QUESTION OF RATES

Southland Times, Issue 19281, 27 June 1924, Page 6

QUESTION OF RATES

STATE ADVANVES DEPARTMENT SUED. (Per United Press Association.) TE KUITI, June 26. A case of exceptional importance was heard here before Mr W. F. Platts, S.M., yesterday, when the Waitomo County Council sued the State Advances Department for rates, as first mortgagee on a section of land in the Kawhia survey district. The decision to be reached will effect County Councils all over New Zealand and quite possibly the case may go to the Privy Council. Counsel for plaintiff said that the facts admitted were: (1) The rating and valuation rolls were in order; (2) the demands for rates duly forwarded to and received by the plaintiff (but it was not admitted that the demands complied with the Rating Act i ; (3) the intention to impose a 10 per cent, penalty was advertised. Defendant had held that as the rent was not paid the occupier forfeited the lease of the land and therefore the Department's liability ended. The Land Board said the lease was not forfeited and the Crown Lands official in evidence corroborated this. Additional points of defence were that the demands did not comply with the Rating Act and the superintendent was not liable under section 65, Counsel for the defects s&id

it seemed the forfeiture defence must fail in face of the evidence of the Crown Lands officers.

Counsel for the plaintiff said the State Advances was the largest mortgagee in New Zealand and paid £3OOO in rates to the Waitomo County last year and the point at issue had not previously been raised in the Dominion. As suggested by the Magistrate the case was moved to the Supreme Court.