Below is a copy of the final regulations that have been approved by the Minister and which were received from Annelize Crosby of Agri SA.
I have not had a chance to compare the final version of these regulations with the original ones in any detail but I have picked up that the valuation methodology has not changed. This involves taking the current use value (which could be zero if a loss was made at the time of valuation) and adding it to the market value (including timber or any other growing crop) and then dividing the sum thereof by two. In essence this means that the value of standing timber will be halved. This is totally unacceptable and probably unconstitutional.
I have been in contacted with Annelize this morning to discuss our concerns. She is of the opinion that, as agreed some time ago, we may need to take the regulations on review through the courts. Members are reminded that the Exco did agree last year that in need, we would contribute to a legal fund to challenge these regulations.
Members will be kept informed of developments in this regard.
I have, for your information, attached the second submission that we made to the Valuer General which outlines the concerns that we had with the original regulations.
- Regulations under the Property Valuation Act, 2014 NO. 17 of 2014)
- FSA Supplementary Submission on Valuation Draft Regulations May 2017
Source: Agri SA
