A GOLD Coast property investor, who owes Redland City Council $80,000 in rates, has waged a protest against council auctions as a way of recouping debts from rate- payers.
Paul Herman, 56, launched his attack outside a council property auction in Capalaba, where he had expected one of his Russell Island investment properties to go under the hammer.
He said it was the council's ineffective way of clawing back unpaid rates after he fell behind with payments on nine island investment properties between 2010 and 2012.
Last month, the council informed Mr Herman it would sell one of his Russell Island properties at an auction at Capalaba to recover the debt.
It was withdrawn at the last moment because the council had not given Mr Herman 14 days' notice.
Seventeen blocks were sold at the November 24 auction, bringing in a total of $200,000 to council coffers.
Those that sold included a 789sq m property at Alistair Court, Macleay Island, which is believed to have gone for $19,500 and a 986 sq m property at Perulpa Drive, Lamb Island, for $17,000.
Mr Herman said he launched his protest because civic auctions were expensive, wasteful exercises that did not generate the best return for landowners.
According to section 143 (4) of the Local Government Regulation 2012, land passed in at auction is deemed to have been sold to the council at the reserve price, the rate debt written off and future rates and interest not collected.
Mr Herman said money was lost when properties were passed in at civic auctions and then used to write off unpaid debts.
"If council sells the land at rock-bottom prices, it's the owner and or other creditors that suffer," he said. "The council will take the rates out first and the other creditors and land owner get what's left over, if there is any."
Council chief executive Bill Lyon said the council was owed $828,621 in unpaid rates and would use the proceeds from any sales to pay overdue money, including rates, charges and other taxes.
"The sale of land for overdue rates and charges is a last resort process that council gives thorough consideration to before taking this step," Mr Lyon said.
"As a result of the auction, all outstanding rates for the 17 properties have now been recovered, meaning there is no debt for the community.
"All other remaining proceeds are then paid to the person who owned the land immediately before the sale in line with section 146 of the Local Government Regulation 2012.
"At some point, Mr Herman has to take responsibility and pay his rates and charges."
Mr Lyon said under section 140 of the Local Government Regulation 2012, if some, or all of the rates or charges were three years overdue and not subject of a court case, the council could sell the land.
