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Legislative Council - Fifty-Second Parliament, Second Session (52-2)
2012-05-02 Daily Xml
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COORONG AND SOUTH-EAST SHACKS

In reply to the Hon. J.A. DARLEY (22 June 2011) (First Session).

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): The Minister for Sustainability, Environment and Conservation has been advised:

1. Rents were established on the basis of a valuation report commissioned from a private valuer. Although there has been criticism of the rents and alternative methods for establishing rents proposed, no shack owner has provided any market based evidence that would indicate the rents are not appropriate.

2. The Honourable Member agreed at a meeting with the former Minister for Environment and Conservation in 2010 that independent advice would be obtained from an interstate jurisdiction, namely New South Wales (NSW). The NSW Valuer-General and the independent valuer in NSW were asked to review the reports, not provide advice on new rents. It was not necessary for the interstate experts to have knowledge of the location and markets in order to review the reports.

3. The determination of four per cent from 1 January 2012 as an initial rate of return is based on the independent advice from NSW which indicated that rates between three per cent and six per cent were in use in that jurisdiction. No evidence has been provided to suggest this rate is excessive for South Australian coastal locations.

4. Lessees were advised of the new rents in June 2009. Objections to rents at that time were subject to the provisions of the leases and the Crown Lands Act 1929. The review provisions to which the Honourable Member refers are contained in the Crown Land Management Act 2009, which only came into force on 1 July 2010, a year after lessees were notified of the rents and lodged objections.

5. The rents will not be withdrawn. Lessees will be advised of any appeal rights available to them either under the conditions of the lease or the Crown Land Management Act 2009 as appropriate.

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