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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2012-03-27 Daily Xml
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PASTORAL LEASE RENTS

The Hon. J.M.A. LENSINK (14:38): My question is to the Minister for Agriculture, Food and Fisheries. Will the minister support the reintroduction of the Pastoral Board's Rent Review Committee to review lease rate increases of up to 230 per cent, which are hitting our outback agricultural producers very hard?

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) (14:39): I thank the honourable member for her most important question. I know that the issue of pastoral rent increases has been a fairly contentious one. Pastoralists have expressed a high degree of disquiet around these increases. I am advised that, under the Pastoral Land Management and Conservation Act 1989, the Valuer-General is charged with determining the improved value of the land and an appropriate rate of return from which an annual rent is then derived.

I am advised that unimproved value is determined with regard to the market evidence, primarily sales of properties used for pastoral pursuits. I am advised that sales are then analysed to remove any value related to the improvements of that land, and I am advised that the evidence obtained from sales is used to value various land types which, in turn, forms the basis for rent. I am advised that rents are determined by the application of an appropriate rate of return for the purpose to which the land is put and that increases in the rentals for the current year are a result of both positive market movement over an extended period in land value and a realignment of rents with market.

I am advised that, under the provisions of the Pastoral Land Management and Conservation Act 1989, lessees have the right to appeal to the Valuer-General for a review of the rent if they are dissatisfied and, should lessees be dissatisfied with an objection decision of the Valuer-General, they then have a further right to lodge an application for review, which will be undertaken by an independent valuer appointed by the Governor. A further right of court appeal then exists beyond that, Mr President, so you can see there are a number of layers of protections or provisions to ensure that a fair price is applied to the pastoral lease.

I am also advised that reviews are generally undertaken every five years, with the approval from the Pastoral Board, and that was extended to seven years. I am advised that, for the last seven years, lessees have only seen indexed increases of varying amounts. Most increases have varied from 10 to 15 per cent, with few seeing an increase higher than that. There are 225 pastoral leases in South Australia; 15 inquiries have been received in relation to these new rentals.

The PRESIDENT: The Hon. Ms Lensink has a supplementary.

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