Land Grants

13/10/2003

65. Land Grants

Mr Wood to MINISTER for Lands and Planning


QUESTION
In the Budget it is reported that the average cost per completed land sale or land grant is going to be $49,000 –

(a) Why is it that according to the Government Gazette, the cost to many groups of a Crown land grant is NIL;
(b) is not the taxpayer losing money by subsidising these grants to the tune of $49,000 per grant;
(c) why isn’t it a user pays system for these grants; and

(d) are there any other costs associated with this program of making land grants?

ANSWER

Answered on 05/12/2003

(a) It is Government policy to grant land at nil cost to community groups and in some instances local government as a contribution to the social well being of the Territory community;

(b) The grants of land to community groups and to local government for community purpose uses are a taxpayer funded subsidy. A $600 application fee applies to community groups (but not local government). The output cost is not a nett cost as it does not reflect any revenue effect of the gazetted application fee.

(c) Imposition of a user pays system would place a significant financial burden on many community service groups and increase the cost of provision of community facilities by local government; and

(d) The revenue foregone by making a grant (as opposed to sale) of the land is an additional cost to the output cost of processing applications for land grants.