POWER BOARD LEVY.

Timaru Herald, Volume XCVIII, Issue 18084, 10 June 1924, Page 6

POWER BOARD LEVY.

A LEGAL POINT,

The Borough Council’s solicitors (Perry, Kinnerney and Finch), wrote to last night’s meeting of the Council as follows The Council cannot lawfully pay the Power Board’s levy, on obtaining an indemnity from the Board to refund thei amount, if it is found .that, the levy has not been lawfully made. - ’We have already, advised that in the absence of the necessary resolution, the levy has not been lawfully made. The authorities go to show that an indemnity given for the protection of a person from the consequences'of an unlawful act, is void. It is laid down in Chitty on Contracts (a legal work of great authority), that an agreement entered into for the purpose of evading the provisions of a public statute;' is void. We understand that Mr Martin (solicitor to the Municipal Association) and Mr Campbell (solicitor to the Power Board) have advised that the payment wouid be lawful; but your Council will probably remember that in the “Lukey Lane” case, Mr Martin advised that the lane was a public street. Mr Rolleston advised likewise, and also the Registrar General, but our opinion was upneld by the Supreme Court. It is therefore clear that extreme care is necessary in cases of this nature. We would, however, suggest that the Audit Office be approached as to whet--her, if the Council pays the levy,, the Department will question such payment ; if the Department raises no objection then we think the payment can bo safely made. It was resolved that the Borough s Solicitors’ advice be acted upon. «