STATE HOUSES.

Auckland Star, Volume LXIII, Issue 256, 28 October 1932, Page 5

STATE HOUSES.

SUPPLY OF WATER. WHEN RATES NOT PAID. APPEAL COURT DECISION. "LIABLE FOR FAIR'CHARGE." (By Telegraph.—Press Association.) WELLINGTON, this day. Judgment was delivered to-day in the Appeal Court case of the State Advances Superintendent v. the Auckland City Council and the One Tree Hill Borough Council, heard 01. October 3. An originating summons was issued by the State Advances Superintendent naming the Mayor, councillors and citizens of the city of Auckland, and the Mayor, councillors and burgesses of the borough 0 f One Tree Hill as defendants, and removed to the Court of Appeal for argument. The summons asked for determination of the following questions:— (1) Whether defendants were entitled to refuse to supply water to properties of which the plaintiff was mortgagee and which he leased, unless the arrears of rates due in respect of the supply of water to the mortgagors of such properties were previously paid. (2). Whether when plaintiff had let a mortgaged property which was already connected with the water mpply, but in respect of which there were arrears of water rates, defendants were entitled to disconnect the water supply although plaintiff was willing to pay ordinary water rates. (3) Was plaintiff liable t6 pay a fair and reasonable charge for the supply of water under the circumstances set out in the statement of facts? The Court answered questions (1) and (2) in the negative, and answered question (3) by saying that a fair and reasonable charge must be paid for the supply of water under circumstances set out in the statement of facts, and that the charge made to other persons is at least a test of what is fair and reasonable. Costs amounting to 30 guineas and disbursements were ordered to be paid by the defendants. In addition to the above answers, Mr. Justice Herdman held' that the Crown should also pay the cost of connecting up the houses in question with the water system.

U VERY SATISFACTORY."

SHOULD BE RETROSPECTIVE. "The decision will be a very satisfactory one to a large extent to the local bodies," said the Mayor of Xew Lynn (Mr. G. Lawson) to-day. "It has established the fact that the Government is liable for water consumed. If the liability is fixed it should be retrospective. The local bodies are not in a position to supply free water to Government properties."