Leaflet urges residents to withhold rates

The Coast saw the country's highest increase in regional house sales in July. Photo: Getty Images
Greymouth. Photo: Getty Images
A leaflet that encourages Greymouth residents to withhold paying their rates is causing alarm and confusion.

One Cobden ratepayer said she felt "targeted" by the unwanted letterbox drop.

The leaflet is signed by a group called Challenging Councils NZ, and offers suggestions for withholding the payment of rates, including setting up a private trust with fellow ratepayers, or setting up an individual private trust.

"The private trust is where the ratepayer in dispute set up an agreement between them to pay into a private bank account which they all own or are part of. The trust runs one bank account where everyone makes their payments, shown in bank transfer reference. These monies can clearly be shown to the council and can be released once they [councils] have shown legally that they are not bankrupt, insolvent, operating illegally," it said.

To set up an individual private trust, the reader was referred to You Tube for instructions.

"When or if the debt collector calls — state to them ‘thank you for taking on the debt’ as at that time he/she is responsible and you are free from the debt."

Challenging Councils West Coast member and former councillor Anthea Keenan is on board with the alternative offered.

"We have four councils, CCOs, Development West Coast; there are 23,000 rateable properties from Karamea to Jackson Bay — it’s ludicrous."

The government had inflicted a lot of cost on ratepayers as well, she said.

"But there has been a lot of wasted money as far as we have seen. Tourists are not getting charged for tracks and cycleways — they are free tickets. The cost of toilets and carparks is all landed on the ratepayers because the tourists are getting a free run."

She thought councils should focus on their core business.

The Challenging Councils website says: "Rates are increasing every year and yet we look around and wonder what we are actually paying for, and why we are being made to pay so much. The cost of living is so high and income is not increasing in line with the increases."

Grey District Council chief executive Joanne Soderlund said the council was aware of the leaflet drop in parts of the district.

"At this stage, we have not had any instances of property owners refusing to pay their rates as a result of this material.

"We would like to remind the community that under New Zealand law, property owners are legally required to pay rates. Failure to do so may result in the council pursuing legal action to recover the outstanding payments."

Greymouth Mayor Tania Gibson added: "We believe the actions of this group are both reckless and misleading. Their messaging has the potential to cause ongoing financial issues for residents who follow their advice".

"We strongly urge our community to seek accurate information and to speak with the council if they have any doubts or concerns about their obligations." — Greymouth Star

By Meg Fulford

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