Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search


RAM will stop 'Big Brother' ARC

Thu, 02 Sep 2004

RAM media release 2.9.04

RAM will stop 'Big Brother' ARC raiding people's bank accounts

On 1 November, say the present ARC, they will order banks to take money out of the personal accounts of homeowners with mortgages who are refusing to pay last year's unfair rate hikes.

"The Local Government (Rating) Act 2002 allows the ARC to legally dip into the bank accounts of decent citizens on the Rates Revolt," said Grant Morgan, spokesperson for RAM - Residents Action Movement.

"But this law does not require the ARC to act in this Big Brother fashion. The ARC is going to raid people's bank accounts because they have taken a political decision to do so," said Grant Morgan.

"The RAM Committee has taken the decision that, if the council election returns a RAM-led ARC, we will convene a Citizen's Assembly on rates. This interactive people's conference will debate out a new rating policy that's fair to homeowners."

"The first act of a RAM-led ARC will be to stop the ARC from raiding people's bank accounts. That sort of Big Brother behaviour is a violation of democracy," said Grant Morgan.

Reprinted below is a letter from the ASB Bank about the issue.


Received: 18 February 2004 To: Elaine West (Auckland City Residents & Ratepayers)

In response to your email and our telephone conversation yesterday the Bank’s response to unpaid rates is as detailed below.

Section 62 of the Local Government (Rating) Act 2002 enables a local authority to recover any unpaid rates, as a debt from the Bank, as first mortgagee. Rates arrears for the billing period 1 July 2003 to the 30 June 2004 may be demanded on the 1 November 2004. (Note: Any mortgagor(s) who default on Water or Land rates can also be demanded by their respective councils on this date for the same billing period.) The council may send notice of default to the first mortgagee at least three months prior to demand.

Failure by the Bank to pay demanded arrears can result in the commencement of legal action by a council in order to recover the arrears. Therefore in the event that the local authority chooses to rely on section 62 the Bank has no alternative but to comply with its request. Any sums paid to the local authority will be treated as part of the money secured by the mortgage.

In most instances a standard fee of $50.00 will be charged when ASB BANK issues notice to mortgagors for payment of overdue local body rates. In the event that the Bank needs to pay the rates a further $60.00 fee will be charged.

If the effect of this action results in an unarranged overdraft, the Bank will be entitled to apply its usual right of set-off. That is, the amount can be met out of any credit balance in accounts held by the mortgagor(s) with the Bank, or alternatively the unarranged facility may be dealt with as a default under the mortgage which the Bank can recover, ultimately, by exercising its power of sale.

Please also note that the mortgage contains an undertaking to promptly pay any sums payable in respect of the land (i.e. rates).

Yours faithfully Tony Mooney Branch Liaison Officer Debt Assessment & Recoveries [verified by ASB Head Office]


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Supreme Court: Worksafe Decision On Whittall Pike River Prosecution Unlawful

The question in issue on the appeal was whether WorkSafe New Zealand acted to give effect to an unlawful agreement of this nature when it offered no evidence on charges against Peter William Whittall for breaches of the Health and Safety in Employment Act 1992...

The Supreme Court... has found that the decision to offer no evidence was made under an unlawful agreement to stifle prosecution. It has granted a declaration to that effect. More>>


Cullen To Chair: Tax Working Group Terms Of Reference Announced

Finance Minister Grant Robertson and Revenue Minister Stuart Nash today announced the Terms of Reference for the Tax Working Group and that the Group will be chaired by Sir Michael Cullen. More>>


Gordon Campbell: On The New Pike River Agency (And The Air Strike Wing)

Much of the sympathy the public still feels for the families of the Pike River miners has been sustained by the sense that the previous government – let alone the mining company and the processes of receivership and litigation – has never dealt honestly, or fairly, with them. More>>


Not Going Swimmingly: Contractor Cut, New Dates For Christchurch Sports Centre

“As an incoming Minister, I have been conducting a thorough review of progress on the Anchor projects and to learn of a $75 million budget blowout on this project was very disappointing..." More>>


Tertiary: Allowances, Loan Living Costs To Get Boost

“From 1 January, student allowance base rates and the maximum amount students can borrow for living costs will rise by a net $50 a week,” says Education Minister Chris Hipkins... further adjusted from 1 April 2018 in line with any increase in the CPI. More>>


Foreign Affairs: Patrick Gower Interviews Jacinda Ardern

Prime Minister Jacinda Ardern says discussions have already begun on how to bring climate change refugees into New Zealand under a Pacific seasonal employment plan... More>>


Gordon Campbell: On The Centre Right’s Love Of ‘Nanny State’

You’d almost think it was 2005 again. That was a time when the rugged individualists of the centre-right were being beset by government regulations on the nature of light-bulbs, the size of shower heads, the junk food available at school tuck shops and other such essentials... More>>




Featured InfoPages

Opening the Election