Aredwood: The CGA is not limited to only penalty fees. This is no different to those companies who send out parking breach notices for parking on private land. The penalties claimed must be reflective of actual costs incurred. So there is unlikely to be a special section of the CGA dealing only with penalties.
So you only need to see if the council has an exemption in the CGA, or another law. Check the rating powers act also.
What is the actual $ amount of the penalty? As the courts charge $30 for the first stage of their collection process on fines. If it is way more than that, it would be hard for the council to argue that their fees are reasonable. Despite being a lot higher than what the Ministry of Justice has decided is reasonable for itself.
Thank you for the pointer to the rates act
The WCC are charging $80 or 10% of the $800 rates installment
Interesting under the Local Government Rating Act 2002
Section 57 Penalties on unpaid rates has:
57 Penalties on unpaid rates
"(1) A local authority may, by resolution, authorise penalties to be added to rates that are not paid by the due date.
(2) A resolution made under subsection (1) must—
(a) be made not later than the date when the local authority sets the rates for the financial year; and
(b) state—
(i) how the penalty is calculated; and
(ii) the date that the penalty is to be added to the amount of the unpaid rates.
(3) A penalty must not—
(a) exceed 10% of the amount of the unpaid rates on the date when the penalty is added; or
(b) be added to rates postponed under section 87 until the rates become payable.
Compare: 1988 No 97 s 132(1)–(3)
58 Imposition of penalty
(1) A local authority may impose the following types of penalty:
(a) a penalty on rates assessed in the financial year for which the resolution is made and that are unpaid after the due date for payment (or after a later date if so specified):
(b) a further penalty on rates assessed in any financial year and that are unpaid on whichever day is the later of—
(i) the first day of the financial year for which the resolution is made; or
(ii) 5 working days after the date on which the resolution is made:
(c) a further penalty on rates to which a penalty has been added under paragraph (b), if the rates are unpaid 6 months after that penalty was added.
(2) The amount of unpaid rates to which a penalty may be added includes—
(a) a penalty previously added to unpaid rates under this section; or
(b) additional charges added to unpaid rates under section 132 of the Rating Powers Act 1988; or
(c) rates levied under the Rating Powers Act 1988 that remain unpaid.
Compare: 1988 No 97 s 132(4), (5)"
It would seem the WCC are charging the maximum peanlty and in the minimum period!
I wonder who they see the customer as me or themselves?
Maybe this is a mechanism to pay for the WCC's Chief Executives $400K+ salary (for a non competitive business) ![]()
