Kersh v Chief Executive, Department of Lands
[1994] QLC 47
•24 August 1994
|
BRISBANE
24 August, 1994
Re: Determination of unimproved values for
conversion of tenure purposes -
GHPL 23/16439 and GHPL 23/16640 Hughenden District.
Lessees: JC and NV Kersh
D E C I S I O N
The Crown seeks the following unimproved values for conversion of tenure purposes as at a relevant date of 19 August, 1988:-
GHPL 23/16439 -An unimproved value of $11.00 per hectare - lease more particularly described as Lot 2 on Plan B15798, Parish of St Andrew, containing an area of 6974.758 ha - lease known as "Dimora".
GHPL 23/16440 -An unimproved value of $13.50 per hectare - lease more particularly described as Lot 6 on Plan AN50, Parish of Fraser, containing an area of 11168.966 ha - lease known as "Bora".
The leases adjoin and are situated about 80 kms south from Maxwelton Railway Siding and Trucking Yards. The properties are used for sheep and cattle grazing.
John Cecil Kersh furnished evidence in the matters. Mr Kersh believes the delay in the response to his application for conversion is unrealistic, but this in the end may not matter since the unimproved value of the subject leases is to be determined as at the date upon which the Minister received the application; viz 19 August, 1988.
With respect to "Bora", Mr Kersh stresses that the lease suffers from a distinct convergence of creeks which are subject to flooding with the result that fencing gets washed away and there is enormous resultant road damages. Because of flooding, the property is isolated at times for lengthy periods. Mr Kersh pointed out that the control of prickly bush is more difficult in the channel country where he has spent $15,000 on treating 2400 hectares of country.
As for "Dimora", Mr Kersh told us that there is a stock route through the lease along which 3000 head of cattle passed last year. This has had a deleterious effect on a flowing bore drain which waters the area from an external bore. There is no formal agreement as to the supply of water from this external bore.
Mr Kersh submitted that the sales relied upon by the Chief Executive in the case; i.e. "Judith Royal" and "Robyn Downs" are situated on top of the watershed in the district and he stresses that those properties have no major creek systems through them, have better road access and do not have a stock route through them. In addition Mr Kersh believes the price paid for "Judith Royal" was what he calls "a windfall price".
Mr Kersh pointed out that since the date he applied for conversion, the market for properties in the area has become more realistic and perhaps 25% less than the former value levels. He submitted that the wool market, which peaked in September 1988, has since fallen considerably. But this is not a matter which the Court can take into consideration in the case since as aforementioned, the relevant date for the determination of the unimproved values is fixed.
The Crown recommendation as to unimproved value was made by Departmental Registered Valuer, Luke Robert Croton, who describes the properties as follows:"Dimora" -42% (2920ha) loose brown soil downs subject to flooding from channels of Rupert Creek. The balance (58% or 4054ha) comprises open mostly loose brown soil downs intersected by small gullies. There is no shade except mimosa and some prickly acacia on the bore drains.
"Bora" -34% (3797 ha) loose downs country subject to flooding from channels of Rupert Creek. The balance (66% or 7374ha) comprises open to lightly shaded undulating brown soil downs country intersected by channels of Rupert Creek with minor flood problems.
The sales basis relied upon by Mr Croton are:
"Judith Royal" -GHPL 23/16119 - Lot 8 on Plan AN28, Parish of Urania - 14068.492 ha - McCoy to Searle on 15.9.88 for $590,937 - analysed unimproved value $162,400 ($11.54 per ha).
Mr Croton describes the country on "Judith Royal" as comprising undulating downs, loose to very loose, with odd firm ridges.
"Robyn Downs" -Lot 7 on Plan AN27, Parish of Urania - 13699 ha - McCoy to Paynter on 30.6.88 for $688,359 - analysed unimproved value $218,312 ($15.93 per ha).
Mr Croton sees the country on "Robyn Downs" as comprising open brown soil downs with little loose country and very little shade. Mr Croton has set out in comprehensive form his idea of the comparison between each of the subject properties and the sale properties.
In addition to the sales evidence relied upon by Mr Croton, he says his recommended value for both subject properties is supported by the conversion value of $11 per ha as at a relevant date of 2 October, 1989, for "Runnymede" (Lessee: J Wharton) which is GHPL 23/16274 comprising 8092.5 hectares. "Runnymede" is situated well to the north of the subject properties and contains country which is described by Mr Croton as being 31% (2508 ha) open downs and 69% (5582 ha) open to thickly timbered forest country comprising of Croydon like forest in parts. Mr Croton sees the subject properties as being superior in country type but "Runnymede" is situated in a better rainfall area.
Mr Croton agrees with Mr Kersh in that the flooded channels particularly on "Bora" are risky for running sheep in the wet season but he says they are suitable for running cattle. In addition, Mr Croton says that the stock route through "Dimora" had little if any use prior to the relevant date for valuation in this case.
Mr Croton has spoken to the purchaser of "Judith Royal" who is a disabled person but who purchased the property as a going concern and Mr Croton sees Mr Searle as being a prudent purchaser. He also believes the purchaser of "Robyn Downs" was prudent and met the market at the time.
There is no valuation evidence before the Court other than that provided by Mr Croton. Whilst it must be said that the subject properties do suffer from the disabilities referred to by Mr Kersh, it seems Mr Croton has valued the property in that knowledge and appears to have recognised the problems. The sales evidence and the unimproved value accepted by the lessee of "Runnymede" leads me to conclude that the unimproved values applied by Mr Croton as at the relevant date (when the market for grazing properties in the area was very strong) are not excessive or unreasonable and I accept them for the purpose of these determinations.
Accordingly, I find -
The unimproved value of GHPL 23/16439 ("Dimora") is determined at $11 per hectare for conversion of tenure purposes; and
The unimproved value of GHPL 23/16440 ("Bora") is determined at $13.50 per hectare for conversion of tenure purposes.
(C.H. Carter)
Member of the Land Court
0
0
0