Beak & Ors v The Valuer-General [1990] QLC 123

/ LAND COURT, BRISBANE. 7th December, 1990. Re: Determination of unimproved value - Shire of Livingstone. (AV90-355, 356, and 357) M. Be ak and D. Blac~ and R, Beak -v- The Valuer-General DECISION Three appeals have been lodged against the determinations by the Valuer-General of unimproved values of grazing properties within the Shire of Livingstone by the Beak and Black families. Details are:- AV00-355 - AV00-356 - AV00-357 - Lot 2075 on Plan LIV 40728 and Lot 1 on RP 604546 and Lot 2 on RP 604799 Parish of Barmoya - 2105 hectares - Valuer- General's valuation $230,000 ($110/ha) Appellants value $150,000. Lot 2169 on Plan LIV 40834 and Lots 1 to 5 on RP 604546, Parish of Barmoya -1829 hectares - Valuer-General's valuation $225,000 ($123/ha) Appellant's value $140,000. Lot 1 on RP 602603, Parish of Barmoya - 427.3 hectares - Valuer-General's valuation $67,000 ($157 /ha) Appellant's value $40,000. The three parcels comprise near adjoining country in a property known as "Sandringham" and are situated about 22 kilometres north from the City of Rockhampton. The relevant date for the determination of the unimproved value is 31st March, 1989. [1990] QLC 123 -- 1 of 7 -- - Page 2 - The appellant's were represented in cases AV90-355 and A V90-356 by Donald Montague Black. Mr Black told us that A V90-355 land only runs breeders and mixed weaners and cannot fatten bullocks, and that in dry times breeders are shifted onto better country within "Sandringham" against which no objection was made to the valuation. Mr Black estimates the carrying capacity of this parcel at 1 beast to 6.5 hectares and says that the Valuer-General has valued it at around $700 per beast area, whereas the sale of "The Hut" which is the basis of valuation used by the Valuer-General, shows on analysis and with a carrying capacity of 600 head of cattle, a beast area value of $441 (this reflects a carrying capacity of 1 beast to 3.6 hectares). Mr Black compares the A V90-355 land with a nearby property owned by one Noel Todd. This property is known as "Greenlakes" and it is valued at $41 per hectare. Mr Black says "Greenlakes" will fatten. He says it is much the same type of country as is the subject land. Mr Black says his best paddock is Portion 2123 and Portion 1553 with an area of 356 hectares and this has been valued as $144 per hectare (no appeal). Its carrying capacity is 1 beast to 3.2 hectares and it is suitable mainly for fattening. Portions 2324 and 38v will fatten spayed cows and has been valued at $122 per hectare. It also has a carrying capacity of 1 beast to 3.2 hectares. Mr Black also makes comparison with a property owned by J. Farr which is valued at $32 per hectare. It has an area of 2772 hectares and Mr Black says it is slightly inferior to the subject lands. It has a carrying capacity of 1 beast to 20 hectares - it is not fattening country and reflects a beast area value of $640. Mr Black also speaks about the flooded nature of the subject land. Mr Black again relates the valuation of AV90-356 parcel to "The Hut". He says this parcel would run 240 head of mixed cattle and again is not suitable for -- 2 of 7 -- - Page 3 - fattening. Its carrying capacity is 1 beast 7.6 hectares and the Valuer-General's valuation shows a beast area value of $937. There is a fair amount of salt affected country and three large mountains with an area of 329 hectares fenced out. Comparison is also made of the Todd and Farr properties, and also Mr Black again refers to the flood prone nature of the subject parcel. Montague Robert Beak furnished evidence in respect of the valuation of AV90-357 parcel. Mr Beak complains that the Valuer-General has increased the values of parcels with small areas, and says that this parcel is one of the worst of the lot in the aggregation of "Sandringham", yet it is valued at the highest rate ($157 /ha). He claims it is valued out of relationship with AV90-356 parcel and is a lot worse than "The Hut" which is valued at $122 per hectare. "The Hut" has 800 hectares of cultivation and is on an all weather road whereas the subject parcel can be cut off for a few weeks at a time. Mr Beak does not agree that smaller blocks should be valued at a higher rate per hectare solely on the score of size. Mr Beak says this parcel contains 3/4 of black mountain with is a rocky lantana and timber rubbish full of scrub wallabies which is netted off as otherwise useless for grazing. Other country includes dog tongue ti-tree sand ridges which dry off quickly and some box flats, white soil country which is boggy when wet and dries hard. The balance of the parcel is flooded gum flats, dangerous for stock when flooded and floods cause a lot of damage to fencing. Mr Beak's carrying capacity estimate it 1 beast to 6 hectares for young cattle and says that this parcel will not fatten and dries off too quickly for breeders. The valuations under appeal were made by Mark Sydney Craig a Registered Valuer in the employ of the Department of Lands. Mr Craig describes the nature of the country on each parcel as follows - -- 3 of 7 -- AV00-355 AV00-356 AV00-357 - Page 4 - 515 hectares (24%) flooded flats 320 hectares (15%) swamp land 480 hectares {23%) devil flats 600 hectares (29%) forest ridges 190 hectares {9%) mountain 630 hectares flooded flats 200 hectares swampy 650 hectares forest ridges 20 hectares salt affected land 329 hectares of mountain 230 hectares (54%) flooded gum flats 120 hectares (28%) narrow leaf ironbark, box slopes 77.3 hectares (18%) mountain "The Hut" is Lot 3 on RP 619194, Parish of Tilpal containing an area of 2178 hectares. It sold from Galea to Hannam on 24th December, 1989 for $780,000, and Mr Craig's analysis produced and unimproved value of $124 per hectare. He describes the country on "The Hut" as comprising mainly all gum, box, ironbark and ti-tree flats to low ridges with bloodwood influence. It is used for stud and commercial beef cattle grazing and is well situated about 2 kilometres north of Kunwarara on the Bruce Highway. Mr Craig sets out in his valuation documents the comparison, as he sees it, between each appeal parcel and "The Hut". These details are not repeated here but are in the hands of the parties for reference. Mr Craig says that for the 1989 relevant date annual valuations in the Shire, no change was made in the previously existing unimproved value relativity. All grazing lands have been increased by 85% based on the analysis of the sale of "The Hut". Mr Craig's estimate of the carrying capacity is higher than that of the appellants. Appeal A V90-355 land has a carrying capacity in his opinion of 500 head of mixed cattle or 1 beast to 4.2 hectares and Mr Craig is of the opinion that if this parcel was not run as part of a large aggregation, then by district standards it would -- 4 of 7 -- - Page 5 - in part fatten especially on the banks and para grass. His carrying capacity for A V90-356 parcel is 439 head of mixed cattle again at the rate of 1 beast to 4.2 hectares. Appeal AV90-357 carrying capacity is set at 127 head of mixed cattle - or 1 beast to 3.4 hectares. Mr Craig told us of the Departmental assessment of value for Portions 2324 and 38v. This parcel has an area of 597.7 hectares and is valued at $122 per hectare. The country comprises 23% flooded blue gum flats, 20% ti-tree swamp with the balance being spotted gum and narrow leaf ironbark ridges. The Departmental carrying capacity is 150 head of mixed cattle or 1 beast to 4 hectares. This is regarded as breeding and fattening country. The Todd property comprises 4395 hectares and is classified as follows - 3% good blue gum flats 7% ti-tree flat 17% good forest ridges 11 % fair forest ridges 45% ti-tree and mahogany - poor country 15% swampy area 2% unavailable This property has problems with access in flood times. The Departmental carrying capacity is 1 beast to 7 hectares and it is valued as being suitable for breeding and fattening. The Farr property comprises 2617 hectares of which 690 hectares is reasonable forest grazing country and 1850 hectares poorer forest grazing with 80 hectares mountain country. Its carrying capacity is stated as 290 head or 1 beast to 9 hectares and it is classed as only suitable for breeding. Now this Court has often commented that unimproved value comparisons on a beast area unimproved value basis does not provide a reasonable guide when relativity between unimproved values is being examined. It goes without -- 5 of 7 -- - Page 6 - saying that small fluctuations in carrying capacity can result in widely differing beast area values. It is better to make direct comparisons on the unit area value basis taking account of all the factors bearing on value, including such as situation, access, type of country, carrying capacity and water. I have closely examined the evidence in this manner and cannot conclude that Appeals AV90-355, A V90-356 parcels have been unjustly treated in this valuation, especially in relation to other properties. Certainly Mr Craig was able to be much more specific in his description of the type of the country on the Todd and the Farr properties and of course the Todd property is significantly larger than any of the subject appeal parcels. In addition each of these comparison properties have a much lower Departmental carrying capacity than has been applied to the subject lands. I am also inclined to accept the Valuer- General's proposition that these subject parcels would, if run as entities and not a part of a large aggregation, be regarded by District standards to be suitable in part at least, for fattening. And of course they have to be viewed as separate parcels and not as part of "Sandringham". In these circumstances, I am not mindful to disturb the Valuer-General's valuations of these parcels. However with respect to AV90-357 parcel I do accept the evidence of Mr Montague Robert Beak that this is much poorer country than "The Hut" but it is of course a much smaller parcel. It is well established that size does play an important part in the determination of unimproved values of grazing lands and that, all other things being equal, the smaller the parcel the higher the unimproved value per hectare. I feel that an unimproved value of $130 per hectare for A V90-357 parcel is more appropriate and takes account of the type of country and size. I will allow this appeal. In the result then the following determinations are made - AV90-355 - The appeal is dismissed and the unimproved value of Lot 2075 on Plan LIV 40728 and Lot 1 on RP 604546 and Lot 2 on RP 604799 Parish of Barmoya as determined by the Valuer-General in the sum of $230,000 is affirmed. -- 6 of 7 -- AV00-356 - AV00-357 - - Page 7 - The appeal Is dismissed and the unimproved value of Lot 2169 on Plan LIV 40834 and Lots 1 to 5 on RP 604546, Parish of Barmoya as determined by the Valuer-General in the sum of $225,000 is affirmed. The appeal is allowed, the determination of the Valuer- General is set aside and the unimproved value of Lot 1 on RP 602603, Parish of Barmoya is determined in the rounded off sum of $56,000. (C.H. Carter) Member of the Land Court. -- 7 of 7 --