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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2011-06-22 Daily Xml
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COORONG AND SOUTH-EAST SHACKS

The Hon. J.A. DARLEY (14:54): I seek leave to make a brief explanation before asking the Leader of the Government, representing the Minister for Environment, a question about shack site rents along the Coorong and the South-East.

Leave granted.

The Hon. J.A. DARLEY: In late 2009, I was approached by concerned constituents regarding the massive increase of rent on their shacks situated on crown land along the Coorong, Glenelg River, Donovan's Landing, Little Rip and Big Bend. On their behalf, I approached the then minister and was advised that the increase in rents was based on a report commissioned by the government.

I was provided with a copy of this report and was concerned about the content and quality of the report and the evidence provided. I offered the minister an alternative approach to determine rents and it was agreed that both methods would be provided to the New South Wales Valuer General for comment. From this, I understand that a third report was commissioned from an independent consultant valuer from New South Wales.

At the end of 2010, the current minister wrote to advise that he had received a response from New South Wales and provided a copy of the two additional reports. From reading these, it seems that the New South Wales Valuer General, Mr Philip Western, agreed with my suggested approach. The consultant valuer in New South Wales stated that he had no firsthand knowledge of the leases, the shack sites, the respective locations or the local market and then proceeded to provide a detailed report and recommendations. As a former valuer general of South Australia and a former member of the board of examiners for the Australian Institute of Valuers and Land Economists, it is my opinion that this valuer should not have accepted the job, knowing that he lacked this knowledge, and that his report should be disregarded.

The minister has since advised that he had fixed the rents on the basis of the first report, in other words, an annual 4 per cent rate of return on the unimproved value of the land. My questions to the minister are:

1. Why did the minister fix rents based on a report which was incomplete, provided questionable evidence and, in my opinion, was flawed?

2. Is the minister confident fixing rents, having regard to a report written by someone who has admitted in their report that they had no firsthand knowledge of all the leases, the shack sites, the respective locations or the local market?

3. On what basis did the minister determine that 4 per cent is an appropriate rate of return, where there is ample evidence for coastal properties that demonstrates that 4 per cent is excessive for these South Australian coastal locations?

4. Why did the department omit to advise life-tenure lessees that they could request a review of the rent by the Valuer General under section 66 of the Crown Land Management Act for all shacks, other than those located in the Coorong National Park?

5. Will the minister now withdraw those rents and advise relevant shack lessees of their rights under section 66 of the Crown Land Management Act?

The Hon. G.E. GAGO (Minister for Regional Development, Minister for Public Sector Management, Minister for the Status of Women, Minister for Consumer Affairs, Minister for Government Enterprises, Minister for Gambling) (14:57): I thank the honourable member for his questions and will refer those to the Minister for Environment and Conservation in another place and bring back a response.

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