TEST CASE FIXED

Hokitika Guardian, 4 July 1932, Page 6

TEST CASE FIXED

NON-PAYMENT OF MONEY BY STATE, fPer Press Association — Copyright.) AUCKLAND, Jiny 2. A test case is to be taken in the •Supreme Court on the question- whether local bodies are entitled to cut off the •water supplies of houses which • havefallen back into the hands of the State Advances'"-Office, ■ and in respect of which the State has refused to pay water, rates 'accruing before it entered into possession as mortgagee. Some time ago certain local bodies, including the Auckland City Council and the One Tree Hill Borough Council, decided to cut off water supplies in such cases. The State' Advances Office thereupon ‘threatened to take proceedings in the .Supreme Court for a mandatory injunction compelling th e reconnection "of the services. The Civ Council, acting the services. The City Council, acting, solved to defend any action of the kind that the -State Advances Office might take. Later the matter was referred to th© Municipal Association, the executive of which, at its last meeting in Wellington, decided to take the matter up if - the Department instituted proceedings. The dispute arises from- the .refusal of the Department to pay ordinary and special rates, either current or in arrears upon properties, on which it has foreclosed. It is prepared to pay water rates from the date ot re-entry, but not arrears. .