❓ Mr. Catania questions the Minister for Lands regarding significant increases in Kimberley pastoral lease rates, particularly the methodology used by the Valuer-General and the number of objections received. The Minister confirms the methodology is consistent, outliers were excluded, and will transition increases over three years.
AnsweredQoN 565Legislative Assembly
QuestionView source ↗
PASTORAL LEASES —
VALUER-GENERAL
565. Mr V.A. CATANIA to the Minister for Lands:
I refer to the Valuer-General's
recent increase of pastoral leases, some of which spiked by 333 per cent in the
Kimberley and came into effect on 1 July 2019.
(1) Did the
Valuer-General's methodology in setting the new rates include recent
prices fetched for the sale of Kimberley stations—Fossil Downs, Yakka
Munga and Kidman properties?
(2) Can the
minister assure pastoralists that the accepted valuation practice was followed
at all times during the recent five-year review?
(3) How many objections have been
received in relation to the recent lease hikes?
VALUER-GENERAL
565. Mr V.A. CATANIA to the Minister for Lands:
I refer to the Valuer-General's
recent increase of pastoral leases, some of which spiked by 333 per cent in the
Kimberley and came into effect on 1 July 2019.
(1) Did the
Valuer-General's methodology in setting the new rates include recent
prices fetched for the sale of Kimberley stations—Fossil Downs, Yakka
Munga and Kidman properties?
(2) Can the
minister assure pastoralists that the accepted valuation practice was followed
at all times during the recent five-year review?
(3) How many objections have been
received in relation to the recent lease hikes?
AnswerView source ↗
(1)–(2) I
can confirm that the methodology used was the same as that used the last two
times. The way that the Valuer-General goes about valuing pastoral leases has
not changed. In fact, the last time it led to a significant increase like this
in respect of pastoral leases in the Kimberley and some large increases in the
Pilbara as well, the former Minister for Lands—I think he was the then
Leader of the National Party—Hon Brendon Grylls, introduced amendments
to the act that were passed in here to allow it to transition over three years.
I have adopted that power as well and will transition the increases over three
years to avoid any shocks as much as we possibly can. In respect of whether the
value incorporates those very large transactions, I asked that question myself.
The Valuer-General advised me that those very large transactions, of which
there are not many, have effectively been treated as outlies and therefore
excluded from the process around valuing pastoral leases.
(3) In respect of
the number of objections that have been received, I will have to check. The
question is perhaps a bit too specific. If the member had given me notice, I would
have got that information for him, but I will check on that.
I
will conclude with this one point. I think that in 2008—I will have to
check the date—the last time there was a significant increase in the
value of pastoral leases, the methodology was challenged in the State Administrative
Tribunal by a range of people who I think included Holmes � Court—I
want to say Rinehart but I may be wrong—and some other large pastoral
leaseholders. The Valuer-General was found to have thoroughly and correctly
applied the methodology to the value of those leases. That would have guided,
no doubt, and confirmed the process that the Valuer-General took again this
time. I emphasised in the media statement I made and in media commentary I have
made that I accept that these are large increases that have not occurred across
Western Australia. Indeed, some parts of Western Australia have had small
decreases, recognising the changing circumstances of those pastoral leases. But
certainly in the Kimberley and in some areas of the Pilbara, there have been
very large increases. On a percentage basis, generally, the raw revenue that
the state gets from these leases is still very low, and I emphasise that point.
It is in the area of about a cent a hectare—it may even be lower; I will
have to go back and check. The raw number has not been high, but the percentage
has been high. That is why it will be transitioned over a three-year period—to
try to avoid any sudden shocks to that process. That is why we are also
reviewing that process. It frustrates me, as lands minister, that information
is received so late that I can provide only short notice to pastoral
leaseholders. I want to ensure that the glide path of lease payments is
notified to pastoral leaseholders much earlier than it has been over the last
decade.
can confirm that the methodology used was the same as that used the last two
times. The way that the Valuer-General goes about valuing pastoral leases has
not changed. In fact, the last time it led to a significant increase like this
in respect of pastoral leases in the Kimberley and some large increases in the
Pilbara as well, the former Minister for Lands—I think he was the then
Leader of the National Party—Hon Brendon Grylls, introduced amendments
to the act that were passed in here to allow it to transition over three years.
I have adopted that power as well and will transition the increases over three
years to avoid any shocks as much as we possibly can. In respect of whether the
value incorporates those very large transactions, I asked that question myself.
The Valuer-General advised me that those very large transactions, of which
there are not many, have effectively been treated as outlies and therefore
excluded from the process around valuing pastoral leases.
(3) In respect of
the number of objections that have been received, I will have to check. The
question is perhaps a bit too specific. If the member had given me notice, I would
have got that information for him, but I will check on that.
I
will conclude with this one point. I think that in 2008—I will have to
check the date—the last time there was a significant increase in the
value of pastoral leases, the methodology was challenged in the State Administrative
Tribunal by a range of people who I think included Holmes � Court—I
want to say Rinehart but I may be wrong—and some other large pastoral
leaseholders. The Valuer-General was found to have thoroughly and correctly
applied the methodology to the value of those leases. That would have guided,
no doubt, and confirmed the process that the Valuer-General took again this
time. I emphasised in the media statement I made and in media commentary I have
made that I accept that these are large increases that have not occurred across
Western Australia. Indeed, some parts of Western Australia have had small
decreases, recognising the changing circumstances of those pastoral leases. But
certainly in the Kimberley and in some areas of the Pilbara, there have been
very large increases. On a percentage basis, generally, the raw revenue that
the state gets from these leases is still very low, and I emphasise that point.
It is in the area of about a cent a hectare—it may even be lower; I will
have to go back and check. The raw number has not been high, but the percentage
has been high. That is why it will be transitioned over a three-year period—to
try to avoid any sudden shocks to that process. That is why we are also
reviewing that process. It frustrates me, as lands minister, that information
is received so late that I can provide only short notice to pastoral
leaseholders. I want to ensure that the glide path of lease payments is
notified to pastoral leaseholders much earlier than it has been over the last
decade.
Explore WA Government Data
Search the full archive in the free dashboard, or query programmatically via API.
Explore more
Government Gazette
Appointments, regulatory notices, planning changes.
Hansard
Debates, questions, speeches and sentiment.
Tabled Papers
Reports and documents tabled in Parliament.
Committees
Committee profiles and recent reports.
Regulations
Subsidiary legislation with filters and summaries.
Bills
Proposed laws and parliamentary progress.
Acts
Current WA legislation and summaries.
Explanatory Memoranda
Bills with EMs (text/PDF) available.
Members
MP profiles, party breakdown and rankings.
Pollie Rankings
Data-driven rankings across 19 categories.
Amendment Chains
Track how schemes and regulations evolve over time.