Meridian Energy Company v Wellington City Council

IN THE HIGH COURT OF NEW ZEALAND
WELLINGTON REGISTRY
CIV-2016-485-000080
[2017] NZHC 48

BETWEEN MERIDIAN ENERGY COMPANY

Plaintiff
AND WELLINGTON CITY COUNCIL

Defendant

JUDGMENT OF COLLINS J

Introduction

[1] The principal question raised by this proceeding is whether the Wellington City Council (the Council) acted lawfully when, for rating purposes, it divided into two parts the rural properties upon which Meridian Energy Ltd (Meridian) has constructed wind farm facilities. The Council divided the rating units in question by relying on the use to which the land was put and the value of the wind farms. The Council used these criteria to set differential rates in respect of the wind farm facilities and the rural land upon which the wind farm facilities are constructed.

[2] The answer to this question hinges upon the meaning of s 27(5) of the Local Government (Rating) Act 2002 (the Rating Act). That subsection enables a local authority to divide rateable units into two or more parts when setting differential rates.

[3] This judgment explains why I am satisfied that the Council did not act unlawfully when it made the rating decisions which Meridian has challenged in this proceeding.

[4] In particular, the Council acted lawfully when it divided the rating units into two parts and placed the wind farm facilities portion of the rating units into the Council’s Commercial, Industrial and Business Differential rating category.

[5] Meridian’s subsidiary grounds do not raise matters that warrant the granting of judicial review.

[6] This judgment is divided into two parts. Part I sets out the background and explains how rates are set, assessed and collected, the Council’s rating instruments, how the Council set the rates in this case and the basis of Meridian’s claim for judicial review. Part II of this judgment analyses the issues and explains the reasons for the conclusions I have reached.

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