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LAND COURT BRISBANE 8 JUNE 2001 Re: A97-29 Determination of Compensation

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LAND COURT BRISBANE 8 JUNE 2001 Re: A97-29 Determination of Compensation [2001] QLC 53 LAND COURT BRISBANE 8 JUNE 2001 Re: A97-29 Determination of Compensation - Resumption by The State of Queensland Starcke Pastoral Holdings Acquisition Act 1994 George Quaid Holdings Pty Ltd Claimant v. The State of Queensland Respondent (Hearing at Cairns) J U D G M E N T 1. The property aggregation known as "Starcke" covered an area of 190,464 ha of which 24,464 ha had been converted to freehold tenure in 1989. The balance 166,000 ha comprising Pastoral Development Holding 14/2498 (the "PDH") was granted under the provisions of the Land Act 1962 on 1 October 1971. Following extensions of the term of the lease in 1986 and 1987 the PDH was due to expire on 30 September 2031. The claimant acquired the aggregation in 1972. An additional area of 9,583 ha, in the form of Occupation Licences (the "OLs") issued under the Land Act 1962. The combined holding of leasehold, freehold and OL lands, was until March 1994 utilised for cattle-grazing purposes. 2. The "Starcke" aggregation, including the OLs, is to be found on the east coast of the Cape York Peninsula, northerly from Cooktown and lying to the south of Cape Melville. The relevant local government is the Cook Shire Council ("CSC"). The OLs lie mainly to the south of the main aggregation. The freehold land has an elongated shape, which broadens to the north. It was carved out of the south-east sector of the original PDH, leaving leasehold lands of irregular shape to its west and severed areas to the east with the main body of the reduced PDH area in the north-west being of more even and expansive shape. 3. The Starcke Pastoral Holdings Acquisition Act 1994 (the Starcke Act) was proclaimed to commence on 11 March 1994. That statute provides (s.4) for so much of the 2 "Starcke" lands as would be prescribed by regulation to become "unallocated State land" within the meaning of the Land Act 1994, though in the original Starcke Act this was referred to as Crown land within the meaning of the Land Act 1962, a statute which was largely replaced by the Land Act 1994. The Starcke Act also provides for the termination of the OLs. A regulation under the Act was also published on 11 March 1994, the effect of which was to extinguish all private interests in the "Starcke" lands from that date. In effect this constituted a compulsory acquisition of the claimant's property described above: or a "resumption" in the language of this area of law. I will generally refer to 11 March 1994 as the "relevant date". 4. Section 5 of the Starcke Act provides for compensation for any dispossessed owner:- "5.(1) The State must pay to each person who held an interest in the acquired land immediately before the commencement of the regulation the reasonable compensation agreed between the state and the person. (2) If the State and the person cannot agree on compensation, any compensation payable to the person is to be decided under - (a) in the case of freehold land - the Acquisition of Land Act 1967; or (b) in the case of other land - the Land Act 1994." 5. The reference in this provision to the Land Act 1994 had in the original Starcke Act been expressed as a reference to the Land Act 1962. I can discern no substantive difference between these two statutes with respect of the relevant subject matter and will make reference henceforth in these reasons only to the Land Act 1994 on the matter of compensation. Section 221(1) of the Land Act 1994 refers to Part IV of the Acquisition of Land Act 1967 (the Acquisition of Land Act) as providing the statutory basis for the assessment of compensation for a "Land Act" lease resumed under Division 1 Part 3 of the Land Act 1994. Part IV of the Acquisition of Land Act includes s.20, which is relevantly expressed thus: "20. Assessment of compensation. (1) In assessing the compensation to be paid, regard shall in every case be had not only to the value of land taken but also to the damage, if any, caused by either or both of the following, namely - (a) the severing of the land taken from other land of the claimant; (b) the exercise of any statutory powers by the constructing authority otherwise injuriously affecting such other land. 3 (2) Compensation shall be assessed according to the value of the estate or interest of the claimant in the land taken on the date when it was taken." 6. This provision also applies to compensation flowing from the resumption of freehold land (s.5(2)(a) Starcke Act). Compensation for the loss of both the freehold and leasehold "Starcke" lands is, therefore, to be determined in accordance with the provisions of s.20 the Acquisition of Land Act. I am of the view that the words "decided under" in s.5(2) of the Starcke Act are sufficiently broad to enliven the jurisdiction of this Court under s.26 of the Acquisition of Land Act which should be read together with other provisions of that Act relevant to the exercise of that jurisdiction. 7. The OLs utilised in conjunction with the "Starcke" aggregation were identified in the Starcke Act (s.3) as Nos. 14/471, 14/485, 14/487 and 14/573 Cooktown. The evidence is that the last-mentioned OL had been included in the PDH by 11 March 1994. It follows that the loss of that area of land is a matter that, for the purposes of assessing compensation, falls for determination as an integral part of the assessment of compensation for the loss of the PDH. The parties informed me that they had reached agreement concerning compensation with respect to the remaining OLs. Accordingly, compensation for those licences is not a matter which I need to consider further. Witnesses The following witnesses were called by the claimant: 8. George Quaid is a director and secretary of the claimant company and Southedge Daintree Pastoral Co Ltd, a company concerned with a development and subdivision project known as the Daintree Rainforest Freehold (the "Daintree"). Mr Quaid is also a registered valuer and provided his opinion as to the value of the resumed lands. He also gave evidence concerning the "Daintree" project and the "Starcke" aggregation. I will often refer to Mr Quaid in these reasons as the human agent through whom the two companies mentioned above generally operated. 9. Ian Samuel Beattie also gave evidence concerning the "Daintree" project, particularly the marketing of the lots produced there. He provided his opinion as to how the "Starcke" freehold land could be marketed in subdivision in the form of 240 x 100 ha lots, and his view of the expected prices and selling rate for lots produced there. Mr Beattie is a licensed real estate agent, auctioneer and a registered valuer. Through his management company he is a part-owner of Quaid Real Estate, an agency originally started by Mr Quaid, with whom Mr Beattie has worked for 28 years. 4 10. Timothy Donnelly Nevard describes himself as a "consultant specialising in environmental matters, particularly in the context of habitat creation and environmental enhancement." He holds a Bachelor of Science in Rural Environment Studies and a Master of Science in Agricultural Economics, both from the University of London. He provided evidence on "circumstances where high environmental values have been a principal reason for purchase of land by private sector and non-government organisations" and associated matters. 11. Kim Elizabeth Campbell is a qualified town planner and was at the relevant date for the assessment of compensation retained under contract as a consultant planner to the CSC. She had earlier (1990-91) been employed by CSC as the director of planning. She is presently employed by the "C & B Group". Her curriculum vitae refers to her authorship of certain reports as part of the Cape York Peninsula Land Use Strategy (CYPLUS). I understand CYPLUS to have been an expansive Government project concerned with the collection and synthesis of data and opinions that could provide a basis for resource and land use planning in Cape York. Mrs Campbell also holds a degree of Master of Science (Environmental Management). She gave evidence concerning the prospects of CSC approving the subdivision of the freehold "Starcke" land, a potential use which forms the basis of the claimant's claim for compensation for that land. 12. Lance David Dodds provided evidence concerning the design, construction and costing of the works that would be required in a subdivision of the "Starcke" freehold land into 240 x 100 ha lots. Mr Dodds is a member of a firm described as "planning consultants" and though experienced over a period of about 20 years in matters of road construction and such like, holds no relevant formal qualifications. He therefore utilised the services of a Mr Roy Garden, a civil engineer, to check his designs and workings. Mr Garden was not called. 13. Murray Alan Clive Bartsch, an engineer by profession, provided evidence concerning advices that he had provided to Mr Dodds concerning engineering requirements for the suggested subdivision of the "Starcke" freehold land. Mr Bartsch had been the Shire Engineer for the Cook Shire during the period 1990 to April 1999 and had been responsible for the assessment and determination of relevant and reasonable engineering conditions for subdivision applications within the Shire. 14. Greg Williams was relied upon by Mr Dodds to provide costings for the engineering works involved in the suggested subdivision of the "Starcke" freehold.
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