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Address by Ian Sinclair

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EMBARGO: 8.00 P.M 7 AUGUST, 1981


The stated purpose of this, the Annual Country Conference of the N.S.W. Division of the Australian Institute of Valuers, is to bring your city members out into a new environment and introduce them to the joys we country fellows know so well.

Your Institute I know also is taking particular care in what might be described as decentralising.

I am told you have set up 23 separate groups within the Institute throughout New South Wales to provide both a local integration of knowledge and skills and also for the Institute as a whole to have a sounding board for a better understanding of the professional skills required.

Professional recognition is a prime aim of course of any such Institute and the lifting of standards through basic education, through practical experience and through meetings - such as your group system level, your Country Conference

and at your National Annual General Meetings, is to be greatly commended.

Obviously your high aim is to develop a totally rational basis for the valuation of property so that such valuations become accepted as widely as possible throughout the community.

Since establishment of the Institute in 1926 there has obviously been increasing pressure on your professional skills, culminating in the past decade or so with booming land prices, considerable industrial and

agricultural expansion and a whole new range of legislative and regulatory changes.

The circumstances in which you work mirror very much the economic development of our country. They are distorted according to some factors, however, which make the conduct of business by the owners and occupiers of the land which you value just that little more difficult.

ON the one hand, there is changing land use and on the other inflation and higher interest rates which affect the economic worth of the investment.

In the former you have areas such as that of the Hunter Valley where coal developments have exploded land values and made land use for other purposes only marginally profitable.

Similarly the pastoral areas of the Gwydir Valley now converted into intensive cotton and agricultural use are only minimally capable of generating a return if traditional forms of agriculture are pursued.

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In cities such as Tamworth and our major metropolises, high rise buildings have escalated land values while developers too have created a market often representing a false ceiling on the "real" value of land.

These are of course common factors which you take into account. However, in the private enterprise sector the judgement you exercise is quite critical in the proper functioning of our economy. . .

It effects the borrower's ability to fund his business; it affects his profitability too in relation to his preferred type of land or building use.

These matters have particular relevance at a time when interest rates are far higher than any of us would prefer.

The Federal Government's economic policies are being directed towards the containment of the inflationary pattern within which these interest rates have soared.

We are concerned that our overall stratagems will again restore some proper balance not only in interest rates but also in the investment climate within which property development occurs.

Our object is to create a climate where private enterprise can thrive and where the ownership of personal or business property is not so expensive as to sap the normal cash flow of individuals and hence deny them adequate working capital.

Clearly all these factors in a vibrant economy make your role in our business community all the more important.

You have set high-standards in the past and the challenges of the years to come will put those standards to the test again and again.

However, you are individuals, free enterprise men who I am sure know and understand the realities of the business world as well as the aspirations of individuals for the 80's and beyond.

I wish you well in your Conference. I am glad to see you in our community which also I am sure will welcome you. I declare open this 1981 Annual Country Conference.