Bredillet v Chief Executive, Department of Natural Resources [1997] QLC 175

LAND COURT BRISBANE 7 NOVEMBER 1997 Re: AV96-654 An appeal against an unimproved valuation - Valuation of Land Act 1944 - Local Government: Cook Michel Bredillet v. Chief Executive, Department of Natural Resources (Hearing at Cairns) D E C I S I O N The Chief Executive assessed the value of the "Louisiana Station" aggregation at $81,000 as at a relevant date of 1 January 1996. The proprietor of the station appealed against that valuation, contending for a value of $50,000 being the figure determined by the Land Court in August 1995 with respect to a valuation struck as at 30 June 1993. In the decision of the learned Member at that time he recorded that the Chief Executive approached his assessment having regard to the relativity of the subject land with other properties and not with regard to sales in the marketplace. Apparently it had been decided to take a conservative approach at that time and not to adopt sales which indicated an upward trend, though a trend which had not been firmly established. In the case before me, the Chief Executive elected to rely upon sales. The subject property comprises "Pryde" and "Brannighan" Pastoral Holdings together with a special lease and some small freehold lots, the overall property description being: L4839/PH1044: Brannighan Holding: PH/14/4839 & L9/BS26 & L20/BK157118 & L250/BK1573: Parish of Hann & L2/BS96:SL/14/29255: Parish of Pickersgill & L3/BS245: Pryde Holding: PH/14/4840: Parish of Pryde. "Louisiana Station" has an area of 12,486 ha and is situated about 35 km north-west of the Cooktown Post Office. Access as at January 1996 was provided by about 10 km of bitumen sealed road and about 25 km of formed gravel. As is common in the locality, access is cut for short periods during the wet season, there being a number of creek crossings and a crossing of the Endeavour River, en route. The access road intersects the property, as does a stock route. Telephone is connected and powerlines are located on the intersecting road. [1997] QLC 175 -- 1 of 6 -- Mr Gary Francis Cotter, a registered valuer employed by the Chief Executive, provided a written valuation and in that included the following description of country on the aggregation: "About 1110 ha (9%) generally good red soil country ranging from previously open carbeen and gum forest now with thick undergrowth, through stringybark, bloodwood good forest to rocky grassland. About 1050 ha (8%) rainforest and creek lines. About 10076 ha (81%) of generally poor rough hills comprised of 2650 ha of bloodwood, stringybark, ironwood undulating hills and lower slopes and some ironbark patches. 2300 ha sandy soiled stringybark hills and creek flats. 5126 ha bloodwood, stringybark, mahogany forest country on sandy soils and rough hills including unavailable areas. About 250 ha (2%) poor heath country. Permanent natural water is available in Isabella Creek and other holes." The appellant, Michel Bredillet, appeared in person and said that he agreed with Mr Cotter's description of the land, though noted that mention of the pest plants sickle pod and grader grass should have been included. Mr Cotter said that the carrying capacity of the subject aggregation is, in his opinion, one beast to 53 ha or 236 head, whilst Mr Bredillet did not express a clear opinion simply saying that the carrying capacity of the land was "finished". He had, in the earlier 1995 case to which I have referred, said that the property carried 200 head. Mr Bredillet was anxious to make a number of points concerning the subject land. He outlined his history of occupation of the land and how he had made it productive, particularly by the destruction of zamia. He said that in recent years sickle pod had become firmly established on the land and both it and another weed he referred to as Gambia pea reduced the amount of grass that was able to grow on the land, therefore limiting the opportunity to burn. The result is, according to Mr Bredillet, that tree cover increases. Mr Cotter said that he was aware of the zamia and sickle pod problem on the land, problems quite common in the area. Whilst Mr Bredillet said that control of the pest plants was uneconomic, Mr Cotter explained that it was common practice in the Cape York area for property managers to carry out annual control programs in respect of these and other weeds. The road and stock route through the land pose a particular problem in Mr Bredillet's view as tourists sometimes move off the road and stock route area and trespass on his property. On occasions they have cut wire from his fences and have killed cattle. Cattle stealing also occurs. One disadvantage with the road situation is that he is required to register his vehicles - a matter of some difficulty given that pure inventiveness keeps some -- 2 of 6 -- 3 vehicles going though they would not approach registerable standards. He agreed that the problem that he experiences with regard to the road and stock route is common throughout the Cape. Mr Bredillet presented a photocopy of an undated extract from a newspaper article, possibly the "The Cairns Post", which reported the view of a real estate agent to the effect that the prospect of Native Title claims had an impact on the value of pastoral leases. There was no evidence of a Native Title claim over the subject aggregation. Mr Cotter said that he was aware of six large pastoral holdings having sold during the period 1 January 1994 to 1 January 1996, together with a large number of smaller properties. I note that the two sale properties referred to by Mr Cotter in his valuation took place in 1994, so would assume that any concerns with regard to Native Title, as it was understood at the time, would be reflected in the prices paid for those. The matter of greatest concern to Mr Bredillet relates to the quality of the red soil country on the subject land. He tendered an extract of a document which he said was entitled "Quinkan Country" authored by MJ Morwood and S L'Oste-Brown. The extract which comprises one page only, including a figure representing country types, appears to indicate that the concern of the authors was more with archaeological than with land classification matters, and it is difficult for me, without better evidence on the publication and its purpose, to find any value in the information on the extract. He also tendered a soil analysis report dated December 1995 prepared by Incite Ltd which set out technical information concerning a sample taken from part of the subject land, though no interpretation of this data was provided. In addition, Mr Bredillet provided a copy of a letter dated 5 July 1995 from the Queensland Department of Primary Industries written to him, together with two plans bearing the date 1994. This information reveals the opinion that a small part of the subject property is suitable for pasture improvement with minor limitations. Unfortunately, no measurement is included indicating the extent of land with this potential, though it appears to be smaller than the area thought to be suitable in Mr Cotter's opinion. In his description of the land he had said that 1,110 ha of generally good red soil country was to be found on the land, but in oral evidence he explained that in his view only 550 ha of this would be suitable for pasture improvement. Part of the 550 ha coincides with that area identified by the DPI correspondence (Area "A"), whilst the balance is in an area not identified with pasture improvement potential by DPI (Area "B"). Mr Cotter said that he observed to the south of Area "B", land which was apparently similar in type, and where pasture improvement was -- 3 of 6 -- 4 carried out. Mr Bredillet said, however, that the land to the south was different in that it would "stick". I think by this he meant that the soil had a more suitable structure than Area B on the subject land thought by Mr Cotter, in distinction to DPI, to have pasture improvement potential. Mr Bredillet explained that this poorer quality red soil was ash-like in structure and was readily subject to erosion. He showed me photos of eroded land, though some of the erosion was clearly influenced by road construction. He also showed me photos of tiny pumpkins grown on red soil country, though the reason for their small size was not made clear. Mr Cotter had worked for some months in the preparation of the Cape York Peninsula Land Use Strategy (CYPLUS) for the purpose of the publication of CYPLUS Stage 1. In conjunction with the Department of Environment officers and experts from the Queensland Herbarium and the Department of Primary Industries, together with representatives of the grazing industry, he developed country type descriptions for the whole of the Cape York area. The basis of these country types is the 200 or so vegetation patterns observed by the Queensland Herbarium in the Cape. Mr Cotter attributed carrying capacities to country types and the final report was settled following public consultation. Mr Cotter expressed the view that there was a correlation between the information contained in the Morwood/L'Oste-Brown extract and his land classification, though he was unable to explain why a different view existed in respect to Area "B" between DPI and himself. He speculated that it may have been that part of the land which he thought had potential might have been thought by others to have been unsuitably steep in parts. Mr Cotter fairly conceded that the DPI research was apparently more detailed than the CYPLUS process that he was involved in, but in any event the area in contention is still of good quality and, properly managed and maintained, would carry stock much better than the average parts of the subject aggregation. I accept this evidence, though it would not be appropriate for me to go beyond the opinion expressed in the DPI letter and Mr Cotter's most reasonable acceptance of that. I would therefore conclude that the carrying capacity on the subject land should be tightened slightly. Mr Cotter's first sale was of a property called "Alkoomie" which has an area of 18,900 ha and which sold on 1 February 1994 for $150,000. Mr Cotter deducted improvements to arrive at an unimproved figure of $99,899 or $5.29 per ha, however, for the purposes of maintaining relativities he applied $4.97 or about $5 per ha. Mr Cotter placed a figure of $6.50 per ha on the subject property. He said that the sale took place at a well-advertised, well-attended auction, the property being purchased by two partners, one of whom has -- 4 of 6 -- 5 managed a Cape York cattle station for 10 years or more and who is a consultant within the grazing industry. In Mr Cotter's view the sale was bona fide and was a sale to a well-qualified purchaser, though Mr Bredillet questioned the cattle grazing knowledge of the purchaser. "Alkoomie", according to Mr Cotter, has a carrying capacity of one beast to 43 ha or about 441 head, is located about 23 km west of Cooktown and has access via 17 km of earth and gravel road and then bitumen. Power is not available and there are some permanent waterholes in Oakey Creek. In his view, the subject property is superior on a per ha basis overall because of its superior access, water and the availability of power. He said this superiority is partly offset by the intersection of the subject land by public roads and the subject land's inferior natural carrying capacity. He placed importance, however, on the 550 ha of country which he described as "good red soil country" which, in his view, if cleared would substantially improve the carrying capacity. "Alkoomie" has problems in the form of zamia and poison peach. Mr Cotter's second sale was of a property called "Normanby", also called "Pickersgill" Pastoral Holding, which sold on 27 May 1994 for $465,000. The sale property is considerably larger than the subject land having an area of 32,375 ha and was analysed to $163,780 unimproved by Mr Cotter. This represents $5.06 per ha. The property was purchased with Aboriginal and Torres Strait Islander Commission funding by the Gugi-Gulbay Aboriginal Corporation at a price which Mr Cotter thought to be somewhat high. He therefore applied the sale at a rate of $3.95 per ha. In the circumstances, he saw the second sale as being supporting evidence for his main basic property of "Alkoomie". Mr Cotter assessed the carrying capacity of "Normanby" Station at one beast to 48 ha or 671 head. The sale property is located 65 km west of Cooktown and access is provided by 52 km of earth and gravel road and then bitumen. Telephone and power are connected. Permanent water is available in the Normanby River and in holes in a number of creeks and springs. Overall Mr Cotter thought the subject land to be superior to this sale on a per ha basis largely because of situation and access. He also made an allowance for the fact that the subject aggregation is much smaller and therefore would attract a higher rate per ha in the marketplace. He saw these advantages as offsetting the subject land's slightly inferior natural carrying capacity. Again he took into account his view of the red soil country as providing a potential for an increase to the natural carrying capacity. Mr Bredillet professed knowledge of both of the sale properties, however, did not provide me with a comprehensive view of them. He said that both properties were much the -- 5 of 6 -- 6 same as the subject, though "Alkoomie" had better soil and "Normanby" had the advantage of being located in an area where cattle could freely roam onto adjoining lands. This is a common practice in the Cape York area. The only substantial concern that I have with the evidence presented by Mr Cotter is with respect to his classification of the good red soil country and his reliance on that in the comparisons made with his two sale properties. I note that he has placed the subject property in a superior position to both sales and has not been able to provide a sale of land superior to the subject in a way that would provide a bracket for the subject aggregation's value. It is difficult then to know what the ceiling should be, however, I think some adjustment downwards should apply and I will allow the appeal and determine the value of the subject aggregation at Seventy-six Thousand Dollars ($76,000). RP SCOTT MEMBER OF THE LAND COURT -- 6 of 6 --