Boomerang Holdings Pty Ltd and Ors v Chief Executive, Department of Lands [1994] QLC 277

[1994] QLC 277 Re: Determination of unimproved value - Nebo Local Government. Refs. AV93-271 and AV93-278. LAND COURT, BRISBANE 5 August, 1994 Boomerang Holdings Pty Ltd and Epsom Pastoral Co Pty Ltd V. Chief Executive, De partment of Lands AND EP , M E, VA and WMP Mason V. Chief Executive, De partment of Lands DECISION (AV93-271) (AV93-278) These appeals are made against the following determinations of unimproved value made by the respondent Chief Executive, Department of Lands:- AV93-271 An unimproved value of $650,000 ($63ha) for Dabin Pastoral Holding No 30/3686 - being Lot 9 on Plan GV 807254, Parish of Lenton, containing an area of 10,300 ha (hereinafter referred to as Dabin). AV93-278 An unimproved value of $990,000 ($66 ha) for Lenton Downs Preferential Pastoral Holding No 30/805 - being Lot 8 on Plan GV 807254, Parish of Lenton, containing an area of about 15,000 ha (hereinafter referred to as Lenton Downs). These parcels adjoin and are situated about 90 kms north-west of Nebo. They are used in conjunction for cattle grazing. The relevant date for the determination of the unimproved values is 31 March, 1992. The appellants contend within the notices of appeal for an unimproved value of $25,450 for Dabin holding and of $37,000 for Lenton Downs holding but led evidence through practising Registered Valuer, Jeffrey David Dodds;- to an unimproved value of $547,500 ($53.15 ha) for Dabin holding and to an unimproved value of $636,500 ($42.43 ha) for Lenton Downs holding. -- 1 of 7 -- 2 Mr Dodds describes the country on Dabin as being a combination of brigalow scrub, open coolibah downs and forest. Dabin is watered by an extensive system of dams and bores with no permanent natural supply although there is some temporary natural water. Mr Dodds regards Dabin as being a small but good quality beef cattle grazing property suitable for breeding, growing and fattening. He classifies the country and values it as follows: 4150 ha (40%) open black soil downs with scattered coolibah and bloodwood @ $75 ha. 3300 ha (32%) brigalow/yellow wood/belah scrub @ $50 ha. 2850 ha (28%) generally iron bark and bloodwood forest ridge country with scattered box flats @ $25 ha. Mr Dodds estimates that Dabin will carry 2435 head of mixed cattle on a fully developed basis at the rate of 1 beast to 4.2 ha. As for Lenton Downs, Mr Dodds describes the country as a combination of brigalow scrub, open coolibah and fairly rough country. It is watered by the headwaters of Eaglefield Creek and a system of dams and bores. He describes Lenton Downs as being a fair mixture of country suitable for breeding, growing and fattening beef cattle and classifies and values the holding as follows: 4300 ha (29%) open black soil downs with scattered coolibah and bloodwood @ $75 ha. 4300 ha (28%) brigalow/yellow wood/belah scrub @ $50 ha. 6500 ha (43%) fairly poor sandy to hard forest country with ironbark, bloodwood, ti-tree, grasstree and quinine @ $16 ha. Mr Dodds estimates the carrying capacity of Lenton Downs on a fully developed basis to be 2970 head of mixed cattle at the rate of 1 beast to 5 hectares. As a basis for his valuations, Mr Dodds has compared the valuations of both Dab in and Lenton Downs with the unimproved values applied by the Chief Executive as at the relevant date of 31 March, 1992, to four other grazing properties in the area, all of which were the subject of recent sales. They are: -- 2 of 7 -- ,. 3 Sondela - unimproved value $290,000 - or $36 ha. This is predominantly a scrub block situated on Eaglefield Creek, 12 kms west of the subject property. Mr Dodds says it comprises 7268 ha (90%) brigalow scrub country and 800 ha (10%) silverleaf ironbark and box forest country with a fully developed carrying capacity of 2980 head of mixed cattle (1 beast to 2.7ha) . Mr Dodds says the unimproved value of Sondela reflects a beast area value on a full timber treatment basis of $438. Cantaur Park - unimproved value $320,000 - or $27.50 ha. This property is situated on the Sutter River, some 27 kms west of Dabin and Lenton Downs and consists of a mixture of flooded country along the river, fair quality brigalow scrub and a mixture of good to fair quality forest country with some country suitable for cultivation. Mr Dodds classifies Cantaur Park as: 1600 ha (14%) flooded brigalow and coolibah country along the Sutter River. 5400 ha (46%) brigalow scrub. 4650 ha (40%) box flats rising to red soil forest ridge country. Mr Dodds estimate of carrying capacity for Cantaur Park on a fully developed basis is 3,320 head of mixed cattle or 1 beast to 3.5 ha. He calculates that the unimproved value of Cantaur Park reflects a beast area value with full timber treatment of $391. Rugby - unimproved value $460,000 - or $39 ha. Rugby is situated some 30 kms south from the subject properties and Mr Dodds says it consists of a balance of good quality brigalow scrub and fair quality forest. He classifies Rugby as follows: 3850 ha (33%) brigalow/gidya scrub. 7926 ha (67%) ironbark, bloodwood and box forest. Mr Dodds estimates the carrying capacity of Rugby on a fully developed basis to be 2,330 head of mixed cattle or 1 beast to 5 hectares. He says that the unimproved value of Rugby reflects a beast area value of $428 with full timber treatment. Strathfield - unimproved value $445,000 - or $39 ha. Mr Dodds says Strathfield is situated 28 kms east of the subject properties and consists of a mixture of good quality brigalow scrub with some cultivation and good to fair quality forest country. He classifies Strathfield as follows: 3200 ha (28%) brigalow/belah scrub. 8134 ha (72%) box flats/ironbark ridges in approximate equal proportions. -- 3 of 7 -- 4 Mr Dodds estimate of carrying capacity for Strathfield on a fully developed basis is 2, 185 head of mixed cattle or 1 beast to 5.2 ha. He calculates that the unimproved value of Strathfield reflects a beast area value of $409 with full timber treatment. Mr Dodds informed the Court that he has assessed carrying capacities on the subject properties and on the comparison properties on a fully developed basis as follows: Brigalow scrub country - 1 beast to 2.5 ha Open downs - 1 beast to 5 ha Standard forest - 1 beast to 10 ha Better quality forest - 1 beast to 9 ha Poor quality forest - 1 beast to 15 ha Based on the foregoing evidence Mr Dodds values both Dabin and Lenton Downs at the rate of $415 per beast area with full timber treatment development and has deducted from the improved values the cost of pasture improvement for the brigalow scrub at the rate of $140 ha. This cost includes an allowance for stick raking as an integral part of the cost structure to obtain full scrub development, although Mr Dodds says it is more common not to stick rake the scrub country in the district. The valuations under appeal were made by Registered Departmental Valuer, Stephen Francis Penny, who describes the country on Dabin as comprising a mixture of gently undulating downs, scrub and hard red to sandy forest; about 5600 ha (55%) of good open to lightly timbered coolibah, bloodwood and black ti-tree, black soil downs: about 2300 ha (22%) of brigalow, belah, yellow wood and bauhinia, with black and brown scrub soils and about 2400 ha (23%) of mixed hard red ironbark and bloodwood with some kurrajong and sandy box, Moreton Bay ash, bloodwood and ironbark forest. Mr Penny sees Dabin as being country which is suitable for breeding and fattening and estimates the carrying capacity at 1716 head of cattle at the rate of 1 beast to 6 ha. As for Lenton Downs, Mr Penny sees the country as comprising about 8850 ha (59%) open black soil downs with small areas of bloodwood and mountain coolibah forest and about 1200 ha (8%) brigalow scrub and about 4950 ha (33%) light to inferior mixed forest ridges thickly timbered with ironbark, bloodwood, cabbage gum, bull oak, ti-tree, grasstree, wattle and lancewood. Mr Penny -- 4 of 7 -- 5 estimates the carrying capacity of Lenton Downs to be 2465 head of cattle at the rate of 1 beast to 6 ha and sees the country as being suitable for breeding and fattening. As a basis for his valuation of Dabin, Mr Penny relies upon the analyses of three sales. They are: Strathfield - GHFL 3882 Lot 3 on WHS 116 and Lot 4 on WHS 118, parish of Kemmis - 11334 ha - Perry to Howard on 30.8.89 for $1,750,000 - analysed unimproved value $66 ha. Mr Penny describes the country on Strathfield as comprising 600 ha (5%) of arable downs, 900 ha (8%) of scrub country, 1000 ha (9%) of open coolibah country and 8834 (78%) of mixed forest. His estimate of carrying capacity for Strathfield is 1 beast to 9 hectares or 1259 head. Mr Penny sees the subject Dabin to be superior in quality of country to Strathfield but this is offset by the inferior situation of Dabin. Overall Mr Penny sees Strathfield as being slightly superior to Dabin. It is to be noted that this sale has really not been applied to the valuation of Dabin. Rugby Run - GHPL 2532 Lot 2 on GV248, parish of Rugby - 11800 ha - Coutts to McGrath on 10.7.90 for $1,400,000 -analysed unimproved value $37.56 ha. Mr Penny sees the country on Rugby as comprising 1960 ha (17%) brigalow gidya scrub, 2240 ha (19%) scrubby forest and 7600 ha (64%) mixed forest with some tableland and black soil. He estimates the carrying capacity of Rugby to be 1 beast to 7.5 ha or 1573 head. He considers Dabin to be superior in quality of country and better situated than Rugby and regards Dabin overall as being superior. Cantaur Park -APF 12/11360 Lot 3 Plan DC91, parish of Gyrahra - 11656 ha -Donovan to Powell on 30.1.91 for $1,450,000 - analysed unimproved value $32.37 ha. Mr Penny describes the country on Cantaur Park as comprising 5200 ha (44%) brigalow scrub, 2000 ha (17%) box river frontage, 3156ha (27%) ironbark forest and 1300 ha (11 %) bendee, rosewood and lancewood. Mr Penny's carrying capacity estimate for Cantaur Park is 1 beast to 8.4 ha or 1382 head. He says Dabin is superior due to its better country and better situation. Mr Dodds does not join issue with Mr Penny as to his analyses of the sales. Mr Penny relies upon the analyses of the same three sales as a basis of valuation for Lenton Downs. He sees Lenton Downs as being superior in quality of country to Strathfield but this is offset by the inferior situation of Lenton Downs. -- 5 of 7 -- . ' ' 6 Overall Mr Penny regards Lenton Downs and Strathfield to be similar in value terms. Mr Penny is of the opinion that Lenton Downs is superior in terms of quality of the country to Rugby and is better situated. Overall, Mr Penny considers Lenton Downs to be superior to Rugby. In respect of Cantaur Park, Mr Penny feels Lenton Downs has superior quality country and is better situated that Cantaur Park. Overall Mr Penny considers Lenton Downs to be superior to Cantaur Park. Mr Penny has checked his valuations of the subject properties using a value classification method as follows: Dabin - 5600 ha downs country @ $95 ha 2300 ha scrub country @ $40 ha 2400 ha forest country @ $20 ha Lenton Downs - 8850 ha downs country @ $95 ha 1200 ha brigalow country @ $40 ha 4950 ha forest country @ $20 ha Mr Penny disagrees with the cost of $140 ha used by Mr Dodds to fully develop brigalow scrub country. He says the normal cost for pulling, burning and grassing is $65 ha based on recent quotes he has obtained. There is a great discrepancy between the valuers as to their respective opinions as to the area of downs country on Lenton Downs. Because of this, they took the commendable step to try to come to an agreement as to the area. After using aerial photographs and recalculating they agreed that the classification of Lenton Downs should be: 6778 ha downs 2717 ha scrub country 5505 ha forest country On this basis, then, Mr Penny has recalculated the value of Lenton Downs to be $862,690 - or $57.51 ha. He rounds off this valuation to $855,000 by adopting a value of $57 ha. Mr Dodds also reviews his valuation of Lenton Downs using the same area classifications and valuing on a beast area basis to $785,000. It is unusual for experienced valuers to be so far apart as they are in this case insofar as carrying capacity estimates are concerned. It is also rather unusual that it is the valuer for the appellants whose carrying capacity assessments are -- 6 of 7 -- ' I 7 much higher than the valuer. for the respondent Chief Executive. There is great difficulty in reconciling the differing estimates, so much so that I prefer to base my determinations on an unimproved value per unit (per hectare) area basis, although on the evidence it is also a matter of difficulty in reconciling the area classifications where they still differ on Dabin. I see the basis of the comparison with subsisting valuations used by Mr Dodds to have equal merit as the basis of assessment used by Mr Penny -i.e. the use of analysed sales evidence. Taking an overview of the evidence, I find that a fair and reasonable unimproved value for Dabin would result from the application of a rate of $60 ha and for Lenton Downs a rate of $55 ha. My resultant findings are: AV93-271 - The appeal is allowed, the determination of the Chief Executive is set aside, and the unimproved value of Dabin Pastoral Holding No 30/3686 - Lot 9 on Plan GV807254 is determined in the rounded off sum of $620,000. AV93-278 - The appeal is allowed, the determination of the Chief Executive is set aside, and the unimproved value of Lenton Downs Preferential Pastoral Holding No 30/805 being Lot 8 on Plan GV 807254 is determined in the sum of $825,000. (C.H. Carter) Member of the Land Court -- 7 of 7 --