ILLEGAL CHARGE.

Auckland Star, Volume LXI, Issue 222, 19 September 1930, Page 8

ILLEGAL CHARGE.

SEWERAGE CONNECTION.

"SET-OFF" NOT ALLOWABLE.

TAKAPUNA COUNCIL'S POSITION.

Some; four - years, ago, when; the first connections of properties were being made with, the' sewerage .system, the Takapuna, Borotgh'■ Council decided , to charge owners'a .fiat rate of £7 10/, this sum being 1 calculated to recoup the borough for its lexpenditure in connecting the whole district to the sewerage system. This", charge was accepted by most .owners as being fair, and a large number paid it prior to being connected with the service. This system operated up till; about eighteen months ago, when an owner questioned the legal: right of the local authority to levy the. charge. On consulting its solicitors, the Borough Council was advised that the Municipal Corporations Act gave it no power to charge a flat rate for' a sewerage connection. Later, the Audit Department ruled- that no refunds could be made to those owners 1 who had paid . the flat rate, as it was a.case of a "mistake in law," and as such did. not .permit of the local authority returning any moneys paid and received in good faith by both' parties.

* "Set-off" not Permissible. Recently A firm of- solicitors, acting for. a • client,: notified the council that it intended to deduct the flat rate connection fee paid by their client. from the amount due to:the council .for its current rate demand. As a big .financial issuewas thus raised, the. matter was referred toythe; Amditor-General for: his decision' ijpon ' the rights, of-both , parties. The Auditor-General's reply was laid before the Takapuna Borough; Council at its meeting, this week. It was •to the effect that 'it would be unlawful to nominally make a refund of any amount paid' for a sewer connection fee by setting it off against the amount of the rate demand. Such a procedure • could only' be' construed as a- refund made on account of a "mistake in law," and such, no. matter, what particular. procedure might, .be adopted, could, not- be' made, [on saccount : of'its" illegality. ; " .