Arne Pedersen Holdings Pty Ltd & Ors v The Valuer-General [1990] QLC 308

LlufRARY coPrJ Re: Appeals against determinations of Valuer-General - Mareeba Shire Council - AV89-503/506. LAND COURT, BRISBANE 16th February, 1990 Arne Pedersen Holdings Pty. Ltd. (AV89-503/4) Weymouth Pastoral Co. Pty. Ltd, (AV89-505) and Southedge-Daintree Pastoral Co. Pty, Ltd. (AV89-506) v. The Va1uer-General DECISION (Hearing at Cairns) The above appeals are against determinations of the Valuer-General of the unimproved value for the purposes of the Annual Valuation of the Area as at 31st March, 1988, of grazing lands owned by the appellants. The lands concerned comprise properties known as "Brooklyn" and "Southedge". The properties are adjoining and are worked together for the purposes of breeding and fattening beef cattle. Mr G. Quaid Jnr is a director and secretary of each company. He gave evidence on behalf of the appellants. Mr P.J. Haydon, registered valuer in the employ of the Valuer-General, gave evidence in support of the determined values. He did not write the original valuations but following the lodgment of the objections he inspected the blocks and "Curraghmore" - this block being the one compared with the subject blocks by the appellants - and he drew the plans which accompanied the written reports tendered in evidence. Although Mr Quaid did not criticise the description of the blocks [1990] QLC 308 -- 1 of 5 -- 2 as contained in such reports, it is necessary to set them out in order to gain an appreciation of the submission made by Mr Quaid which, if stated briefly, is that the subject holdings were comparable with "Curraghmore" in their unimproved state and should bear a value relative therewith. "Curraghmore" is valued at a sum which is equivalent to a value of about $ 1.80 per hectare. "Curraghmore" (Curraghmore and Harboard) has an area of 113,064 hectares. The property is described by Mr Haydon as comprising - 23,500 ha (21 %) flats to low easy and moderate sloping ridges; 50,364 ha (45%) poor ridges and hills; 39,200 ha (34%) hills and mountains of limited use. The carrying capacity of "Curraghmore" is estimated at 1 beast to 40 hectares or 2,800 head. The valuation is $205,000 or about $1.80 per hectare. In terms of value per beast, the valuation has been expressed as follows - 2800 hd@ $67.50 per hd Natural Water 1000 hd @ $16 per hd $189,000 $16,000 $205,000 "Curraghmore" in the south-eastern section has a common boundary with part of "Brooklyn" where both have frontage to the Mitchell River. Travelling upstream and proceeding towards Mareeba, the Mitchell River splits Brooklyn (AV89-503/4), is the eastern boundary of Font Hill which is also in the ownership of the appellant group of companies and thence divides "Southedge" ("Weymouth" and "Southedge" (AV89-505/6)). "Southedge" is situated about 15 kilometres from the sale yards at Mareeba (25 kilometres or thereabouts if taken from the yards on the block), has bitumen access to . Mareeba and is used by the owners as a fattening or tum-off paddock for the aggregation. of lands owned and controlled by the appellant group of companies which includes properties other than those the subject of these appeals. -- 2 of 5 -- 3 Mr Quaid said that "Southedge" carried between 1250 and 4500 head depending upon the numbers coming in for tum-off. The subject blocks could be described as being situated on the Mitchell River system. The blocks are described by Mr Haydon as follows - "Southedge" - "Weymouth" "Brooklyn" 16,800 ha (68%) forest flats to low easy ridges; 6,655 ha (27%) hills and mountains; 1,200 ha ( 5%) unavailable steep mountains. carrying capacity 1-12 ha (2000 hd) 8,800 ha (54%) forest flats to low easy ridges; 7,443 ha (46%) inferior hills and mountains; carrying capacity 1-16 ha (1000 hd); 34,700 ha forest flats to low easy ridges; 10,500 ha easy/moderate forest hills; 8,143 ha steeper hills and mountains of limited use; 6,700 ha unavailable. carrying capacity 1-20 ha (3000 hd). The valuations of "Southedge" are at the following rates: "Southedge" - $12 per ha or $125 per beast plus allowances for natural water and situation; "Weymouth" - $7 per ha or $95 per beast plus allowances for natural water and situation; "Brooklyn" - $5.40 per ha (overall) or $92.50 per beast plus allowances for natural water. The valuation of "Brooklyn" was made in accordance with s. 15(2) of the Act and apportioned at $4.20 per hectare for the part contained in Valuation Roll 6749 (AV89- 503) and $6.60 per hectare for the part contained in Valuation Roll 6750 (AV 89-504). In the comparisons, "Curraghmore" is said to possess natural water for 1,000 head (total herd 2800); "Southedge" for 1,000 head (total herd 2000); "Weymouth" for 500 head (total herd 1,000); and "Brooklyn" 2,000 head (total herd 3000). The valuations of -- 3 of 5 -- 4 "Southedge" include a premium for the situation of the blocks to the sale yards at Mareeba. The best grazing country on each block is contained within the first classification. "Curraghmore" has 21 percent (21 %) of such country, "Southedge" has 68 percent (68%), "Weymouth" has 54 percent (54%) and "Brooklyn" has 58 percent (58%). Mr Quaid said that the appellant group had attempted to buy "Curraghmore". He has been through the area via the Peninsula Developmental Road and has flown over the area. He sees the block as being comparable with the subject aggregation and he says that all lands in the area were once regarded as having comparable value. In the course of time, things however have changed. Improved pastures have been developed and country lending itself for such development has of course become more valuable. So also have values been recast when services improve, market conditions open up and isolation loses its perspective. According to Mr Quaid the owners have put a great deal of money into the development of these blocks, more particularly "Southedge" in providing water, improved pastures and so forth. He recognises that land with a potential to trap water with banking for para grass production has the ability to fatten cattle. He is of the opinion that the development which has been made on "Southedge" has in some way been reflected in the valuations. It has long since been settled that any potential in land for improvement forms part of the unimproved value. It is a matter which any prudent vendor/purchaser would take into consideration in arriving at a value. It is a matter which has had a bearing in these valuations and in valuations previous thereto at least since the revaluation of 1979. In the opinion of Mr Haydon, "Southedge" has good land in large compact areas suitable for development with banking, whereas on "Curraghmore" any such comparable areas are scattered and are of smaller size. He said that "~outhedge" could not easily be compared with "Curraghmore" when size, .. location, access and potential are considered. He said that since the 1979 revaluation -- 4 of 5 -- • 5 the valuation of "Curraghmore" has moved up 3.53 times. By comparison, the movement in respect of "Brooklyn" reflects 3.24 times, while "Southedge" is 4.8 times and "Weymouth" 4.56 times. Nothing of any significance has changed in this respect. Mr Haydon said that the benefits of the establishment of para grass has been recognised since the 1970s. Such benefit is and has no doubt been reflected in the valuations of "Southedge" since 1979. It is conceded that "Southedge" is a fattening block and is handy to Mareeba. The comparisons also reflect the content of natural water. In the exercise before this Court, it must be assumed that the lands are held in fee simple and the valuations ascertained by reference to the market value of such lands if sold in an unimproved state and upon such reasonable terms and conditions as a bona fide seller would require. The exercise has no reference to the fixation of rents of holdings under the Land Act where different principles apply and which I think to some extent has affected the reasoning of Mr Quaid in these matters. Under the Valuation of Land Act it is also provided that the appellant has the onus of proving to the satisfaction of the Court on the balance of probabilities that the valuations are incorrect on the basis of the grounds stated in the notice of appeal. On the evidence before this Court I could not hold that the relativity between the subject lands and "Curraghmore" is out of kilter. Accordingly, the appeals are dismissed and the determinations of the Valuer-General affirmed. (Signed) D.M. White~ Member of the Land Court -- 5 of 5 --