Kirk v Chief Executive, Department of Lands

[1995] QLC 37

[1995] QLC 37

 

  LAND COURT

BRISBANE

26 May 1995

Re:     Appeal against a rental valuation -
  Dalrymple Local Government -
  AV94-104.

Rex and Sharon Kirk
  v.
  Chief Executive, Department of Lands

D E C I S I O N

(Hearing at Charters Towers)

This is an appeal against the decision of the Chief Executive, Department of Lands, to apply, on objection, a value of $365,000 or $18.20 per hectare to the land of the appellants described as GHPL 11/716, being Lot 5 on Plan OC 25, parish Hayes, containing an area of 20,063 hectares.
           The appellants believe the land should be valued at $258,909 which is the sum of the rent fixed following the Carter Inquiry of $2848 per annum, capitalised at 1.1%, that percentage being the percentage currently adopted by Government for ascertaining rent.
Under the legislation which governs this determination, the rental value of land is prescribed by the Valuation of Land Act 1944 which provides in s.15 that -

15(1)"The value to be used to determine the rent applying to a lease, licence or permit under the Land Act 1962 is the unimproved value under this Act. "

The Land Act then provides in s.131 that the rent for the annual rental period is the most recently made valuation for rental purposes multiplied by the prescribed rate. Rental periods, since the introduction of this legislation, are on an annual basis with the first rental period commencing on 1 July 1993. Thus, in the subject case it is the valuation of the land made under the provisions of the Valuation of Land Act which is relevant and not the manner in which the rent is derived by regulation under the Land Act. Mr Rex Kirk who appeared on behalf of himself and Mrs Kirk argues that a rental ascertained by this method on the sum of the valuation applied to the land by the Chief Executive of $365,000 yields a figure well in excess of the rent which was fixed for the land following the Carter Inquiry into rents in 1989. There appears to be no doubt on the examples he provided that this is in fact the case, not only with this lease but also with many others in the Dalrymple Shire.
The Carter Inquiry was commissioned in 1988 for the purpose of recommending among other things the maximum net rate per beast which should be charged by way of rent for Crown lands held under grazing and pastoral lease tenure for the 10 year rental period commencing in 1990. The Inquiry began at sittings in August 1988. The report was handed to the Honourable the Minister in March 1989. Matters dealt with in the report included the trend in the market for grazing land and the economics of the industries under consideration. An increase of 200% on the previous rental standard was recommended for cattle properties in general. Since that time, rental periods have been changed. Rather than being of 10 years duration, the rental periods have been placed in parallel with annual valuations made for rating and taxing purposes under the Valuation of Land Act. Annual valuations have been in place since 1985. The process permits valuations to follow the market more closely than under the previous system whereby valuations were reviewed at 5 year (or greater) intervals. It was noted in the Carter Report that the market trend for sheep and cattle properties was distinctly upwards "and in most areas to a not insignificant degree" (p.29).
           For the purposes of determining the rental value in the subject case, the relevant date for valuation purposes is 31 March 1992.  Although there is evidence given at these sittings by Mr MJ Campbell, registered valuer in the employ of the Department, that since 1990 valuations have been rewritten (except where circumstances warranted a change in relativity) because of a relatively static market, the principles have changed and the date for ascertaining value has changed.  It follows that discussion about the Carter recommendations can have no weight in the subject case.  I might add that under the previous legislation the Court was not a drought relief tribunal as such.  It held that it could only measure the effect of drought by prices paid for comparable country with comparable problems (Re: Wakefield Aggregation (1926-27) 11 CLLR 93).
           I turn then to the evidence dealing with the subject block.  The property is known as "Amelia Downs" and contains an area of 20,063 hectares.  The block is situated about 120 kms north-west of Charters Towers with access by 80 kms of bitumen road and 40 kms of formed earth and gravel road.  The property comprises near level to gently undulating red basalt forest country generally more stony and broken in the southern part.  It is agreed between Mr Kirk and Mr M McDougall, registered valuer in the employ of the Department, that the property is suitable for breeding and fattening purposes.  The particular management of the property by Mr and Mrs Kirk involves the working of the block with land they hold at Comet.  The subject property is used for running breeder cattle with steer weaners being taken off the property and finished at Comet.  Around 2,500 breeders are run on the block assisted with licks and supplementary feed through the winter months.  Mr McDougall would assess the property as capable of carrying in an average season as a single entity around 1200 head of dry adult cattle.  Currently the property is suffering the effects of drought with springs drying up and lack of feed.  This is recognised by Mr McDougall which he says is a feature common to the Shire.  The value applied to the property by the Chief Executive was based on sales and Mr McDougall who wrote the valuation compared "Amelia Downs" with sales (two) of Greenvale Holding and sales of "Cargoon" and "Mt Oweenee".  The last holding which was sold in 1993 comprises granite forest country with about 20% steep and inaccessible ranges.  This sale reflected a value of $7 per hectare.  The property is considerably inferior to the subject property.  "Cargoon" which is to the south-west of "Amelia Downs" and comprising 56,600 hectares of which 33% is good red and black basalt country and the balance granite forest and poor forest ridges revealed on sale in December 1992 a value of $8.90 per hectare.  "Cargoon" is inferior to the subject property in a number of respects, including a marked degree of inferiority in country - the subject land being all basalt.  "Greenvale" is all forest with about 22% of the area inaccessible range.  This property is also inferior to "Amelia Downs".  On this evidence, Mr McDougall valued "Amelia Downs" at a capital sum reflecting about $18.20 per hectare.  Mr Kirk could not speak to the sales.  Having heard his evidence and the evidence of Mr McDougall on the composition and capabilities of "Amelia Downs" and bearing in mind the manner in which the rental value is ascertained, I am unable to find any reasons in the evidence to upset the value applied by Mr McDougall.  In the circumstances, the appeal must be dismissed.
           Accordingly, the appeal is dismissed and the determination of the Chief Executive is affirmed.
  (DM White)          
  President of the Land Court