COUNTY RATES

Wanganui Chronicle, Volume LXXXI, Issue 19048, 27 June 1924, Page 2

COUNTY RATES

LIABILITY OF ADVANCES DEPARTMENT. AN IMPORTANT CASE. (Per 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 mortgagees on a section of land in the Kawhia survey district. The decision to be reached will affect county councils all over New Zealand, and it is quite possible it may go to the Privy Council. Counsel for plaintiff said the facts admitted were: (1) Rating and valuation rolls were in order; (2) the demands were duly forwarded to and received by the plaintiff (but it was not admitted that the demands complied with the Rating Act); (3) the intention to impose a 10 per cent, penalty was advertised. The land was held under the 0.R.P., and the State Advances Department was the first mortgagee. The defendant had held thit as rent was not paid the oeeupier forfeited his lease of the land and therefore the Department s liability ended. The Land Board said the lease was not forfeited, and a Crown lands official in evidence corroborated this. Additional defences were that the demands did not comply with the Rating Act, and the superintendent was not liable under section 63. Counsel for the defence said it seemed that the forfeiture defence must fail in face of the evidence of the Crown lands officer. Counsel for plaintiff said the State Advances was the largest mortgagee in New Zealand and paid £3OOO in rates to the Waitomo County last year. The point at issue has not been previously raised in the Dominion, and at the suggestion of His Worship the case was moved to the Supreme Court.