Please advise of any reports on the hearing or let us have your own personal comments to contactus@kaiparaconcerns.co.nz



COURT OF APPEAL    28.08.2015

Congratulations to the MRRA and Clive Boonham for an outstanding court case. I like many of our community sat respectively through the hearing.

The issues are very clear, is it reasonable to expect our local and national government to act within the law.

The Kaipara District Council acted unlawfully some 66 occasions leading to a catastrophic debt which can never be repaid. The unelected Commissioners have acted without competence thus adding the problems. The MRRAs case is compelling.

We await the Judges' judgment and a negotiated settlement.

COURT OF APPEAL  28.08.2015
The first cab of the rank to report on the Court of Apeal hearing in Wellington was town planner Joel Cayford, who was once on the executive of the MRRA.  His detailed comments on the hearing can be found here.

See also:  John Weekes at NZ Herald

Legal Eagle's comments on the Court of Appeal hearing can be seen here,

Those of us who attended the Court of Appeal in Wellington had a good time.  We have fought this battle for justice for a long time and, finally, we had our day (or two) in court.  The people of Kaipara need to take a bow for fighting the battle for so long and for putting their trust in the MRRA and its legal team in its quest to bring the rule of law back to Kaipara.  There was some wonderful camaraderie forged out of a shared and just commitment.

However there was one solitary, lonely man who appeared to have lost his way and tumbled into court by accident.  He was ever-smiling and tried desperately to engage with others, but without success.  He seemed terribly lonely and only managed to engage with the legal counsel for the KDC.

It must have been a salutory lesson for Honest John to see so many MRRA supporters in Wellington and in the Court in Auckland and realise that the MRRA and its supporters have not lost their way.  His ears must have glowed when the incompetence of the KDC was recited at length by the court, with pained, unbelieving expressions from the judges.  And he knows that it is not just the previous council that made an art form of incompetence and illegality, because the Commissioners have carried on in the same tradition.  Even the Validation Bill drafted by the commissioners and their legal team raised the eyebrows of the judges because of its glaring incompetence.  The rating documentation vetted in detail by the commissioners highly paid legal advisers has proved to be almost as bad and legally non-compliant as the previous council's.  Another major court battle looms.  With all that, and the bank yapping at the door, these are not good times to be a commissioner and it would have been a lonely few days for Honest John in Wellington.  But I am sure while he was there he could have gained some succour from his two foremost cheerleaders, Louise Upston and Lynn Provost  in Wellington.  In their eyes Honest John can do no wrong.

Hear Bruce Rogan on Mike Hosking on Newstalk ZB

The abuse of legal requirements by Honest John and his crew continues unabated with a refusal to comply with a LGOIMA request (Official Information) to provide a copy of legal advice.

Bruce and Heather were a test case in the District Court in respect of the numerous legal proceedings that the commissioners have filed against good, honest citizens of the district who have refused to pay their rates on the basis that their rates invoices and rates assessment notices do not comply with the law in many respects.

Those invoices and assessments were vetted in detail by the KDC’s solicitors who overlooked simple failures to comply with the obligatory requirements of the LGRA.

Late last year we had Honest John and his crew thumbing their collective nose at the KDC’s policy on penalties remission, and on the decision–making processes in the LGA when they made a predetermined decision to remit certain penalties as a sop to Parliament, even though such an action was outside the ambit of the KDC’s own policy on penalties remission.

They advised that they had a legal opinion on the matter, but refused to say whether that advice supported their decision, and they refused to provide a copy of that opinion following a LGOIMA request by Legal Eagle.

Local authorities use the claim of legal privilege to prevent any legal opinions seeing fresh air. That way they can pretend that the opinion justifies the action that they have taken when in fact the opinion may in fact advise that the action is unlawful.

We have to remember that lawyers are hired guns and act in the best interests of their clients. In this case, their clients are the commissioners and their lawyers give advice solely on the basis of instructions received. A legal opinion will therefore be tailored towards the desired outcome.

In Jack McKerchar’s days I obtained copies of the KDC legal opinions which, in most instances, he kept secret from not only the ratepayers but also the councillors. At times there was one opinion for publication to rebuff ratepayers’ claims, and then another for Jack himself with the real advice.

On one occasion Jack McKerchar advised the councillors that a legal opinion from the KDC’s solicitors had confirmed that his documents were legally correct and that Legal Eagle’s allegation of non-compliance were ill-founded. A letter to the firm involved soon confirmed that they had not given such advice and had never seen the KDC’s documents.

If the commissioners had nothing to hide, and a genuine legal opinion could help resolve the situation, then it would be foolish to hide it away, but one can take it virtually as read that the commissioners have a massive amount to hide.

In this particular instance I sought a copy of the legal advice received earlier this year in respect of the legality of “oldest debts first” policy included in rates assessment notice and rates invoices, and a copy of the annual legal review for the rates notices which had been issued, and which gave them a clean bill of health.  That is, despite oodles of fundamental defects.

Both applications have been declined.

I am not sure who Honest John uses for legal advice and who is responsible for the annual legal review but I can give him some free advice, and which is not privileged: Whoever gave the rates notices a clean bill of health, does not know what they are talking about and should be fired. If fees were paid for such advice then the commissioners should be demanding a refund of ratepayers’ money.

But one good thing came out of the wood-work. The letter declining the LGOIMA request was actually signed by the Chief Executive, Jill McPherson. This is one of the first occasions when she has “fronted” and put her name to a letter. Perhaps there has been a shift. We were all numbed by the total disregard that the commissioners showed for legal process when they put up Alison Puchaux, a recent employee, as a witness in the District Court and she was unable to answer most questions in cross examination because of her limited experience. It was a hot seat to occupy, and it is a seat that the Chief Executive should have occupied, earning her salary and defending the actions of her council.

Those who did not attend the presentation to Bruce and Heath Rogan last Saturday missed a treat.    Christian and Ulla Simon put on a splendid evening to highlight the contribution of Bruce and Heather towards the fight for democracy.  There were displays, speeches, good food and refreshments and some convivial conversation.  Perhaps the highlight of the evening was the address of guest speaker Chris Sellars - Prof Worzel of the Mangawhai Focus - who presented some amusing but thought-provoking comments.  But, in the true tradition of Kaipara, even he denied us the democratic vote.  He told the audience that he was going to give them the choice of a short poem or long poem to round off his address, but that he had decided on the long one. We were all pleased he did.  It was a bit of Banjo Patterson, a bit of Sam Hunt, and a lot of Chris Sellars.  It was delightful.

It was heart-warming to see such a large crowd of staunch people who had come from all over the district, and some from Auckland to show their appreciation for, and their solidarity with the Rogans and the MRRA in their fight for fairness and democracy.  It was reiterated time and time again that it was not the MRRA that had "lost its way" in its pursuit of fairness, justice and democracy but the three autocrats who forcibly govern Kaipara with the purpose of protecting the interests of the banks and those in local government and do not give a jot about the people of the district.

Regardless of what happens in court, ratepayers in the district and all over New Zealand are beginning to realise that local government in New Zealand is a flash-back to feudal times where those with the power are free to do whatever they like without any effective legal controls or requirements of prudence or legality, and the peasants at the bottom of the pile are compelled by the law to pick up the bills.

Don't forget this evening:

Mangawhai Library Hall from 5 p.m. on Saturday the 22nd of August 2015.

Bruce and Heather Rogan to be awarded the Hannah Arendt Award for their work in defence of justice and democracy.

BUS TO COURT   22.08.2015
For those who want to go to the Court of Appeal in Auckland by bus to see a live video of the Wellington Court of Appeal hearing, see the details below from the MRRA.


Final details for Bus to Court.
Bus leaves The Club (Molesworth Drive) at Mangawhai at 7:45am, Tuesday morning and approximately eight minutes later from somewhere around the Smashed Pipi.

More the merrier

There will be spare seats, so if you know anyone who wants to go to Auckland for the day for shopping or sightseeing, or to use their Gold Card, they can do it for $25.00 return. They just have to show up.

If you want to be picked up ring Barbara on 4314420 and tell her exactly where you will be. The bus is stopping to pick up a passenger at Hatfields Beach, but it could pick others up along the route..

We have the venues in Wellington and Auckland (see below).  We have the judges: Harrison J, Miller J, and Cooper J.

The legal submissions have been filed by the MRRA, the KDC and the Crown.

David Goddard QC, Matthew Palmer QC, and Paul Rishworth QC are all ready to give it their best shot.

Honest John may put all sorts of spin on this court case and the motives of the MRRA in an attempt to justify his own conduct, and whitewash his incompetence, but it is perhaps one of the most important cases relating to the rights of ratepayers to come before the courts in this country.

The simple question is whether a local authority can flout the law, ignore its legal obligations, and set a rate to meet an unlawful activity. (The decision to proceed with EcoCare has already been declared to be illegal by the High Court.)

This information is from the Court of Appeal:

We will make sufficient seating available in Courtroom 2 at the Court of Appeal, Corner of Molesworth and Aitken Streets, Wellington.

If it assists, as changes can sometimes occur for a variety of reasons at the last minute, I will let you know immediately. Also, your members can check the Court of Appeal daily list from approximately 4pm on the day prior at: http://www.courtsofnz.govt.nz/business/calendar/daily-lists

This list is also displayed in our Court foyer. If a change did unexpectedly become necessary, it would be to the High Court which is only two buildings away from this Court.

The Court calls the case at 10:00am in the morning. The Courtroom will be opened at 9:40am to allow everyone time to be seated well in advance of 10:00am. We adjourn for 15 minutes at approximately 11.30am, and the lunch adjournment is from 1pm-2.15pm. We finish at 4:00pm.

Courtroom 2 is on level one of this building. There is a public lift to that level. The toilets are on the ground floor, to the left of the glass dome.

I note some Court protocol for information. Entry and exit to the Courtroom should be avoided (where possible) when the judges are speaking, but is fine when the lawyers are speaking. Only water is allowed in the courtroom (no food or other drink), and no note-taking is permissible in the public gallery without seeking permission from the Court Registrar (who will seek permission from the bench). No hats, tidy dress etc. which I'm sure your members will be aware of.

The Auckland courtroom, being used to view the hearing, technically becomes part of the public gallery, so the same protocol applies to those observing in Auckland.

I hope this assists. (Signed Fiona McDonald, Registrar)

COURT OF APPEAL, AUCKLAND 25 AND 26 AUGUST 2015   18.08.2015

Update from Bruce Rogan of the the MRRA - Court of Appeal 25-26 August 2015

Confirming the good news, we CAN have the Auckland Court of Appeal hearing centre. The court will arrange for the video feed and there will be no charge to us.

Please consider your availability to attend these sessions, and please, if you are based in Auckland, invite your friends to come along and watch. What happens here is relevant to everyone who pays rates in New Zealand (but especially Aucklanders!).

There are now enough people to justify it, so we will organise a bus to go from Mangawhai in the morning and bring everyone back at night. This will remove the need for people to take their cars and find parking. You will get dropped off at the door of the court, and picked up from there for the return. Will someone please volunteer to be bus monitor. I won’t be here (in Wellington), and John Bull is going to be staying in Auckland for those days. (phone me on 02108180162 please)

The court has given precise information about where the Auckland event will take place. The sitting times are 10.00am until 4.00pm. The court sometimes extends its sitting hours if it deems necessary.

For those making their own way to the hearing here is the information you need:

Level 11(eleven) , 280 Queen Street. Unichem sign indicates you are at the right address. Smith and Caughey are across the road. Take escalator to level 2 then go to the lifts behind the marble wall. You can also enter 280 Queen St from Lorne St. Opposite Khartoum Place. Salad bar called Revive to left of the stairs. If you enter from Lorne street you are already at level 2.

If you have not already done so please reply if you will take advantage of the bus from Mangawhai. Please simply say BUS and number of seats required. If you have non-email friends who would like to use the bus can you please send us details on their behalf.


This message comes from the MRRA

Notice of Meeting.
Mangawhai Library Hall from 5 p.m. on Saturday the 22nd of August 2015..

Over recent years the Mangawhai Ratepayers and Residents' Association have maintained a relentless and well organised campaign seeking justice on behalf of our community.

Their efforts have been and continue to be stymied, from the highest levels, by organisations such as the Office of the Auditor General, by Parliament, and by Ministers of Local Government whose real responsibility it is to uphold and enforce the laws that were designed to protect us, but who have instead twisted those laws into weapons to attack the community. In this they have been aided and abetted by a complicit local media, and even by elements within our own community.

The German Philosopher Hannah Arendt observed that it is the inaction of otherwise good people that creates the environment in which abuses that would ordinarily be unacceptable are committed and tolerated.

Her studies into the dynamics of power and the human condition were interrupted when the Nazis took over German Universities in 1933 and she was forced to flee to New York where she continued her work until her death in 1974.

The Hannah Arendt Prize is awarded to those doing substantial work in defence of justice and democracy.

In the spirit of this award we would like to honour the efforts of the Chairman of the MRRA Bruce Rogan and his wife Heather to show our gratitude at a gathering to be held at the Library Hall this coming Saturday at 5.00pm. Nibbles and refreshments will be served.

Everyone is welcome, and we hope it is a time to put our differences aside while we take an hour to recognise that our democracy is precious above all personal and parochial considerations.

There will be a few short speeches, and anyone who would like to address the meeting will be invited to do so, and there will be an opportunity to ask questions about the up-coming court proceedings next Tuesday and Wednesday.

Kind regards,

Barbara Pengelly

Hon Sec MRRA

Please reply to: mrra.secretary@xtra.co.nz

Some readers are seriously troubled at Associate Local Government Minister Louise Upston's gushing  loyalty to her new "bestie", Honest John.  She is reported in the Mangawhai Focus and the Kaipara Lifestyler for her lavish praise for the competence of Honest John and his team and the widespread support from ratepayers.

We have seen it all before.  That it is how politics works.  We have seen how Serco was awarded and "exceptional" commendation for its running of Mt Eden - just before the proverbial hit the fan.  Everyone knew about the corruption in FIFA and yet all the officials covered it up.

Those of us who have been battling the Kaipara disease for many years remember referring legal submissions on the persistent and outrageous illegalities of the KDC to the Auditor-General.  She imperiously swept them aside even though every allegation subsequently proved to be absolutely correct.  One got the distinct impression that the OAG - the so-called watchdog of local government - did not care about the illegalities, and that its employees did not even have a basic grasp of the law relating to rates.

We now read the column of Rodney Hide in the Sunday Herald where he is the voice of common sense and fair play,  But many of us will remember him as the Minister of Local Government who ignored endless complaints and legal submissions, who turned a blind eye to Kaipara's illegalities, and gave the Mckerchar/Tiller Council a free-hand to to plunder the ratepayers of the district.

He is one of the reasons that the government should be putting its hand in its pocket to pay for its part in the debacle.

Louise Upston, Rodney Hide, and all the others who played the role of Minister and mouthed the words that others wrote.  They are mere pawns in the game of politics.  They do as their masters tell them.

And talking of pawns, one has to look at the role of the the local newspapers who publish press releases on highly contentious local matters as factual articles.  Where is the balance?  Where is the integrity?.

Honest John, Chair of Commissioners, has his own column in the Kaipara Lifestyler where he churns out his self-justifying propaganda.  He calls it Beneath the Surface, which is an odd name for somone who boasts of his integrity, transparency and good governance.  It sounds very murky, secret and out of sight. 

Given his predeliction for pursuing ratepayers through their banks or through the courts, one can see him as a Great White Shark circulating beneath the waves ready to snap up a stray ratepayer.

In the latest edition under Court Updates he advises that the Council is "still tied up in Court proceedings related to matters of history".  That of course, is not strictly correct.  He uses the word historic to refer to the illegal rates set by the previous Council and which were supposedly validated by the Validation Act.  He likes to maintain that since he and his mates arrived in October 2012 everything has been kosher and above board and that all the rates set by the Commissioners have been legal.

The Rogan defence team pointed out in the recent District Court case that all the rates invoices and rates assessment notices issued by the Commissioners for the last three years are invalid.  And, if the Court agrees, the setting and assessing of their rates are also unlawful.

The adding of penalties to the rates arrears of both the KDC and the NRC are also in breach of the Rating Act.

The KDC acknowledged in the District Court, after receipt of a legal opinion, that its "oldest debts first" policy was illegal.  Regardless of that it still included the policy in its rates invoices.  However, the KDC maintains that it has now fixed the illegality and a legal compliance review has confirmed that the current rates notices are legally compliant.

Legal Eagle has made an Official Information request for copies of the legal opinion and the the legal compliance review.  It will be interesting to see if Honest John breaks the surface and openly and honestly shares the real facts with ratepayers, or whether the truth is left well-hidden Below the Surface.

Clearly there is some consternation in the Beehive in respect of the MRRA Court of Appeal case which is due to be heard in less than four weeks.

The Crown through the Attorney–General sought leave to intervene in the proceedings just a week or so before the MRRA was due to file a copy of its pleadings.

The “Crown’ is not of course the Queen but the government in power, John Key’s National Party. Clearly the government is concerned that the MRRA may be successful in its appeal and is bringing up the big guns in a last ditch attempt to sway the Court.

The government is being represented by Paul Rishworth QC, a highly respected academic who was called to the inner bar and specialises in Administative Law.

The KDC, naturally, did not oppose the application to intervene. The MRRA left the matter to the discretion of the Court itself after pointing out the delay in intervening, the tightness of the two day schedule, and the extra costs involved for a ratepayer group.

In its decision the Court of Appeal held:

[6] We think that intervention is warranted here. The Attorney is not interested in all of the issues that may arise on the appeal, but those listed above are matters of high principle. We think the Court is likely to benefit, as the High Court evidently did, from the Crown’s perspective notwithstanding the expertise of leading counsel for the parties, and intervention can be permitted on terms that should add little, if anything, to the appellant’s burden.

The outcome is:

The Attorney may appear by counsel at the hearing, but will be called upon only if the Court wishes to hear from counsel and there is time available;

This case is of massive importance for citizens of the is country as it pits the limitless power of Parliament against the rights of individual New Zealanders enshrined in the New Zealand Bill of Rights Act (NZBORA).

Parliament passed legislation validating the illegal EcoCare rates whilst the MRRA was before the High Court challenging the validity of those rates. Heath J held in the High Court that Parliament breached the rights of ratepayers under NZBORA, but that it was a justifiable exception to the right. Justifiable exceptions are allowed where the benefit to society outweighs individual rights.

The MRRA is challenging that justifiable exception finding and wants a declaration that Parliament breached the rights of the MRRA ratepayers.

So far no court in New Zealand has made such a declaration and the government no doubt has intervened in the case to try and persuade the Court not to issue such a declaration. It would not look good if John Key’s government was declared by the Court of Appeal to have breached the rights of New Zealand citizens.

However, Paul Heath has spoiled the party. In a decision last week in the High Court he declared that the government had breached the rights of prisoners by passing legislation denying them the right to vote. The case – Taylor and Ors v Attorney–General – can be seen on the Courts of NZ website. Scroll down to High Court judgments and click on the case name.

It is worth a read and includes all the legal argument that, perhaps, would have been appropriate in the MRRA v KDC in the High Court.

The MRRA case is one of the most important cases involving the rights of ratepayers in New Zealand to come before a higher court. The decision from the Court of Appeal is going to tell us whether the rights of ratepayers, supposedly protected by NZBORA, the LGA and the LGRA, are real or illusory, and whether local authorities in New Zealand are required to comply with the rule of law.

The Bream Bay News reported in its edition of 23 July 2015 that it is inviting donations from those who want to contribute to a permanent legacy for the long term benefit of Waipu.

It’s a good job that Waipu is not part of Kaipara otherwise the endowment fund might go the same way as the Mangawhai Endowment Fund. That fund was supposedly held for the benefit of lands adjoining the Mangawhai Harbour. However, it was not invested separately and during the wild days of the McKerchar/Tiller regime disappeared down the financial gurgler along with countless other millions.

The Mangawhai Endowment Fund - now called the Mangawhai Endowment Lands Account (MELA) - is now a myth. A small amount is still held in properties but the rest is simply a book entry. Each year the commissioners go through a charade of allocating the interest to just causes. But there is no interest because the fund does not exist. Council simply pays what it calculates would be interest if the fund existed and takes the monies from rates paid across the district.

The commissioners treat the loan as an internal debt which means that it is not taken into account when calculating whether the Council is solvent or not. But if the debt, supposedly held on trust by the KDC, is to be repaid then it can only be repaid by raising an external debt, which all ratepayers will have to pay, interest and all.

In a report to the KDC from Linda Osborne of 30 June 2015 the position was stated as follows:

The MELA account is listed as a reserve in the accounts of Council. No cash fund exists

The report recommended that the present situation where the capital is protected, decided by ratepayers back in 2001, should be abandoned and replaced with the following:

Option B of spending all of the interest without protecting the capital would allow more funds to be available for community distribution. It would also allow Council to spend more effectively to reduce the capital and positively benefit Mangawhai.

Behind the weasel words, what is the purpose of this new approach? Whatever it is you can guarantee that it is not for the benefit of ratepayers. One can only presume that it is a way of running down the capital of the fund so that this embarrassing part of Kaipara’s history is finally expunged.

And remember that it is not the fund that is being run down because there is no fund to run down. Every payment that is made to ratepayers ostensibly from the “fund”, whether in the form of interest or capital, has to be paid by ratepayers throughout the whole district in rates, and then it is paid to the chosen few.

So who decides how the fund is to be spent. The Osborne report suggests that the commissioners have sole power:

Council is the legal holder of MELA and therefore has the jurisdiction to decide how it is spent, ensuring it is for the benefit of the Mangawhai community and/or environment.

You may argue, quite rightly, that the KDC are the trustees and may have the fund vested in them but they have a legal obligation to consult with beneficiaries, the ratepayers.

Now follow this carefully and see how the commissioners manipulate consultation to secure their own ends.

The report states:

Discussions have been held with the current MELA Committee who are also members of the Mangawhai community. The Committee have the delegation to allocate grants and are in agreement with Council’s alternative approach.

Let’s look at this comment closely as it sums up the dishonesty and the appalling governance of the commissioners.

The MELA committee, who are in agreement with the commissioner' approach, consists of:

Chair: John Robertson (Commissioner)

Members: Joanna Roberts, Alan Russek, Richard Booth (Commissioner)

Linda Osborne states that the current MELA committee are members of the Mangawhai community. Not true. Two members are but commissioners Richard Booth and John Robertson have nothing to do with Mangawhai.

The report states that the committee are in agreement with the Council’s approach. That it scarcely surprising when two of the members of the committee are commissioners, and the other two were appointed by the commissioners.

But what of the views of ratepayers?

Community Views
As they are the recipients of MELA, the Mangawhai community may have strong opinions on how it is spent, especially if it affects the amount that local groups can access for funding purposes. Given there would be more funds available to allocate to the community it is thought they would view this decision as favourable.

So there is no intention to actually consult with ratepayers. All decisions are to be made by three unelected commissioners who consult with a committee of two of the unelected commissioners and two unelected ratepayers selected by the commissioners.

A resolution confirming the new approach was passed unanimously by commissioners Robertson and Booth at the June council meeting – no doubt wearing their hats as commissioners and not committee members. Commissioner Winder was absent attending the Rogan hearing in Whangarei.

Legal Eagle has presented his concerns about what he considers to be theft of the Mangawhai Endowment Fund to the Auditor-General. No doubt there will be the usual resounding silence.

Associate Minister Louise Upston, who heads Honest John Robertson’s Cheerleaders, is not so silent. She recently visited Kaipara and met with the MELA committee and other groups. She commented:

“I was impressed by the great work that these groups are doing in their communities using their creativity to help make each of their towns vibrant and inclusive places.”

What she did not do is ask the people of Mangawhai about the creative accounting that has led to the theft of their endowment fund and the complete failure of her favourite three smart boys to include ratepayers in any consultation process about the future of the fund.


Court of Appeal 25-26 August 2015

I have been in contact with the Court and discussed the widespread interest through our community in these proceedings.

We know of some of our members who are going to go to Wellington to be present at this important test of our democracy.

There is limited space for the public at the Court of Appeal, but the Court has offered to try to find a bigger venue to accommodate more observers, if required..

If you are going to go to Wellington for this hearing could you please let me know by return email so that we can get an accurate estimate of the numbers attending. Please let me know again even if you have already done so. Reply with the word WELLINGTON and the number attending. Do this today if you can please.

In addition, the Court has kindly offered to create a video link to the Whangarei court so that those who want to follow proceedings without incurring the cost of travelling all the way to Wellington can do so.

There is quite a lot of work involved in setting this up and the Court is anxious to know how many people would like to take advantage of this offer before committing resources to making the arrangements, and so that a suitable venue can be booked. Reply with the word WHANGAREI and the number attending. Do this today if you can, please.

If there are enough interested we will organise a bus again.

This case is of importance to every ratepayer in Kaipara, not just our membership, and it has implications for everyone who owns property, pays rates, or pays rates indirectly through rent, wherever they live in the country.

The Court will consider some fundamental questions that bear on our civil rights and the relationship between the bureaucracy and the people. I cannot guarantee the outcome, but I guarantee it will be among the most interesting two days you ever spend. Three of the most astute legal minds in our country will give their undivided attention to the arguments that you have made it possible to put before them. You deserve to be there and see it unfold.

I would like to record my appreciation to the Court for its willingness to assist people to attend this hearing.

Bruce Rogan, Chair MRRA.

Bruce Rogan can be emailed at brucer@ihug.co.nz  Please pass this message onto anyone you know who might be interested..

The KDC and the NRC had little response to the Rogans' defence in the District Court that their rates invoices and rates assessment notices were legally non-compliant ant that the Rogans, therefore, had no legal obligation to pay the rates.

The two councils also struggled to justify the fact that that the NRC has failed to set its rates correctly, and unlawfully delegated the power to assess its rates to the KDC. If correct, which it appears to be, that makes the NRC rates completely invalid for those years.

The only argument that they could put forward was that regardless of such fundamental defects ratepayers were still obliged by section 60 of the LGRA to pay the rates unless they issued proceedings in the High Court.

Not being silly, following the case the Rogans, along with the MRRA, filed an application in the High Court for a judicial review of the KDC's and the NRC's rating decisions.

No reply has yet been received from either council but there will be some deep consultation with their legal advisers.  The rating documents are riddled with legal errors and one has to wonder how the Commissioners themselves, with such broad experience in local government,and their top-notch legal advisers could make such a hash of things.

But no worries, Louise Upston still reckons the Commissioners are doing a great job . It's all a bit like Serco who were adjudged to be doing an exceptional job at Mt Eden. 

Those who witnessed Alison Puchaux of the KDC giving evidence on in the District Court may recall her being cross- examined on the series of letters between her and the Rogans about the “oldest debt first” policy which the KDC has included in its rates invoices and rates assessment notices for the last couple of years.

The policy was introduced as part of the computer programme adopted by most councils and to put pressure on ratepayers to pay the arrears as well as the current instalment. It is all part of Local Government New Zealand’s policy of gouging as much as it can out of ratepayers.

Let’s make no bones about it, it is thoroughly illegal because it denies ratepayers the fundamental right, protected by the Rating Act, to pay the current instalment only by due date without incurring a penalty. Arrears do not have to be paid and no penalty is incurred if they are not paid.

Earlier this year, Bruce Rogan, a first-class tennis player in his time, served up what he thought was an ace. He advised the KDC that it had no legal authority to apply such a policy.

Alison Puchaux, the KDC Revenue Officer who has been delegated the odious task of suing ratepayers, volleyed the ball back with the statement that embodied the combined legal expertise of Robertson, Winder and Booth. She stated that the oldest debts first policy was a policy of the KDC and that “our statutory authority comes from the Local Government Act 2002 and the Local Government (Rating) Act 2002”.

Not a bad return for a Council that makes an art form of ignoring just about every provision of those Acts.

The problem is that it is not a policy of the KDC and never has been. It is included in the rating documents without any legal authority. And, more than that, it cannot be a policy of the KDC because, rather than being authorised by that Act, it is directly contrary to the provisions of the Rating Act.

When Bruce Rogan replied with a volley to the corner, Alison Puchaux faltered and hit the ball into the net. She replied weakly that that “the policy was the common practice of in the local government sector and in other commercial organisations”. However, “in the circumstances” she advised that the KDC was prepared to accept the monies received in payment of the instalment.

In other words, the KDC backed down. No one could find out why the KDC backed down, what the “circumstances” were, or whether the suspension of the illegal policy was permanent.

In the District Court we found out what the true story was. In the witness box Alison Puchaux revealed that Honest John, besieged by the Rogans and many other ratepayers wanting a response to this issue, obtained a legal opinion and found out that, yet again, that he was waltzing in the wind of illegality. But instead of fronting it and admitting the error, yet again, he tried to bury it with local government double-speak and, true to form, left the offending policy in the subsequent rates invoices for the 2014/2015 rating year.

Even after the blatant illegality was exposed in the District Court in the Rogan case, including an acknowledgement from the KDC’s own solicitors that it was illegal, the policy is still included in the new rates assessment notice and rates invoice for the 2015/2016 year that have just been delivered. (It is under Arrears.)

So what goes? Is Honest John cocking a snook at the law and the courts? Does he think that with Louise Upston, Associate Minister, heading his Cheerleaders and endorsing his every move, that he is bullet-proof and beyond the law?

Whatever his motivation is, he is taking great risks as he steers the SS Kaipara into very murky waters. The inclusion of an illegal policy in the rates assessment notice and the rates invoice could render the documents invalid and the KDC would be forced to reissue them in compliance with the law.

Those who were at the Rogan hearing will also recall that Honest John backed down on the inclusion of legal fees for the recovery of rates arrears in rates invoices. This was another attempt to illegally gouge monies out of ratepayers.

There was a howl of objections from those billed and the KDC, after a quick referral to its solicitors reissued the invoices without the offending charges.

They were on very dangerous ground and no doubt their solicitors told them so. The Auckland City Case against Penny Bright failed in the District Court because that Council illegally tried to recover legal fees through its rates invoices.

Many councils throughout New Zealand have stuffed up big time by not renewing bylaws that enabled the issue of speeding tickets. As a result many illegal tickets have been issued. To resolve the problem Parliament’s Chinese laundry worked overtime and in three hours went through all the stages of a validation bill and declared the illegal to be legal. Several thousand illegal speeding tickets were retrospectively validated. See the Stuff report and Herald reports.

The fault was discovered by the Kapiti Council and possibly affected up to 25 councils and possibly road controlling authorities, such as the NZ Transport Agency.

Yahoo News' Peter Wilson reports:

"This is to rectify a cock-up by this government and probably the last one as well," said NZ First's Denis O'Rourke.

"It's a case of just plain ineptitude - the old law didn't do what was required of it, people didn't follow the procedure under it, and now the government is trying to make new law out of bad old law."

Denis O'Rourke seems confident that this is tha last cock-up that Parilament will fix.  If only.  The Kaipara Validation Bill has turned out to be a testimony to legal incompetence with its shonky drafing.  Likewise, the unlawful rating processes of Honest John and his team were highlighted in the recent Rogan District Court case and he will be begging his mates in Parliament to come to his rescue, yet again, with another Bill to gloss over his incompetence.

BASIL GETS THE BRUSH-OFF       03.07.2015
The decision of Local Government Minister Paula Bennett not to renew the tenure of Basil Morrison as a Local Government Commissioner (NZ Herald, Simon Hendery) has been warmly welcomed by many.

He was supposed to be the impartial chair of the LGC with the task of considering the views of ratepayers in respect of unitary authorities. However, with his imperious manner, he appeared to make no bones of the fact that he intended to impose unitary authorities on ratepayers whether they wanted them or not

As the article says:

In his role at the commission, he was criticised by some anti-amalgamation campaigners as an appointee of the pro-amalgamation National-led government, with a mandate to push through merger proposals.

This is how Rod Emmerson saw him in his heyday:

One of the most concerning things about John Key's regime is that impartiality and conflict of interest, the back-bones of a fair and just society, have largely been discarded. How was someone like Basil Morrison, who could not hide his glee at the prospect of imposing unitary authorities throughout the country, given a role that demanded impartiality?

It is on a par with the Auditor-General's "independent" inquiry into her own incompetence.

And how could John Key make that  MP from somewhere north of Auckland, whose name we cannot mention, chair of the Parliamentary law and order select committee knowing the "family issues" that he was facing?

But, let's be thankful for small mercies. Basil has gone, and so has the spectre of a Northland Unitary Authority.

Who is next for the chopper?

Could it be someone in Dargaville who is spending ratepayers money on lawyers and legal actions like there is no tomorrow. Behind the silky words is a portfolio of underachievement and failure, and a local authority that he has led to the brink of financial ruin.

How long will it be before Paula Bennett tugs on his strings and moves him discreetly to his next junket.

KDC v ROGAN  03.07.2015
Honest John got his wish. He assembled his legal forces in Whangarei to deal a mortal blow to the rating rebels once and for all. He lined up his big guns. They fired, but all we saw was a puff of smoke.

For once it was a case of all smoke and no mirrors.

The two day battle in Whangarei was an interesting insight to justice in New Zealand.  Heather and Bruce Rogan were on trial but the reality is that the rule of law was on trial and the justice system in New Zealand.

It did not start well with a packed court room of MRRA supporters and about 25 people excluded because of insufficient seating. An over-zealous security guard seemed to go out of his way to provoke trouble, but senior court staff intervened and with the consent of Judge de Ridder, allowed supporters to sit in the jury box. They had the best seats in the house.

Sadly, many others, who had come a long way and were involved in the stayed cases, were excluded.

I say that Heather and Bruce Rogan were on trial but if you read the Northern Advocate you would believe that in fact it was the Rogans (the nit-pickers) who had brought the action against the KDC.

The Northern Advocate's coverage of the hearing was quite unbelievable. Although their reporter sat in court for some time he got just about everything arse about kite.

We have been sadly let down by our local newspapers in the fight for justice in Kaipara. The incompetent reporting from the Advocate illustrates perfectly how local authorities can thumb their noses at legal compliance knowing that the fourth estate - the press - will never hold them to account.

This was a simple case of debt collecting. The Rogans had not paid their rates and the KDC were suing for the recovery of those rates.

However, as in all debt collecting cases, the KDC had to prove that the debt was due and payable. As this was not a contractual debt - an amount agreed by the parties - but a statutory debt arising our of charging a tax (rates) under the Rating Act, the KDC was obliged to prove that it had complied with statutory procedures.

Complying with the statutory procedures means delivering rates assessment notices and rates invoices that comply with the Rating Act.

When Parliament passed the Act it mandated that those documents must "clearly identity all" of a list of information, to satisfy one of the stipulated purposes of the Act, to help "ratepayers identify and understand their liability for rates".

Honest John and his crew clearly did not think that compliance was necessary because the rates assessment notices and the rates invoices issued by the KDC are riddled with incorrect information and much of the mandatory information is simply missing.

To use Honest John's own expression, both documents are a "dog's breakfast".

The KDC had no real answer to the non-compliance of its documents. It suggested that the Rogan's and other rate strikers were nit-pickers and that the information requirements, like the legal requirement to include the address of the NRC in the documents, were onerous and that the Rogan's could work them out for themselves.

The KDC's biggest gun was section 60 of the Rating Act which is both a draconian and unintelligible piece of legislation. It states that an "owner" must not refuse to pay rates on the grounds that the rates are invalid unless the person brings proceedings in the High Court.

The argument runs that even if the rates were patently invalid, the Rogans were not allowed to use the illegality as a defence because of section 60 ,and because they had not filed proceedings in the High Court. (The application for judicial review to the High Court, now before the Court of Appeal, does not count because that was filed by the MRRA and not the Rogans!)

The Rogans countered by stating that they were not attacking the validity of the rates themselves but the KDC's failure to comply with the statutory processes that created the liability to pay the rates. The Rating Act states quite clearly that the delivery of a rate invoice creates the liability to pay rates but it further stipulates that the rates invoice must include the statutory information. If the invoice is defective then there is no liability.

The KDC also tried to argue that the Validation Act validated just about everything. It did not. It only validated the specified rates, which are basically the EcoCare rates, and the intense scrutiny of the Rogan's legal team raised serious questions about whether the Validation Act actually validated anything.

In short, that argument by the KDC was a total fizzer.

The poor NRC came off worse. The NRC, to its credit, has played no part in the KDC's ruthless hounding of ratepayers but was, nevertheless, dragged into court.

The KDC sued the Rogans for arrears of rates but, quite astonishingly, failed to reveal to the court that some of those rates were NRC rates.

The Rogans put up the simple defence that the KDC had no legal power to sue on behalf of the NRC.

At first the KDC ignored this because they had believed that it did have the power to sue on behalf of the NRC. However, about 10 days prior to the trial it applied to the Court to have the NRC joined as a co-plaintiff.

In spite of the lateness and the prejudice to the Rogans, the Court, somewhat surprisingly, granted the application. The Rogans' legal team were therefore put under immense pressure to scrutinise the NRC rates.

It did not take long for the legal team to discover a rich seam of illegalities in the NRC rates. Not just procedural irregularities, but substantial failures to comply with the rating process that could render the NRC rates invalid.

The NRC counsel (the same as the KDC's) tried to gloss over the fundamental errors and argued, in any case, that section 60 applied and the Rogans could no plead the invalidity of the NRC rates without applying to the High Court.

Of course, the decision was reserved. Judge Keith de Ridder advised that, because of the complicated nature of the case, and the pressure of other work, it could be "some time" before the decision was released.

The issue to be decided is, fundamentally, whether the Rogans are allowed to plead the patent illegalities of the rating documents and establish that they are not liable for the rates, or whether section 60 means that, in the absence of an application to the High Court, a local authority can enforce payment of its rates even thought it does not comply with statutory requirements.

There was a real kerfuffle about the stayed cases in the week before the trial.

These are cases where ratepayers are being sued by the KDC and have adopted the same defence as the Rogans and which were transferred to the Whangarei Court.

Originally they were linked to the Rogan case but some time ago Judge de Ridder ordered that they were all "stayed", pending the outcome of the Rogan case. That means that they are held in abeyance until further notice.

Quite out of the blue, Honest John and his crew, in pursuit of their pound of flesh from all victims, not just the Rogans, applied to the Court at the last minute, despite the stayed order of the Judge, to enter judgment against all the stayed cases prior to commencement of the Rogan trial. They spent a small fortune in swearing and serving affidavits on all stayed defendants.

The application was, of course, in breach of the District Court Rules, and following pressure from legal counsel for the Rogans, and the solicitor for the stayed cases, an agreement was reached, and confirmed by the Court, that the stayed cases would remain stayed until the outcome of the Rogan case was decided.

Finally.  We get another day in Court.  The case KDC v Bruce and Heather Rogan will be heard in the District Court, Whangarei tomorrow at 10 am before Judge de Ridder.  It is scheduled for two days.

It has not been an easy road to get to this stage and there have been all sorts of hurdles put in our way by the KDC.  Their wastage of money is quite unbelievable but they are determined to extract the last pound of flesh from ratepayers.

The Rogans have an excellent defence and this will be an interesting test to see if the rule of law is applicable in Kaipara, and perhaps in New Zealand.

It is ironic that the Rogans are in court as the defendants but in fact they are there to represent the rule of law.  They refuse to pay illegal rates billed through non-compliant documentation to a local authority that has made an art form of flouting the law.

My apologies for the lack of posts on this site for some time but we have put all our energies into the legal case for the defence.  We will know very soon whether those efforts were worthwhile.

A big thanks to all the people who have supported the MRRA in this battle, both morally and financially.  You have stuck in there against all odds because you understand how important this battle is.  It could not have happened without your support and Bruce and Heather and all the team thank you. 


KEITH LADBROOK    10.06.2015
In the Dargaville and District News Keith Ladbrook asks in the letters to the editor what happened to the $178,000 dollars contributed by Te Kopuru ratepayers for the local wastewater scheme.  He wants an answer from the Council.

That's an easy one.  Along with all the other funds collected for such projects it was stolen by the KDC.  It disappeared down the big Kaipara gurgler that consumed tens of millions of dollars.  No one knows where it went or what it was used for.

The KDC faced up to this a year or so ago, under pressure from the Minister of Local Government, and decided to write of all such sums of money (because they didn't exist any more!) and acknowledged that communities would be forced to pay again for sevices that they had already collected money for. At the same time they confirmed that all the reserve funds and the Mangawhai Endowment Fund had also disappeared without trace. 

In the real world those responsible would be in prison but, in the rarified world of local government where those in charge are free to thumb their nose at the law and financial prudence, such behaviour is allowed. They call it internal borrowing.  It has quite strict guidelines which, of course, are ignored by the Council, its auditors and the Auditor-General.

When the Commissioners finally leave there will be nothing in in the cupboard.  If ratepayers want to reinstate their funds then they have to borrow them.  Imagine if the bank stole your money that you had on deposit and told you that if you wanted it back you would have to get a loan from the bank, repay the loan and pay interest on it.

That's why we have laws, to protect people from such rorts.

WORZEL'S WORLD   10.06.2015
In his article Worzels World - Losing Democracy in the Mangawhai Focus the Prof laments the further loss of democracy in Kaipara. 

What happened to "No taxation without representation"?

Great news for Kaipara. The Local Government Commission is not proceeding with a unitary authority in Northland. See the report here.

We may have lost our democracy for another year but at least the government has backed down on a further act of folly. Amalgamating three bankrupt councils into one and expecting it to function was never going to work.

Well done all of those who raised their voices to object.  This outcome shows that we do have a voice and that voice will be heard if enough of us make a stand for what is right.

Basil gets the boot from Kaipara

MUSINGS ON FIFA    09.06.2015
We all knew about the corruption in FIFA. We knew that Qatar and Russia had both secured the World Cup through bribery. But we also knew that FIFA was too big to challenge. Anyone who dared to raise a mere whisper of corruption would be dealt to.

Some rorts in this world are like that. The News of the World with its phone tapping culture was so out of control, and so powerful, that no one dared stop it. Bribery in cricket was the same. The revelations of endemic leaky buildings were stifled for many years by those with vested interests, with whistleblowers being denigrated with slurs and accusations of self interest.

Local government in New Zealand is the same. It is riddled with incompetence, negligence, corruption, cronyism, financial impropriety, legal non-compliance, with abuses of the rule of law and natural justice all thrown in.

Those of us who have fought long and hard against these injustices in Kaipara have realised that the rot goes through to the very heart of our society. Everyway you turn for help you meet the same arrogant disdain for the basic principles of law, justice and fairness.

The governmental institutions that are supposed to protect the rights of the people are in fact complicit in the whole rotten business of local government and actually work to deprive the people of New Zealand of their rights.

There appears to be nothing that we, as mere ratepayers, can do about it. We protest, we go on rate strike. We march. But at the end of the day those in local government know that they are too big too challenge. The DIA and all the others that drive local government know that we cannot resist the Behemoth.

Many ratepayers in the district have realised that and accepted that they cannot beat the system. Big business has completely taken over local government and will do so more and more as Basil Morrison forces his unitary authorities on to the country. Ratepayers will be have no say in anything and will be become nothing more than open wallets with the sole purpose of funding the enrichment of those who are members of the trough-feeders club.

But there is hope. And that hope is going to appear in Whangarei on 30 June, just three weeks away. On that day the KDC is fighting a pitched battle with Bruce and Heather Rogan in the District Court over their failure to pay rates over the last few years.

It is a hugely unfair battle as the KDC has all the resources that we as ratepayers pay for, and it has the backing of the government, Local Government New Zealand, the banks, big business, and the DIA.

It is very one-sided. But the good thing about of all this is that rules of battle are not based on the self-serving travesty of legal compliance that the KDC dishes up but on what the law of New Zealand says. For the second time only, we ratepayers are going to have an opportunity to challenge the KDC on its legal compliance.

In the High Court case, Heath J declared that the EcoCare scheme was illegal and that all the loan agreements were illegal but, unfortunately, they were caught by the protected transaction provisions in the LGA. He also held that the EcoCare rates would have been illegal if it had not been for the Validation Bill.

This time, in the District Court, the issue is whether the KDC rates assessment notices and rates invoices are compliant with the strict requirements of the LGRA. They are the documents that create the legal liability to pay the rates.

Those documents, under close scrutiny, are beginning to look rather shonky, and with only a few weeks to go it is too late for the commissioners to call upon their mates in Parliament to rush through another validation bill.

In any case, the current local MP, Winston Peters, is not going to be as accommodating as the well-known New Zealander whose name we're not allowed to mention.

This simple debt-collecting case could well be the turning point for local government in New Zealand. It will tell us once and for all whether local authorities in New Zealand are free to flout the law, ignore their legal obligations, and effectively do as they please without any reference to legal compliance, or whether they have an obligation to comply with the law of the land, to the letter.

It will be a big day for the ratepayers of Kaipara. It will be a big day for the people of New Zealand. And it will be a big day for the rule of law in this country.


The hearing is scheduled at the District Court, Whangarei (the same building as the High Court) for 30 June and 1 July. More details will be provided closer to the day.

When I explain to people why we are battling the KDC and fighting to ensure that ratepayers do not have to pay the illegal debt, the inevitable question is : Well if ratepayers don't pay the debt then who is going to?

It comes from the brainwashing that we are subjected to, that ratepayers alone have to foot the bill for the incompetence of local authorities.

It doesn't happen elsewhere. Out there in the real world those who are incompetent and negligent are pursued in the courts. Directors who misrepresent the financial situation of companies can end up in jail.

The Financial Markets Authority is now, according to today's Herald, flexing its regulatory muscle and keeping those in the financial markets on the straight and narrow.

But none of that applies to local government. Councillors and commissioners are free to make any promises they wish and come up with any baseless financial assumptions and remain confident that they are never going to be charged with misleading ratepayers.

Auditors have a set of rules that allow local authorities to do things that would result in company directors facing the courts.

The so-called regulator of local government - the Auditor-General - slept through the Kaipara debacle, woke up to hold her own independent inquiry into her own incompetence, and then fell into another slumber that rivals that of the Sleeping Beauty.

In the real world, when a company goes into receivership or liquidation the receivers or liquidators get stuck in. They work out who was responsible for the failures of the company and they pursue them mercilessly.  In the past I have quoted examples but the Herald reports today on the directors of Dominion Finance and North South Finance being pressured to cough up over $10 million.

That is what should have happened with Kaipara. Contributions from Councillors, the Chief Executive, Beca, the KDC lawyers, the OAG and Audit New Zealand, with a chip-in from the banks, would have achieved a very acceptable outcome.

But there were no receivers and the commissioners appear to have let all those responsible off the hook. The Councillors have gone, Beca has gone, we have heard nothing about Bell Gully. And no news on Jack McKerchar and the OAG.

Good on yer, ratepayers.

Kaipara, it's your turn soon

Stuff reports as follows (here):

A prominent New Zealander facing 12 charges of indecent assault will stand trial in April next year.The man appeared in the High Court on Thursday, where Justice Paul Heath confirmed the man's continued interim name suppression through to trial. A trial date of April 4, 2016, was set.The man has pleaded not guilty to all charges and was excused from attending a trial call over in June.Most details of the case are suppressed to protect the identity of the alleged victims....

Winston Peters' questioning of Associate Local Government Minister Louise Upston about the reappointment of the commissioners can be seen here.

All this hoo-ha with the advisory panel is a "pre-consultation". It seems the commissioners have such a poor relationship with ratepayers that they have appointed the advisory panel to act as intermediaries to assess the feelings of the ratepayers.

The problem is that, as usual, the commissioners have stuffed up again.

Instead of fronting the issue openly, they brought out the good old smoke and mirrors, and once again got offside with the people.

We all want a solution to the sewerage problems, but handpicking a bunch of yes men (and woman) who will do the commissioners bidding, was not a good start. Most of them have no sewerage experience, and boy does it show.

At the meeting at the Golf Club on Sunday everyone was begging for local John Dickie, a qualified, and internationally experienced water engineer, to be part of the action. He is not on the commissioners' list of favourites and did not make the panel cut.

Ian Greenwood, the spokesperson, has softened his views. The vow of silence on the past and the cost of the proposals is now more gently enforced. He even acknowledged the massive outstanding debt and expressed the wish that some kind person should get rid of it.

Even the top secret words - Harrison Grierson - were mentioned a few times. The cat is now out of the bag. But why on earth did they have to shroud all this in so much secrecy. Why not lay the cards on the table and open up a discussion about all options for the future.

And while they are at it, why avoid the elephant in the room, the debt, and why shun away from any talk of future costs like startled rabbits.

Questions about costs were parried away. "The commissioners want to know what option you want. The cost comes later."

What arrant nonsense. This is a bankrupt Council with ratepayers who are hocked to the eyeballs for generations and they are being hard-talked into another scheme where costs are not mentioned and which sounds remarkably like the last Ponzi scheme they got sucked into.

Using the golf course as a disposal field for the treated effluent appears to make good sense, just as it did back in 2005. It didn't happen then because the KDC opted for the Brown's Road farm which appears to have offered some fine rewards for those involved.

The farm was never suitable and $11.5 million was spent on a lemon of a disposal field.

The other problem is that we still do not know whether the processing plant is up to scratch. There are all sorts of vague ideas floating about and the advisory panel seem to think that the comments of the Auditor-General that it is "running well" is all the confirmation that is needed. In this neck of the woods a commendation from the Auditor-General almost certainly means that it must be shonky.

Sooner or later the commissioners and the panel will have to answer the big question. Is it a lemon or not?

NO DOUBTING THOMAS      27.04.2015
Ted Thomas, a retired judge of the Court of Appeal and a former acting judge of the Supreme Court, has contributed an article to the NZ Herald leaving no doubt as to where he stands on the wharf extensions in Auckland.

Judges do not and cannot give any opinions on legal matters, but retirement loosens the constraints somewhat.

Ted Thomas says that he was appalled that consents were given for the wharf extensions without public notification. In language that will be familiar with the readers of this website, he says:

The council has permitted the pillage of open harbour space under a planning regime which effectively gives the company carte blanche to do what it feels commercially driven to do within the port precincts.

He adds:

The fact the port is at the doorstep of the city seems to have been the mouse in the room.

I guess that mice are more easily overlooked than elephants.

He also alludes to the Holcim white storage dome that received a a non-notified resource consent last year. It is as high as a nine to ten storey building and dominates the harbour landscape.

He has some interesting remarks about the legal process, especially as they come from a retired judge

The current legal proceedings are but the skirmish before the battle. Ports of Auckland will spare neither resources nor money in fighting its case. It will be represented by the best lawyers money can buy. Economists, planners, port administrators and other purported experts, some no doubt from overseas, will be called as witnesses. Port users will be organised to support the application with all the vigour that short-term profit-driven thinking can generate.

He sounds almost as cynical about the legal system as some of us are. He concedes that council juggernauts are almost impossible to stop. They have a bottomless pit of money, usually supplied by taxpayers or ratepayers, and are well placed to win any legal war of attrition.

It is good to see the judiciary getting stirred up about the inequities in the application of our laws and the lack of level playing-field in having access to the courts.

Let us hope the judiciary listens hard when the MRRA cases come before the District Court and the Court of Appeal in the next few months.

The Northern Action Group in Rodney has won its first battle in respect of secession from Auckland City.  See here.

The group wants Northern Rodney, which runs from Puhoi to Wellsford and Warkworth, to break away from Auckland City and set up its own local authority.

To quote the notice sent out:

The High Court has upheld the Northern Action Group’s appeal against a Local Government Commission decision refusing to assess an application to de-amalgamate North Rodney from Auckland Council. Justice David Collins has found that the Local Government Commission acted unlawfully in rejecting the application. It turned what should have been a simple filtering exercise into a mini-inquiry and irrelevantly took into account submissions by the Auckland Council.

The group now has to produce evidence of community support throughout the Auckland City area and then the matter is to be referred back to the Local Government Commission to assess the merits of the application.

The important thing is the warning shot that it fires across the bows of local government.

It is an unwritten rule that local authorities can do anything they like, legal or not, until a court declares the action or decision to be unlawful. But, of course, legal action is outside the pocket and stomach of most people so local government has free rein to flout the law.

A case like this send tremors through the local government establishment because it is a reminder that the rule of law, although a shy and timid creature and expensive to coax out of hiding, does have some real teeth when it is let loose. 

The plaudits heaped on the commissioners by the local newspapers for the gong the Council received (see A NOT SO SHINY GONG below) highlights the fundamental problem facing Kaipara.

The Lifestyler lauded the Council for its "top recognition" and the Mangawhai Focus praised the commissioners for their "prestigious award".

The problem is that all the information printed was lifted directly from a press release put out by the commissioners and carefully crafted to mislead readers.

The "propaganda" had its effect. Almost all readers would have been impressed and convinced that Honest John and his mates were doing a top job, and that those who criticised them did not know what they were talking about.

Mission accomplished.

That's what good propaganda does. It sucks you in and once you are sucked in it is extremely hard to concede that you were duped.

There is also a fundamental need to believe that those who run central government or local government are driven by honourable motives, are competent, fair and transparent and operate in accordance with the rule of law.

We would hate to think that those in whom we invest our trust are as corrupt and incompetent as those in the third world countries that we look down on.

There is a fundamental yearning in New Zealand to believe that our government is good, and there is a massive reluctance within us to believe otherwise.

We are a fertile ground for propaganda to take root.

Those who read this website know that the reality is different.

What the propaganda about the gong did not tell you is:

1. The commissioners were so incompetent that in January 2014 they came within a whisker of losing accreditation for issuing building consents. That is in spite of Peter Winder being the go-to expert in New Zealand on accreditation. He was appointed as a commissioner in October 2012 and had almost a year and a half to recognise and fix the problem. He completely missed it, yet at the same time earned himself $50,000 for doing an independent report on the same problems for the Christchurch City Council.

2. The Christchurch problem was all over the news. The commissioners managed to keep the Kaipara debacle completely secret. The Christchurch chief executive resigned following the publication of the Winder report which held him personally responsible. In Kaipara, those responsible, chief executive or commissioners, were not censured in any way.

3. The story of the award is quite incredible. Peter Winder applying for an award, that was sponsored by Peter Winder's firm and for which Peter Winder was a judge.

It is even better that the farce of the Auditor-General doing an 'independent" inquiry into her own incompetence in respect of the KDC auditing.

So when the truth is known, what do we have? We have commissioners who are not only incompetent but who cover up their incompetence and then promoted themselves as being highly competent by securing a 'prestigious" gong.

What does that add up to? Incompetence, dishonesty. lack of integrity? It sounds very much like a third world country to me.

But, those people who have not read this website remain convinced that the commissioners are totally competent, that their competence has been recognised by an independent award, and that they are the best thing since sliced bread.

That is the fundamental problem in Kaipara.

As expected, Associate Minister of Local government announced yesterday that the commissioners' appointment will be extended for another year until October 2016.

She states that it was clear to her on her visit to Kaipara that there was widespread support for the commissioners.

It is all rubbish, of course. As we know, on her visit she refused to meet with opponents and only met with handpicked invitees who supported the commissioners.

Louise Upston carries the can because Minister Paula Bennett does not want to mar her CV and her no-nonsense "Westie" image with the crushing of democracy in Kaipara.

But, those two are just pawns in the whole game. The responsibility for the decision lies with John Key.

The commissioners were put in to bring the rebel ratepayers to heel, to ensure that the ratepayers were dumped with all of the illegal debt, and to ensure that John Key's mates in the banks can get their full pound of flesh out of the Kaipara ratepayers.

John Key is personally petrified that if justice and the rule of law prevails in Kaipara then it will be the first domino to fall and his new feudal system, that he has surreptitiously imposed on the people of New Zealand, will start crumbling around him.

The date for the announcement was carefully calculated. it was withheld during the By election. Denying democracy is not a vote winner, especially with Winston lurking. But time was running out with only 6 months to go before the scheduled return of democracy. The decision had to be made. And what better time than a Friday before a long weekend when everyone would be caught up in the Gallipoli 100th anniversary.

No doubt it was lost on John Key that he was again denying democracy and the rule of law to the people of Kaipara, while, at the same time, he was in Turkey celebrating the Anzacs who gave their lives in defence of the same democracy that he is now denying us.

It will be interesting to see how the people of Kaipara will react. Will they take it lying down or will they send a message to John Key that he cannot ignore.

Note: In his speech at the Istanbul Peace summit yesterday John Key, spoke of the threat of ISIS, and added:

We are also a small country with a fundamental interest in supporting stability and the rule of law internationally.

How about supporting the rule of law at home, John?  And why not start with Kaipara?

A NOT SO SHINY GONG   24.04.2015
Far be it from me to want to take the gloss of the achievements of Honest John and his crew. However, the report in the Kaipara Lifestyler advising that the KDC receiving a gong for its high performance, raised some doubts.

Fran Mikulicic, general manager regulatory and acting chief executive Jill McPherson at the Society of Local Government Managers Awards

Those of us who know the KDC know that "high performance" only exists in the rhetoric of Honest John.

So, dig a bit deeper.

The Lifestyler article reported that the KDC was Highly Commended for its entry in a prestigious Society of Local Government Managers Awards in Wellington.  Note the name.

As usual, the Lifestyler article was taken almost verbatim from a press release from the Commissioners.

In that press release Honest John is reported as follows:

John Robertson, Chair of Commissioners, on hearing of Council’s success said “The Commissioners are delighted to see the hard work of the staff being acknowledged in this way”.

So, dig a bit deeper behind the smoke and mirrors.

If you look on the SOLGM website you will find that the awards are not just the SOLGM awards, but.....wait for it...........

The 2015 McGredy Winder SOLGM Local Government Excellence Awards®

No doubt you will recognise the Winder name, and it belongs to Peter Winder, one of the three Commissioners.

This is what it has to say about McGredy Winder:

McGredy Winder & Co

Founded by Peter Winder, we offer tailored services in strategic planning, policy, advocacy, facilitation, issues management, economic development, communication, management, business improvement, and governance.

But there's more.  Wait for it.................

The judging panel consisted of 5 judges. One of whom was:

Peter Winder

Director of McGredy Winder & Co

Incidentally, One of the other judges was someone well-known to Kaipara ratepayers:

Lyn Provost

Controller and Auditor-General of the Office of the Auditor-General

To summarise, the KDC under the stewardship of Peter Winder (and two other commissioners) won a gong for its high performance in awards sponsored by Peter Winder's firm, with Peter Winder as judge.

And yet if you look at all the publicity about it you would never know that Peter Winder had any involvement.

That pretty well sums up what the commissioners' regime is all about. They are about as transparent as 2 metre-thick concrete.

Peter Winder's name rang a very big bell.

Do you recall in 2013 there was a crisis in respect of the accreditation for issuing building consents in respect of the Christchurch City Council? The chief executive, Tony Marryatt, was stood down, a crown manager was appointed, and your very own commissioner Peter Winder was appointed to conduct an independent investigation into the matter.

The investigation found that the problems with accreditation rested with the chief executive, and soon afterwards the chief executive resigned with a very handsome payout.  (What's new?).

So while Peter Winder was acting as the independent expert in Christchurch, what was brewing in Kaipara?

We don't know the details because, unlike the Christchurch fiasco, the Kaipara fiasco was kept top secret by Honest John and his mates. But what we have now discovered is that while Peter Winder was busy sorting Christchurch out, his own bailiwick in Kaipara was having exactly the same problems with its own accreditiation.

It all culminated in the KDC receiving an IANZ report dated 6 January 2014 highlighting 13 CARs (corrective action requests), 15 strong recommendations, and 6 recommendations. The KDC was given a three month timeframe to clear the CARs and an early audit was imposed requiring 3 months of clear records by the last week of July 2014.

The application for the gong says that Kaipara, like Christchurch, was on the cusp of losing its accreditation for issuing building consents. The application calls it a "Burning Platform". Kaipara as an operational council was in severe jeopardy.

So who was responsible for this shameful state of affairs? The chief executive Steve Ruru? If so, why was he not held to account for his failures, as Tony Marryatt was in Christchurch. He was effectively forced to resign for similar failures.

Or was it the commissioners who had been appointed in October 2012 specifically to fix the problems of Kaipara, and by January 2014 had had ample time to identify the problems facing the KDC?

The commissioners were appointed for their individual expertise, and one has to ask why Peter Winder, the acknowledged expert in this field, who was busy earning money pointing out defects in Christchurch in 2013, completely overlooked the same problems under his own watch in Kaipara.

The non-compliance was huge and must have been startlingly obvious, but our much vaunted in-house expert failed to pick it up.

But what is worse, the commissioners, including Peter Winder, decided to keep mum about the whole thing. While publicly boasting of their competence and expertise and the new excellence that they were imposing on the KDC, they performed like a bunch of charlatans, and hid their incompetence behind a wall of smoke and mirrors.

So, going back to the gong, we need to look at the real facts.

Peter Winder, the expert in accreditation, failed to pick up the dire accreditation problems in Kaipara. Peter Winder and the other commissioners hid the problems from the ratepayers. When the problems were fixed, Peter Winder, with his fellow commissioners applied for a gong for excellence in fixing the secret problem. The gong was sponsored by Peter Winder and Peter Winder was one of the judges.

The Northern Advocate and the Bay of Plenty Times reported this week that a person appeared in court on Monday on 12 charges of sexual assault against two complainants. He was remanded on bail to appear in the High Court next week.

All details of the case were suppressed.

The case was not included in either of the papers' on-line editions.

Things get worse for John Key. The Daily Blog, which broke the story on the waitress and the pigtail, has now suggested that the story in today's NZ Herald was obtained by "dirty tricks". See the Daily Blog article here.

See the historic pigtail pulling on Campbell Live here.

See Chris Trotter's views here.  Whale Oil's view here.

The interesting thing about Alex Swney's fraud is not that he did it but that the auditor did not pick it up.  He ripped off $2.5 million from Heart of the City without the auditors spotting anything untoward.  It sounds all too familiar.

Just a couple of things that caught my eye.

In his cosy letter accompanying the latest rates invoice, Honest John makes the following comment:

As you plan ahead, you will be interested to know what your rates will be in the next finacial year.  I cannot advise these yet, but I can provide you with background on the process as we consider priorities for council expenditure.

The comment is, of course, meaningless.  The Plan has told us what the percentage increase is, so it should be an easy matter to calculate the rates that each of us will have to pay.  So why does considering "priorities for council expenditure" delay calculating the rates?

Surely if the rate increase is already fixed and is being consulted on, then it is a simple matter to equate the expenditure with the income from the rates?

And how can ratepayers be consulted on the Plan and rate increases when there is no accurate information on what those increases will be?

Things are never what they seem with Honest John and his crew.

There appears that there will be some serious changes in the rating proposals that ratepayers will not be advised of until much later.  By that stage the Commisoners will have already gone through the consultation process, so they can tick that box and simply adopt the changes.

They can't go through the consultation process again as there will not be time.  The Plan has to be adopted and rates set before the end of June.

The other matter that drew my attention was a comment in one of the local rags that the Council meeting in June, when the Plan is adopted and the rates set, is being put back a week to 30 June.  This is, so we are told, to allow more time for the audit of the Plan to be completed.

Interesting.  One would have though that there was tons of time between now and June for the auditor to ink his rubber stamp and endorse the Commissoners' financial fantasies. 

Or could it be that the auditor, like many of us, has finally cottoned on to the fact that the KDC is in dire straits financially.  For starters, It is apparent that the Council does not meet the Auditor-General's test for a "going concern", which is the test that is applied to local authorities.  It must be able to meet its commitments out of income for the foreseeale future, without government assistance.

Quite simply, the KDC cannot meet its current debt repayments and has parked $26.2 million, on which it can't even pay the full interest, at the bottom of the garden in Never Never Land.  It has stripped the cupboard bare of all the reserve funds held for other purposes.  As for government assistance, it would have gone down in a screaming financial heap if the government had not come to its rescue and validated six years of persistent illegalities.

Something is cooking, but at this stage we don't know what.

If you are quick enough you can catch Matthew Hooton's article Sabin clock keeps ticking for Key in the NBR. It may be padlocked soon behind a paywall.

The article raises the spectre of the Sabin allegations being known before the 2011 election. (No misprint in the date)

The article states:

But Mr Key’s government stands accused of somehow covering up after Mr Sabin, with Labour leader Andrew Little going so far as to say he believes Mr Key is lying.

John Keys handling of the situation is severly criticised and tha article ends with the comment:

The risk for Mr Key is that if the full Sabin story becomes known in a week, a month, six months or a year, it will look as if his government covered it up not just through a general election campaign but then again through the by-election as well. The clock keeps ticking.

MORE ON THE LEMON   22.04.2015
The EcoCare Mark 2 proposals have proved to be ridiculous. 

The so-called members of the advisory panel (who know diddly-squat about sewerage, so how can they "advise"?) have shown themselves to be autocratic, arrogant, and uninformed, and voluntarily hog-tied by their ridiculous terms of reference.

Remember that the panel members were handpicked by John Robertson and Jill McPherson, and anyone who had voiced any comment about EcoCare - effectively the experts - were excluded from selection.  And no peeking into the past was allowed.

No one has been impressed with the blinkered approach, and the sense of predetermination exhibited by the panel, and the air of "we know best".  Their autocratic approach was best shown by the requirement to lodge feedback forms within a few days of the open day held on Easter Saturday.

They came across as salespeople selling a product with all the appropriate spiel and sales pitch, without revealing who was driving the whole thing behind the scenes.

How can you have any proposal when the three elephants in the sewerage system are completely ignored.

    • Is EcoCare a lemon?

    • What happens to the $80 million EcoCare debt?

    • If the ratepayers cannot afford to pay the debt on the lemon, how could they ever afford the bill for extensions to the lemon?

The whole thing is a masterminded by Harrison Grierson, and the proposals have nothing to do with the purity of the harbour or the safety of future generations.  That is simply sales spiel to suck ratepayers into another Ponzi scheme.

Some questions:

Why did Honest John not reveal that Harrison Grierson were wheeling this wheelbarrow?

 Why did Honest John cover up, yet again?

 If  Harrison Grierson have something important to say, why did they tell it to inexperienced intermediaries and then get them to front it?  Why did they not tell the ratepayers directly?

Christian Simon has shown the way with alternative systems.  His attendance at the open day, which brought out the worst in the advisory panel, and his stall at the Village market, have stirred considerable interest in the problems of sewerage, and the alternatives for dealing with those problems.

The word around town is that the Commissioners have yet again overstepped the mark, as they did with their shifty proposal to sell Sellars Reserve and other crucial land in Alamar Crescent.

As usual, the Commissioners talk of transparency and consultation, and then, behind the smoke and mirrors, they head off on their pre-determined course.

The online feedback form is a bit like the application form for a free holiday anywhere in the world offered to Russian dissidents.  Just two questions:

 Would you prefer 3 years in the gulag? or

 Would you like 36 months in the gulag?

This whole thing is a scam.  It is trying to suck ratepayers into selecting an option so that the advisory committee can report back to the Commissioners that that is what the people want.  That is your consultation.  And you will get it at a massive price.  Just like Ecocare Mark 2.

The best approach is to write to the advisory panel and tell them in no uncertain terms what you think of them and their pathetic game. That the KDC cannot contemplate any more capital expenses until there is an independent audit of its finances to see if it is effectively insolvent.  

And tell them that no money should be spent on EcoCare until an independent engineering assessment is done to see if it is a lemon.

Don't let them tell you that the Auditor-General said that it's OK in her report.  She is supposedly the auditing expert in New Zealand and yet she failed to pick up any of the rorts that hallmarked EcoCare.  Would you trust her expertise in sewerage systems?

The Commissioners make out that if the ratepayers are consulted, and agree to something, then that is what they get.  It's all rubbish.  In local government the council can tell any lies it likes, mislead the ratepayers in the most criminal way, and those who are responsible for the lies and misleading information suffer no consequences.

In the commercial world any such dishonesty would end up in court with perhaps a gaol sentence to boot.  But in local government it is the unwritten rule that councils can fib their way through any project and when the world comes crashing down, the council gets off scot free and the ratepayers carry the can.

When you hear promises from the Commissioners and representations about the financial soundness of the KDC remember your history lessons.

The original EcoCare scheme was supposed to cost only $35 odd million, all up with everything, and service 3,500 sections.  Any cost overruns were to be carried by the contractor.  The debt was to be segmented which means it would be ring-fenced to those who were connected to it.

All lies.  The representations had no basis when they were made.  They were lies then and they are lies now.

Double the cost, overruns paid by ratepayers, only 1600 connection capacity, and a large part of the debt is being carried by ratepayers across the whole district.

Don't listen to the silky-soft words of Honest John when he says things are different now.  This is the game of local government.  It is a rort from start to finish where ratepayers are sucked dry and the big boys have carte blanche to tell any porkies they want.  If you have any doubt, then look at Auckland.  Totally out of control and heading for disaster, where the big boys are free to do what they want, and the ratepayers simply sign the cheques.

Mike Sabin has found that there is life after Parliament and has scored himself a nice little number that seems bizarrely unsuited to his qualifications, experience and personality. See the NZ Herald for details here.

Is it coincidental that he is working for a Chinese company when there are all sorts of Chinese whispers going on about his past activities?

Surely, by this stage, everybody knows what he is charged with.

The only people who do not know are John Key and all the members of the National caucus.

"Mike who?"


"It's your turn now!"

Local authorities have an obligation to consult with ratepayers on all options. This is what the Local Government Act says,with highlight added:

77 Requirements in relation to decisions

(1) A local authority must, in the course of the decision-making process,—

(a) seek to identify all reasonably practicable options for the achievement of the objective of a decision; and

(b) assess the options in terms of their advantages and disadvantages; and

(c) if any of the options identified under paragraph (a) involves a significant decision in relation to land or a body of water, take into account the relationship of Māori and their culture and traditions with their ancestral land, water, sites, waahi tapu, valued flora and fauna, and other taonga.

Someone forgot to tell Ian Greenwood and his fellow advisory panel members at the sewerage open day at the Mangawhai Domain.  Architect and alternative sewerage systems expert Christian Simon tried to offer an alternative option to the extension of the EcoCare lemon. He got the boot. Scroll down to AN ALTERNATIVE GETS THE BOOT 08.04.2015.

He was forced to leave the Domain, owned by the people of Mangawhai and not the Council, and, when he set up his display outside, a wall of advisory panel sympathisers formed a wall around him and visitors were ushered away from him.

Ian Greenwood was seriously miffed and complained about Christian Simon interfering with this team's right to display their options without any opposition.

I wonder what right that is. Perhaps it is the long standing right in Kaipara, established as de facto law by long usage, for the Council and its supporters to pull the wool over the eyes of ratepayers, to mislead them and lead them up the garden path with fanciful schemes that have nothing to do with the best interests of the community but incidentally result in the enrichment of those involved with them.

TIME TO 'FESS UP   14.04.2015
Now that Harrison Grierson has been exposed as the eminence grise behind the proposed extensions to the EcoCare sewerage scheme, it is about time that the advisory team members, including the Commissioners and the, chief executive, Jill McPherson, came clean and revealed their connections with that firm.

Who is the project manager?  He is not on the advisory panel.  Is he an employee of Harrison Grierson?

Answers please!  Transparency and all that.

IT'S NOT BECA     13.04.201
Legal Eagle got it wrong.  He thought he could smell Beca as the driving force behind the EcoCare extension scheme.  In fact the whole propoal is being engineered by one of the other monotithic enterprises, Harrison Grierson.

Not that the Commissioners would reveal that to you.  The thick veil of secrecy is cast over everything that they do and the ratepayers of the district are being manipulated again to suck more money out of them in the latest version of the KDC Ponzi scheme.

Harrison Grierson are well entrenched.  This project is well under way, and, in true KDC style, the cake is baked and out of the oven, and the consultation with the ratepayers is simply a formality, a marketing ploy, that will put the icing on the cake and dress it up so that Louise Upston can wax eloquent on how wetll "her boys" in Dargaville consult with the community.

On 25 March 2015 the New Zealand Land Treatment Collective held its annual conference and discussed “Seasonal Impacts of Wastewater Management”.  One of the speakers was Angeli Paglinawan from Harrison Grierson and her topic was:

Potential effluent disposal options to cater for growth at Mangawhai

You can see the overall strategy.  Suck them in with the absolute necessity of keeping the harbour pristine.  Don't digress one inch into lateral considerations of whether it may be cows and run-off, not humans, creating the problems.  Create the need.  Then create fanciful arguments about population growth and the other need.

 Don't let them sidetrack you with "the past".  That is gone, dead and buried and the fact that the ratepayers have already paid an extortionate price for an expansion that was promised to provide 4,500 connections, must be buried at all costs.

Block any talk of options like small self-contained sewerage systems. This is all about EcoCare, the giant lemon.  EcoCare has to be extended.  Any other option wouldnot meet the primary target of the whole proposal, and that is to enrich the trough-feeders.

And, what ever you do, don't mention the cost of all this.  Suck them in first, and then hit them with the cost later. It worked last time.

The EcoCare advisory panel have responded to harsh criticism of their unreasonable, autocratic actions by extending the date for submisssions on the proposed extension of EcoCare, slated by some as the new Ponzi scheme.

Here is the announcement on the KDC website:

Thank you to all those that attended the Open Day, Easter Saturday.  Due to public demand for more time to consider all the questions and give them full consideration, the Advisory Panel have extended the reponse date to 24 April 2015.

Ratepayers should take note that their complaints about the panel's behaviour had an immediate response.  There is a lesson to be learned.  If enough of us get off our butts and challenge the autocratic actions of the Commissioners and their acolytes we can make a difference.

Ratepayers in Kaipara will be very aware of the role that Beca played in the EcoCare fiasco.  Beca was not only the adviser and consultant to the KDC but the EcoCare joint project manager.  If you read the harsh criticism of the management of the project in the OAG's report, you will wonder if in fact there was any management at all. 

The project was ill-planned, the KDC and its planners and advisers out of their depth, with the project simply being out of control. No one really knew what was going on and the contractors were virtually free to charge what they liked.

It is frightening for those of us who believe that contractors on the international stage must have some basic competence in their area of expertise, to find out that they were out of their depth.

EcoCare was not a one-off.  Bernard Oarsman reported on a similar blow out in a sewerage scheme in Masterton in 2011, and guess what? Beca's name crops up again.  This is what the writer said about Beca:

Rates are expected to rise a cumulative 19 per cent in the next two years after it was revealed last week that Beca Carter Hollings & Ferner underestimated the cost of the wastewater project by at least $5.1 million.

At Monday's meeting, before a gallery of about 50 spectators, Masterton District councillors moved to explore legal action against Beca and to look for savings in the $30 million project by an independent scrutiniser at the consultancy firm's expense.

Explore legal action?  That certainly rings a bell.  But I imagine that nothing came of it, just as nothing came of the hollow promises of the Commissioners to pursue Beca in the courts.   Beca is too big and too important a cog in the local government machine to sue.  And, remember, the first rule in local government is that you never do the dirty on your fellow feeders at the trough.

Local government is an unregulated, frenzied feeding ground for all the corporate piranhas because it creates wealth for those who matter in our community, and the prey that they feed on, the ratepayers, seem to be quite content to be the victims of such mayhem.

Is Beca doing a reprise of its EcoCare role?  Is it behind the advisory panel's clumsy thrust to force EcoCare Mark 2 on to the hapless ratapayers of Kaipara?  Is it coming back for a second bite of the very juicy cherry?

This is an important time for Kaipara ratepayers. You may not know it but you are being consulted on the future of the EcoCare sewerage scheme and the proposals put forward by the Commissioners' advisory panel.

Those proposals entail very expensive extensions to EcoCare, that are not based on a rigorous assessment of the sewerage system, and are going to create massive more debt for ratepayers.

You are being asked to complete a questionnaire and return it by this Friday 10 April 2015. Like all questionnaires that emanate from the KDC, it is carefully designed to lead you into selecting the proposals that they are promoting.

Ratepayers are encouraged to read the following posts and then let the advisory panel know if you do no accept their proposals and that you insist on a fundamental and rigorous assessment of the current sewerage system and a cost analysis of all options, including stand-alone-options, being undertaken before any further steps are contemplated.

Last week several groups were invited along to view a presentation by the KDC advisory panel on the proposals for the extension of the EcoCare scheme, now dubbed the Mangawhai Wastewater Scheme (MWWS).

I have in the past been extremely critical of the panel, its selection, its terms of reference and of the propaganda-laden articles that it has published, courtesy of the Mangawhai Focus.

I was interested to see how the panel would measure up in real life.

The members of the panel are very sincere and clearly very talented, qualified and experienced. They have enough letters after their names to make up a complete alphabet.

BUT.......there appeared to be a lack of intellectual rigour and simple down-to-earth nous, which one would expect from such a band of highly qualified people. They seemed more like members of a religious sect with esoteric ideals and principles that are untouched by facts and common-sense.

They appear to have taken on board the ridiculous terms of reference set by the Commissioners without any objections; they refuse to look into the past, which, in a case like this, is the key to the future; and they have embraced a slick marketing campaign with expensive props for the EcoCare proposals that raise serious questions about their integrity and their motivation.

Clearly the strategy is to promote the purity of the harbour as the main goal, which is what the proponents of the original EcoCare rort did. The main goal then was, in reality, for those involved to make money out of the wretched ratepayers, and the purity of the harbour was the catch-phrase for sucking everyone in.

That appears to be the modus operandi again, even though there is evidence that the purity of the harbour has not improved because of EcoCare, and that the biggest danger to the harbour is from cows and not humans.

But the advisory panel is not going to let facts get in the way of a good marketing strategy and the profits that will be available to those unknown personages who are promoting the proposals.

There are indications that some large eminence grise is behind these extension proposals. In the previous scheme, that proved to be such a debacle, Beca was the brains and the driving force that led us down the path to ruin. Now that the Commissioners have pulled the plug on taking legal action against Beca, has it re-entered the fray to have another bite at the golden cherry?

The panel members had everything off pat. They all made a point of saying that they applied for the positions on the panel. They were not tapped on the shoulder because they are mates of the Commissioners, as many have suggested.

The protestations sounded contrived and unbelievable. They are the mates of the Commissioners and are at one with their strategies. Is it not true that those who had voiced any concerns about EcoCare were barred from the panel?

They are adamant that the plant is capable of untold connections and disingenuously quote the report of the OAG as its source. They know as well as all of us that the report was a whitewash of what took place in Kaipara and any comments in the report on the viability of EcoCare are vague and have no engineering merit whatsoever.

My suggestion that there should be an independent engineering assessment of the whole of scheme - plant, reticulation and disposal - before making any decisions about dealing with sewage, was treated as bordering on heresy. The project director blustered that it would be too expensive and would I be willing to pay for it personally?

He didn't seem to get it, that they were investing a small fortune in marketing their vastly expensive proposals to build on the EcoCare lemon without even checking to see if the foundations were safe.

Another of their mantras is that they are promoting the proposals for the good of the people, but they shun any knowledge of the massive existing debt and the cost of their proposals is a no go area. They squirm when costs are mentioned and when asked how ratepayers can afford to meet the current EcoCare debt AND the new debt to fund their proposals

They say, as one, that the cost of the proposals would be too expensive to cost at this stage. They just want ratepayers to tell them which option they prefer.

Like all good salesman, they lure you in without telling you the cost. Once they have got you on the hook they can reel you in. Worry about the cost later. That can be fudged and hidden. Just like with EcoCare Mark 1.

Believe it or not, you have had you consultation and now you have to give the panel your feedback by this Friday 10 April 2015.

The public demonstration of the proposals was last Saturday at the Domain and you are given only a week in which to make your views known. This has come as a surprise to everyone and the suspicion is that the panel wishes to close down consultation before ratepayers have the opportunity to voice their concerns.

The questionnaire can be viewed here.

The whole of the questionnaire is geared to the EcoCare scheme being extended and asks carefully constructed leading questions with that outcome clearly targeted.

The whole of this consultation is a farce and ratepayers need to let the advisory panel know that.

What to do with our sewerage system is an important issue but such serious issues are never going to be resolved under John Robertson and his Commissioners because of their total lack of transparency, their disdain for genuine consultation, and the fact that his strings are being pulled by others who do not give a proverbial about the best interests of ratepayers .

The viability of EcoCare, the viability of the KDC itself, are vital issues that must be answered honestly before Kaipara can go anywhere. That means getting advice from genuine independent experts who can tell us the truth about the financial viability of both the KDC and EcoCare.

We need to send a clear message to the advisory panel that we do not want any part of their nonsense. We refuse to consult on their preposterous proposals and will not join in their games.

But don't just think it. Do something about it. Send them an email and tell them what you think, and do it by Friday at the latest.


Local architect Christian Simon is seriously opposed to the advisory panel's proposals because the panel and those unknown people who are driving the panel are asking the wrong questions. Christian believes that we need to reassess our sewerage needs and ask whether the current scheme is salvageable and whether stand-alone schemes are a better option.

Christian set up a stall at the advisory panel's open day, to present some true alternatives to ratepayers, but was asked by the panel to leave under threat of the police being called.

That pretty well confirms what many of us think about the panel

The details of Christian's proposals are available in some shops in Mangawhai Heads, Mangawhai Village and Kaiwaka..

His responses to the panel's questionnaire is available here.

The number of connections
So how many connections are there at present? A simple question, and one would have thought that there would be simple answer.

The information put out by the panel states that there are 1800 connections. A nice round figure. The project director states that this is absolutely accurate and when I quoted a figure of 1,600 odd based on a figure provided by the Council, he was adamant that there had been additional connections since that figure was provided to make it up to 1800.

Another member of the panel was not so certain. He felt that the figure was closer to 1700.

Mmm, some uncertainty with a fairly crucial number. Not a good start.

The figures that I have are taken from the LOOKING AHEAD document which is the consultation document for the 2015/2025 LTP. It is only a few months old and I suspect that it is up to date.

It states with some precision that the number of connections to the scheme, which are liable for the annual connection charge, is:

Residence 1,647
Other              43
Total          1,690

However, we must bear in mind that the targeted rate is charged on SUIPs and not rating units. So if there are two SUIPs on a property which are billed for two connection charges, there is in fact only one connection. The number of SUIPs is unknown but the number of actual connections could be reduced to around 1,650.

The proposed cost of the EcoCare scheme
The statement of proposal (SOP) for 2006 was consulted on, but illegally, because the KDC had signed the contract document and the loan documentation before consultation even took place.

Ratepayers were led to believe that the total cost of the whole scheme - plant, reticulation, disposal and connections - in that SOP was $35.6 million and that the scheme would provide 3,300 connections.

There was also a provision that cost over-runs were to be borne by the contractor.

The final scheme, which was never consulted on, had no such precision. Although there was a contract price for the plant, the contractor was allowed basically to alter the specifications at will and simply charge the KDC without any prior consents, consultations or approvals of ratepayers or councillors. It was open slather. There are very few records and no one knows exactly what we ended up with, or how much it cost.

The Beca report, which promoted the later scheme using figures derived from fantasyland, based its calculations on providing 4,500 connections and the Chief Executive Jack McKerchar boasted that the later scheme doubled the capacity of the original scheme.

The actual cost of the scheme
No one knows what the EcoCare scheme cost in total.

The current EcoCare debt is said to be about $58 million.

But that is the current debt. It is not the cost of the scheme.

A sanitary subsidy from the government of $6.63 million was received.

Many millions have also be raised in EcoCare capital charges from ratepayers, along with development contributions.

According to Steve Ruru, the previous Chief Executive, these items totalled $11.5 million.

In addition, we must not forget that the KDC filched every bit of money that was held in trust for ratepayers, including reserve funds, depreciation funds, and the Mangawhai Endowment Fund. These may have added up to another $10 million.

We can therefore calculate that approximately $21.5 million was received in cash to fund the scheme and was presumably used for that purpose. .

So if $21.5 million was paid in cash and there is still a debt outstanding of $58 million, then the total cost of EcoCare was close to $80 million.

Cost of Ecocare per connection
If the total cost of EcoCare for 1,650 connections was $80 million then the cost per connection at present is about $48,500.

Who pays?
The word that I got from the panel is that the plant "may have" further capacity, but the reticulation and the disposal farm are pretty well dead ducks. The cost of upgrading them, extending them, or replacing them is going to be huge. Future development contributions will never be sufficient to meet the costs of any extension proposals so any capital extensions will have to be funded by the ratepayers. Even more debt, even bigger rate rises to pay for an even bigger lemon.

Ratepayers are already faced with an EcoCare debt of around $58 million, plus about $10 million that has to be repaid to the Mangawhai Endowment Fund and trust reserves. That makes $68 million.

Of that amount $26.2 million has been parked to one side to be paid by the fairies at the bottom of the garden, while only 50 per cent of the interest is being paid (is it?) and the rest capitalised and added to the debt.

We also have to remember that the KDC represented to us that the EcoCare debt was going to be ring-fenced and paid by those connected to the scheme, and not by the general ratepayers across the district..

Again, a fantasy scheme hatched in Never Never Land.

$68 million at say 5% would cost $2,060 per annum per connection in interest only with no capital repayments and no running costs or depreciation. And that is before the advisory panel are let loose on Ecocare Mark 2.

Last year $1.9 million or 9% of the general rates, levied across the whole district, were used to fund EcoCare. This year the figure is $2.8 million or 14 % of the general rates.

How much will it be when the full interest is paid on the $26.2 million plus capitalised interest?

And how much will it be when the advisory panel's proposals are steam-rollered through?

The advisory panel's forum never got off the ground. It was supposed to be here, but there is nothing to show.

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