PASTORAL LEASE RENTS

The Hon. J.A. DARLEY (15:06): I seek leave to make a brief explanation before asking the Minister for Communities and Social Inclusion, representing the Minister for Transport and Infrastructure, questions concerning pastoral lease rents.

Leave granted.

The Hon. J.A. DARLEY: Section 23 of the Pastoral Land Management and Conservation Act outlines the procedure for determining rent for pastoral land. Under the act, the Valuer-General is to determine the unimproved value of land, taking into account a number of factors. The Valuer-General is then to fix an annual rent for the lease as a percentage of the unimproved value of the land. The Valuer-General recently reviewed rents for pastoral leases in the north of the state. This review resulted in sharp increases, reportedly in the order of up to 200 per cent.

At a meeting held at Port Augusta on 9 March 2012, which was attended by pastoralists and staff from the Valuer-General's office, I understand pastoralists were told that the rents were calculated on the unimproved value of each lease by the Valuer-General and a rate of return determined by the Pastoral Board. Under the act, the Pastoral Board had no involvement in the rent-setting process: it is merely responsible for issuing and sending to lessees annual rent accounts. On 14 March 2012, the Assistant Valuer-General suggested on ABC radio that one of the reasons for the sharp increases in rentals was that rents were last reviewed in 2004. My questions are:

1. Given that section 23(4) of the Pastoral Land Management and Conservation Act expressly states that rents must be reviewed at least every five years, were rents reviewed before 2009—in other words, five years after the 2004 review?

2. Can the minister advise who determined the rate of return—the Valuer-General, as per the act, or the Pastoral Board?

3. If the rate of return was determined by the Valuer-General, why was incorrect information provided at an information session? In other words, are the public servants not aware of the process or are they not aware of the requirements under the act?

4. If the rate of return was determined by the Pastoral Board, what actions will be taken, given that this is in contravention of the act?

The Hon. I.K. HUNTER (Minister for Communities and Social Inclusion, Minister for Social Housing, Minister for Disabilities, Minister for Youth, Minister for Volunteers) (15:08): I undertake to take those questions to the Minister for Transport and Infrastructure in the other place and seek a response.