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Legislative Assembly for the ACT: 1999 Week 9 Hansard (2 September) . . Page.. 2909 ..
Mr Rugendyke asked the Minister for Urban Services, upon notice, on 1 September 1999:
In relation to the Government's proposals for 99 year rural leases. Noting in the 99 year rural lease package, a 10 year covenant would apply to the subsequent sale of theses leases during which time the lessee would be required to pay the Government 50% of a difference between two valuations.
1) How would the two evaluations be calculated.
2) What appeals rights are proposed to be available to lessees.
3) What is the justification for applying this covenant to existing lessees who hold 50 year full-tenant rights rural leases that were signed in 1956
4) Would the Government pay compensation to 50 year full tenant rights rural lessees who suffered a loss of agricultural productivity as a result of Land Management Agreements.
5) What mechanism would permit 50 year full tenant rights rural lessees to maintain ownership of current assets including pasture improvement, regrowth of native timber and access to natural water
6) Will there be a copy of the new lease document made available to rural lessees before it is tabled in the Legislative Assembly.
Mr Smyth: The answers to the Member's questions are as follows:
1 ) It is proposed that the two valuations are calculated in accordance with the formula for the payment of the "discharge amount", which is contained in the Land (Planning and Environment) (Amendment) Bill (No.3). The discharge amount is 50% of the difference between the "last amount"' less the "first amount" multiplied by the calculated Consumer Price Index (CP1), plus any "owed amount". The definitions for the "last amount", "first amount", "Consumer Price Index" and "owed amount" are contained in the amendment Bill. The definitions are:
last amount is the sale price of the lease excluding any amount attributed to lessee owned improvements. If the sale price is considered to be less than market value, or the dealing is only for part of the land in the lease, then the last amount is the market value excluding any amount attributed to lessee owned improvements.
first amount. If the lease is a nominal rent lease, then the first amount is the amount that was paid for the lease when it was granted under section 161 or 171A. If the lease is a short lease then the first amount is the value of the lease that was determined when it was granted under section 161 or 171A. If the lease has a 30 year payment arrangement for the amount determined for the lease when the lease was
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