbell Live.  The nitty gritty is at 2:40 and the full version is at 4:50.  Note that the song she dances to - "What'd I say, now!" - seems very appropriate given her steely, authoritarian approach.

The battles in Hawes Bay and Wellington between the local ratepayers and the Local Government Commission should be a warning to Kaipara ratepayers of what is in store for them once the Basil Morrison steamroller heads north.

Wellington and the Wairarapa featured strongly on Campbell Live last week and the battle lines are being drawn in Hawkes Bay with allegations and threats flying about - see Simon Hendery's article in Hawkes Bay Today.

Mangawhai was awash with politicians at the weekend. Winston Peters Force for the North bus hit Mangawhai on Saturday morning followed by John Key's troupe with National candidate Mark Osborne in tow. Act leader David Seymour's car was also spotted.

Winston Peters visited the Mangawhai Village market and made an impromptu speech on the steps of the village hall. He pledged to help Kaipara and Mangawhai with its problems IF the local ratepayers voted for him and elected him as their MP.

He showed a detailed knowledge of the Kaipara rorts and pulled no punches about the liability of the government for the EcoCare blow out because of the negligence of its watchdog, the Office of the Auditor General.

John Key arrived on key as Winston Peters was departing with National candidate Mark Osborne and his wife, his minders and a dozen or so youngsters decked out in blue outfits . No speech, but a lot of hand-pressing and photo opportunities as he toured around the market stalls.

Legal Eagle was approached by the PM, no doubt thinking that I looked like an older National supporter, and I had the opportunity to ask him about democracy in Kaipara and the debt. He said that there was no easy fix, but I pointed out that the government was clearly to blame because of the failure of the OAG and several Ministers of Local Government to take action when they were warned about the Kaipara excesses. All the government had to do was to front up to with some money along with the other guilty parties.

There were some vague mutterings and a natty little side-step as he moved on to his next target.

"Don't mention Kaipara"

Next stop was the Sail Rock Cafe for the official launch of National's campaign with invited National Party supporters.

THE OPTIONS   08.03.2015
I was talking to Bruce Rogan of the MRRA after we had watched Winston Peters and John Key do their thing in Mangawhai yesterday.  We agreed that the options for Kaipara ratepayers are quite simple.  If a National candidate is returned for Northland then there will be no change in policy.  The illegal EcoCare debt will be shafted home to the innocent ratepayers and will take generations to pay off.  The guilty parties will be protected by the National Party credo of "protecting its own".   The Commissioners' ocupation will be extended (but only after the by election is over) and there will be no democracy for Kaipara.  Kaipara will be bundled into a unitary authority by Basil Morrison and his bulldozing team, even though a clear majority is against it.

The other option is that those responsible for the illegal debt and blowouts, and that includes the OAG, the shonky advisers and the government, pay their share of the illegal debt, and ratepayers assume liability for the fair value of EcoCare.  The debt would be halved and ratepayers of the district could then get on without this massive millstone around their knecks.

Winston Peters has pledged his support to fix the Kaipara problems and for the unitary authority issue to be resolved by referendum.- provided that the electors of the district support him and vote him in through the ballot box.  He has a mixed history and many doubt his sincerity but his commitment to Kaipara cannot be faulted.  In his address given in Mangawhai prior to the general election he clearly nailed his colours to the door, and he has not resiled from that.

For many, voting for Winston may be a gamble, but the reality is that he has made a clear and unambiguous commitment.  His party is the only one (except for Mana) that voted against the Validation Bill.  He is the only chance that Kaipara has, on the political stage, of resolving the Kaipara issues on a fair and honourable basis.

The decision is simple.  National offers us no democracy, a massive debt, and a unitary authority.  New Zealand First offers us some hope of a fair settlement and the opportuinty to put our woes behind us.

MRRA chair, Bruce Rogan has advised that he will be standing as an independent candidate in the Northland by election.  A Radio NZ report can be seen here and an interview heard here.

SOLID ENERGY  03.03.2015
Last week, Stuff reports, TSB Bank wrote off the entire value of its $54 million loan to Christchurch-based Solid Energy.

Despite the fact that many see an SOE as having an implied government guarantee, the government has waved a big stick and compelled banks to write of massive debts owed by Solid Energy. Stuff reports that banks were obliged to write off their debts and enter into a restructuring deal:

Finance Minister Bill English repeatedly warned that if the banks were not willing to accept the deal, the Government would put the company into receivership.

Amazingly, this current debt write-off follows a similar one in 2013 when banks were required to take a $65 million "hair-cut". (See here).

Compare the EcoCare loans.

Those loans, arranged by the KDC with ABN Amro, were patently illegal.  There was no consultation with ratepayers as stipulated by the LGA and the bank and the KDC entereed into an arrangement to hide the debt so that it did not show on the balance sheet.   The loans only proceeded because of the negligence of the auditors (Audit NZ) and the OAG in failing to identify and act on the blatant illegalities relating to the loans and to protect the best interests of ratepayers.   

The OAG and Audit NZ are government appointed organisations and watchdogs of the local government sector, appointed to ensure that the statutory powers delegated to local authorities are exercised in compliance with the law.

The government not only has an obligation to appoint watchdogs but it has an additional obligation to ensure that its appointed watchdogs perform their obligations competently. 

The government failed to meet those obligations.

But more than that, when advised of the persistent illegal actions of the KDC and the failure of its own regulatory authorities, the government, through the Minister of Local Government, failed to take any action and allowed the illegalities to continue. 

It is interesting that the banks that lent monies to Solid Energy did so in compliance with the law and on the presumption that there was a government guarantee.  Those banks that lent to the KDC (ABN Amro and the banks who bought the debt) knew that it was a shonky loan and illegal but relied on a guarantee that they thought was implicit in the LGA.

In the Solid Energy case the government has bullied the banks into takiing a hair-cut, but in the KDC case it is insisting that the ratepayers carry the can, despite the illegality of the debt, and the banks' knowledge of that, and the clear negligence of other parties, including the government and its own agencies.

YOU CAN FIGHT BACK    01.03.2015
Democracy still rules  in local government despite an autocratic council provided enough people are prespared to make a stand.  See the article on New Plymouth's ratbag Mayor and his council trying to foist their view of democracy on the people of the district.

Peter Nicholas, the smoke and mirrors man at the Mangawhai Focus and the apologist of Honest John, is at it again. He is churning out propaganda about the KDC's reign of terror which reportedly consists of issuing up to 300 separate proceedings against the good honest citizens of the district and forcing another 200 or so to succumb to pressure from their banks to pay their rates.

Peter Nicholas reports on it with the same relish and enthusiasm that one would expect in a story about the extermination of a plague of rats.

The first half of the article is full of facts and figures that are clearly regurgitated directly from Council sources. The second half is full of direct quotes from Honest John himself.

You can search high and low for the two sides of the story, for fairness, for balance, but you will not find it. This is the partisan, biased, one-sided journalism that we have come to expect from the Mangawhai Focus.

You may wonder why thousands of good citizens refused to pay their rates and why over one hundred of them are prepared to make a stand in court. It is unprecedented, and yet neither Peter Nicholas nor the Focus is the slightest bit interested.

One has to ask how much the Commissioners pay the Mangawhai Focus to persuade it to print such rubbish and to suspend its journalistic ethics.

Is it all part of the Dirty Tricks campaign?

OOPS!    27.02.2015
Further to the post above, Smoke And Mirrors Pete doesn't understand the basics of what he is writing about. Take this for example:

it is likely that banks will soon force mortgagees that have not already paid, to pay that portion of overdues (sic). Almost all mortgage documents have clauses that say the mortgagee must keep all charges against the property (such as rates) “current.”

The problem is that the "mortgagee" is the bank. In both instances where he used "mortgagee" he should clearly have used mortgagor.

MRRA STATES ITS CASE    26.02.2015
This letter from the MRRA was published in both the Mangawhai Focus and the Kaipara Lifestyler.

Commissioners call

In response to John Robertson's letter of January 26, Time to end the Battle, I would like to say, Mr Robertson, that the ball is in your court.

So far, you have seen fit to allocate all of the debt from the EcoCare debacle to the ratepayers. When you have successfully held to account the parties responsible for the burgeoning of the debt to something in excess of $70 million and have reduced the exorbitant rates being charged accordingly, then my fellows on the MRRA executive will be willing to put a line under past grievances.

Recent publicity reveals that some 50 odd people in the Kaipara are calling for an extension of the Commissioners rule here. This is not surprising as there will always be some people who feel more secure under a dictatorship. However, there are many more who prefer democracy.

For every one person who signed in favour of retaining dictatorship in the Kaipara, there are more than five who petitioned the Associate Minister of Local Government asking her to return democracy and honour the Government's promise of a local election in the Kaipara in October this year.

Any deferral of the proposed hand back would indeed give credence to suspicions already being formed that there is a connection between the timing of the return to elected representatives and the planned reorganisation of the northern group of councils into a "super-council" in the not too distant future.

Barbara Pengelly

Secretary, MRRA

In its latest propaganda piece in the Mangawhai Focus, Honest John's pet Advisory Panel somewhat surprisingly acknowledges that pollution of the harbour is caused by animals.

The members of the Panel have read historical reports that show how, for years, run-off from the land surrounding the harbour affected the water quality. Some of the run-off was and still can be attributed to birds and/or livestock.

If that is the case then what is the Panel planning to do to ascertain the exact cause of the pollution, and what steps is it going to take to prevent the pollution of the harbour by animals?

A milking cow actually dumps 150 lbs of poo a day. Multiply that by the number of cows that graze on the edge of the harbour and you can see the size of the problem.

Three years ago the late Owne McShane wrote an article about council amalgamations and Nick Smith's - the then Minister of Local Government - penchant for unitary authorities.

Many of his comments were true then but, some three years later, are even more spot on.  How about this for an example:

Councillors suddenly found themselves in charge of multi-million dollar organizations that demanded skills and experience well beyond their levels of competence. Since then, the Chief Executives (previously known as Town Clerks) have been able to exercise largely unbridled power.

Those problems were then compounded by the 2002 amendments to the Local Government Act that gave Councils the power of general competence. This expansion of powers enabled already over-extended authorities to expand into new policies and activities totally outside their competence. Their general incompetence has been demonstrated all around the country – as exemplified by the losses on V8 races, entertainment events, swimming pools, sewage schemes, arenas, and exploding levels of debt and rates. Project cost overruns became the norm as a councillors lost control of their staff, consultants and advisors.

The end result has been that most of our councils have been colonized by major corporations who are now busy exploiting the local “environment industry”. These consultancies regard our districts and cities as little more than well-funded ATM machines.

Thanks to Ron Manderson

For those interested in the wheels that are turning behind the scenes, take a look at the following commentaries or websites relating to the government's attempt to force unitary authorities on New Zealand:

Breaking Views - Mike Butler

Breaking Views - Frank Newman

Northern Action Group - North Rodney seceding from Auckland City and Facebook

Muriel Newman - An Amalgamation Agenda

Any other references welcomed

More propaganda emerges each week from Honest John's Advisory Panel on the EcoCare extensions. (Mangawhai Focus 23 February 2015)

Forgive those of us who think that those on the the Advisory Panel are patsies who are being fed a load of rubbish, but we have seen it all before. The old council and the proposers of EcoCare "sold" the project to the ratepayers on the back of a mountain of misinformation and false figures and projections that were fairy story stuff.

The OAG's report has stated quite clearly that the whole scheme was out of control and the so-called experts had no idea what they were doing.

Do you remember that they told us it would cost $30 odd million, all up with everything?

It cost well over twice that amount and is still a lemon.

Do you remember when they told us that the debt would be "segmented" and ring- fenced to those who were connected to the scheme in Mangawhai? Other ratepayers would not pay a cent towards it.

That was never feasible. It was wrong. It was a lie. Now every ratepayer in the district will have to pay for it, and the children of every ratepayer, and the grandchildren of every ratepayer.

Remember when they had financial models prepared by one of the top accountancy firms in the world but refused to let anyone see them, including councillors, because they were commercially sensitive?

Not worth the paper it was written on. And that is why they didn't release it.

EcoCare was a rort on a massive scale and the Commissioners will still not allow us to access the pure and simple facts and figures relating to the Scheme.

They have appointed a panel of so-called advisers who actually know diddly squat about sewerage systems but who are fed selected, doctored information via the Commissioners which they then regurgitate back to Honest John, and label it independent advice.

The Focus propaganda states that the Advisory Panel has had:

a number of presentations from professionals to understand how the scheme got to where it is. the number of connections the scheme is designed to handle and where to from here.

If those outside advisers are genuinely qualified and independent and not afraid to open themselves to public scrutiny, then why not publish what they have to say?

As Winston Churchill so aptly said, "Why listen to the monkey when the organ grinder is in the room?"

We ratepayers, who have to pay the bills, can then judge for ourselves whether this is the same old rubbish that we have heard for the past 12 years, or whether there is something in it.

We were bitten very badly - to the tune of perhaps $70 million - and are very wary about being bitten again, by the same dog, with the same bark, but with a different master.

Mike Hoskings comments on yesterday evening's Seven Sharp on Auckland City, triggered by the discovery of Auckland City employees living in different cities of the world, can be viewed here.

The full text follows:

So, as we showed you at the top of the show, another chapter in the madness that is the Auckland City Council, the council that thinks, as it turns out, that it s a globally significant entity not a local body authority

The council with aspirations in far flung parts of the world while not being able to mow your berms.

Uncle Len clearly sees himself on the global stage not the community stage

I'm surprised that they have not launched a bid for a seat on the Community Council

I am surprised they haven't got committees putting together pitches for the Olympics in 2026 and the World Cup in 2028

Have you ever wanted a living breathing example of a bunch f local body try-hards living in a bubble that has no connection to reality, then this is your lot

They encapsulate all that is wrong with regional politics, their delusions of grandeur, their puffed up sense of self-importance.

The reason so much of the rest of the country laughs at Auckland is that these are the clowns that give them so much material.

The world is my oyster

Auckland is a juggenaut that is out of control, run by big business for its own benefit, with ratepayers having no say and its councillors marginalised. 

Is that the future of local government that we want to see in Northland?

In an earlier post BOVINE POLLUTION OF THE HARBOUR 11.02.15 (scroll down) I reported on a letter to the editor in the Mangawhai Focus (edition of 9th February) from a marine biologist outlining the findings of tests on the water in the Mangawhai Harbour for the last six months of last year.

The main finding was that pollution was caused by bovine E-Coli from the farms bordering the harbour and not from human E-Coli, as portrayed by Honest John's hand-picked Advisory Panel in their Mangawhai Focus articles.

I also reported that although the letter went to print it was pulled from the on-line version of the Focus, presumably because it ran contrary to the propaganda that the Focus chooses to promote.

Interestingly, as at 23 February (two weeks after publication) the letter is till not available on line.  It simply has the tag: "Story to come". (see Letters to the Editor)

Make up your own mind why.

But there is more. In the latest edition of the Focus, a letter to the editor is critical of the letter from the marine biologist, not because of its contents but because the "arrogant" writer did not go through the proper channels and because the letter embarrassed the farmer involved.

The letter takes a swipe at the marine biologist:

"You may well have just come out and put the farmer's name in the paper for all to read ...."

Many people know who the farmer is and the rumours are rife that his farm, and no doubt others, plays a major part in the pollution of the harbour and always has done.

That is a story that the Focus does not want to tell. There is nothing like the truth to make the rubbish that comes from the EcoCare Advisory Panel look like the bull shit that it is.

As I have said on many occasions: Take a look at those who want to extend the underperforming EcoCare scheme and invest tens of millions more in a "lemon", and look at those who want to retain the Commissioners, and you will find a group of people who have something to hide in the past that they don't want revealed.

They know that they will be safe with a Commissioner run council.

Correspondent GJ Smith wrote to the Mangawhai Focus correcting some of the errors in Peter Nicholas' smoke and mirror treatment of the Mangawhai Endowmwnt Fund in his article in the previous edition of the Focus headed Historic Endowment Fund misunderstood.

Peter Nicholas was given the immediate right of reply and casts another pall of smoke over the whole dubious misappropriation of trust funds.

There are some basic points that Peter Nicholas needs to front up to:

• The KDC's handling of the fund was inappropriate. This was highlighted by the Minister of Local Government and clearly acknowledged by previous Chief Executive Steve Ruru.

• The fund has long gone. It was spent long ago and no one knows where it went. It is now a simple book entry in the KDC's books.

• The fund "earns" no interest. Each year interest is calculated on the amount that would be in the fund if it had no been stolen by the KDC. The "interest" is then paid by the KDC to that year's beneficiaries. These monies come from rates paid by the whole district. In other words, ratepayers from Kaipara are paying the interest on the Mangawhai Endowment Fund.

• The KDC cannot reinstate the fund because it is insolvent. It does not have a spare $5 million to repay what it "borrowed". The only way that it can do so is to borrow the monies externally, from the bank. That would dump a further $5 million indebtedness on to the ratepayers. In other words the ratepayers would be forced to pay for the $5 million stolen by the Council from the citizens of Mangawhai. Together, of course, with interest.

It all sounds like a massive PONZI scheme to me and it is quite frightening that a local newspaper with clear obligations to the community chooses to publish only one side of a very unsavoury story that needs to be exposed.

I ask Peter Nicholas and those at the Focus how they would feel if the $5 million that Uncle Ebenezer left them in trust with the estate's solicitor was dealt with in such a way.

Imagine finding out that the solicitor had spent all the trust monies on other unidentified expenses, but there was a book entry, so they were well protected..................

As for the interest paid to the beneficiaries annually, the solicitor just increased the fees that he charged them and paid them interest out of that.

And the principal? Well that could be replaced by borrowing the $5 million, but of course, the beneficiaries would have to pay the debt and the interest.

Reports on this case can be seen here:

NZ Herald


Whale Oil

Muriel Newman's latest article on unitary authorities in New Zealand is a must read.

If you ever have any doubts about where John Key's local government juggernaut is heading then you must read this article.

And juggernaut it is. John Key's legacy is that "big business" in New Zealand will run every aspect of our lives. But add to that the unelected Maori Advisory Boards and we will all become hostages in our own country.

No wonder John Key refused to consider Local Government New Zealand's suggestion of looking for alternative finance souces for local government. Ratepayers are sitting ducks and are obliged to pay rates even if they are not consulted and even if the rates are illegal. And, of course, with the NZ funding Agency, all ratepayers in the country are responsible for the debts of all local authorities

Why would you want to change a system like that?

One bright hope on the horizon is the North Rodney application to the High Court for a judicial review of the Local Government Commission's decision to decline an application for North Rodney to break away from Auckland City.

That is to be heard next month.

The Court of Appeal hearing for the MRRA is getting closer - in August - and it will be interesting to see if that Court endorses the view of Heath J that a local authority can set rates for an illegal purpose.

The Council's District Court case against rate strikers is proving to be nightmare for Honest John and his advisers. No doubt they thought that they could terrorise ratepayers into paying their bills. What they didn't realise was that they were exposing the soft and precarious underbelly of their rating processes to detailed legal scrutiny and challenge, and affording the ratepayers another chance to expose the incompetence and illegalities of the Commissioners, and vindicate themselves in court.

When you look at it, only the courts stand between the Key juggernaut and all the principles of integrity, democracy, transparency, the rule of law, etc, all of which are beginning to look like threatened species in New Zealand today.

Have a look at Mike Butler's article on Hasting's fight against amalgamation.

WHERE IS THE LTP?    15.02.2015
It is that time of year again, but something is missing.  No sign of the draft 2015/2025 Long Term Plan which should have been adopted by now for consultation by ratepayers.

But, like all things with the Commissioners, they have there own special version of transparency and consultation. 

You may not know it, but you have already been consulted on many of the policies that are normally included in the LTP.  That includes new policies relating to development contributions, financial contributions, revenue and financing, Maori freehold land rates postponements and remissions, and early payments of current years rates and postponements and remissions.  In addition, increases in fees and charges (over and above last year's increases) have already been set in concrete. (See the Agenda for the extraordinary 9 February Council meeting here)

Under amendments to the LGA, such policies can now be adopted outside the LTP process.

No doubt you were completly unaware but while you were tucking into the Christmas turkey and frolicing on the beach you were actually being consulted on all of these policies.  That's the way that it is with Honest John and his team.  When the 2002 LGA was first introduced, local government in New Zealand was aghast at the amount of consultation that was required.  Twelve years on, those well versed in the dark arts of local government have learnt how to consult without consulting, and how to exclude ratepayers from having any real say in their own council.

Believe it or not, the draft LTP is already available, but you won't find it on the KDC website in its usual place in Forms and Documents under "Long Term Plan".  You will find it under "Have your say" and it has been called:  Looking Ahead - consultation document for the Long Term Plan 2015/2025.

This link will take you directly to it and this link will tell you about proposed meetings.

Happy reading.

Any comments on the new plan are welcome.  Please send them to contactus@kaiparaconcerns.co.nz and advise the name - real or pseudonym - they are to be posted under.

Associate Minister of Local Government, Louise Upston, has done an about-face and cast her net wider for ratepayer views on the future of democracy in Kaipara.  Last week she made an ill-judged, secret sortie into the North to assess the views of ratepayers, but chose to meet with only those few who support the extension of the Commissioners' regime and the postponing of democratic elections.

Following the wide condemnation of such "undemocratic" consultation the Associate Minister has had a change of heart.  (See Kaipara Lifestyler) Her press secretary now states:

While it wasn’t possible for the minister to speak to everyone in the community, she is interested in hearing people’s views.

“Those who would like to also have their say can email her at l.upston@ ministers.org.nz.”

Ratepayers who want to express their views can email the Minister at the address shown or Louise.Upston@parliament.govt.nz and sign the on-line petition referred to in the post below.

ON-LINE PETITION    12.06.15
The MRRA has set up an on-line petition for the return of democracy to Kaipara.  It can be accessed here.  It has an explanation of what the petition is about under Why this is important.

Please contact all other ratepayers that you know and get them to subscribe to the petition.



Expect Associate Local Government Minister Louise Upston to make her move soon.  As sure as night follows day, and as sure as the Local Government Commission will try and force a Unitary Authority on Northland, she will ring the death knell of democracy in Kaipara and announce the extension of the autocratic regime of the Commissioners.

The Commissioners only have 8 months to go before elections are held but a very small group of mainly National Party supporters are pressing for the extension of the Commissioners' regime and the canning of the return to democracy.

They are petrified that a truly democratic council would open the books and reveal the rorts of the past (which might implicate some of them), the true parlous state of the KDC's finances, and the sheer folly of the Commissioners' financial projections.  They are frightened that an independent assessment of EcoCare might reveal that it is a lemon and that all the rubbish about humans polluting the harbour is nothing more than a deceptive ploy to cover up the true polluters.

One has to have some sympathy for Louise Upston.  She was handed the poisoned chalice of Kaipara by Minister Paula Bennett who sensibly realised that getting caught in the Kaipara quagmire could hinder her meteoric rise to leadership of the Nats.

A present from Paula Bennett to Louise Upston

"Hi, Sweetie.  Cut your teeth on this."

The new Associate Minister also inherits a Ministry that rivals the old KDC Council and the Commissioners for incompetence and indifference to illegalities.  A whole succession of Ministers were advised of the the Kaipara problems but sat and fiddled while Kaipara was pillaged and plundered. 

Along with the OAG and Audit NZ, the Ministry of Local Government must bear a very large share of the blame for the Kaipara debacle.

The reality is that Lousie Uptson has no say in the matter.  Like Mike Sabin with the Validation Bill, she has to do as she as told, otherewise she is custard.  She is driven by John Key's quest to let big business and the banks rule every aspect of our lives, and the DIA, which drives the policy, is not going to let a bunch of rebels spoil the party.

True to form, only the hand-picked few were consulted by the Minister.  She declined to consult with the MRRA because she was too busy.  She had time to go to Whangarei to consult but could not visit Mangawhai. She did not consult with Legal Eagle.

She can't even consult with our MP because we don't have one.

However, there is nothing to stop ratepayers letting the Associate Minister and the MInister (and all other MPs) know what their feelings are about the return to democracy.  With a by election due very soon it is going to be very difficult for them to fly in the face of an overwhelming number of electors and announce the death of democracy.

The email addresses of all MPs can be found on the website of Dr Muriel Newman with advice on how to send emails to a large group -  but no more than 20 at a time.

This is very important for the future of Kaipara and I urge all of you to send an email and to encourage your spouses, relatives, friends, work colleagues etc to do the same.  Spread the word.

SMOKE AND MIRRORS     11.02.15
Anne Gibson in today's New Zealand Herald does an interesting report on council debt. She quotes Craig Stobo, chairman of the Local Government Funding Agency, as saying that councils in New Zealand are conservatively geared and prudent financial managers because they have assets of $117.4 billion but debts of only $10.8 billion.

She also reports Craig Stobo's comment that ratepayers should be grateful.

Should we?

If you use statistics and smoke and mirrors, you can tell any story you like.

The fundamental flaw in Craig Stobo's argument is that council debts are not secured against the assets of a council. The assets are generally inalienable assets that are held in trust for the people of the district. If Auckland goes under, Cornwall Park and Albert Park will not be sold to meet its debts. Nor will the local roads and infrastructure.

Council debts are normally secured over the rates income. That is a vast pit of money that can apparently expand to meet any contingency and effectively is without any limit.

As the law stands at present, ratepayers are responsible for all the debts of their council even if the debt is illegal or imprudent. It is as if all ratepayers give their personal guarantees for the repayments of their council debts. If a ratepayer does not cough up then his or her house can be sold. (As 300 odd ratepayers in Kaipara are now discovering.)

But more than that, under the rules of the New Zealand Funding Agency, which Craig Stobo heads, each member council cross-guarantees all the debts of the other councils in the fund. So, at the end of the chain, a ratepayer in Auckland becomes a guarantor not only of the for the debts of his own council but also the debts of all the other councils in the fund.

There is no ratio for borrowing to lending. Councils can spend what they like and simply ignore the rules relating to financial prudence. As we have found out in Kaipara, councils are free to incur debt at will, and if those debts prove to be illegal or imprudent and tip the council over the financial edge, they simply dump their insolvency onto their ratepayers.

Grateful? I think not. We must be mugs to allow such a rort to even get off the ground.

Of the 78 councils in New Zealand 43 are in the fund. Kaipara is not. It is too broke and dysfunctional to join and no one wants to guarantee its debts.

The folk at the Mangawhai Focus must be making a mint out of the Commissioners given the amount of space that they provide for Honest John's propaganda. One presumes that they are paying for it as it is scarcely a public service.

The latest issue contains more spin from KDC apologist and Commissioners' lickspittle Peter Nicholas who is regular contributor to the Focus and specialises in regurgitating the spin put out by Honest John. He is also one of the driving forces behind the plan to prevent democracy returning to Kaipara.

This time he is rewriting the "truth" about the Mangawhai Endowments Fund under the heading Historic Endowment Fund misunderstood..

He states:

Claims have been made that funds from the account were “stolen” to pay for the Mangawhai sewage system, while claims have been made that the council will need to top up funds that have been used for other purposes.

Nothing can be further from the truth.

He then goes on to recite facts and figures about the "fund" and about the interest it earns.

It therefore comes as a surprise when he states later:

There is no actual separate “Endowment Fund Account” within the Kaipara District Council. But throughout the history of the MELA, there never was a separate account, so nothing has changed.

That's more like it.

The fund was held in trust by the KDC, and, as with all trust monies, was held in a separate bank account and earned interest paid by the Bank. That is how trustees handle trust monies.

At some stage during the heady days of rorts and rip-offs the fund monies were used for other KDC purposes, or whatever, without any records, resolutions or anything. No one knows where the monies went or what they were used for. Even the OAG gave up looking.

Previous Chief Executive Steve Ruru reported to the Council in 2013, at page 196:

In September 2011, for example, questions were raised by the Minister of Local Government about how the funds in the Mangawhai Endowment fund and Land Subdivision Reserve were being used. Implicit in the questions raised was a concern that funds were being used to fund Council's general operating costs without an appropriate level of supporting documentation to enable the use of funds to be tracked.

It is also interesting that at a meeting of the Mangawhai Endowment Lands Account Committee on 4 March 2013 it was reported that:

after consultation with the community over ten years ago the Council adopted the policy of protecting the capital of the fund.

The gist of this is that only the net income of the fund from interest and rent is available each year for grants. Perhaps the reason for that decision was because the fund no longer existed and there was no capital to allocate to projects.

The reality is that the fund does not exist. It was long spent by the KDC. Its only claim to "existence" is a paper entry in the books of the KDC which says that the KDC owes the fund that money.

So if the capital was required by the fund then the Council would have to borrow the money externally to reinstate the fund.

But what of the interest that Peter Nicholas says is available to fund projects? He makes it sound as if the fund earns its own interest. It doesn't. It can't because it doesn't exist. After years of paying no, or insufficient interest on the monies that it purloined, the Council has now put its books in order and now pays interest on the fund at an agreed interest rate.

That means that the interest on the fund, which should be paid by the bank with which it should be invested, is now paid by the KDC.  The KDC funds the interest from the rates.

So, effectively, it is the ratepayers paying the interest on the Mangawhai Endowment fund. and, not only that, it is the ratepayers throughout the district who are paying the interest on a fund which benefits only parts of Mangawhai

I quote from an earlier piece on this website:

This must be one of the best Ponzi schemes around.

The Council is entrusted with ratepayers monies for specific purposes. It spends the trust monies for other unrelated purposes and then makes ratepayers pay the annual interest bill to fund grants to local organisations. When the capital has to be repaid the Council borrows monies externally and then bills the ratepayers for the interest on that loan and for the principal repayment.

If any trustee in real life carried on in such a way then they would end up in jail. But, in the rarefied alternative universe of local government in New Zealand, the rules are totally different and allow ratepayers to be shafted again and again.

The latest edition of the Mangawhai Focus (9th February) includes a Letter to the Editor on page 18 from a Marine Biologist outlining the findings of tests on the water in the Mangawhai Harbour for the last six months of last year.  The main finding was that pollution was caused by bovine E-Coli from the farms bordering the harbour and not from human E-Coli.

The farms that contribute to the pollution were identified in the tests  but not named in the letter.

Interestingly the letter is not available on the Focus' website.  It simply states:  "Story to come."  I am not into conspiracy theories, but has the letter been pulled from the website because it tells the truth and rebutt the smoke and mirrors of the EcoScam adivisory panel in the same issue? (See article following.)

So, its all to do with human waste, and the magnificent EcoScam scheme is the only thing preventing the degradation of the harbour. And we desperately need EcoScam Mark 2 to prevent any further pollution.

That is the message that Honest John's carefully selected "advisory" panel are projecting yet again in their latest spin in the Commissioners' propaganda rag, the Mangawhai Focus.

Clearly the spinmeisters and dirty tricks brigade behind EcoScam Mark 2 are using "Magical Mangawhai "and the pollution of the harbour as catch-phrases for their campaign of deception.

The reality is that human waste was never an issue but was used to "sell" and justify the EcoScam Mark 1 rort to ratepayers and enrich all of those involved. Now it is being dragged out of the closet for the promotion of EcoScam Mark 2.

The truth is that any pollution of the harbour results from bovine pollution from farms that border the harbour. That's cows and bulls.  But they will never tell you that. (See article above)  Sewerage and water have become the major vehicles for rorting ratepayers by councils and big businesses, and there is no a lot of money to be made in collecting and processing cow shit.

The advisory panel are part of Honest John's softening up process to get you used to the concept of EcoScam Mark2, to convince you that your harbour will be unusable without it, and that stumping up a few more tens of millions for what you have already paid double for, is a really good idea.

Meanwhile, those who are in fact polluting the harbour can, like all the other guilty parties in Kaipara, get off scot free

It's all bullshit of course. Take the hype in the first sentence of the article: "The Scheme ..... has put the magic back into Magical Mangawhai".

Spare us.

Then the lies: " ....and has capacity to cope with many more connections".

Really? For years the KDC has told us that the disposal field at Brown's farm is at the end of its life with a small expansion possible - if extra borrowing can be arranged. But a new disposal option is becoming crucial and that is going to cost tens of millions. (Browns Road cost $18 million.)

As for the processing plant itself, there are no figures, just smoke and mirrors. We paid for 4,500 connections. We have at present 1630, according to Honest John. Will it take another 100 or will it take another 2,900, which is what we paid for?

If I was on the advisory panel I would be demanding answers from independent experts and not swallowing the "fluff" fed to me by Honest John and his advisers.

I am sure that those who were selected by Honest John to form his "Yes Panel" are offended by my labelling them as "patsies". Regrettably, so far, they have proved to be exactly that.  If they want us to listen to them they need to get real, get some spine, and some integrity, get some independent reports, and present the true picture to the ratepayers.

Enough of fluff and bullshit and magic.

"The most brilliant propagandist technique will yield no success unless one fundamental principle is borne in mind constantly - it must confine itself to a few points and repeat them over and over.”

― Joseph Goebbels


NOEL PAGET'S VISION    05.02.2015
Mangawhai resident Noel Paget has set out his vision of the future in a letter to the Mangawhai Focus.

Most people would have no objection to many of his comments. I think we are all sick and tired of having to hash around the past and, in so doing, we are putting the future on hold.

The problem is that the KDC was effectively "bankrupted" by the previous Tiller/McKerchar Council and we may not have a future.

Instead of the government resolving the situation amicably between ratepayers and the Council, and sheeting home responsibility for the mismanagement to those responsible, John Key chose to impose virtual martial law on the district with Commissioners sent in to crush the ratepayers revolt, impose ruthless penalties for disobedience, and protect the interests of the banks.

It has back-fired dreadfully and the incompetence, illegalities and lack of transparency of the previous Council have carried on unabated under the autocratic rule of the Commissioners.

Kaipara will never be able to pay its existing debt and the Commissioners, beside disguising the true indebtedness of ratepayers, are now planning Mark 2 of the EcoCare scheme which is almost certainly going to push the district into penury.

We all dream of what Mangawhai in particular could be like but those dreams will never be fulfilled while we are burdened with the current debt and planned future debts.

But it could be different.

If we could get some decent compensation from Beca and Bell Gully, the OAG, Audit NZ,Jack McKerchar et al.

If the banks discounted the debt to what they paid for it (40% discount).  (They were impaired, shonky loans that ABN Amro did no due diligence on, for a fantasy-land development, for a Council that could never afford it..  Everyone knew it and that is why the loans were discounted.)

If the government accepts that ultimately it is responsible for the fiasco because its appointed watchdogs and auditors, the OAG, Audit NZ and the Ombudsman, ignored the clear evidence of malfeasance that ratepayers presented to them, and allowed the rorts to go on for years.

And if the government accepts that successive Minister of Local Government have sat on their hands fiddling, in spite of endless warnings, whilst Kaipara was being pillaged.

If the government accepts that responsibility for those fundamental failures and chips in with come compensation.

If the ratepayers agree to accept responsibility for the EcoCare lemon that they have been lumbered with, at a fair price for what it is, not what it was supposed to be.

And, on top of all that, if we boot the Commissioners out and democracy, transparency, legal compliance and integrity return to Kaipara, we might be getting close to being able to actually plan positively for the future. We might be able to fulfil some of Noel Paget's visions, and eventually we might be in a position to put the magic back in Mangawhai.

Those who have been around for some time will recall that the con-artists who promoted EcoCare used the so-called pollution of our harbour as the reason why the sewerage scheme was absolutely essential.

Like everything related to EcoCare it was very much an overstatement, and the reality is that nothing has changed very much in spite of the illegal outlay of vast sums of ratepayers monies on a scheme that has proved to be a lemon.

The Commissioners have resurrected the same harbour pollution argument to sell Mark 2 of the EcoCare rort, a further extension of the scheme at some huge cost to ratepayers, who will never be able to pay for Mark 1.

Have a read of the article in the Mangawhai Focus headed Why Mangawhai is "magical". It is written, supposedly, by the ratepayers advisory panel (personally selected by Honest John) but it has all the hall-marks of the spin-meisters who have cooked up another rort and are slowly and subtly selling it to those ratepayers who are begging to be bitten twice by the same mad dog.

We are given some irrelevant facts and figures on how many school swimming pools the sewage would fill, which is rather cute given that the Mangawhai school and neighbouring properties on the waterfront are not connected to the sewer. That is an anomaly that has puzzled many.

There are a couple of token comments aimed at critics. "Regardless of the ongoing debate..." and "Despite what some people might tell you ......" and there is the vague statement that "the scheme can cope with many more connections".

That, of course is simply untrue. We were tricked into believing that the plant would process 4,500 connections, and that is what we paid for, double what we were told.

The plant itself has at present less that 1700 connections and it has the capacity for a little more. How much more no one knows and no one is going to tell you.

As for the disposal farm, that is at the end of its life and can take very little more without further capital costs. The soil on the farm is unsuited to sewage disposal and it looks as if a totally new disposal facilities will have to be established.

Off the top of my head, I believe that the total cost of the Browns Road farm was about $16 million including all the works and piping.  That was in 2008-2009..

As Larry Mitchell would say, "Hold on to your hats!".

But there is more. Before any new subdivisions can be connected to the scheme there has to be massive investment in reticulation.  Sections need to have piping connecting them to the plant.

The original half-baked idea was that development contributions for new sections would cover the cost of future reticulation and pay a share of the original cost of the scheme, until someone realised that the contributions, in many instances would not even cover the cost of the reticulation.

But things are worse than that because about $27 million of the current EcoCare debt has be loaded onto future development. In other words, the development contributions from future subdivisions have been ear-marked to repay that portion of the existing debt.

The problem is that the amendment to the development contributions policy, required by an amendment to the LGA, may not allow that.

But even more telling is the fact that there simply isn't enough money from future developments to pay off the allotted share of the current debt, and to pay for future expansion or replacement of the plant, and disposal facilities, and to fund the reticulation.

Either developers will have to pay massive, untenable development contributions, which may run foul of the LGA, or, guess what, ratepayers will be in for a second round of the Great Kaipara Ponzi Scheme.

The advisory panel signs off its article with the comment:

Our aim is to keep the harbour clean and Mangawhai magical.

Don't be fooled. Whatever they do won't make the slightest bit of difference to our harbour. This is another rort that is going to impoverish Mangawhai even further. That is if ratepayers allow it to get off the ground.

KDC SURVEY   05.02.15
It's a bit of déjà vu.

I remember when we first moved to Mangawhai and discontented ratepayers were clamouring to get some sensible answers from Jack McKerchar and his staff to explain the bizarre EcoCare rates of 2008 and 2009, and the even more bizarre unit of demand imposts.

KDC staff, when they bothered to respond, were coming up with all sorts of nonsense to try and placate angry ratepayers, and the arrogant Councillors simply dismissed all criticism.

We all mocked when the KDC arranged a survey to test public perception of the Council, and, as you might guess, the Council came out squeaky clean.

Well, it's all happening again. Community Engagement Manager, Barbara Ware, has announced a survey of Kaipara residents to "track what our residents think about us". (See Mangawhai Focus)

The survey is, of course, supposed to be independent and kosher and all that. But forgive me for being sceptical. Nothing happens in Kaipara that is independent and transparent, at least under the last Council and under the Commissioners.

Take the selection of the ratepayers panel for Ecocare Mark 2. Hand-picked patsies selected by Honest John to endorse his proposals.

Take the Local Government Commission and Basil Morrison's inquiry into a unitary authority for Northland. Is there anyone in the country who actually believes that he is independent and impartial?

We now have Louise Upston, Associate Minister of Local Government, who appears bent on having the Commissioners regime extended, and has carried out her own independent survey, but only of the select few.

It seems to me that this is all part of a cunning plan. Louise Upston will find that those she consulted want to retain the Commissioners, and the Commissioners will be able to hold up the results of the survey and declare that everyone in the district thinks that they are good chaps.

All very cosy.


Mike Sabin may be gone from politics but he has left John Key's integrity hanging by a thread.

The PM has huffed and puffed and ducked and dived about what he knew about Mike Sabin, and when he was told, and his opponents are doing all they can to find the silver bullet that nails him to his cross.

Mike Sabin is holding that bullet. He knows exactly what John Key knew and when he knew it.

Mike Sabin is going down in a big way. Will he go quietly or will he choose to take John Key with him?

The hierarchy of the National Party may be "ethically challenged" (Whale Oil) but how far does loyalty stretch?

From Stuff: 11:26 am, January 30 2015

A prominent New Zealander has appeared in court facing multiple charges, but all details of the case have been made secret. The man appeared this morning in a district court and was granted name suppression, along with sweeping other suppressions covering details and facts of the case. He was remanded at large to reappear in court for a disputed-facts hearing next month.

THE DAILY BLOG     04.02.2015
The incredible disappearing news story of John Key caught lying over Mike Sabin (here)

WHALE OIL   04.02.2015

21 December 2014 

The story itself, which National have sat on for weeks, is almost too horrible for words, and there is little doubt that there will be a by-election in Northland. This is the problem you get when you have an ethically challenged party hierarchy.

21 January 21 2015 :

Key has accepted assurances that it will all be handled quietly. But I’m not sure if that’s OK.

At some point this is going to get into the public, and Key will be standing there with a severe amount of backsplash over him for trying to keep everything quiet.

What astonishes me is that National did almost nothing about this issue for months…despite knowing about it, all the way to the top.

When full details of what has transpired are revealed then there are going to be some serious questions asked of the leadership.

After a succession of inept Ministers of Local Government who collectively turned a blind eye to the pillaging and plundering of Kaipara by its Council, and then arranged to have the incompetence and illegalities sanitised by Parliament, there was some slight hope that "Westie" turned Minister, Paula Bennett, might show some basic decency and integrity and respect for the rule of law, and tackle the Kaipara problem once and for all.

No such luck. Paula is a smart cookie. She knows that John Key is on the way out - and perhaps sooner rather than later - and if she wants the top job then she had to keep local government, the banks and big business on her side.

Kaipara and its problems do not get a look in.

She has dumped Kaipara on her Associate Minister Louise Upston, who presumably will cop all the flack when Kaipara eventually explodes.

"No, John, anything but Kaipara!"

Louise Upston has an MBA from Waikato University, has three children and lives in Karapiro, south of Cambridge, Prior to entering Parliament in 2008 as Member for Taupo she was a project management consultant.

Little has been heard from the Associate Minister on the Kaipara issue. If her latest undertaking is anything to go by, she operates beneath the surface.

Readers will know that D'Arcy Quinn, Chair of the panel to implement EcoCare Mark 2, and about 50 others petitioned the Minister to stop democracy returning to Kaipara.

Nothing further has been heard.

But the wheels of the government and the DIA are turning.

This is a letter recently sent to selected individuals by the Louise Upston's Private Secretary.

Ladies and Gentlemen

As you are aware the Kaipara District is currently governed by Commissioners with their authority established under the Local Government Act. Hon Louise Upston, Associate Minister of Local Government, has delegated responsibility for issues relating to Kaipara governance and is currently considering options for the transition to full local democracy.

She has received a large number of submissions from affected parties but wishes to obtain the views of a wider cross section of Kaipara individuals who have not had the opportunity to comment so far. She will be in Northland on Wednesday 4th February and would value a meeting with you to hear your views on this important matter. The Minister wishes particularly to concentrate on the following:

• keeping the “local” in Local Government;

• ensuring that Kaipara District is successful in the long term and to be assured that the same issues do not arise again;

• recognise there have been some challenges;

• recognise that what the commissioners are doing is important;

• that the future for Kaipara is strong and stable, as ratepayers would expect.

Request to meet you

Would you as members of the xxxxxxx community be available to meet the Minister at collectively or individually at either of the following times:

Date: Wednesday 4 February 2015;

Time 1: 10.30am - 11.00am OR

Time 2: 11.00am - 11.30am

Venue: Whangarei District Council Offices, Rust Avenue, Whangarei

As the district is large and the logistics of getting around are difficult the Minister will be holding meetings in Whangarei and Dargaville only. There is not any opportunity to physically get to other communities.

Note that the Minister is not intending to meet the Kaipara Commissioners, Council Officials, nor residents/ratepayers associations as their views are well known to the Minister.

I’d be grateful if you would email me or phone me with your response be Monday afternoon so I may confirm arrangements.


Keith Mason

Senior Private Secretary to Hon Louise UpstonMinister for Land Information; Minister for Women Associate Minister of Local Government; Associate Minister for Tertiary Education, Skills and Employment MP for Taupo

Interesting. For the following reasons:

• The meeting with ratepayers is today, 4 February. Pity you didn't know about it.

• Why hand-picked people? The Associate Minister expressed the wish" to obtain the views of a wider cross section of Kaipara individuals".  Would it not be democratic to ask the people of Kaipara as a whole, openly and honestly whether they want democracy?

• Why not consult with the MRRA and other ratepayer groups? Does she not want to hear both sides?

• The Minister states that she wants to hear the views of the selected few on this important matter but she then goes on to set what amounts to terms of reference for those views. One is

recognise that what the commissioners are doing is important;

One gets the distinct impression that any adverse views will be treated by the Associate Minister in the same way that Basil Morrison treats opponents of his Unitary fantasies.

This is consultation National style: secret, selective and biased, with an predetermined outcome.

Expect the announcement soon: "After extensive consultation with ratepayers in Kaipara ... the associate Minister... has recommended that the regime of the commissioners be extended....."

John Key is determined to sweep Kaipara under his magic carpet with all of his other problems, such as Mike Sabin.

The ratepayers of Kaipara have to make sure that he doesn't succeed.

The Kaipara Lifestyler of 3 February reports on the Parliamentary Visitor in the form of the Associate Minister of Local Government.  It states that she has arranged several meetings with farming and business leaders.  They are to be held in Dargaville and Whangarei. 

No sign of simple ratepayers being consulted and no meetings in Mangawhai.

ANOTHER WHOOPSIE    03.02.2015
They're at it again. The Commissioners' faces have been splattered with another significant amount of egg.

They have already been forced to rescind the "oldest debt first" policy for rate payments. That so-called policy was illegal and in breach of the Rating Act (LGRA) and for years this illegal policy has denied ratepayers their legal right to repay an instalment only without incurring a penalty.

The Commissioners have just acknowledged (see ADJUSTMENTS ADJUSTED below) that the inclusion of "Adjustments" in some rates invoices was a "mistake", and are now sending out amended invoices.*

Whether it was a mistake or not is moot, but it was certainly illegal.

The latest whoopsie is the acknowledgement of receipt of submissions on the proposal to amend the Fire Service rules in the district plan. The acknowledgment actually relates to receipt of submissions for the 2013/14 annual plan and advises of hearings in 2013.

Less than nine months to go and the carefully crafted image of Honest John and Co as competent administrators is, little by little, being shown for what it is. All smoke and mirrors. All facade and no substance.

* It seems that the KDC may be only issuing new invoices for those who complain. The KDC is obliged to issue a new rates invoice to each ratepayer who was billed for adjustments. If you have paid then they are obliged to refund the adjustments immediately. If you have any problem in this regard then please contact Legal Eagle.(contactus@kaiparaconcerns,co,nz)

Larry Mitchell has objected strongly to my comments in the post below about Mike Sabin Quits.  This is what he had to say:

Your recent posting says ...

"Mike Sabin was also well known for his resolve to "leave no stone unturned" to obtain compensation from the Office of the Auditor General for that Office's responsibility for the Kaipara fiasco. That is a matter that is now before the court but there is little doubt that John Key's government will have reached some arrangement in respect of agreed compensation with the OAG's insurers and the KDC. Like all things in local government, it will be a jack-up".

I make no comment relating to your opinion as to how this case will run. Time will tell if you are correct. But what I strongly object to are, over time your many gratuitous arrogant (possibly intemperate?) remarks denigrating Mike's efforts.  (sic)

To publicly post these views, ( I can only think they are "personal") ... these so obviously vindictive observations amounts to kicking a man when he is down. They are an affront to our Kiwi general good natures and fair mindedness.

Mike has at all times acted with principle to see that the OAG is properly called to account and pays up for ratepayer losses. Fair to say that to date he has made much more progress than your ill conceived myopic expensive and as proven ultimately legally flawed adventures.

So I issue a challenge. Print this letter on the site and withdraw and apologize for your many obnoxious comments. At least that would show some sensitivity and empathy long absent in most of what you and your group have done to date.

"Gratuitous, arrogant (possible intemperate?)".  I am sorry, Larry, but everything that I said is factual.

As for kicking a man when he is down, I have long lambasted Mike Sabin when he was "up" and very cocky, and taken him to task for his obsequious aquiescence in the Commmissioners' inept Validation Bill, when he kicked the butts of the whistleblowers who valiantly revealed what HIS GOVERNMENT AND ITS TAME WATCHDOGS chose to ignore, by agreeing to the inclusion in the Bill of some of the legal atrocities of Jack McKerchar, and by endorsing the charging of vindictive penalties on rates arrears.

As for his his grandstanding on the OAG compensation, I suggest that it was the rate strike and the MRRA's refusal to buckle under the threats and blandishments of Honest John that has forced the DIA (the power behind the scenes, directed by the government) to instruct the Commissioners in that direction.  It is merely a sop to the plebs.

Do you hear any mention of the KDC pursuing the Councillors?  And what happened to Honest John's promise to investigate pursuing Beca and Bell Gully?


1.  Larry Mitchell was a consultant to the KDC employed by Jack McKerchar and advised on classifying the EcoCare debt as a "Segmented Debt"

2. Larry Mitchell is the father of Mark Mitchell, National MP for Rodney, ex cop and good "mate" of Mike Sabin.

Local MP Mike Sabin has finally succumbed to pressure and announced that he is quitting Parliament for personal and family reasons.  It is believed that he is under investigation by the police but no details have been revealed.  See the report in the Northern Advocate here.

Prime Minister John Key has come under intense criticism for his handling of the matter.  See the article on Whale Oil with the comment about his dodging the issue:

It is this action by Key that’s the most concerning. It shows a dreadful lack of judgement. Sadly, you’re not allowed to know why. Another dirty job under the carpet. Nothing to see here, moving on.

Mike Sabin will be remembered by most people in Kaipara as the man who supported the Commissioners by promoting the Validation Act which validated 6 years of the KDC's illegal rates. 

Sadly, he also supported the drive by the Key government and the DIA to impose vindictive penalties on the ratepayer whistelblowers whose efforts brought to light the illegalities and incompetence of the Kaipara Council when the regulatory authorities and the auditor failed to do their duty..

Many believe that the spiteful penalties were promoted by the DIA and the government as a salutory lesson to other ratepayers in the country that whistleblowing and withholding rates would be dealt with sternly by the authorities.

Mike Sabin was also well known for his resolve to "leave no stone unturned" to obtain compensation from the Office of the Auditor General for that Office's responsibiity fo the Kaipara fiasco.  That is a matter that is now before the court but there is little doubt that John Key's government will have reached some arrangement in respect of agreed compensation with the OAG's insurers and the KDC.  Like all things in local government, it will be a jack-up.

The KDC, with ample egg on its face, has been forced to eat a big portion of Humble Pie.  (Forgive the mixed metaphors.)

Following a query from Bruce Rogan, it has back-tracked on the inclusion of "adjustments" in the rates invoice and is going to issue him with a new rates invoice.

This is what Humble Pie looks like :

In your rates notice for the third instalment 2014/2015 there was a charge noted as an “adjustment”.  This charge was included in error.  It is the filing costs and service costs charged to date concerning proceedings to collect rates arrears and should not have been included in this rates notice.

We apologise for this mistake.

Council has since removed these costs and will send by post a revised rates invoice for the third instalment 2014/2015.


Alison Puchaux

Note, yet again that Chief Executive Jill McPherson, who should be fronting all this, is nowhere to be named.  She is using her employee Alison Puchaux as the sacrificail lamb to take the rap for all the KDC's stuff-ups.  There are many, many more to come and Jill McPherson appears to think that, like Lyn Provost, she can dodge personal liability by blaming her minions for the incompetence of the Council.

More on this later.

Planner Kellie Roland has made this pro forma submission available to those who wish to use it.  Note that the deadline for filing is today at 5 pm.  It can be emailed to Council Council@kaipara.govt.nz or dropped into the Mangawhai or Dargaville office.

The MRRA submission is here.

Tomorrow- 30 January - is the last day for filing submissions on the proposed changes to the district plan relating to the draconian fire safety rules.

Full details can be seen on the KDC website here.

Legal Eagle's submission can be seen here.

This is your last chance to stop Mangawhai and Kaipara being turned into a tank farm and concrete jungle.

Many of you will have recived rates invoices with a strange item called "disbursements".  Apparently it represents the amount that the KDC has expended chasing up your arrears of rates.

Let us make some things clear:

1. The rates invoice is strictly for the current instalment of rates.

2. Any costs incurred by the KDC are not rates.

3. Any costs incurred by the KDC are not you responsibility, unless a court has decided that.  No court has decided that.

4. The Council, and that includes the Commissioners, the Chief Executive and her staff, have no idea what they are doing.  They have already launched hundreds of legal actions against ratepayers on the basis of rates assessments and rates invoices that are riddled with defects, They have had to can the oldest debt first policy, and now they have made another serious botch-up.

The Council is going to have to issue amended rates invoices to everyone involved.

So hold tight.  More on that in the next day or so.

See the latest from the Northern Advocate here.

This is the latest from Honest John in his Mangawhai Focus propaganda piece:

Sheeting home accountability for past poor advice and decision-making with respect to rating and the Mangawhai Wastewater Scheme is a priority. Having filed papers in December, we hope that this calendar year will see those responsible brought to account.

It sounds immensely encouraging - "those responsibe brought to account" - and should give comfort to ratepayers that Honest John is living up to his name, 

But what precisely does it mean? 

Has Jack McKerchar been sued for all those years of negligence? 

Has Beca been sued for its contribution to the EcoCare fiasco?

Have the elected councillors, whose incompetence allowed all the rorts to happen, been held to account?

What of the lawyers who advised the KDC during those dark days?  Are they going to pay the price for their shoddy advice?

Don't get excited.  The reality is that this is another of Honest John's smokescreens.

He and his fellows, no doubt on instructions from the Government and the DIA, will take no action against anyone who is part of the Happy Family of local government that feeds off gullible ratepayers.

The Golden Rule of local government is that you never incriminate any fellow feeders at the ratepayer teat.

The only sacrificial lamb - to appease public opinion - will be the OAG in some form, either the OAG itself, or, more than likely, its pathetic off-shoot Audit NZ.

Mike Sabin made a big thing last year about holding the OAG responsible.   He was the lone wolf, and, now that he has more pressing matters to deal with, there is no one else to push this wheelbarrow.

It is highly likely that the Government has already done a deal with the OAG, its insurers and its lawyers about what  damages are to be paid for the gross incompetence of the OAG and Audit NZ.  It is just a matter of formally issuing proceedings (which apparently was done in December) and then announcing that an agreement has been reached on damages.

There will be no judicial hearing and the matter will be buried as quickly as possible, with Honest John allowed a tlittle trumpeting and credit-taking.  The Auditor-General will be allowed to duck for cover and dump responsibility so that she is not personally held responsible.

The whole thing will be a farce, and a cover up in the same way that the OAG report covered up the true depth of the malfeasance in Kaipara and delayed any chance of taking action in the courts against the true perpetrators of the Kaipara rorts.

It is utterly shameful that Lyn Provost, as Auditor General, failed so miserably in her dual roles as auditor of the KDC, and as watchdog for the KDC, and yet is still being allowed by Parliament to continue her roles.

She should have fallen on her sword long ago and the whole of the OAG organisation should have been investigated and revamped.

That is if you look at it from a ratepayer's point of view.

But if you see it as the Government sees it, then having a situation in local government where the regulatory authority turns a blind eye to blatant illegalities, and where auditing standards are miserable, creates an environment that allows local authorities to operate freely without having to bother with technicalities and compliance with the law, with no obligation to act prudently, and it gives total freedom to big business in New Zealand to suck the ratepayer dry.

We all know that the Kaipara was plundered with the aid of those who were involved in the Mangawhai EcoCare scheme. The banks, the promoters, the consultants, KDC employees and elected members used the "pollution of the harbour" as an excuse to inflict on the people of Kaipara one of the biggest rorts in local government history in New Zealand.

Now they are at it again. The Commssioners are dragging out the clean harbour/septic tank pollution to support stage 2 of the EcoCare Ponzi scheme.

This is what John Robertson has to say in answer to a question (which, incidentally, no one asked) in his latest Mangawhai Focus column:

With clean harbours and waterways in mind, maintaining and enhancing wastewater systems are a priority for Council throughout the District. A multitude of septic tanks in built up areas risks our environment. In Mangawhai, this means project planning and extending the reach of the Mangawhai community wastewater system. The plant has plenty of capacity for additional hook-ups. The local Mangawhai Advisory Panel, chaired by D’Arcy Quinn, is underway.

The same old, same old. Using septic tanks and the environment to argue for an extension of EcoCare. How many more million on top of the current $70 million are the going to force us to spend on the Big Lemon?

He even tells us that it is in the good hands of D'Arcy Quinn but fails to tell us that it is D'Arcy Quinn who is behind the drive to keep the Commissioners on, and stop democracy returning to Kaipara in 9 months.

Want to know more about D'Arcy Quinn?  Well, following on from Honest John's blurb there is an article on D'Arcy Quinn with his aims and aspirations for EcoCare Mark 2.  A letter to the editor?  No.  An article from a staff writer? No.  The article is authored by the KDC and written specifically for publifcation in the Focus (see Here)

So, a whole page of the Focus is dedicated to KDC propaganda. 

This is what D'Arcy Quinn has to say:

The Panel acknowledges some parts of the Scheme have been well done, but there is also some history that is less than ideal. However the Scheme is in place, its working and we can’t send it back. We need to accept it for what it is and make the most of it. Our focus is the future and what is the best community direction to take for our embedded community asset.

All the mealy-mouthed words that you expect from apologists for the Big Lemon and the subsequent cover-ups by the Commissioners. Forget the past and accept the Big Lemon and ensure that all the rip-off artists who filched tens of millions from us get away scot-free.

The Council has now got details on its website about the new proposals for EcoCare and shows a nice photo of John Robertson and his personally appointed Community Advisory Panel .


From left: Commissioner John Robertson, Dr Ian Greenwood, Commissioner Richard Booth, Ms Belinda Vernon, Mr D’Arcy Quinn, Mr Peter Wethey, Mr Darryl Reardon
Separate Photograph to right: Dr Gordon Hoskings

There will be a provision for ratepayers to make submissions via the KDC website.  We need to let the new Panel know that If there are problems then we need to know what they are. and we need chapter and verse on capacity and all the rest from independent experts in sewerage engineering, not those versed in smoke and mirrors.

EcoCare has less than 1700 connections and has "some further capacity". Hells Bells, we paid double the amount promised for 4,500 connections. What happened? Surely we were sold a lemon?

Historic documents are listed on the website. You will see nothing from independent experts relating to the condition of EcoCare, its capacity or projections for the future. The Commissioners would not let independent assessment spoil a good rort.

But, while you are at it, take a look at the historical documents such as Beca's Mangawhai EcoCare sizing and growth assumptions which is full of baseless puffery that was subsequently used to secretly extract double the agreed price out of the Mangawhai ratepayers and supposedly increased the capacity to 4,500 connections.  All rubbish, as we are now finding out.

Remember that the new Panel was cosily handpicked by John Robertson and Jill McPherson so it is stacked with those who support their vision of ratepayers being dumped with the Big Lemon and having to pay again and again for it.. 

Also remember that the terms of reference state:

The Committee has no responsibility or authority to address historical issues such as the issues relating to the historical rating for the scheme.

The lid is well and truly locked on Pandora's Box. 

Unless, of course, the ratepayers of the district make a mark in the sand and say that they are not going to be part of the EcoCare Ponzi Scheme.

In the Focus article Honest John continues his attack on the unreasonable and "pointless" decision of the MRRA to appeal the Heath J judgment:

Bringing to an end community division in the District is important. That is why Commissioners have urged the executive of the Mangawhai Ratepayers and Residents Association to drop their appeal over the judgment handed down by the High Court. This judgment might not have been to their liking, but continuing to use the Courts to fight the Council at great cost to ratepayers seems pointless.

He uses all the smokescreen words - "community division", "great cost to ratepayers" - but the reality is that he is running scared that the Court of Appeal will overturn Heath J and find that the KDC has no power to set rates for an illegal purpose.

Money is not the issue. Whilst whining in public about the cost of defending a "pointless" appeal, he is not publicising the fact that, on his instructions, his Chief Executive, Jill McPherson, is mercilessly pursuing 500 ratepayers (his figures), 200 through their banks and 300 through the courts.

That is 300 separate sets of legal proceedings. 

Imagine the costs involved.

                     THE TWO FACES OF HONEST JOHN

            IN PUBLIC                                                IN PRIVATE

       TO THE MRRA                                        TO JILL MCPHERSON


  "Please don't shoot"                                    "Shoot all 500 of them"

Barbara Pengelly, an executive member of the MRRA, had this to say in the Mangawhai Focus about Honest John's pleas to can the MRRA appeal:

An open question
The commissioners used an open letter in the Focus [Focus, Dec 8] as a vehicle to persuade the executive of the MRRA to withdraw from seeking justice for past wrongs in the spirit of moving forward.

Have we arrived at a time in NZ’s development where we turn our back on justice in the spirit of expediency? Is justice too expensive and not worth bothering about? Essentially that is the Commissioners’ plea: “It is all water under the bridge, now.” That is the message coming through.

My open question to the citizens of Kaipara is this: If you contracted a builder to build a house for you to the specifications you supplied but he instead ignored your plan and built something entirely different which for you that was entirely unsuitable, would you pay up saying, “Well, what’s done is done and cannot be undone.” Or would you take the matter to court and let the judicial system decide. After all, you have a house that doesn’t meet your needs, doesn’t suit the section it is on, is not built with the building standards in mind, has serious flaws and costs twice the original quoted price.

Litigation could prove expensive but then so is the house and you don’t want it. The builder wants his money and you don’t want to pay because it is not the house you commissioned. Would you take the matter to court or just pay up?

It’s worth thinking about, isn’t it?

Barbara Pengelly
Mangawhai Heads

An Everyday Guide to making a submission on a proposed plan change can be viewed here.

Remember that you have until Friday 30 January to lodge submissions in respect of the proposed changes to the district plan.in relation to the Fire Servic rules.  For more details scroll down to articles below.

The Fire Service code of practice can be seen here.

The important thing to remember is the legal nature of the code of practice.

1.2 Legal context

This code of practice is non-mandatory but could be incorporated into relevant bylaws under section 146(b) of the Local Government Act 2002 or district plans prepared under the Resource Management Act.

Most local authorities shun the code as being an unrealistic bureaucratic interference in the lifestyles of New Zealanders and refuse to incorporate it.

Kaipara, of course, decided to incorporate it into its district plan holus bolus without even knowing what it actually said, and without understanding the draconian effect it would have on future residential buildings and costs in Kaipara.

It is proposed that the size of the dedicated fire service tank is be reduced, but all the other unattainable standards are retained.

The aim of course is to entangle ratepayers who build in more bureaucracy that will line the pockets of the KDC and the consultants who drive decisions such as this.  It is becoming more and more mpossible to build a simple residence in Kaipara without a truck-load of expensive resource consents.

However, it is also the opportunity for the ratepayers of the district to send a message to the Commissioners that we do not want the fire service standards or any part of them.

If there is a large scale support for the deletion of the standards from the district plan and the Commissioners refuse to take heed of the ratepayers voice then we can mount a judicial review of the decision.

This would be coupled with a application to set aside any decision because of non-compliance with the RMA because of the failure to notify ratepayers of the proposal, as required by the RMA.

Those of us who met with the Local Government Commission (LGC) earlier this year in Mangawhai were less than impressed with its attitude. Its chair, Basil Morrison, was seething with attitude and it seemed to any casual observer that the Commission had predetermined the outcome of the consultation process regarding the proposed Unitary Authority in the Far North.

Basil Morrison - seething with attitude at Mangawhai

I use the word "proposed" with some hesitation because the Commission, supported by the government, intends to bulldoze through the Unitary Authority even if it is rejected by the majority of the people.

It is all part of John Key's plan for big business to effectively control all local authorities in New Zealand with the Local Government Funding Agency ensuring that every ratepayer in the country guarantees the debts of every local authority.

Ratepayers throughout the country are being stitched up. Aucklanders are squealing under the tyranny that they have finally woken up to, and Wellington is about to be pressured into joining the club.

North Rodney tried to break away from the Auckland autocratic monolith but, despite the majority of ratepayers supporting the breakaway, the LGC refused to consider it. The Northern Action Group has now applied to the High Court for a review of that decision.

The website and full details of the High Court proceedings can be seen here.

Northern Rodney would be based in Warkworth and Wellsford and stretch from Puhoi in the south and reach as far north as Port Wells, Te Hana and Te Arai. (See the map here.)

If the breakaway is successful then it would be a perfect fit for the Mangawhai district - if it could break away from Kaipara (or the Northern Unitary authority), and if it can resolve its debt issues.

Was it just sheer incompetence or was it another attack by the Commissioners on Mangawhai?

Mangawhai was put into a panic situation just before Christmas with news that its beaches were infected with E coli and that they would be closed until 14 January 2015.

Effectively that would have destroyed the whole of the holiday season.

However, it proved impossible to get any reliable information about the problem, and it soon became apparent that either dirty tricks or sheer incompetence was at work again.

John Dickie, a local expert on environmental management, made some enquiries and found confusion.  It appears that negative samples taken by the District Health Board should have immediately triggered follow-up samples.  That did not happen.  A warning sign was put up by the Surf Club and then replaced with a sign in the joint names of the KDC and the NRC prohibiting swimming and shellfish collection until 14 January 2015.

The KDC, as usual ran for cover.  John Dickie's urgent "please explain" letter to John Robertson and the Chief Executive was side-stepped.  The Chief Executive, who is becoming increasingly nameless and faceless, duck-shoved the problem onto George Lewis, the KDC compliance officer.

As it turned out, it all seems to be a proverbial storm in a tea cup.  New readings were taken and it appears that all turned out to be ok for the holiday season. John Dickie suggested that the closure of the beach was:

an over-reaction, and has social-economic consequences such as in the short term
the loss of income for the concessionaires with businesses at the Heads Carpark
area. If this were to occur during the Christmas - New Year - January period
there would also be substantial reputational damage to Mangawhai as a place for
beach-based swimming.

We are aware that the KDC Chief Executive has been ducking for cover and shifting all responsibility for decisions on to her staff .  Alison Puchaux is fronting all the legal action against ratepayers and is signing all the legal documentation. 

But things are getting worse.  Inquiries addressed personally to the Chief Executive are now responded to, not by the Chief Executive but by " regards, Council".  No name, no title.

It is therefore impossible to tell who was responsible for the letter or whether it is an official response from the Chief Execuvtive on behalf of the Council.

Steve Ruru was very different.  He fronted everything and was not afraid to put his name to any letter.

In an article FIRE SAFETY RULES CHANGE EXPLODES    23.12.14  (scroll down) I advised that I had challenged the Council on its failure to notify all affected ratepayers of the proposed change to the district plan as required by the RMA.  I wrote personally to the Chief Executive.
This was part of the reply that I received:

Council follows the first Schedule of the Resource Management Act 1991 which requires us to notify key stakeholders.  In additional to this we also notified the New Zealand Fire Service.

 For this particular notification, apart from one individual ratepayer who requested to be notified (and which we will be notifying) we did not notify individual property owners. Rather we reply on individuals to seek out information that may be relevant to their particular circumstances through public notices and our website.

The reply was signed "regards, Council".

There is no mention of "stakeholders" in the legislation, and if ratepayers are not "stakeholders" then who the heck is?

Why advise the Fire Service which gets the benefit (?) of the change, when those who bear the burden, the ratepayers, are not deemed worthy of consultation.

If the letter was written by the Chief Executive it shows that either she does not understand the requirements of the RMA or, in the short time that she has been Chief Executive, she has assimilated and mastered the "Kaipara side-step".  That is the nimble movement where one feigns transparency and consultation and then deftly side-steps legal requirements and does what one wants, whilst simultaneously thumbing one's nose at the ratepayers and the courts.

The "Kaipara side-step".  Avoiding legal compliance

The position taken by the KDC is a complete abuse of the law.  The RMA states quite clearly that the Council must notify personally:

"every ratepayer for the area of the territorial authority where that person, in the territorial authority's opinion, is likely to be directly affected by the proposed plan" (RMA Schedule 1).

The big catch, of course, is to be found in the words "in the territorial authority's opinion".  That is an open invitation for the Commissioners, yet again, to make up its own rules and flout the law.  There is no doubt that any court would have no hesitation in deciding that any opinion of the local authority would have to be "reasonable".  It is also clear that the court would agree that the proposed change affects all ratepayers in the district and should be notified personally.

But that would mean another application to the High Court.

This is Honest John and his cronies, and their Chief Executive, manipulating the law again to their own advantage.  They boast publicly of their transparency and consultative approach, but actually perform their obligations with the same disregard for the law and their legal obligations as their predecessors,  They then complain bitterly when ratepayers are forced to challenge them in the courts and use ratepayers' monies to block any legal action.

Oh dear. more of the same old, same old.

Thank God there is only nine months and a bit to go.

Mike Sabin is fighting for his political life.  The Northland MP supported the validation of six years of illegal rates in Kaipara and the validation of vindictive penalties, and is now supporting an extension of the Commissioners' occupation of Kaipara.  However, he is now being investigated for charges of assault and there are questions being raised as to why he is still chairman of Parliament's Law and Order Select Committee.

It appears that the Prime Minister may have known of the allegations prior to his appointment.

Yesterday's Sunday Star Times article can be seen here

Whale Oil has this to say:

Again from what I know I don't think it is survivable. Key accepted the resignations from people accused of far less and axed Ministers for far less as well.

You have to start wondering what sort of deal Sabin and the PM have for him to still be sitting in the Northland sun thinking nothing will come of this.

The only way out is for Key to throw him under the bus by saying Sabin lied to him – and it is his habit to take an MPs word until proven otherwise.  Now that it is proven to be a lie, he should have no hesitation at all.

Honest John had this to say to ratepayers in his final comment in his propaganda sheet, the Mangawhai Focus:

On behalf of the Commissioners and Council staff, Merry Christmas and a prosperous New Year.

I am sure that most of us will have a Merry Christmas. That is something that the Commissioners have not outlawed, yet.  Although I note that they have bumbled and fled for cover over the e coli outbreak that has cast a pall over Magical Mangawhai.

As for a prosperous New Year, only time will tell. But 2015 is when the banks have to extract their pound of flesh from ratepayers and no doubt that will be reflected in the new LTP which will be launched on us in January. Another rate bomb in the offing?

There will be a move to force the ratepayers of the North into a unitary authority even though no one but the government, Local Government New Zealand and the banks want that outcome.

And contemporaneously the gang of 50 led by D'Arcy Quinn and Richard Bull, and ably assisted by Peter Nicholas, will be doing all they can to sabotage the return to democracy in Kaipara so that the rorts of the past can stay well and truly buried and the shameful state of affairs in Kaipara remains shrouded by thick smoke.

Things are also bubbling away in respect of EcoCare. Honest John and his crew are doing all they can to hide the true facts and are trying to suck ratepayers into funding further capital expenses (with more debt and higher rates) to bring the plant up to the capacity that we were promised was covered by the original quote of $35 million. That was secretly upped to $60 odd million or more. (No one knows how much was spent and the Mangawhai Endowment fund probably disappeared down the EcoCare dunny.)

But in spite of vast amounts of money being spent, we still have a sewerage system that does not measure up to what was promised and simply cannot measure up. It is a lemon. And having a group of hand-picked patsies to endorse the Commissioners' subterfuge and smokescreen is not going to turn a pig's ear into a silk purse.

There is an old adage: If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.

But not in Kaipara.  The Commissioners would have us believe that the EcoCare duck is something completely different.

A little birdie tells me, that something else is afoot with EcoCare. It is Top Secret, of course, but no doubt it will eventually emerge from the thick smoke as the new year unfolds.

We also have a year of litigation ahead. Honest John is strangely silent about his bizarre "engagement" with ratepayers when he launched a legal attack on 500 hundred of them, 300 through individual legal proceedings.

The Council is on very shaky ground and there is going to be an awful lot of egg flying about looking for faces to land on and the three Commissioners and their Chief Executive are likely to be the targets.

The Court of Appeal has set a date for August for the MRRA appeal and the Court has recommended a full Court of Appeal hearing because of the importance of the legal issues involved.

It is going to be a ding-dong fight which will decide whether the rule of law applies to local authorities in New Zealand, or whether they are free to ignore the law and financial prudence and still expect ratepayers to foot the bill.

It would be nice to think that by this time next year a democratic Council will be in place, that the Commissioners will be on their next junket, that the books have been opened, and the illegal debts will have been dealt with in the way that they should have been dealt with years ago.

And, as a final word:

All those ratepayers who have fought a valiant battle against the illegal rates and vindictive penalties should take a bow.

Some have given into the pressure along the way but that is understandable. You are all still heroes and I hope that 2015 will be the year when all our principles are vindicated and we can get back to a democratic, honest and transparent rule in Kaipara and start building for the future.

And thanks to you all for your encouragement and support.

A Happy Christmas to you all and a prosperous New Year in a democratic Kaipara.

The Mangawhai Focus has finished the year in the same way that it has carried on through the year, by including a totally one-sided report on extending the Commissioners' term of occupation of Kaipara.

The Focus endorses the Commissioners unquestioningly and its reporter in this instance, Peter Nicholas, presents a totally biased account of the move to petition the Minister of Local Government  to save Kaipara from democracy and to ensure that it remains under the guidance of Honest John and his two side-kicks.

In the article the return to democracy is painted as undesirable by local business man D'Arcy Quinn and former Kaipara Council Deputy Mayor Richard Bull.  They suggest that the Commissioners have vast knowledge and background information on outstanding litiigation and that ratepayers could be "assured of good financial and compliance governance in the period leading up to rationalization"  "Rationalization" means the unitary authority, presumably.

Most ratepayers would take issue with both of those suggestions.  The Commissioners do not have a clue what they are doing when it comes to litigation and are mere pawns in the hands of their lawyers.  The issuing of legal proceedings against three hundred ratepayers was an exercise in futility and stupidity, especially in light of the fact that the rates assessment notices and invoices are all clearly defective.

If the Commissioners had not insisted on imposing the vicious, vindictive penalties on the illegal rates, and dealt with ratepayers fairly, openly and honourably they would have had some chance of success.  But they selected the road of arrogance, retribution and further illegality and it is a road that leads to ruination for Kaipara.

As for "good financial and compliance governance" - whatever that means - the Commissioners are misleading the ratepayers of the district and hiding the fact that the Council is completely insolvent.  

This introduces the third reason given for rejecting democracy:  "Vested interests in the District would not be able to gain control of any council at a time when local government in the region was in transition".

It is all mumbo jumboish but clearly the anti-democracy movement is petrified that a truly democratic council would open the books and expose the true financial state of affairs and show the Commissioners and all their supporters for what they are. 

They are alarmed that a democratic council would bring the EcoCare plant under the microscope and assess it and value it as the lemon that it really is.

And they are really worried, to the soles of their boots, that a democratic council will discover the rorts that really went on when ratepayers' monies disappeared in their millions because of the actions of those who ran the council at that stage.

There is an awful lot to hide and preventing a democratic council from being elected is one way to ensure that the murky rorts of the past remain buried and all those who have something to hide can be assured that their malfeasance will not be outed.

The author of the Mangawahi Focus article, it is revealed at the very end, was in fact the co-ordinator of the letter from the anti-democracy group that was sent to the Associate Minister of Local Government.  He was afforded over a half page for his one-sided, utterly partisan comments, with only a brief nod to the MRRA at the end. 

In the previous edition of the Focus, Commissioner John Robertson was allowed 600 words of total propaganda disguised as an Open Letter to the MRRA executive.  Bruce Rogan, the Chair of the MRRA, requested a right of response.  The Focus agreed to 500 words but then, miffed at the content, did not publish any of it.

The one piece of good news to come out of the Peter Nicholas article is that Richard Bull and D'Arcy Quinn could only muster 50 or so ratepayers to support their anti-democracy crusade.  They tried to bolster the figure by suggesting that there was "a wide range of Kaipara ratepayers" "from Dargaville through to Mangawhai", but, at the end of the day, fifty is just fifty.

In comparison Honest John is suing 300 rebels and is chasing up anothe 200 through their mortgagees (his figures).  These victims are determined people who refuse to bow to the illegal actions of a disreputable council.  But that is only the tip of the rebel numbers.  Many people have succumbed to pressure from the Commissioners and the government but they remain staunch supporters of the cause.  I suspect that the numbers that oppose the Commissioners and insist on a return to democracy would number many thousands.

The Commissioners have to tread carefully.  They made a real hash of the Validation Bill by misleading Parliament over the contents of the Bill, by their misleading promises in respect of the remitting of penalties, and they continue to flout the law in the same way as the council that they replaced.  They are have now launched a legal strike against 300 ratepayers that is guaranteed to backfire and make a mockery of their competence.  A denial of a return to democracy may well be a bridge too far for the people of Kaipara.

There is one good thing that Richard Bull and his mates have done and that is to simplify the issues that are being fought over.

Do ratepayers want the Commissioners, with vindictive retribution, further illegalities, no acceptance of the rule of law, no transparency and absolutely no democracy?

Or do they want cooperation, compromise, compliance with the law, transparency, and democracy?

Its a no-brainer really.  You would only support the former if you had something to hide.

The proposed change to the district plan has run into compliance problems.

The proposal outlined in several articles below (FIRE SAFETY RULES 20.12 14, and  FIRE SAFETY RULES 04.12 14) has been publicly advertised by the Council by inserting details of the proposal in local newspapers.

However, the Council is under a legal obligation to personally notify "every ratepayer for the area of the territorial authority where that person, in the territorial authority's opinion, is likely to be directly affected by the proposed plan" (RMA Schedule 1).

There is absolutely no doubt that this proposal affects every ratepayer in the district because it limits the layout, size and amenities of any property that is built in the district that does not have reticulated water supply.

In areas like Mangawhai that means the majority of properties.

The Fire Service rules are draconian and will turn our villages into tank farms and concrete jungles. Trees are not allowed within 20 metres of any building:

Note 1: For fire safety, the New Zealand Fire Service advises that buildings should be at least 20m from the dripline of any tree and that these setbacks are also appropriate from scrubland and other similar vegetated areas.

In other words, the Commissioners - with just over 9 months to go - are making an indelible mark on the future of our beautiful district . They are not only bankrupting us but making Magical Mangawhai a look alike for the1950's industrial wasteland of Vladivostok.

Magical Mangawhai - post Commissioners

And they are doing it - yet again - without going through the proper legal notification process. In their usual grubby little way they are sneaking it through over the holiday period in the hope that no one picks up the ramifications of what they are doing.

This is not about fire safety but about bureaucracy gone mad. and a miserable destructive approach to the people and the communities of the district

Perhaps the stripping of the cupboards bare, the vindictive penalties on illegal rates and the Fire Service Rules are the Commissioners' revenge on the revolting inhabitants of the district who have persistently refused to lie down and do as they were told.

Legal Eagle has challenged the Council on its illegal notification process and it will be interesting to see if it will continue to flout the law and invite another legal challenge or whether it will accept wiser counsel.

But you have to wonder if anyone in Dargaville knows what they are doing. It must be a huge concern for the ANZ and the BNZ who have invested so much money in a council that is teetering on the brink and can only survive because the government endorses its smoke and mirrors charade that covers up the impossibkle and irretrievable positon that it is in.  

But sooner or later the truth will be exposed and Humpty Dumpty is going to have a very great fall.

Humpty ready for his fall

The Commissioners will be delighted to hear that the Court of Appeal has finally allocated a fixture date for the MRRA judicial review appeal.  It will be heard in Wellington on 25 and 26 August 2015.  That is over a year after the application for a fixture was made.

The Department of Internal Affairs and the banks will be disappointed.  They wanted the rebel ratepayers corralled and dealt to by the end of 2014 so that the EcoCare debts could be refinanced and the KDC could join the Local Government Funding Agency.  When that happens Kaipara ratepayers will not only have to foot the bill for their own Council's illegal activities but will also have to guarantee the Auckland Council and every other cot-case council in the country. 

There is little doubt that the the Court of Appeal date will now be used by the government as an excuse for extending the reign of the Commissioners and to deny Kaipara ratepayers their democratic rights.

You would not know it but you are being consulted on the amendment to the Fire Safety Rules that are turning Magical Mangawhai into a tank farm.

A cynic would say that consultation is deliberately carried out over the Christmas break so that ratepayers are distracted.

Scroll down to:  FIRE SAFETY RULES   04.12 14 to see previous comment on the matter.

At present, under the new District Plan which came into force last year, you have to have a dedicated tank of 45 cubic metres for fire fighting but that can be reduced to ten cubic metres is if you go through the hoop-la and pay through the nose. Under the amendment you will be allowed to have a ten cubic metre tank as of right.

The problem is that effectively the tank has to be on the road side of the property and you have to provide access for a fire truck, a concrete hard stand for the truck and an on-site turning area for the truck.

Statistics will tell you that a house burning down is a rarity and it is bureaucratic overkill to require such precautions for such a rare event.

The fire brigade in Mangawhai already has a six cubic metre tanker that it takes to fires, so why not upgrade that to ten cubic metres and your bureaucratic requirements are satisfied without desecrating our beautiful district with concrete tanks and driveways and without gouging the ratepayer for more money?

The reality is that no matter whether you have a tank or not (and the rule only applies to new properties), or how big the tanker, if there is a house fire the house will be long gone before the fire brigade gets there.

Proposed Plan Change No.2 is going through a full public process under Schedule 1 of the Resource Management Act 1991. The proposed Plan Change has a submission period of Monday 08 December 2014 to 5pm on Friday 30 January 2015. This will be followed by a Further Submission period, Hearings and then Council will make a decision. All submitters have appeal rights to the Environment Court.

 For Section 32 Evaluation Report click HERE
For Summary of Plan Change click HERE
For Public Notice click HERE
To make an online Submission click HERE

This is your chance to stop the Commissioners from destroying our district. 

Readers will no doubt be bemused by the Commissioners' sudden about-face in respect of the right of ratepayers to nominate that they wish to pay only the current instalment without paying arrears

As reported below under HONEST JOHN DOES AN ABOUT-FACE the Commissioners have abandoned their penalty policy of insisting that any monies paid are credited to the oldest amount due.

Ratepayers were given no choice and were denied their legal right of paying the instalment only without any penalty being incurred.

In the article mentioned I referred to Alison Puchaux of the Council advising that the policy had been changed "in view of the circumstances", and queried what the "circumstances" were.

Ratepayer Peter Hemphill has inquired of the Council and Allison Puchaux has responded as follows:

The “circumstances” are that due other priorities such as debt arrears collection processes and in view of your desire to pay something towards your rates, Council has reviewed its position. Council may continue to apply “instalment only” payments to current year rates when prior years arrears are still outstanding if circumstances remain the same.

Which is a whole lot of mumbo-jumbo that means absolutely nothing. It also makes it sound as if the Commissioners can change their penalty policy on a whim, which, of course, they cannot.

Alison Puchaux is employed by the Chief Executive, Jill McPherson and it is somewhat surprising that all documentation and legal papers are now signed by a staff member, whereas Steve Ruru, the former Chief Executive, did everything in his own name.

So, although Alison Puchaux does the dirty work, it is Jill McPherson who pulls her strings, and her strings are pulled by the Commissioners, and the Commissioners strings are pulled by .........

But at the end of the day it is the Commissioners who have made a massive faux pas. It is not just a simple case of making an error in respect of the penalty policy, it has far greater significance.

Jonathan Salter of Simpson Grierson was paid a King's ransom to vet the old rates and to draft a validation bill to validate the truckload of fatal errors in the setting of rates and in the rates assessment notice and the rates invoices.

Sadly, however, the KDC being the KDC, it just could not get compliance right and it has now made another half a truck-load of errors that are fatal to the validity of the more recent rates assessment notices and the rates invoices.

The Local Government Rating Act (LGRA) requires that certain information must be clearly identified in those documents and yet again the KDC has failed to do this. It has misstated the penalty regime by including the "older debts first" policy, which is illegal under the LGRA, and it has denied ratepayers their right to pay the instalment only by the due date without incurring a penalty.

The effect of this is that it has added penalties illegally and subsequently added further penalties on the illegal penalties. As a result, all the amounts shown as owing are incorrect.

The law is quite clear that if a rates assessment notice is defective then a ratepayer has no obligation to pay the rates.

The remedy for the Commissioners is to acknowledge the fundamental breaches of the law, to re-assess the rates with a correct notice, and then deliver an amended rates invoice to each ratepayer in the correct format and for the correct amount.

This error is only one of the several errors in the rates assessment notices and the rates invoices, and no doubt Jonathan Salter and his team are working overtime to work out how to fix the latest crop of errors, if indeed, this time around, they are fixable.

What is certain is that the 300 legal cases in the District Court fall at the first hurdle because of the defective assessment notices and invoices.

It will be interesting to see if Honest John and this team will be big enough to face up to their massive faux pas, and admit their fatal mistakes. Or whether they will try and bluff it out and spend another King's Ransom of ratepayers' money on seeking their very personal revenge against rebel ratepayers in the District Court.

The March on Moscow by the Commissioners continues as they pursue rebel ratepayers through the District Court. Some ratepayers are proving hard to track down and the KDC has just spent a bucketful of ratepayers' money on Public Notices in the NZ Herald (15 December 2014) which serve as substituted service for those named that it cannot track down.

Even those who are supporters of the Commissioners must be beginning to have some doubts whether such actions can be justified and whether, given all the errors in the rating documentation, the Commissioners are completely out of their depth and have embarked on a road to nowhere, again at the cost of the ratepayer.

Many readers will already have read the latest crassness from Honest John Robertson in his own personal propaganda sheet, the Mangawhai Focus (here).

His latest effort is what he calls an Open Letter to the Executive members of the MRRA in which he is almost begging them to withdraw their appeal to the Court of Appeal.

It is interesting that he has not communicated directly with the MRRA but now uses the Focus as his communication channel, presumably with the intent of proving to his fans what a fair and reasonable avuncular figurehead he is.

What he says, of course is all rubbish. It is the usual smoke and mirrors that ex Mayor Neil Tiller was so adept at. It seems that those who assume the mantle of power in Dargaville also get infected by the same malady that causes hallucinations and a proclivity to dissimulation and falsehoods.

The letter commences with Honest John boasting of his "achievements":

Our work has included getting the accounts of the Council into order; containing debt;

None of which is true. The financial accounts of the KDC are swathed in a thick fog and the Commissioners simply will not allow independent forensic experts to examine the books.

Honest John's boast that the debt has been reduced comes from some accounting wizardry (or what we would call "cooking the books").  It is impossible to reduce the Kaipara debt because a large part of the of the interest is still being capitalised and will be forever.  It is a cancer that will never stop.

The reality is that Kaipara is broke, and Honest John will never ever reveal that.

His other achievement is:

engaging the community in a transparent way.

Like refusing to consult on the Validation Bill and refusing to consult on the vindictive validation of penalties.

And what about suing 300 ratepayers individually? That really is a novel way of "engaging the community".

"engaging the community" Honest John style

He goes on to criticise the MRRA for mounting its judicial review proceedings but ignores the Commissioners' refusal to acknowledge the illegality of the EcoCare rates and the EcoCare debts which forced ratepayers to pursue their only option - the courts.

But, perhaps, the most offensive of Honest John's bleatings is the comment:

The High Court heard the case over three days, and found against your Association on every one of its legal points. It awarded MRRA none of the remedies it sought.

That sentence illustrates the integrity of the man.

This is what the High Court actually found:

• The EcoCare and other rates (for six years) and the development contributions and the 2013/22 LTP were all illegal.

• The decisions to go ahead with EcoCare and to incur debts to fund it were all illegal.

• The EcoCare loan agreements were all illegal.

However, Heath J went on to make the following orders:

• The Validation Act validated the illegal rates retrospectively.

• The protected transaction provisions of the LGA meant that the illegal loan agreements could still be enforced and that the Council could therefore set a rate to meet the loans.

Heath J also declared that the Validation Act deprived ratepayers of their rights under the NZ Bill of Rights Act to seek judicial review but that this was a justified exception to that right. However he proceeded to award substantial indemnity costs to the MRRA to illustrate that their legal rights had effectively been gazumped by the Commissioners.

Honest John goes on about the cost of the MRRA litigation and totally ignores the massive sums of money that he and his fellows expended on the legal advice surrounding the Validation Bill and the huge amounts they are still spending on legal advice before virtually every decision is made.

He shamelessly lambasts the MRRA for "the substantial costs that litigation imposes upon ratepayers" but does not mention that he has instigated separate legal proceedings against 300 Kaipara ratepayers.

The irony is that many of those proceedings are going to be defended to the bitter end and Honest John has committed himself, effectively, to the invasion of Russia and a massive war of attrition. He should have learnt a lesson from Napoleon and Hitler.

The Open Letter ends with a "sincere" plea:

It is surely time to bring litigation against the Council to a close and move into 2015 in the spirit of community and partnership. Sincerely,

He only wants litigation AGAINST the Council to end. As this Open Letter was being published and read, and Honest John was declaring his "sincerity", his minion Alison Puchaux, and the various lawyers that they have appointed, were vigorously pursuing legal proceedings against the good citizens of Kaipara in an act of utter vindictiveness and abuse of power, the likes of which local government in New Zealand has never seen.

The vision of process servers hounding and terrorising good honest ratepayers throughout the district does not represent to most of us the "spirit of community and partnership".

"Sincerely..."              Yeah, right

Yesterday the Whangarei District Court declined an application for an order forcing the KDC to reveal the names of all the people that it is issuing proceedings against.  The presiding Judge, D J McDonald, stated that the District Court had no power to make such an order.

The Council and the defendants have, however, reached agreement on the consolidation of the cases that file the same defence that has been filed by Bruce and Heather Rogan on the MRRA statement of defence template (see blog below).

It is interesting that the District Court is a creature of statute, and, like local authorities, must act wihin its statutory powers.  A cynic might note that the District Court is not only self-regulating but open to scrutiny and attack by litigants if it exceeds its powers, but local authorities can wander aimlessly down the path of illegality with complete impunity.

If you have been served with proceedings you are asked to contact Bruce Rogan (mrra@vodafone.co.nz) so that the MRRA can keep a register of defendants and coordinate all defences.

The Whangarei District Court today considered an application for proceedings issued by the KDC against ratepayers to be consolidated into one single case to be heard by the court. 

After first opposing the proposal the Council's lawyer agreed to the proposal and the final terms and the wording of the order will be available later this week.

The guinea pig case will be against Bruce and Heather Rogan and all other cases with the same statement of defence will be held in abeyance until that case is decided.

Those issued with proceedings are free to defend their own case in any way they want, but if they wish to take advantage of the MRRA statement of defence template they should contact Bruce Rogan urgently at mrra@vodafone.co.nz .

The only cost is the standard Court filing fee of $75.

The present order will only cover those cases filed in the Whangarei Court but it is intended to file similar orders in the other courts where proceedings have been filed.

The Commissioners will all be in meetings with lawyers today as they consider their latest blunder that has huge ramifications. 

As many ratepayers are aware, the KDC has been insisting that any monies paid in rates must be applied to the oldest debt first.  They have said that this is part of othe KDC's "penalty regime" and ratepayers have no right to nominate that they wish to pay the current instalment only.
The Council has refused to accept monies paid with such a nomination.

The problem is that the so-called policy is not part of the penalty regime and cannot be so because it is against the law.  Ratepayers have the right to pay an instalment by due date and they cannot be charged a penalty even though there are arrears still outstanding.

This issue is raised in the MRRA template statement of defence, the first of which was filed on 5 December.  The Council lawyers would have seen it straight away and assessed the legal situation.  As a result, from 9 December Alison Puchaux at the KDC is now agreeing to accept payment of the instalment only and not to apply it to the oldest debt. 

According to the latest letters the KDC is doing this "in view of the circumstances", but, as you can imagine, the "circumstances" are not explained.

And IF the original policy was part of the overall penalty regime then the Council cannot simply change it.  It has to be part of the consultation process in the annual plan or LTP.  But, of course, it never was part of that policy.  It was an illegal scheme to gouge more money out of ratepayers.

The Commissioners have, effectively, been caught with their hand in the till.  So much so that they are already offering a plea in mitigation.  In the latest letters they say about paying older debts first:

"This is standard practice in the local government sector and in other commercial organisations."

That may be, but in the local government sector it is illegal, and the KDC has been doing it for many, many years.  Ratepayers have been ripped off and forced to pay penalties that were illegal, and then forced to pay further penalties on illegal penalties every six months.

The mind boggles at the enormity of the problem that has been created, not only for the KDC but for all other local authorities in New Zealand which have adopted the illegal policy.

I receive many comments from readers supporting my criticism of the biased reporting of the Mangawhi Focus in relation to the strife between ratepayers and the Commissioners.  It is my view that much of the Focus's coverage of the issue breaches the standards of good journalism. 

It has reached the stage where the newspaper has become a propaganda rag for John Robertson.

Some weeks ago I criticised a very unbalanced article by a Peter Nicholas and received some rebuke in the next "Ed Said" column of the Focus.  I don't know if Peter Nicholas is a reporter, a commentator, or just an author of Dear Editor letters, but what I do know is that he is now fronting the move to have the Commissioners reign extended until the Unitary authority is set up. 

 He and his group are trying to prevent democracy returning to Kaipara.

Prof Worzel, who is also a regular writer in the Focus, responds in the latest edition to the Peter Nicholas article under the title:  Worzel's World - Numbers and Stories. (here)

It paints a very different picture to that presented by the previous article and certainly adds a balance that the Focus consistently lacks.

The true figures make a mockery of EcoCare and the Prof's article should make every ratepayer in the district stop and ask :  Where is all this nonsense heading?

Honest John Robertson, the head Commissioner, who bleats about ratepayers challenging the Council in court over 6 year of incompetence, illegality and deceit, has now issued so many legal proceedings against good honest citizens that he has lost count.

He has declined to supply the number of parties sued by the Council following an MRRA Official Information request - so much for his much vaunted transparency - and the Association has been forced to rely on comments that Honest John made in local newspaper reports.

In the Mangawhai Focus of 10 November 2014 he was reported as follows:

:Mr Robertson said that the process of collecting overdue rates from those defaulters who did not have mortgages was just beginning.

“We have several hundred demands to serve; formal court documents which are a Notice of Proceedings,” he said.

In the Dargaville and District News of 12 November 2014 he was quoted by Annette Lambly as follows:

Robertson says about 300 people had been issued with a notice of proceedings and the banks or mortgage holders on another 200 properties have been advised of the outstanding rates.

In an affidavit sworn by Council employee Alison Puchaux, who is fronting all the legal work of the KDC, the figure of 300 was denied and the District Court was advised that only 107 proceedings had been issued.

That is quite a difference.  Only a third of what Honest John said.  How can it be explained?

Alison Puchaux's figure was given under oath so is presumably true, but that would mean that Honest John was telling porkies.  Or was he misreported, or did he get confused by all the smoke and mirrors that seem to envelop him?

LIMITATION PERIOD   10.12.14Further to the post immediately below, it seems that the statutory limitation period of six years looms large in the minds of many who were involved with the Kaipara debacles.  A lot of people and a lot of firms have a lot to hide and a cynic might suggest that the delay of the Commissioners in taking action aggainst anyone culpable has been calculated to let them off the hook through the expiry of the limitation period. 

Even Mike Sabin suggested that the OAG delayed its report so that it could escape liability by pleading the limitation period.

There are those who have a very murky involvement with the KDC and do not want the financial records and archives scrutinised by independent forensic experts, and it seems somewhat coincidental that the Commissioners refuse to have independent experts in and cloak the reords with so much smoke that it looks like an Australian bushfire.

The return of democracy means a return of transparency and that would never suit those who have a great deal to hide.

Only a month ago (here - scroll down to  05.11.14) I did a blog on DEMOCRACY DEAD IN THE WATER in which I predicted that democracy woud never return to Kaipara.

I said:

A return to democracy would invariably mean that, for the first time, the books would be opened and the financial reality laid bare. The EcoCare project would be exposed to the laser light and exposed for the fraud that it is. And all of those who have played a role in concealing the truth over many years and conspiring to bankrupt the ratepayers of the district would be exposed for what they are, not what they pretended to be.

It now seems, from a report in the Kaipara Lifestyler here , that the National Party supporters in the district are getting together to pressure the government to ensure that the the Commissioners continue their reign of terror and obfuscation until the Kaipara skeletons can be safely buried in the new Unitary Authority in 2016.

Many current and past councillors and employees of the Council are concerned that if democracy is returned to Kaipara and the financial books and archives are opened to the public for the first time then a lot of reputations will go down the tubes.

They don't put it that way, of course.  This is the National Party's "Dirty Tricks" brigade at it again with their smoke and mirrors.dissimulation.  This is what they have to say:

 “As a group of concerned Kaipara residents and ratepayers, we humbly ask the Government to consider extending the term of the Kaipara District Council Commissioners until at least 2016 to coincide with any future rationalisation of local government in the Northland region.

“We strongly believe this extension of the Commissioners’ role would add stability to our region in a period where far-reaching decisions will be made about the future shape of Northland.”

The letter circulating to anti-democracy supporters says the appointment of Commissioners has resulted in the Council’s finances being stabilised, and then adds:

“However, there is still much work to be done and we are fearful that an early termination of their role will have many disadvantages for our District.”

The reality is that Kaipara has been a festering rort and Ponzi scheme for many years and those involved would like to see it buried in concrete.  A return to democracy in 10 months time would haunt many of those who have an awful lot to hide.

Local MP, Mike Sabin, who promoted the Validation Bill that denied all Kaipara residents their legal rights and validated 6 years of incompetence and illegality, has indicated his approval of the latest move that, yet again, denies ratepayers their rights to a democratic local council.

No doubts he is echoing the sentiment of the National Party caucus that is determined that Kaipara must not fail and that all the rorts of the past and present must be buried and locked away beyond investigation.

The question is whether the ratepayers of Kaipara are going to accede again to a blatant denial of their democratic rights or whether they are going to make a stand and insist on the return of democracy.

The road to Democracy in Kaipara

This was the cartoon that appeared on kaiparaconcerns two years ago when John Key met with Vladimir Putin.

John Key has repeatedly ducked for cover over Kaipara.   He feigns no knowledge of what is going on  - Manuel style, if you know Fawlty Towers.

"I know notheen, Mr Smith"

The reality is that John Key is very aware of what is going on in Kaipara and he and his advisers accept that Kaipara is the bellwether of the state of local government in New Zealand.  That is why the government, Local Government New Zealand, and the Department of Internal Affairs have done all they can to crush the Kaipara rebellion, very much as Vladimir Putin suggested.

John Key knows that if Kaipara goes down then it is the first domino to fall.  Many of the other corrupt and incompetent local authoritIes will follow.  That will mean that the sham that is local government in New Zealand will be fully exposed and the rich feeding grounds for banks via the Local Government Funding Agency will disappear.


It is not looking good..  The fact that 500 property owners have been individually targeted, 300 through the courts, suggests that the rebels are determined to fight this battle to the end.  They are defending their non-payment of rates in the District Court and the indications are that the Commissioners, who were appointed to crush the rebellion, are going to be forced to admit the illegality of their rates.

Kaipara is going down fast and John Key will be watching closely and devising his plan B. 

Surprise! Surprise! New Zealand has lost its place as having the world's least corrupt public sector. (See Scoop story here)

The rankings are based on Transparency International's Corruption Perception Index. Note the word "perception". The test is not the actual corruption in a country but what is perceived as the level of corruption.

But whose perception is it?

Transparency International is seen by many as a front for big businesses who wish to promote New Zealand as a country that it is easy to do businesses with, and the rankings are just propaganda to achieve financial ends.

There is no doubt that most New Zealanders know of the rankings and pride themselves on being one of the least corrupt countries in the world, but ask any individual and they will tell you of rorts in the public sector and elsewhere that they are aware of.

Local government in New Zealand has in the past in many cases been run like a fiefdom for those in charge with broad opportunities to enrich the favoured ones.

Nothing much has changed except the forced adoption of unitary authorities means that the big businesses that effectively control local authorities in this country can entrench themselves more easily and not have to go through the pretence of legal compliance, transparency and consultation for a multitude of individual councils.

Look at the promises about Auckland's unitary authority and reducing costs and rates, and look at the reality with big businesses and plutocrats running the show on the edge of the law, strictly for their own benefit.

Wellington is next, and watch out for the move to swallow Kaipara up into the Far North Unitary Authority. That will probably be revealed just before Christmas when ratepayers' thoughts are elsewhere.

Transparency International is not the slightest bit interested in the corruption and rorts that have plagued Kaipara for many years . Nor is it interested in similar problems with other local authorities in New Zealand and the fact that local government in New Zealand is corrupt from one end of the country to the other.

To acknowledge the true state of affairs would not be good look and would spoil the illusion of New Zealand that it wants to present to the world.

Perhaps a name change? Opacity International?

A BRIGHT LIGHT  04.12.14
Penny Bright has given Kaipara ratepayers huge confidence in their fight against the tyranny of John Robertson and his fellow Commissioners.  The District Court has made some rulings that should warm the cockles of ratepayers' hearts in Kaipara and throughout he country.

The decision challenges the whole approach of the Commissioners to illegal acts and illegal rates.  The KDC, on advice from its solicitors, has stated that all the decisions and actions of a local authority are legal until the court decides otherwise, even though they are blatantly illegal.

They also say that section 60 of the Rating Act requires ratepayers to pay rates even though they are illegal, unless they have filed proceedings in the High Court.The NZ Herald reports that Judge Mary Beth Sharp has swept all that away:

Judge Sharp said Ms Bright would have a "substantial argument of defence" if she was correct. She said every ratepayer had an obligation to pay rates but the imperative did not "crystallise" until council fulfilled its obligation.

The obligation on ratepayers to pay the rates is not absolute but conditonal.  Ratepayers are only obliged to pay the rates IF the Council complies with its side of the bargain and complies with the law.  That ties in with the argument that we have put forward that section 60 only applies to "rates "as defined by the Rating Act, and rates that are not set, assessed and invoiced in compliance with the law are not rates within the mening of the Rating Act.

Judge Sharp goes further and states that the District Court will entertain and consider the question of illegal rates.  It is not necessary to file proceedings in the High Court.

The Commisoners, their banks, the Department of Internal Affairs and everyone in local government in New Zealand will be gob-smacked by the decision.

And it is all happening on the day that the first statement of defence was being filed by an MRRA member on pretty well the same grounds that Penny Bright has argued.

All very serendipitous for ratepayers

If you are being individually sued by the Commissioners for non-payment of rates then you should take action very quickly.  Many ratepayers have understandably yielded to John Robertson's reign of terror and coughed up, but there are many who are determined not to pay a penny in illegal rates and penalties.

The deadline for filing a statement of defence is 25 working days after you were served with a Notice of Proceedings.

The MRRA is offering a standard statement of defence and list of documents that you can use.  Fill in your name and details and file with the District Court.  There is a $75 filing fee. Contact Bruce Rogan on  mrra@vodafone.co.nz 

The MRRA has also applied to the District Court to have one one representative case heard by the Court and the rest of the cases held in abeyance until the outcome of that case is available.  Bruce and Heather Rogan are the guinea pigs for the representative case.

It is hoped that hte Chief District Court Judge will make a ruling on the matter sometime next week.  However, it is vital that you still file your statement of defence within the time-frame otherwise they will enter judgment against you as fast as a rat up a drainpipe.

A careful scrutiny of the rates assessment notices and rates invoices issued by the KDC shows that they do not comply with the requirements of the Rating Act.  I will not go into detail at this stage but one important matter needs to be highlighted.

KDC rates are now payable in four instalments, and each instalment is billed via a rates invoice which is supposed to set out the amount payable on that invoice for that instalment.  Ratepayers are entitled to pay the amount of the instalment on that invoice without a penalty provide they pay the invoiced amount by the due date.

There is a notice on the invoice that states:

Any portion of the current instalment remaining unpaid after (date) will incur a 10% penalty....

That sums up the legal situation perfectly.  A ratepayer is only obliged to pay the instalment being invoiced.  There is no obligation to pay the outstanding arrears.

That's where the KDC - yet again - wanders off the path of legality into the dark world of gouging ratepayers with illegal actions.  The KDC is insisting that all previous arrears and penalties are paid with the instalment, and if they are not then a penalty is payable.

Not only that, they are pointing to a "policy" in the smal print on the back of the rates invoice which states:

Any payments that you make towards your rates will be credited first towards the oldest amount due.

The Commissioners are rejecting cheques sent in payment of the invoiced instalment only.  They are citing this policy and stating that they are not "authorised" to accept a cheque in payment of the instalment only.  They also state that the policy is part of their "penalty regime".

All of that is absolute rubbish.  It is not part of their penalty regime because no such penalty policy is allowed under the Rating Act, and it is not part of the penalty resolution that is passed each year.

The fact is that ratepayers have a right under the Rating Act to pay the instalment only without penalty and the Commissioners - even in the dectatorship role that they have adopted - cannot change that.

The upshot is that the rates invoices and rates assessment notices (which also include the illegal penalty policy) delivered to all ratepayers over many years are illegal. and do not comply with the very strict requirements of sections 45 and 46 of the Rating Act    What the effect of this is will be decided by the District Court, but, from where I sit, it looks to me that the Commissioners have some very serious problems ahead of them. More work for Simpson Grierson, the KDC's lawyers, but in this instance I doubt if "all the KDC's horses and all the KDC's men can put poor old Humpty back together again".

The Commissioners have responded to pressure from ratepayers and are proposing to change the Fire Service Rules which became operative as part of the District Plan about a year ago.  The Summary is here.  The Evaluation Report is here.  The Public Notice here.  An online submission form will be available.

The proposed Plan Change has a submission period of Monday 08 December 2014 to 5pm on Friday 30 January 2015. This will be followed by a Further Submission period, Hearings and then Council will make a decision. All submitters have appeal rights to the Environment Court.

The old rules were utterly draconian, inspired by bureaucrats in Wellingon and endorsed by our autocratic Council with a view to gouging more money out of ratepayers and turning our beautiful district into a Tank Farm.  Actual fire fighting considerations were irrelevant.  The rules only apply to new houses and the local fire service already has a water tanker that it takes to fires.

The changes are minor.  That should be the proposed changes but there is no democracy in Kaipara and, athough the Commissioners are obliged to go through a consultation process with ratepayers, it is nothing more than a sham, and the whole outcome is a pre-ordained jack-up between the Commmissioners and the Fire Service.

Under the amendments a new residential property with no reticulated water supply will, without a consent, be able to reduce the dedicated water strorage tank from 45 cubic metres to ten cubic metres.  Dedicated means that it must be solely for fire-fighting.  You cannot use your normal water tank

The fire fighting tank must be 6 metres from any building if it is made of plastic which would create massive problems on a 600 square metre site.  So concrete it is.. 

But the big rub is disguised in the proposal. This is what the rule will state:

Any building is permitted if:

a) It does not impede the movement of fire service vehicles or equipment or generally restrict access for fire fighting purposes; and

b) Water supply for fire fighting and access to this supply complies with the New Zealand Fire Service Fire Fighting Water Supplies Code of Practice SNZ PAS 4509:2008,

That means that any new house will have to be designed around access for fire-fighting trucks.  The tank will have to be at the front of the property and there has to be a concrete driveway and turning area on site for the fire truck and a hardstansd next to the tank.

But more than that, take al look at this:

Note 1: For fire safety, the New Zealand Fire Service advises that buildings should be at least 20m from the dripline of any tree and that these setbacks are also appropriate from scrubland and other similar vegetated areas.

No trees within 20 metres of your buildings.

I understood that the whole point of the District Plan and the RMA was to protect the environment not to turn it into a concrete jungle with no vegetation allowed.

All ratepayers are urged to have their say and take advantage of this opportunity to stop the madness.

Rob Stock reports in the Sunday Star Times (here) of the Commissioners "reign of terror" in Kaipara.  He reports that "New Zealand's only non-democratic local council has issued summons to around 300 rates "strikers" and is seeking to add rates arrears to the mortgages of another 200".

Incredibly, the Commissioners, in a fit of irrational pique and spiteful retribution, have issued 300 separate sets of proceedings against the owners of 300 properties.  John Robertson has long criticised the MRRA for using the court to resolve the KDC's problem, even when the KDC bluntly refused to acknowledge the illegality of its acts, but is now showing his true colours by spending a vast sum of ratepayers money on a ruthless and vindictive campaign through the courts.

Note that 300 sets of separate proceedings have been issued with bailiffs and process servers chasing down the owners of the 300 properties.

It is nothing more than an act of terror

It is an affront to democracy and illustrates to New Zealand the true nature and purpose of the Commissioners forced occupation of Kaipara.  Local government in New Zealand has never seen the likes of it and the fact that so many good, honest citizens are still resisting the ruthless regime of the Commissioners shows that things are very seriously amiss in Kaipara.

The Commissioners were appointed by the Minister of Local Government and act under the authority of the MInister. 

Do we have a Minister?

Fancy adopting a white elephant?  The KDC has several which it is offering to a good home.  The Dargaville swimming pool eptitomises the incompetence of our Council and has drained both water and money since the KDC got involved and is now on offer to anyone who will take it (see Kaipara Lifestyler).

The Hakaru tip is another white elephant with a massive haemorrhage and no doubt more elephants will be discovered in eleven months time when democracy returns to Kaipara and the books are opened for the first time.

If Kaipara ratepayers are worried about their own white elephant or lemon, the EcoCare scheme, they should see the problems that Dunedin ratepayers are facing.  Down south they have a supersized white elephant in the shape of the Dunedin Stadium that was rushed through at massive cost, and against the wishes of many locals, in time for the last Rugby World Cup.  Read about the local ratepayers' woes here.

Also have a look at What if, Dunedin which highlights the concerns of locals.  Note Elizabeth's comment about what locals call the Glasshouse:

The glasshouse-fubar though, has bred of itself a bloated money-sucking monster for DCC, ratepayers, and residents. For accountability and transparency, need we ask if fumigation and sterilisation are enough to eradicate white collar aphids and fungal rorting?

The Council has even considered moth-balling or pulling down the stadium.  The same decision will soon face the KDC and ratepayers in respect of the EcoCare scheme.  The current debt is well over $60 million (if you include the monies filched from the Mangawhai Endowment Fund and other funds) and is simply too large for Mangawhai and Kaipara ratepayers to pay.  But like the Dunedin Stadium, the scheme needs further massive sums spent on it in the future if it is to continue functioning. That means even more debt and higher rates.

All will be revealed in the new LTP due out probably in the New Year.

LGFA  21.11.14
The Local Government Funding Agency will become well known to New Zealanders in the next few years.  It is a scheme proposed by local government and central government to rort the people of this country.  The idea is that all local authorities in the country join the scheme and they all cross-guarantee the debts of the others.  The benefit of this, which is the only thing that you will hear about it, is that local authorities have access to slightly cheaper loans, because the money is effectively guaranteed.

The debts are guaranteed by the councils, but what they do not explain is that every Council debt across the country is effectively guaranteed by all the ratepayers in New Zealand under the protected transaction provisions of the LGA.

That means that all ratepayers in New Zealand will be responsible for the EcoCare debts when Kaipara eventually folds. That is if they cannort extort the monies out of the Kaipara ratepayers.

Likewise every ratepayer in New Zealand will be responsible for the Dunedin white elephant, the Auckland City blow-outs, and every other local government rort that has become endemic in New Zealand.

Kaipara does not meet the requirements of the LGA at the moment and cannot join.  It is in breach of its banking covenants and could face serious financial problems if the Court of Appeal endorses the arguments of the MRRA. 

The Council is being pressured by the banks and the Department of Internal Affairs to mop up the rates revolt and that is why it has now resorted to terror tactics to extort the last drop of penalties from ratepayers.

A decision in the Court of Appeal that ratepayers are not responsible for debts entered into for an illegal purpose (which the High Court ruled that EcoCare was) would completely undermine the guarantees that are fundamental to the NZFA concept.  And that is why the the government, the banks and local government are fighting the MRRA proceedings.

Local authorities are not subject to the law. Sure there are very strict requirements set out in the Local Government Act and the Local Government (Rating) Act but neither the Ombudsman or the OAG will have anything to do with their enforcement.

But what of the courts? What of the rule of law?

As a general principle of law illegal acts of a local authority are voidable which means that a court has the power to declare them to be illegal and of no effect. But effectively that means that a local authority can do anything that it likes, legal or not, and its actions are not deemed to be illegal until a court makes that ruling.

The catch is that it is incredibly expensive to go to court - the MRRA has stumped up $200,000 so far - and, if anyone has deep enough pockets and the intestinal fortitude to opt for the legal lottery, the local authority will use every trick in the book to block your access to justice, using ratepayers' money, of course.

And, if all else fails, they will get the government to legalise their malfeasance and gazump the legal system, using ratepayers' monies, naturally.

So, in this so-called democracy local authorities have unlimited power with the auditor and OAG looking in the other direction and the court system rendered nugatory because of its cost, its delay, and its manipulation by local authorities.

That is why councils can flout the law so arrogantly and openly. And that is why they are pursing the whistle-blowing rate strikers through the court, at huge expense to ratepayers again. They and central government (through the DIA) want to send a message to all ratepayers in New Zealand they that they must be obedient serfs who must pay for the excesses and illegalities of local authorities without objection and protestation.

It is not just compliance with the law that is now extinct in local government. All the fine principles of civilised behaviour that we like to think reflect our society are also at risk. No one could imagine more acute malfeasance and dishonesty then the activities of the KDC over the last few years, and yet every one involved has, so far, got off scot-free and Parliament has seen to fit to sanitise all the legal transgressions.

The true extent of the KDC's rorts have not been revealed because those in local government do not want to destroy the image of local government that they wish to present to the world. So we get white-wash and smoke and mirrors.

Dishonesty in the present to cover up the dishonesty in the past.

Hence the current regime in power at the KDC will not allow independent experts in to look at the true state of the finances. That is why they gloss over the defects of the EcoCare scheme. And that is why they will never allow a democratically elected council back into Kaipara. Too many skeletons in the cupboard (and no money to boot) which a new crop of councillors might expose to the world.

The lid on Pandora's Box must remain nailed down and padlocked.

Since the Commissioners have been in power they have spent a vast fortune on legal advice. Virtually every decision that they have made has been preceded by an expensive legal opinion. It has been suggested that John Robertson even consults David Goddard QC on his choice of breakfast cereal each day, but that is probably an urban myth.

Spending money on lawyers is irrelevant to the Commissioners, as it is not their money. They criticise the MRRA for appealing the Heath J decision and wasting Council money that could have been spent on roads, but they selectively choose to ignore the vast sums that they have poured down the gullets of lawyers to achieve the ends of the banks and the DIA and to deny the ratepayers of the district their legal rights.

They gloss over the fact that Heath J awarded the MRRA indemnity costs in their High Court action, which is as rare as integrity and transparency in local government.

That award of about $150,000 was a clear message from the Judge to the Commissioners that they had denied ratepayers their legal rights by introducing the Validation Bill to gazump the MRRA legal case.

But John Robertson and his men just laugh it off. After all it is not their money.

The NZ Herald (here) reports on the public perception of the SFO:

Far fewer victims of financial crime are satisfied with the sentences handed to white collar criminals than two years ago, according to a Serious Fraud Office survey.

One of the SFO's aims is to increase public confidence that the perpetrators of financial crime are held to account.

One of the biggest problems is that the SFO has effectively been excluded from an area where financial "crimes" are rampant, and that is in the local government arena.

For some reason that is incomprehensible to ratepayers, local government rorts and fraud are outside the bailiwick of the SFO. Councils are free to rip off their ratepayers with impunity and the SFO will sit on the sidelines and do nothing.

It is not just the SFO that becomes impotent at the mention of local government. The Ombudsman runs for cover and defers to the OAG, and the OAG, the watchdog and the auditor for all local authorities, not only ignores the blatant breaches of the law and the impoverishment of local communities at the hands of rogue councils, but implicitly encourages the plundering and pillaging of ratepayers.

In the Kaipara debacle Auditor-General Lyn Provost sat on her hands for years while the bandits destroyed Kaipara with their recklessness and blatant illegalities, and, when the SFO showed an interest, she ushered it away in a different direction. Local government and Kaipara were her baby and she would call upon the SFO only if fraud was revealed.

The official OAG report - a travesty of an independent inquiry reeking with the stench of conflict of interest - made the finding that there was no fraud perpetrated in the Kaipara debacle. Perhaps that was a bridge too far for the OAG to admit. It had ignored incompetence, financial ineptitude, legal transgressions but to admit to fraud being perpetrated on its watch was probably too much. That would have opened the proverbial can of worms that would have been too difficult to bury.

There was, of course, fraud in Kaipara. EcoCare was a fraud on a massive scale. All of the major parties involved were aware of the illegalities that were perpetrated but were only concerned with their own enrichment at the expense of ratepayers.

Ratepayers were completely duped and ended up with a scheme that does not achieve its purpose, was massively expensive and does not work. The ratepayers of Kaipara have been ripped off to the tune of over $60 million for EcoCare alone. And if you add in all the other rorts and excesses, and the theft of reserve funds and endowment funds, the loss is much greater.

The failure of Adam Feeley, then head of the SFO, to override the OAG injunction not to interfere in Kaipara left the impression that the SFO's targets are selected on a political basis. His surprise departure soon after, and his appointment as chief executive of a local authority, suggested to many that he had been reluctant to muddy the local government waters and smear the reputation of a fellow local government chief executive.

I wonder what Aldous Huxley would have thought of it all?

Aldous Huxley, British writer and philosopher, writing in the 1930s and 1940s, was concerned about the future of democracy. He had this to say:

Under the relentless thrust of accelerating over-population and over-organization, and by means of ever more effective methods of mind-manipulation, the democracies will change their nature; the quaint old forms--elections, parliaments, Supreme Courts and all the rest--will remain. The underlying substance will be a new kind of non-violent totalitarianism. All the traditional names, all the hallowed slogans will remain exactly what they were in the good old days. Democracy and freedom will be the theme of every broadcast and editorial--but democracy and freedom in a strictly Pickwickian sense. Meanwhile the ruling oligarchy and its highly trained elite of soldiers, policemen, thought-manufacturers and mind-manipulators will quietly run the show as they see fit.

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