12 – 13 March 2012 / Agenda Number:
9 (i) / File Reference:
TBC
LORD HOWE ISLAND BOARD
Business Paper
Item:
Land Asset Disposal Policy
Background:
In February 2011 the Board determined to recommend to the Minister the transfer of land, with the Treasurer’s consent, at no cost to an existing leaseholder. The then Minister (Sartor) advised the Board that he did not support the transfer of Crown land at nil cost and that he would not seek the consent of the Treasurer for the transfer to proceed. The Minister also directed the Board to prepare a Policy to guide the disposal or transfer of Crown land on the Island for the approval of the incoming Minister.
At the May 2011 meeting the Board considered the direction of the previous Minister and unanimously endorsed the preparation of the Policy to guide the transfer of Crown land administered by the Board. The Board also resolved to request the incoming Minister (Parker) to seek the approval of the new Treasurer to transfer the land in question at nil cost.
The Minister has advised that she does not support the Board’s recommendation to transfer the land at no cost. The Minister has confirmed that the Board is to continue to develop the Land Asset Disposal Policy and that it should be consistent with NSW Treasury requirements, and that full market value as determined by the Valuer General is to be realised.
A draft Land Asset Disposal Policy was presented to the Board at the September meeting and amendments were requested. An updated version of the policy was presented at the November 2012 meeting which included the following amendments:
· Demonstrate that purpose of policy is not to create land allotments for sale.
· Assessment of all vacant Crown land is not required under Policy.
· Policy to deal with requests initiated by other parties on how land transfers, eg road reserves, will be considered by the Board.
· Classification of Community land and Operational land.
· Provision for application to the Treasurer for the transfer of land at less than market value on the recommendation of the Board in exceptional circumstance.
The Board requested that the policy be finalised for consideration and adoption by the board at the March 2012 meeting. Once endorsed by the Board the policy must be approved by the Minister prior to implementation.
Comment:
The amendments approved at the November 2012 meeting have been included in the policy. The Administration forwarded a copy of the draft policy to the Government Asset Management Committee (GAMC) which is part of NSW Treasury.
The representative of GAMC provided advice; the following has been included in the policy:
· Document to be presented in two distinct sections i) policy and ii) procedure
· Clarify power of Board to recommend transfer at less than market value and process for approval
· Include dispute referral arrangements; related guidelines and policies.
Recommendations:
It is recommended that the Board:
1. Endorse the LHIB Land Asset Disposal Policy;
2. Recommend the Minister approve the LHIB Land Asset Disposal Policy
Prepared By: Stephen Wills Chief Executive Officer