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House of Assembly - Fifty-First Parliament, Third Session (51-3)
2009-07-16 Daily Xml
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SHACK SITES, RENTAL INCREASES

Mr WILLIAMS (MacKillop) (14:57): My question is to the Minister for Environment and Conservation. Can the minister explain to the house—

Members interjecting:

The SPEAKER: Order!

Mr WILLIAMS: —how his department can claim that rental increases for shack sites from $920 per year to $2,800 per year are consistent with other rent determinations for similar sites throughout the state when no such similar sites exist?

The Department for Environment and Heritage has recently written to shack owners who lease shack sites in a number of national parks across the state advising of rental increases in excess of 300 per cent. After making inquiries as to how these sites have been valued and the rents determined, lessees have been told that in order to appeal against the increases they must produce market evidence in support of their appeal. However, by definition, these sites have no market value. The tenure of the site terminates on the death of the lessee, at which time the lessee's estate is obliged to remove the shack and abandon the site. The shacks cannot be transferred, sublet or rented and they cannot be used as permanent residences.

The Hon. J.W. WEATHERILL (Cheltenham—Minister for Environment and Conservation, Minister for Early Childhood Development, Minister for Aboriginal Affairs and Reconciliation, Minister Assisting the Premier in Cabinet Business and Public Sector Management) (14:58): I thank the honourable member for his question—it seems like his work rate has picked up since he has gone to the backbench. I had very few questions from him when he was the shadow minister.

The Hon. K.O. Foley: They're all auditioning.

The Hon. J.W. WEATHERILL: That's right. How many weeks has it been that I have not had a shadow minister for the environment? It demonstrates the seriousness with which they take that portfolio. Can you imagine if we had not filled a ministerial role in that respect for that long—an absurdity!

Mr GRIFFITHS: Sir, I have a point of order. The minister's comments are completely irrelevant.

Members interjecting:

The SPEAKER: Order! The Minister for Environment and Conservation will answer the substance of the question.

The Hon. J.W. WEATHERILL: Thank you, sir.

Members interjecting:

The SPEAKER: Order!

The Hon. J.W. WEATHERILL: This is, of course, something that happens on a rolling basis every year. It is a three year process of review of the rents for shacks—in this case, Glenelg River, Coorong, Little Dip and Carpenter Rocks.

In accordance with lease conditions, rental rates for shacks in the Coorong National Park, Glenelg River, Little Dip Conservation Park and Carpenter Rocks are subject to review every three years and the department undertakes this review on advice provided by an independent valuer. Rather than the member for MacKillop, we thought, for the hell of it, we would go for an independent valuer. We thought we could have gone for the member for MacKillop—we know he has real expertise, but not in this area.

It takes into account market evidence such as the significant upward trend in the value of waterfront land. It also considers market rentals in the private sector and alternative holiday accommodation, and it is consistent with rent determinations for similar sites across the state. This has been happening each year. As the land on which the shacks are built is leased from the Crown, DEH's responsibility is to seek fair and current market value for these public assets.

It is worth noting that they are fond of quoting the big increases; largely, that is as a consequence of the long period of review at three years. The rental changes range from $447 to $1,400 per annum at the lowest through to $2,400 to $5,600 per annum at the highest. However, most are in the range of $600 up to $1,700 and $1,200 up to $3,400 per annum. That is the nature of this process, and the various parties have their rights of review. They can challenge the valuation; they are free to do so.

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