CROWN AND LOCAL RATES

Taranaki Daily News, 11 June 1930, Page 13

CROWN AND LOCAL RATES

COURT RESERVES JUDGMENT LIABILITY UN MORTGAGED LANDS DISCUSSION OF PREROGATIVE. After two days’ argument Mr. Justice Blair reserved his decision yesterday on the originating summons involving the liability of the Crown as mortgagee for rates in the borough of Inglewood. He paid a tribute to both counsel for the able manner in which the law on the intricate questions had been presented. He felt grateful to them, ho said, for giving the subject such care and thought and in that way assisting him materially. When the hearing was resumed in the morning Mr. L. M. Moss for the Inglewood Borough Council contended it was clear that the courts did not confine their view to a strict interpretation of section 5K of the Acts Interpretation Act. He submitted it was plain from a large part of the Act that the Crown was to be bound by its provisions. The district lands registrar must charge the land concerned with a judgment for rates. That was a, most effective way" of ensuring that the rates would be paid by someone. If the Grown would not pay them the local body could block the title.

If the Crown succeeded in its contentions it would mean that local bodies would have to eliminate all lands with Crown mortgages before levying rates and that the burden on other lands in the rating area would be increased. It might even mean that in some instances a third of the land in the area would be exempted. Whatever tho law might be generally regarding general rates, said Mr. Moss, tho law regarding special rates was even more strongly in favour of the local bodies. It had been provided that all rates levied as security for repayment of money should be deemed to be a special rate within the meaning of the Local Bodies Loans Act, 1913. It was also provided that “no special rate should be quashed by any proceedings in any court, or otherwise.” The Municipal Corporations Act did not mention special rates among the claims from which the Government was to be. exempted. The legislature had protected special rates up to the hilt.

His Honour: They are sacrosanct.

Counsel admitted tho distinction between special rates levied before the Crown acquired the land and those levied afterwards. If. as in this instance, the Crown acquired land after special rates had been levied, he submitted it had to go on paying them. In reply Mr. C. H. Weston (for the Crown) submitted that the court could only find against the Crown on irresistible grounds because the consequences of binding the Crown would be so serious. Mr. Justice Reed had held the prerogative rights of the Crown, could not ■be taken away unless the law said so in express terms. A statutory charge, if there were such a thing, had a limited meaning in connection with Crown land and he submitted the Local Bodies Loans Act did not invest a charge with any meaning in connection with such land. There were no special means of enforcing a special rate other than in the Rating Act. In theory a special rate should receive more tender care than an ordinary rate because it was security for money lent. However, the whole question went back to the point whether the Crown was bound by the Acts referred to. With the exception of x section 123 of the Local Bodies Loans Act, 1926, there was no reference to the Crown at all.

His Honour: They are not asking the Crown to pay the rate on the land. Mr. Weston said the collection of rates against the land prejudiced the rights of the Crown. Regarding special jutes, the Crown said that it did not pay arrears of rates, but directly it entered into possession it became liable under section 123 of the Local Bodies Loans Act for rates levied in the future.