How will February-March 2022 flooding in Northern NSW affect land values?

 

It would appear that the Northern Rivers region bounced back from any flow-on effect on land values due to the 2019-20 mega bushfires and, the pandemic appears to have actually increased demand for housing in the region. Now residential and commercial property owners are waiting on the first official post February-March 2022 floods land value report.

BACKGROUND

Pre-July 2019 to March 2020 Bushfire Season

NSW Valuer-General’s Report for NSW Land Values at 1 July 2019

North Coast NSW region local government areas

Ballina, Bellingen, Byron, Clarence Valley, Coffs Harbour, Kempsey, Kyogle, Lismore, Mid-Coast, Nambucca, Port Macquarie- Hastings, Richmond Valley, Tweed

General overview

The total land value for the North Coast NSW region increased 1% between 1 July 2018 and 1 July 2019 from $85.8 billion to $86.7 billion.

The value of residential land value in the region generally remained steady or increased slightly with an overall increase of 0.6%. However, moderate increases were experienced in Richmond Valley (6%) and Lismore (5%). Overall, values in Byron decreased slightly by 2.6% except for residential land in central Byron Bay which increased by 6.5% and residential land in the villages of Billinudgel, Federal and Main Arm which increased by 5%.

Commercial land values across the region generally remained steady or increased slightly with an overall increase of 0.9%. An exception to this was Kyogle where values increased moderately by 6.8%, with increases mainly confined to the northern part of the Kyogle town centre.

Industrial land values in the region generally remained steady with an overall increase of 1.6%. Values increased slightly in Port Macquarie-Hastings (4.4%) and Richmond Valley (4%), and moderately in Kyogle (6.2%) and Ballina (5.9%).

Rural land values in the region generally increased slightly with an overall increase of 2.5%. Rural land in Lismore, however, experienced a moderate increase of 8.1% due to a strong demand for hobby farm and rural lifestyle properties.

Post-July 2019 to March 2020 Bushfire Season

North Coast Voices, 14 February 2021:

As of 28 January 2020 the climate change-induced 2019-20 bushfires in New South Wales had burnt 5.3 million hectares (6.7% of the State), including over 52 per cent of the land area in the Clarence Valley and close to 49% of the land area in the Richmond Valley.

Now we find out how this affected land values in those two local government areas.

Decreases were evident in some areas impacted by bushfire events, with the largest land value decreases in Rappville and Whiporie in Richmond Valley (-21%) and unspecified moderate to strong decreases in localities south of Grafton, Coutts Crossing and the Clarence River.

In the middle of the COVID-19 Global Pandemic

NSW Valuer-General’s Report for NSW Land Values at 1 July 2021

North Coast NSW region local government areas

Ballina, Bellingen, Byron, Clarence Valley, Coffs Harbour, Kempsey, Kyogle, Lismore, Mid-Coast, Nambucca, Port Macquarie- Hastings, Richmond Valley and Tweed.

General overview

The total land value for the North Coast NSW region increased by 28.7% between 1 July 2020 and 1 July 2021 from $89.3 billion to $115.5 billion.

Residential land values increased by 27.9% overall. The strongest growth was in Byron (51.9%), followed by Ballina (39.3%), Richmond Valley (38.4%), Clarence Valley (31.9%) and Kyogle (27.4%). Strong increases were also seen in Port Macquarie (17.9%), Kempsey (17.0%) and Lismore (17.7%).

Sea and tree changers relocating to work remotely drove demand along the North Coast seaboard.

Overall, commercial land values increased by 28.7%. Byron (50.3%) experienced the strongest increases due to strong demand in a tightly held market. Other large increases were seen in Tweed (23.6%), Ballina (28.8%), Richmond Valley (37.5%) and Port Macquarie (27.3%), Kyogle (11.4%) and Kempsey (10.7%), while Lismore (9.0%) increased moderately with supply meeting demand.

Industrial land values for the region increased by 22.6%. Very strong increases in Byron (37.1%) followed heightened demand for relatively affordable industrial space in Bangalow and Mullumbimby. An increase in building activity saw demand outstrip supply in Port Macquarie Hastings (36.5%). Nambucca (31.9%) saw strong demand for limited stock while a balanced supply of industrial land resulted in moderate-strong value increases in Clarence Valley (7.3%), Lismore (11.1%), and Richmond Valley (11.7%).

Rural land values across the region increased by 30.5%. Byron increased 70.5% as the residential market moved into hobby farms and lifestyle properties, while nearby Ballina experienced a very strong 32.2% increase. Strong increases were also seen in Coffs Harbour (11.9%), Nambucca (28.8%) and Clarence Valley (22.9%), with increased demand from both lifestyle changers and rural producers. Good rainfall, buoyant commodity prices, low interest rates and a favourable seasonal outlook has seen on-going demand for quality cropping and grazing land from local and interstate buyers and western graziers.

Generally the Valuer-General’s land value reports are published within six months either side of the 1 July date at which any value change is calculated.

Given that property sales are the most important factor valuers consider when determining land values and since the NSW February-March 2022 widespread destructive flooding along the Australian east coast has left whole villages, towns & even cities with a significant percentage of their housing stock in an unsaleable condition, I suspect that this year’s land value report may be delayed.

Australian Federal Election 2022: what do political funding rorts look like and are they part of a corrupt process?

Looking at past Liberal Party of Australia political rorts may help to assess Scott Morrison's current election campaign promises which have a dollar amount attached when first announced and/or a specific electorate is included in the announcement.

So what has all the Liberal Party's much touted "individual freedom and free enterprise" delivered since 2013?

Well between 2013 and 2018 it appears to have delivered federal regional grants totally $714,563,851. With 57.62% of this funding directed to 77 Coalition-held electorates and, the remaining 26.92% going to 74 other electorates - 68 ALP & 6 minor party/independent.

Some electorates such as Hinkler (Qld) held by Nats-LNP since 1993 received well in excess of $26 million in regional grants. Mallee (Vic) held by Nats since 1972 and Capricornia (Qld) held by LNP since 2013 received over $24 million each. While Dawson (Qld) held by LNP since 2010 received over $31 million - and on it went over the approximately six year span.

Has this brazenly partisan allocation of Treasury funds lessened under the prime ministership of the Liberal MP for Cook?

Apparently not, because the bulk of the billions listed in the next paragraph were distributed on Morrison's watch.

According to The Sydney Morning Herald on 16 April 2022, taxpayers have funded $55.6 billion in federal government grants over less than 4 years (including a hefty $20 billion last year) under rules that give ministers sweeping powers to decide payments, often without any criteria or reporting & against departmental advice. From January to March this year another $1 billion was distributed as grants.

So where might some of those $55.6 billion dollars have found a home?

Nor being a forensic accountant I am not up to the task of tracking that down, but there are some clues to be found.

Take the joint Federal-States Black Summer Bushfire Recovery Grants Program.

The “Black Summer” bushfire season actually ran from July 2019 through to early March 2020 and during this period est. 2.9 million adult Australians had their property damaged, their property threatened, or had to be evacuated, often along with their families.

This Black Summer Bushfire Recovery Grants Program funding pool held $390,893,779 – with $296,746,274 allocated and $94,147,508 still unspent in February 2021.

Over 100 local government areas in Queensland, New South Wales and Victoria were listed in the grant eligibility criteria.

A total of 57.63% of all grant allocations worth est. $171,035,576 went to Coalition electorates, 31.33% worth $92,994,495 to Labor electorates and, 11.02% worth $32,716,230 to Independent/minor party electorates.

In December 2020 it was revealed that one of Australia's richest men who happens to be a Liberal Party donor had received $10 million in bushfire recovery funding - to expand a paper mill not directly affected by fire.

In February 2022 the Morrison Government announced that the Black Summer Bushfire Recovery Fund had received an additional $110 million for 524 "broad recovery projects" with unspecified recipients. The this grants program is now listed as closed.

Just in case a reader might think that the nature of that 2019-2020 mega bushfire season might have skewed funding allocations, here is another example which clearly indicates bias.

Round 5 of the Building Better Regions Fund – Infrastructure Projects Stream.

There it is in glorious colour.

A total of 73. 23% of this grant round, worth est. $215,281,617 going to Coalition electorates and 26.76% worth est. $78,678,728 going to electorates held by Labor and the cross benches. Liberal & LNP MPs receiving the bulk of this largesse held federal seats in New South Wales and Queensland.

Then there is the National Commuter Car Park Fund.

The Urban Congestion Fund (UCF) was established in the 2018–19 Budget. Total funding for the UCF had grown from $1 billion to $4.8 billion as at 31 March 2021.The National Commuter Car Park Fund is a component of the UCF.

This is what commuter car park funding allocation looked like in February 2021.

A total of 77 Liberal Party electorates received a whopping 81.75% of the total funding pool worth $575,890,000. Among the Liberal Party luminaries lining up for the prime minister’s largesse were; Josh Frydenberg (Kooyong Vic), Alan Tudge (Aston Vic), Tim Wilson (Goldstein Vic), Michael Sukkar (Deakin Vic), Jason Wood (La Trobe Vic), Angus Taylor (Hume NSW), David Colman (Banks NSW), Stuart Robert (Fadden Qld), Bert Van Manen (Forde Qld) Peter Dutton (Dickson Qld) and Andrew Hastie (Canning WA).

In June 2021 the Australian Auditor-General handed down a performance report titled “Administration of Commuter Car Park Projects within the Urban Congestion Fund”.

The performance report found numerous inadequacies, including:

• at 31 March 2021, there had been 44 commuter car park projects announced involving upgrades at 47 identified sites with a total Australian Government funding commitment of $660.4 million;

• assessment work had been completed for 10 car parks resulting in $100 million of Australian Government funding being approved for the full project (including delivery of construction work). Construction had been completed at two sites and had commenced at a further three sites;

• The Department of Infrastructure’s administration of the commuter car park projects within the Urban Congestion Fund was not effective;

• The department’s approach to identifying and selecting commuter car park projects for funding commitment was not appropriate. It was not designed to be open or transparent. The department did not engage with state governments and councils, which increased the risk that selected projects would not deliver the desired outcomes at the expected cost to the Australian Government. Departmental advice did not contain an assessment against the investment principles or policy objectives and it was not demonstrated that projects were selected on merit. The distribution of projects selected reflected the geographic and political profile of those given the opportunity by the government to identify candidates for funding consideration; and

• The selection of 47 commuter car park sites for funding commitment were decisions of government taken over the period January to July 2019 and:

• effected in 38 cases (81 per cent) by the written agreement of the Prime Minister to a written request from Ministers;

• effected in seven cases (15 per cent) by the election commitment process; and

• in two cases (four per cent) the department had not evidenced how the funding commitment was effected, beyond email advice from the Minister’s Office and a media announcement by the Prime Minister. [my yellow highlighting]

By 2022 it was apparent that most of 47 commuter car parks which had funding allocated were no longer considered active proposals and at least 5 proposed car parks appear to have been scrubbed from the original list – 4 in Labor electorates and one in a Liberal Party electorate.

Lack of transparency, across the board poor record keeping, no apparent accountability for decisions made and politically partisan use of public money - are all indicators of corrupt processes in this particular grant fund. 

This next chart demonstrates funding allocations for sports infrastructure.

A breakdown of full details can be found at:

https://www.thevogfiles.com/uploads/1/3/5/1/135189168/copy_of_sporting_grants5_1.xlsx

To say that voters are not happy with the Liberal Party is an understatement. This was one voter in the Australian Capital Territory......

“Firstly, the biggest misdirect, perhaps lie, perpetrated by the Liberals is that they are a Federal Political Party - a single administrative & policy unit like the ALP. They are a bunch of independent Fiefdoms, ruled in what looks like a Feudal system with a truly byzantine organisation…..

I’ve looked at the Liberal Federal Secretariat & "Liberal Party NSW" sites and they don’t publish any “Values”,

They publish some very rubbery & loose “Beliefs”. Untestable, and unaccountable motherhood statements. Summarised at the end as:

“In short, we believe in individual freedom and free enterprise"

Tony Abbott around 2013 clearly annunciated both Liberal Party Values & Purpose: “We are not Labor”.

Nobody in their right mind would invest in a company with the absence of proper Governance & Accountability embodied in the many “Liberal” party Fiefdoms in Australia, nor would they tolerate the absence of consistent Values, Priorities and Policies.” [Voter from Kippax, ACT, 3 March 2022]

SOURCES

The VOG Files, Rorts Central at:

https://www.thevogfiles.com/rorts-central.html

Australian National Audit Office (ANAO) at:

https://www.anao.gov.au/work/performance-audit/administration-commuter-car-park-projects-within-the-urban-congestion-fund

Parliament  of Australia, Members at:

https://www.aph.gov.au/Senators_and_Members/Members

Byron Central Hospital to go solar

 

Clarence Valley Independent, 22 April 2022:

The roof of Byron Central Hospital will soon be covered in photovoltaic (PV) panels, harnessing energy from the sun to provide more than half of the hospital’s annual electricity usage.

The 720 kilowatt system will be the largest rooftop mounted PV installation on the north coast, and the first of its kind for a hospital in the region.

Northern NSW Local Health District (NNSWLHD) Director, Corporate Services, Matt Long, said the project will deliver significant reductions in greenhouses gases, as well as cost savings over the life of the system.

“The feasibility study indicated changing to renewable energy at Byron Central Hospital will offset the equivalent of 940 tonnes of greenhouse gases each year,” Mr Long said.

“We know renewable energy is better for the planet, but it’s also a financially sustainable option, with the estimated electricity cost savings to our health district across the life of the system being more than $3 million.”

NNSWLHD will also be working to expand the solar program to other sites across the District.

“As a health service, we are committed to reducing our overall environmental footprint, and we’re excited to be embarking on this initial project in Byron Bay,” Mr Long said.

The installation is expected to be completed during the final quarter of 2022, and operational in time to take advantage of the increased daylight hours throughout summer…….

Full list candidates standing in Page and Richmond (NSW) electorates at the 21 May 2022 federal election & their positions on ballot papers

PAGE Electorate - Candidates Standing & Ballot Paper Position

https://www.aec.gov.au/election/candidates.htm

RICHMOND electorate - Candidates Standing & Ballot Paper Position 

Full list of NSW candidates standing for the Senate can be found at https://www.aec.gov.au/election/candidates.htm - click "all candidates" & follow prompts.

Headline of the Month

 

SNAPSHOT: Financial Review, 14 April 2022
click on image to enlarge

Cartoons of the Week

Cathy Wilcox

David Rowe

Glen Le Lievre