BOROUGH RATES.

Auckland Star, Volume LXVI, Issue 245, 16 October 1935, Page 11

BOROUGH RATES.

JUDGMENT OF COURT. NOTICE OF APPEAL LODGED. LOCAL BODIES' PROBLEM. Tho decision of Mr. Justice Fair, given in the Supreme Court, to tlie effect that rates which are the subject of a judgment cannot be satisfied out of any surplus moneys after payment of the I judgment and costs in respect of which the property has boen sold, is to be submitted to tho Court of Appeal. This was stated by the Mayor of Mount Albert, Mr. R. Fertier,- in commenting upon the position at last night's meeting of the council. Tho borough council's solicitors wrote stating that they were unable to agree with the decision of Mr. Justice Fair, who considered he was bound by a decision given by Sir liobert Stout iu the Iluntly Town Board case. The Mayor said the matter could not bo left in its present position. Local bodies had for years believed that once judgment had been taken the position had been made secure, and that if a property were sold under a subsequent judgment the rates so secured under the earlier judgment could be collected from the proceeds of the sale. This sense of security had often operated in the interests of hard-pressed ratepayers, and local bodies had given time to pay where it had been seen a ratepayer could recover his position. If the new judgment was to stand it would mean that local bodies would have to arbitrarily proceed to sell all prpperties fairly soon after judgment had been obtained. They would not bo able to risk a situation developing where their first judgment will bo rendered uncollectable because a second judgment had been obtained. Notice of appeal had been lodged with a view to protecting the position, and there was little doubt that the appeal would be handled by the Municipal Association on behalf or all local bodies. This would bring the matter before tlie Court of Appeal, which would not be bound by the earlier judgment as the judge of the Supreme Court was bound. Curious Result. "There is not much doubt that the curious result now arrived at was not intended by the legislation, and in the event of the decision going against us in the Court of Appeal, or in any event, there ought not to be any difficulty in obtaining the necessary legislation to correct tho position," said the Mayor. I think tho question should be tho subject matter of a remit to the next municipal conference."

It. was decided on the motion of the Mayor that a suitable remit to the municipal conference be framed by the Mayor and chairman of the legal and finance committee urging that legislation be brought down to correct the position that lias arisen from the judgment of the Supreme Court. °