Lyons v Chief Executive, Department of Lands

[1995] QLC 42

[1995] QLC 42

 

  LAND COURT

BRISBANE

26 May 1995

Re:     Appeal against rental valuation -
  Dalrymple Shire Council -
  RV94-132.

John D and Ronda M Lyons
  v.
  Chief Executive, Department of Lands

D E C I S I O N

(Hearing at Charters Towers)

This is an appeal by the lessees of Wambiana Pastoral Holding against the determination of the Chief Executive, Department of Lands, of the rental value of the property as at 31 March 1992 in the sum of $369,000 which is equivalent to a value of about $15.90/hectare for the 23,200 hectares in the holding.
           Wambiana is situated about 70 kms south-west of Charters Towers with access by about 50 kms of bitumen road and 19 kms of formed gravel and earth road.  The holding has a double frontage to the Campaspe River for the most part and comprises about 1500 hectares of gidgee brigalow scrub, 1000 hectares of which has been pulled with buffel grass established; about 5000 hectares of river frontage country carrying some buffel but mainly the softer varieties of native grasses and the balance being mixed forest country timbered with broadleaf ironbark and box in the hollows with blackbutt bloodwood etc and some scrub.  The property is watered by sand wells in the Campaspe River; otherwise by one bore, about 14 dams and a number of old dams with limited usage (about 6 months supplies).  The carrying capacity of the holding is estimated by Mr MJ Campbell, registered valuer in the employ of the Department of Lands, at 1 beast to 12 hectares or about 1930 head, whilst Mr Lyons would say that a carrying capacity of 1 beast to 16 hectares is a fair reflection of the condition of the block as it stands at present after years of drought which has brought with it an increase in the spread of rubber vine, parkinsonia and other woody weeds.
           For these reasons Mr Lyons believes that the applied value should be reduced to $300,000.  The evidence of Mr Lyons basically is that the incidence of woody weeds and the lack of good underground water on the block would have an effect on the saleable value of the property.  He also refers to the unbalanced ratio between income and costs over the last decade or so.  His family have had the holding for his lifetime.  He took over the holding in or about 1980 and in the ensuing 14 years or so describes the seasonal conditions as generally drought years.  The seasons, in his opinion, have been responsible for the spread of rubber vine and parkinsonia.  These factors coupled with the effects of drought on the property brought him to the opinion that the holding given the average season will not carry as well as it had a decade ago.  He said that he is conscious of preserving the country.  He is a member of a group of landholders in the area who have got together with the object of gaining assistance towards the eradication of weed pests.  Generally he would expect to run 800 breeders with growing heifers and turn off bullocks at 3 years.  His stocking figures since 1981 have been erratic and have varied from a high of 2011 adult stock to a low of 100 (herd on agistment).  In considering the evidence of management of the herd and the opinions both he and Mr Campbell have expressed, I have come to the conclusion that in a normal season the carrying capacity would be of the order of that put in evidence by Mr Campbell, who having inspected the property and considered the problems, reduced the carrying capacity applied by the Department in the past from 1 beast to 10 hectares to 1 beast to 12 hectares.
           Mr Campbell based the valuation on sales with direct comparison being made with sales of Mt Ravenswood and Pallamana.  He said that since 1990 the market has not justified an increase in rating values and that such values have been rewritten except where circumstances called for a change in relativity.  He accepts the incidence of rubber vine and parkinsonia on the subject land.  He said that woody weeds are common throughout the shire and also on the sale properties.  He also accepted that the locality of the subject land is known for lack of good underground water.  The question of costs and returns, in his opinion, are matters which any prudent purchaser would weigh in arriving at a purchasing price for land.  Mt Ravenswood reflected on sale a value of about $560,000.  The holding has an applied value for rental valuation purposes to $542,000 or $20 per hectare.  The carrying capacity of the holding is estimated at 1 beast to 12 hectares.  The holding is superior to the subject property.  Pallamana which has an area of 28,500 hectares is seen as an inferior property to Wambiana.  Pallamana reflected on sale an unimproved value of $280,000 or $9.86 per hectare.  The holding is valued at $265,000 or $9.30 per hectare.  The holding has about 5,000 hectares of lancewood and bendee ridges and is subject to an operating mining lease covering in excess of 2700 hectares.  The country of Pallamana is generally inferior to that of the subject block.  The carrying capacity is estimated at 1 beast to 16 hectares.  Both sale properties are subject to woody weed infestation.
           Under the legislation governing the assessment of unimproved value for rental purposes, any questions as to the effects of drought or as to the effects of the evidence or spread of woody weeds is a matter which is governed by the marketplace.  On these particular issues, the Court has held under former legislation governing the assessment of rent that it is not a tribunal for assessing drought relief as such and that such matters can only be considered insofar as they are likely to affect the amount which experienced persons are willing to pay for similar land (re: Wakefield Aggregation (1926-27) 11 CLLR 93: and re Grazing Selections, Barcaldine Blackall and Longreach Districts (1971) 38 CLLR 130.  In the subject case, the valuation has been based on sales which have similar problems.  In these circumstances and in consideration of the whole of the evidence, I am unable to find that the valuation applied to the subject land is not in keeping with the market for land reasonably comparable with it.
           Accordingly, the appeal is dismissed and the determination of the Chief Executive is affirmed.

President of the Land Court