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Lismore Electorate Land Valuations

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Speakers - George Mr Thomas
Business - Private Members Statements

      LISMORE ELECTORATE LAND VALUATIONS
Page: 1114

      Mr THOMAS GEORGE (Lismore) [11.42 a.m.]: In this private member's statement I wish to talk about land valuations. I am sure that other members of this House have had quite a few representations about objections relating to land valuations. Though I have not forwarded this information to the Minister—it has only come to me in the last few days and a representation is being prepared—I wanted to raise the matter today. I was approached by Bill McMahon, representing the McGeary family, who have properties not only in my electorate but in the electorates of Ballina and Clarence. Following his representations, I want to place the matter on record.
      As a result of a partnership dissolution, a company-owned property consisting of 79.62 hectares at Woodburn and 25.64 hectares at Broadwater was divided. A block of about one hectare of land containing an office, workshop and storage area was excised from the area of 79.62 hectares at Woodburn. The balance of 78.62 hectares was transferred to the other party. This land contains a workshop, storage area and the balance is cane land. The current valuation is $445,000, or $5,660 per hectare.

      The one-hectare block was bound to the 25.64 hectares of land at Broadwater—on the boundary of both shires—and were jointly valued on 15 October 2003 at $115,000, to which no objection was lodged. A new valuation was made two years later, on 13 October 2005, at $174,000, which the owners received on 30 January 2006, and they lodged an objection to that valuation on 20 February 2006. A fresh valuation was issued, dated 13 October 2005, for $700,000. Notice of this was not received in their office until 26 March 2007. However, the District Valuer made phone contact on 30 January 2007. His reasoning was that the one hectare Woodburn block was regarded as industrial, and as industrial land at Evans Head—which I would note is kilometres away—was selling for $90 a square metre, he considered this block to be valued at $24 a square metre as it is flood-prone. The area of the block is 9,600 square metres, which gives its value at $230,400.
      The fact is the land is zoned l (a), prime agriculture; it is flood-prone and adjacent to four residences. Take the building from the land, and you have a gravelled surface that resembles a cane bin storage pad. Take away the gravel, and you have cane land, which is the basis on which it should be valued. Take the value of the adjacent 78.62 hectares at $5,660 per hectare, and the value should be $5,430—not $700,000! With regard to the smaller 25.64 hectare parcel of land at Broadwater, the District Valuer, by deduction of the $700,000 less $230,400, sets this block at $469,600, or $19,028 per hectare. Planted cane land, which this is not, sells for $6,000 per hectare, and that describes the land next door.
      A group of three cane farms adjoining each other about 3 kilometres north of the Woodburn property were valued on 15 October 2004 individually, but the total value of the three was $846,000. They were revalued on 24 August 2006 at $1,537,000, a rise of 81.6 per cent. This puts the land value in excess of $9,000 per hectare on two of the farms. This is 50 per cent higher than the going price for fully planted cane land. They understand the value should be the value of the land without improvement. The cost of preparation and planting cane is around $3,000 per hectare, so they believe the land value of these farms should be $3,000 per hectare.
      A 8.475 hectare property in the Bagotville area has had its value raised in three years from $86,500 to $450,000, or 420 per cent. To put it into perspective, the value is $53,100 per hectare, and this is absurd for a remote backwoods block with no building entitlement or agricultural value. The value of another property of 5.858 hectares in the same area has been raised by 220.5 per cent to $64,000 per hectare— A 8.475 hectare property in the Bagotville area has had its value raised in three years from $86,500 to $450,000, or 420 per cent. To put it into perspective, the value is $53,100 per hectare, and this is absurd for a remote backwoods block with no building entitlement or agricultural value. The value of another property of 5.858 hectares in the same area has been raised by 220.5 per cent to $64,000 per hectare—in nine months! Anyone who knows this country would appreciate that these figures are unbelievable. As I come from the real estate industry, I cannot believe that a valuer could set these values on this land. I will forward all this information to the Minister and ask that he look at these valuations.
      Private members' statements noted.
      The House adjourned at 11.47 a.m. until Tuesday 19 June 2007 at 12.00 p.m.

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