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Shack Leases

The Hon. J.A. DARLEY (14:39): I seek leave to make a brief explanation before asking the Minister for Human Services, representing the Minister for Environment and Water, a question about the government's shack policy.


Leave granted.


The Hon. J.A. DARLEY: I understand the Minister for Environment and Water has invited lessees of shacks identified as Crown land to make application for a longer term tenure, which includes a five-year lease, followed by an option to purchase freehold, or a five-year lease with an option for a longer term lease of 50 years. My questions to the minister are:


1. Has the government determined the basis on which the cost of freeholding a shack site will be calculated?


2. Will the cost be the unimproved value of the land on which the shack sits, or will it be a proportion of the unimproved value of the land?


3. Will the government provide finance to a shack owner who wishes to purchase the freehold, or will they be required to make their own financial arrangements?


The Hon. J.M.A. LENSINK (Minister for Human Services) (14:40): My understanding, in response to the honourable member's question, is that the valuation will be on the unimproved value of the land. I will take the other aspects of his question on notice and refer it to the relevant minister for response.


_____________________________________________________________


Response

The Hon. J.M.A. LENSINK (Minister for Human Services): The Minister for Environment and Water has advised:

1. The cost of freeholding a shack site will be calculated pursuant to the Crown Land Management Act 2009 (CLMA). The CLMA requires that the Minister for Environment and Water must not dispose of Crown land for less than the market value of the Crown's interest in the land.

2. The market value of the Crown's interest in the land excludes any site improvements made by the lessee such as the buildings, landscaping or ancillary structures.

3. Shack owners who are eligible and wish to purchase the site freehold will be required to make their own financial arrangements.


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