Legislation validating decisions by the Kaipara District Council, which led to skyrocketing rates, has passed its first reading in Parliament.
Commissioners took over the council's affairs in 2012 to try to resolve its $80 million debt crisis.
Hundreds of Northland ratepayers are refusing to pay their rates, claiming that the council borrowed illegally for the Mangawhai sewerage scheme and failed to consult them about massive rate rises.
The commissioners said the council made a series of errors in setting rates between 2008 and 2012, involving more than $17 million and wanted a local bill to resolve the problem.
Opposition MPs told Parliament on Wednesday they would reluctantly support the bill to select committee in the hope a solution can be found.
