Survey reveals extent of State-owned land

26/11/94

The Ministers for Lands, Housing, Conservation and Education are Western Australia's billion-dollar landlords, Finance Minister Max Evans said today.

Mr Evans said the massive landholdings of the four State Government departments came to light with WA's first valuation of all State-owned land.

The Minister said the survey revealed the State Government owns over 180,000 pieces of improved and unimproved land valued at almost $13 billion.

The properties were assessed by the Valuer General as part of the development of the Government Property Register (GPR).

Mr Evans said although it seemed incredible, no previous Government had been able to identify or value all land and buildings owned by the State.

However, the Minister said while the GPR was a useful guide to the Government's land holdings, it would be some time before it could be used as an accurate asset register.

"Clearly it was not possible for the Valuer General and his team physically to value 180,000 properties in less than two years, so this is very much an initial estimate of asset values calculated using computerised mass appraisal techniques," Mr Evans said.

"Having said that, it has enabled us to determine base values for properties on the GPR, and the integrity and accuracy of records will be enhanced in future years as departments update information and field inspections are carried out."

Mr Evans said the State owned 180,458 land parcels worth $12,963,321,234 - at an average of $71,836 each.

"The biggest landholder - perhaps not surprisingly - is the Department of Lands, technically the Minister for Lands, with 98,101 parcels or pieces of land worth $3,523,666,010, an average of $35,919," he said.

"Not far behind is Homeswest, which owns 45,661 properties worth $2,838,823,814, an average of $62,171.

"The difference between the average valuations of the two major landholders is explained by the fact that most Department of Land holdings are unimproved and many of them are in remote areas, while the Homeswest values include improvements on the properties.

"The Department of Conservation and Land Management and the Education Department are the State's other billion dollar landlords, with 11,772 properties and 1,196 properties worth $1,527,811,448 and $1,197,740,012 respectively.

"That is an average valuation of $1,001,455 for every Education Department property, but it is a long way from being the highest average.

"Murdoch University well and truly takes that prize, being listed as the owner of just two parcels of land worth a staggering $180,222,500!"

Mr Evans said the survey found 16 State Government instrumentalities each owned land worth over $100 million.

Apart from the billion dollar landholders, they were the Minister for Health, the Metropolitan Region Planning Authority, the Main Roads Department, the Government Employees' Superannuation Board, the WA Land Authority and the Government Employees Housing Authority each own property worth in excess of $200 million.

Murdoch University, the Water Authority of WA, BankWest, the University of WA, the Department of Employment, Vocational Education and Training and the Police Department have holdings worth between $100 million and $200 million.

At the other end of the scale, the Tourism Commission is listed as owning three properties worth $100 each, with the Ministry of the Premier and Cabinet owning five properties valued at $150 each.  All are small pieces of land in Ashburton, and it is unclear how they came to be owned by the two high profile agencies.

Another apparent anomaly, land listed under the Zoological Gardens Board as being worth just $8,200, relates to a small area of public open space in South Perth.  The Zoological gardens, valued at $25 million market value, were included in the GPR under the Department of Land Administration (DOLA).  Since commencement of the project many such properties have been transferred from DOLA to the controlling agencies.

Mr Evans said that it was a great tribute to the Valuer General, Roger Williams, and the project team led by Gary Fenner, that the initial stage of the asset register had been completed in such a short time given that no former Government had any idea of its total property holdings.

"Brian Burke promised such a register would be compiled a decade or so ago, and charged the WA Development Corporation with compiling the register - but we have found no evidence that anything of substance was achieved," Mr Evans said.

"I am amazed that with the momentous changes of the eighties happening all around, and the supposed charter given to the WADC to rationalise the Government's property holdings, that successive Labor Governments simply had no idea how much property was owned by the State, how much it was worth, and what sort of a return was being achieved on the assets.

"In fact, when we first looked at this matter in May 1993 initial advice indicated there were about 60,000 land parcels to value, by August 1993 it had increased to 100,000, and the number of individual pieces of land finally valued was over 180,000."

Mr Evans said in just 18 months the Coalition Government had done what Mr Burke promised but never came close to achieving, and said the Government could now set about ensuring that the return to taxpayers from State owned property was maximised.

Media contact:  Tony Barker-May 366 0300