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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2012-11-13 Daily Xml
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SHACK LEASES

The Hon. J.A. DARLEY (15:07): My question is to the Minister for Communities and Social Inclusion representing the Minister for Sustainability, Environment and Conservation. With regard to shack sites on crown land, annual rent is calculated using a rate of return multiplied by the unimproved land value. My office has received conflicting information with regard to the definition of unimproved land value the department is using. Could the minister provide the official definition of unimproved land value the department is supposed to be using for the purposes of determining rent?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for Tourism, Minister for the Status of Women) (15:08): On behalf of my colleague, I am happy to take that question on notice and refer it to the appropriate minister in another place and bring back a response. I have been provided with some information about shack rent increases that I am happy to share with the chamber. I am advised that the lease conditions for non-transferable shack leases on crown land and in national parks provide for the periodic re-evaluation of the annual rent to be paid to the Crown for the right to occupy the land. I am advised that the lease rentals have always been based on the policy premise that the Crown should realise a fair return for the private exclusive use of land assets.

I am further advised that an independent valuer provides a report on the values of individual shacks and the rationale for the valuation, and I am advised that the advice takes into account market evidence, such as the significant upward trend and the value of the waterfront land. I am advised that the leases of shack sites on crown land at Fisherman's Bay, Glenelg River and others were determined by applying a 4 per cent rate of return to the unimproved land value of the shack site.

I am further advised that, of the 88 shack revaluations, 19 are at Fisherman's Bay and Milang, and 23 are at Glenelg River. In June 2012 lessees of shack sites on crown land along other sites on the Glenelg River and the Coorong National Park were advised of new rents and the same methodology was applied. The lease conditions also provide an opportunity for lessees to lodge an objection to the new rent within 28 days of being notified. I am advised that a number of objections to shack rental increases have been received from shack lessees at Fisherman's Bay, Glenelg River, Coorong National Park and Milang.

I am advised that the Department of Environment, Water and Natural Resources is conducting a review for those sites that are subject to an objection by reviewing their processes and any supporting evidence provided by the lessees. As I said, I am happy, if that answer does not satisfy the honourable member, to refer it to the appropriate minister in another place and bring back a response.

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