WARNING:
This Digest was prepared for debate. It reflects the legislation as
introduced and does not canvass subsequent amendments. This Digest
does not have any official legal status. Other sources should be
consulted to determine the subsequent official status of the
Bill.
CONTENTS
Passage History
Purpose
Background
Main Provisions
Concluding Comments
Endnotes
Contact Officer & Copyright Details
Sydney Harbour
Federation Trust Bill 1999
Date Introduced: 8 December 1999
House: Senate
Portfolio: Environment and Heritage
Commencement: On
proclamation, or failing that, six months after receiving Royal
Assent.
To establish a Trust to take on planning and
management responsibilities for approximately ten years over a
number of former defence properties on Sydney Harbour foreshore and
islands.
In delivering the
1997-98 budget, the Commonwealth Government announced that it would
establish a $1 billion Federation Fund to fully or partly finance
projects of national significance as part of centenary
activities.(1) More specifically, projects were to be
selected 'on the basis that they will generate jobs in the
construction phase and make a significant and ongoing contribution
to Australia and the Australian economy'.(2) Other
criteria were apparently contained in correspondence from the Prime
Minister to Premiers and Chief Ministers but these do not appear to
be on the public record.
Following negotiations
with the NSW government during 1997 and 1998, the Commonwealth
included a commitment in its 1998 election platform to
The sites covered by
this commitment were:
-
- Middle Head and Georges Heights, two contiguous sites totalling
100 hectares
-
- a 74 hectare site on North Head which is surrounded by Sydney
Harbour National Park
-
- two smaller parcels at Woolwich, west of the Harbour Bridge on
the north side of the Harbour, and
-
- Cockatoo Island, a former naval base and industrial
centre.
Of the $90 million, $50 million was to be
allocated to the Department of Defence to meet costs associated
with relocation from the sites and to remove surplus
buildings(4) with the remaining $40 million to be
allocated to the Trust to 'support' the clean up of contaminated
areas on Cockatoo Island.(5) The Defence Department was
also to receive an additional $6 million to establish public access
to parts of the Garden Island naval base.(6)
The Federal ALP opposed the proposal for the
Sydney Harbour project at the time of the 1998 election on the
grounds that it was an 'inappropriate' use of the Federation Fund
given that the Defence Department would be a direct
beneficiary.(7)
Following the re-election of the Coalition in
October 1998, an Interim Trust was established in March 1999 'to
commence planning and consultation' and an Executive Director was
appointed later in August.(8)
An exposure draft of the Sydney Harbour
Federation Trust Bill (the Bill) was released for public comment on
15 August 1999 for a period of one month. While a number of
submissions called for substantial amendments, the Bill was
introduced into Parliament virtually unchanged(9) with
the Government saying that it intended 'to introduce any amendments
to the Bill arising from the public consultation period during the
committee stages of the debate.'(10) No reason appears
to have been given for this relatively unusual approach, although
the release of the exposure draft was three months later than the
timetable set down by Senator Hill in March 1999.(11)
The Bill is currently being reviewed by the Senate
Environment, Communications, Information Technology and the Arts
Committee which is due to report on 3 April 2000.
Funding the Trust's
operations: commercial activities and public access to Trust
land
In 1999, a loan of $770,000 was provided to the
Interim Trust by the Commonwealth to cover set-up and other initial
costs.(12) Approximately 30% of this had been expended
to the end of 1999, with the loan due to be repaid by 1 April
2002.(13) In addition, as noted above, the Trust has
been allocated $40m to support the clean up of Cockatoo Island.
However, the Trust has not been given any further funding to
support the remediation or maintenance of other sites. This
reflects the fact that the Trust is intended to be essentially
self-funding and thus presumably will not receive any ongoing
Government budget allocation to cover its operations. According to
the Governments 1998 policy statement the Trust:
will finance other rehabilitation works and the
enhancement of the sites from commercial activities and the
redevelopment of parts of the sites. In considering commercial
proposals, the Trust will be required to give paramount
consideration to the public amenity and the aesthetic, heritage and
conservation values of each site. The Trust will not be required to
generate a profit for the Commonwealth
government.(14)
In the longer term, it is unclear what funds the
Trust will actually require to finance its activities. It appears
that no comprehensive estimation has been done on the cost for
'full' remediation of the five sites for which the Trust will have
responsibility.(15) However, in the case of Cockatoo
Island, it is understood that the $40 million figure was primarily
based on a remediation cost estimate study commissioned by the
Commonwealth and completed in 1993.(16) The study
apparently examined a range of clean-up options, which varied from
a low figure of a little under $30 million if the island was used
for certain industrial purposes up to a high figure of over $66
million for what was described as 'residential / mixed use
scenario'. The Woolwich site is also contaminated, mainly around
the former dry dock and in some areas where landfill was used for
land reclamation.
Under the Bill, the Trust has capacity to sell
land. A number of the submissions from community groups on the
exposure draft exposure Bill express considerable concern about
whether the Trust will be forced to do this to fund its
responsibilities - that budgetary reality will in time erode the
'paramount consideration' policy commitment given by the Government
above.(17) The NSW Premier has reportedly also expressed
concern about the funding issue in a December 1998 letter, saying
that 'the trust will have no alternative but to consider proposals
that are totally unacceptable, such as selling off prime foreshore
land for private residential development'.(18) This
position has apparently been reiterated in the NSW Government's
submission to the current Senate Committee review into the
Bill.(19)
It appears that only parts of Woolwich and
Cockatoo Island would be subject to any sale, given that the
Commonwealth has committed to the ultimate transfer of the North
Head, Middle Head and Georges Heights sites to the NSW Government
for inclusion in the Sydney Harbour National Park.(20)
In relation to Woolwich and Cockatoo Island, the Commonwealth has
said:
...following the [Trust] management planning
process and while we have no final view, it is our intention that
the ultimate ownership of these sites will be determined on the
basis of the best outcome in maintaining these sites as
community assets.(21) (italics added by
author).
There has been no elaboration on this statement
by either by the Government or the Interim Trust.(22)
However, the issue will presumably be fully addressed in the near
future. A financial plan has been commissioned by the Interim
Trust(23) and is presumably looking at possible income
streams for the Trust.
Should the Department
Defence pay for the cost of rehabilitation of the contaminated
sites?
Some of the submissions on the exposure draft
Bill also have questioned the appropriateness of Federation Fund
money being used for rehabilitation, the point being that the
Defence Department should assume financial liability for this
before handing over the sites to the
Trust.(24)
There is no Commonwealth legislation that
directly regulates contaminated sites issues on Commonwealth land.
While NSW like most other States has legislation that incorporates
the concept of 'polluter pays' in relation to contaminated lands,
it is unlikely that the defence lands are subject to these
laws.(25) However, in the past the Commonwealth has
agreed that 'the same rules for attaching liability should apply to
Federal, State and Territory government agencies and local
governments which cause contamination, or own or occupy a risk site
as apply to private parties'.(26)
On the question whether the Defence Department
itself(27) should be at least administratively
responsible for the clean-up, there is no clear Commonwealth
position, in part because there is no whole-of-government policy on
contaminated Commonwealth-owned or occupied sites. The development
of such a policy was recommended by the Australian National Audit
Office in its 1996 report on the environmental management of
Commonwealth sites(28) and again by a House of
Representatives committee report in 1997.(29) In April
1999 the Government agreed 'in principle' to develop a policy, but
this appears to be largely on hold pending the Commonwealth's
implementation of the National Environment Protection (Assessment
of Site Contamination) Measure, made in December 1999. As its title
implies, the Measure focuses on assessing and controlling
contamination rather than setting out specific principles on
financial liability for decontamination of
sites.(30)
Linkages with the
existing NSW planning and management regime
In recent years, the NSW Government has
attempted to promote a more coordinated approach to planning and
management of Sydney Harbour foreshore. Initiatives include:
-
- The establishment of the Sydney Harbour Foreshores Authority
(SHFA). The SHFA primarily concentrates on land management, rather
than foreshore planning, which is done by the NSW Department of
Urban Affairs and Planning (DUAP). Garden Island is the only site
covered by the Trust arrangements which falls under the auspices of
the SHFA.
-
- State Environmental Planning Policy No. 56 - Sydney Harbour
Foreshores and Tributaries (SEPP 56). Made in 1998, this planning
instrument provides that the NSW Minister for Urban Affairs and
Planning is the sole consent authority for 14 sites of 'State
significance'. Such sites include Garden Island, Cockatoo Island,
the sites at Woolwich and land on Middle Head adjacent to the
Defence lands. Master plans must be developed for these sites and
development must be consistent with such plans.(31)
However, in relation to the prospective Trust lands, master plans
have been developed for Inner Harbour (32) only.
-
- Regional Environmental Plan No.23 - Sydney and Middle Harbour
(REP 23). Made in 1990 and subsequently amended, this planning
instrument applies to the harbour waterways, islands and
foreshores.
Clearly, there is a degree of overlap between
these initiatives and the responsibilities of the Sydney Harbour
Federation Trust with regard to Trust lands. In its submission on
the exposure draft of the Bill, the SHFA commented that:
There are a number of government bodies
responsible for Sydney Harbour foreshore land and the establishment
of yet another entity, the Sydney Harbour Federation Trust (the
Trust), seems to contradict the positive steps taken recently by
the NSW State Government to provide greater coordination in the
planning and management of Sydney's harbour foreshores, including a
decrease in the number of authorities.
Due to the Sydney Harbour Federation Trust's
standing as a Commonwealth body, State and local government will
have no say over any of the planning and management of the land.
This has the potential to create conflict where opposing management
or community values may apply for adjoining areas. It may also
create difficulties and inconsistencies due to the differing
functions and roles of the various government bodies and the
application of their relevant legislation.
The lack of compliance with NSW laws will have a
major impact on the ability of the State to control future use and
management, access, public alienation, built form and site
development. There are inherent problems in setting up alternative
planning systems to the NSW system and in excluding NSW laws from
applying to the sites.
The creation of the Trust at Commonwealth
Government level does not assist in the integration of good urban
design and planning decisions for the Harbour, but continues the
ad-hoc management of neighbouring pieces of land. This is not in
the best interests of the people of NSW.
It is hoped that the management of the land
under Commonwealth legislation will not continue the segregation of
the land from the rest of the Harbour foreshore. This currently
occurs with Defence land, which is why it is raised in this
instance.(33)
Similarly, the NSW Department of Urban Affairs
and Planning commented:
The Management Plan process substitutes for
known and accepted instruments under NSW system. This is a problem
for future users and owners (whether NSW government or lessees or
others who may get title) as when land passes from the Trust, NSW
planning and provisions laws will and need to apply....[the]
content of Management Plans [under Part 5 of the Bill] has no
reference to site context or achieving outcomes on land related to
overall Vision and Strategy for Sydney Harbour as a
whole.(34) Plans should be Master Plans in accordance
with SEPP 56 (or its replacement) which articulate State
policies/principles for all of Harbour. Management Plans should
accord with Environmental Planning and Assessment Act
and/or National Parks and Wildlife Act.(35)
This overlap may be of cause for concern given
the 1997 Heads of Agreement on Commonwealth/State Roles and
responsibilities for the Environment.
Management plans for
Trust lands
The principal instrument for the strategic
management of Trust lands are the management plans proposed under
Part 5 of the Bill. The Trust must prepare(36) such
plans within 18 months of any land being gazetted as Trust
land,(37) except where this time is extended by the
Commonwealth Environment Minister ('the Minister').
The Bill provides that management plans must
contain:(38)
-
- a history and description of the management plan area;
(b) an assessment of the environmental and
heritage significance of the area;
(c) objectives for the management of the
area;
(d) policies in respect of the management of the
area;
(e) an identification of proposed land uses in
the area or parts of the area;
(f) guidelines on the implementation of the
management plan;
(g) anything else required by the
regulations.
The preparation of the management plans involves
a fairly standard consultation process. The Trust must provide
notices in the Gazette and local papers of the intent to prepare a
draft plan and then again when the draft plan has been completed.
The public comment period for both the intent and draft plan stage
periods is a minimum of one month. The Bill provides that in
preparing management plans, the Trust 'must take into account'
submissions lodged within the public comment period.
In developing management plans, the Trust may
also draw upon the advice of Trust community advisory and technical
advisory committees.(39) The Trust 'must consider any
advice or recommendation of the relevant committee'.
The Operation of the
Trust
The Trust consists of a chairperson and five
other members. Given that NSW has not yet recommended its two
nominees, the Interim Trust has only four members at
present.(40) The criterion for appointment is that the
Minister must be 'satisfied' that the person has qualifications and
experience relevant to a field related to the Trust's
functions.
The major full-time position of the Trust is the
Executive Director who is appointed (and may be terminated) by the
Minister on recommendation by the Trust. The trust may delegate any
of its powers to the Executive Director, Senior Executive Service
Office of the Department of Environment and Heritage or Trust
employee (but not a consultant).
The Trust may regulate its proceedings at its
meetings as it chooses, subject to Ministerial
direction.(41) To date, the proceedings of the Interim
Trust meetings have been confidential. At meetings, decisions are
made by majority of members present and voting, assuming a quorum
is reached. The Trust may also make decisions out of session if a
majority of members 'indicate agreement with the resolution in
accordance with the method determined by the Trust', providing the
majority constituted a quorum.(42)
The Trust is supported by community advisory
committees and a technical advisory committee. A community advisory
committee must be formed for every management plan area and has a
broad mandate for providing general advice and recommendations. The
technical advisory committee advises on all management plan areas
in relation to environmental and heritage assessments,
rehabilitation and decontamination, planning and development.
Committee membership and the way they carry out their functions
(including meeting procedures) is at the discretion of the Trust,
except that in relation to the technical advisory committee the
Trust must to satisfied that candidate members have 'qualifications
and experience relevant to a field related to the committee's
function'.
Clause 5 establishes the Trust as a body
corporate. It may sue and be sued in its corporate name.
Clause 6 sets out the proposed
objects of the Bill. These are:
(a) to ensure that management of Trust land
contributes to preserving the amenity of the Sydney Harbour
region
(b) to conserve the environmental and heritage
values of Trust land
(c) to maximise public access to Trust land
(d) to establish and manage suitable Trust land as a park on
behalf of the Commonwealth as the national government
(e) to co-operate with other Commonwealth bodies
that have a connection with any Harbour land in managing that land,
and
(f) to co-operate with New South Wales and local
government bodies in furthering the above objects.
Clause 7 sets out the proposed
functions of the Trust. These are:
(a) to hold Trust land for and on behalf of the
Commonwealth
(b) to undertake community consultation on the
management of Trust land
(c) to develop draft management plans in respect
of Trust land and any other Harbour land in furthering the objects,
and performing other functions, of the Trust
(d) to rehabilitate, remediate, develop, enhance
and manage Trust land, by itself or in co-operation with other
institutions or persons, in accordance with the management
plans
(e) to manage Trust land in a way that
establishes a sustainable financial base in furthering the objects,
and performing other functions, of the Trust
(f) to make recommendations to the Minister
on:
(i) management plans, and
(ii) the proposed transfer of any Trust land
(g) to promote appreciation of Trust land
(h) to provide services and funding to other
Commonwealth bodies in furthering the objects, and performing other
functions, of the Trust, and
(i) anything incidental to or conducive to the
performance of its other functions.
Clause 8 sets out the proposed
powers of the Trust. These are:
(1) The Trust has power to do all things
necessary or convenient to be done for or in connection with the
performance of its functions.
(2) The Trust's powers include, but are not
limited to, the following powers:
(a) negotiate with other Commonwealth bodies and
with New South Wales and local government bodies
(b) acquire, hold and dispose of real and
personal property
(c) enter into an agreement with New South
Wales
(d) accept gifts, grants, bequests and devises
made to it
(e) enter into contracts and agreements
(f) form, or participate in the formation of,
companies
(g) enter into partnerships
(h) participate in joint ventures and
arrangements for the sharing of profits, and
(i) raise money, by borrowing or otherwise.
Clause 9 allows the Minister to
give written directions to the Trust. The Trust is obliged to
comply with those directions, providing they are not contrary to
the objects, powers and functions of the Trust. Clause
70 requires the text of all [Ministerial] directions to be
included in the annual report of the Trust.
Clause 10 states that the Trust
shall consist of 6 members, including a Chairperson.
Clause 11 provides that the NSW
government may recommend two persons for membership of the Trust.
The Minister is not obliged to appoint the NSW nominees.
Clause 12 sets out the method
of appointment of the Trust members. The Minister makes the
appointments on the basis that they are satisfied that the person
has qualifications and experience relevant to a field related to
the Trust's functions. No more than half of the membership can be
made up of Commonwealth, State or local government employees.
Clause 16 states that members
cannot be in paid employment which in the Minister's opinion
conflicts or may conflict with the 'proper performance' of their
duties. Members are subject to the Commonwealth Authorities and
Companies Act 1997, and as such are also required to disclose
'material personal interests' and in general must not take part in
any deliberations by the Trust relating to such an interest.
Clause 20 sets out the grounds
for dismissal from the Trust by the Minister. Paraphrasing the main
grounds, they are: misbehaviour or physical or mental incapacity,
bankruptcy, excessive absence from Trust meetings without being
granted leave of absence, paid employment which conflicts or could
conflict with the proper performance of the duties of his or her
office, or the member fails, without reasonable excuse, to comply
with the disclosure requirement of 'material personal interests'
under the Commonwealth Authorities and Companies Act
1997.
Clauses 21 and
22 relate to the vesting of Commonwealth land in
the Trust by publishing a notice in the Gazette. The land is held
by the Trust 'for and on behalf' of the Commonwealth.
Should the Commonwealth be party to any
agreement or similar arrangement regarding the land (eg a lease),
immediately before the vesting of land in the Trust, Clause
23 allows the Minister to substitute the Trust for the
Commonwealth as the party to the agreement.
The Trust may sell Trust land. However,
clause 24 says that the Minister must agree in
writing to both the terms of the sale and the buyer. The approval
of the Minister regarding leasing Trust land is required for leases
that expire more than 10 years after the commencement of the Bill:
clause 64.
Clause 26 states the Trust must
prepare management plans for any land within 18 months of that land
being vested in the Trust, although the Minister may grant an
extension of time.
Clause 27 provides that
management plans may cover any land in the Sydney Harbour region.
However, such plans have no effect over any land until that area is
actually vested to the Trust under clauses 21 and
22. The Minister must approve the area proposed to
be covered by a plan.
Clause 28 specifies that
management plans must 'accord with the objects of the Trust'.
Clause 29 and
30 set out the basic consultative process for
developing draft management plans. Clause 29
provides that the Trust must advertise its intention in the Gazette
and a 'local paper circulating in the area concerned' to prepare a
draft management plan and invite submissions on the issue. The
public comment period must at least one month. Once a draft has
been prepared, clause 30 provides for a similar
advertising and public comment period.
Clause 31 provides that the
draft management plan must be submitted to the Minister, together
with a report on all public consultations. The Minister may approve
or reject the draft plan, or refer it back to the Trust for
alteration and/or further public consultations. Clauses
32 and 33 set out the steps for revision
of the draft plan if it is not approved by the Minister.
Clause 36 makes it clear
management plans can be amended after being approved and Gazetted.
However, the Trust must go through the public consultation process
again, commencing with a clause 29 notice of
intent to draft a management plan.
The effect of clause 37 is that
the Commonwealth, the Trust and other Commonwealth bodies must act
in accordance with an approved management plan in the area to which
the plan applies, regardless of whether the plan is fully in effect
for the whole management plan area (see clause
27). This does not authorise any agency to act
illegally.
Clauses 39-49 relate to the
employment of the Trust Executive Director, staff and consultants.
The Executive Director is appointed and dismissed by the Minister
on the recommendation of the Trust (clauses 39 and
47). The Executive Director requires the approval
of the Trust to engage in paid employment outside of in his or her
Trust duties.
Clauses 50-56 cover Trust
meeting procedures. The Trust must meet at least four times per
year. The Explanatory Memorandum states that 'Trust meetings are
not intended to be public meetings, but the Trust may regulate the
proceedings of its meetings as it sees fit.'
Clause 57 requires the Trust to
establish a community advisory committee for each area to be
covered by a management plan.
Clause 58 requires the Trust to
establish a technical committee to provide advice to the Trust on
environmental and heritage assessments, rehabilitation and
decontamination, planning and development.
Clauses 59-65 cover financial
matters. While the Government has stated that intends that the
Trust should be self-funding, these clauses provide the Trust with
some flexibility in being able to receive Parliamentary
appropriations and borrow money from the Commonwealth or other
sources. The effect of Clause 61 is that any cost
or liability incurred by Commonwealth in relation to the interim
Trust (such as the $770,000 loan mentioned in the background
section of this Digest) must be repaid by the Trust. The Trust can
be sued by the Commonwealth for recovery if necessary.
Clause 62 requires that the Minister for Finance
and Administration must approve any proposal by the Trust to borrow
money. Clause 63 provides that the Trust may put
up Trust land for collateral against any loans under clause
62 or any other capital raisings under clause
8(2)(i). Clause 64 provides that the
written approval of the (Environment) Minister is required before
the Trust may enter into certain contracts involving payments or
receipt of over $1 million or leases that expire more than 10 years
after the commencement of the Bill.
The Trust is intended to be a transitional body
to plan and manage the rehabilitation of former defence sites.
Clause 66 reflects this by providing for the Act
to be repealed as soon as practicable after ten years from its
commencement.
Clauses 67-69 provide for the
Minister to declare what is to be done with any assets or
liabilities that the Trust may have at the time of winding-up. The
declarations are to be published in the Gazette.
Clause 70 specifies what the
annual report of the Trust must include over and above what is
required under the Commonwealth Authorities and Companies Act
1997.
Clause 71 exempts the Trust,
Trust land and Trust transactions from the application of a wide
range of NSW laws, including environment, planning and tenancy
laws.
Clause 72 enables the Trust to
delegate its powers and functions to the Executive Director, an
employee of the Trust, or a senior executive officer of the
Department of the Environment and Heritage.
Clause 73 provides for
Regulations to be made under the Act. Amongst other things, the
Regulations may specify any details, additional to those specified
in clause 28, of the content of management plans
and cover regulatory and enforcement measures, including the
appointment of wardens and rangers. The Regulations also enable
arrangements to be made with Commonwealth and State agencies for
enforcement purposes.
Funding the Trust's
operations: commercial activities and public access to Trust
land
As noted in the background to this Digest, one
of the principal concerns with the exposure draft Bill was the
funding requirements of the Trust and the balance between
commercial activities and public access/amenity.
While the Bill contains no specific restrictions
on the range of activities that the Trust may pursue in generating
revenue,(43) it is bound to act in way consistent with
the Trust objectives listed in clause 6. In
relation to the Trust's commercial functions, it is 'to manage
trust land in a way that establishes a sustainable financial base
in furthering the objects, and performing other functions, of the
Trust'.(44)
One of the Trusts more challenging tasks will be
to reconcile possible perceptions of competition between
'preserving the amenity' and 'maximising public access' objectives
on the one hand and establishing a 'sustainable financial base' on
the other. As indicated, the Government has said that, in relation
to Woolwich and Cockatoo Island, 'the ultimate ownership of these
sites will be determined on the basis of the best outcome in
maintaining these sites as community assets'. It is interesting to
note that, in relation to the power to dispose of trust land, the
explanatory memorandum contains the rather cryptic statement
that
[w]hile much of the land will [ultimately] be
transferred to NSW, some land may be identified in the management
planning process as unsuitable for park or community use, and
sold.
It should be noted that the sale of Trust land
can only occur with the approval of the Minister. Approval could
only be granted if a sale was in accordance with the relevant
Management Plan - which in turn must accord with the objects of the
Trust - although it may be technically possible for the Minister to
approve the sale of land prior to the development of a Management
Plan.
The Bill also provides that the Trust may borrow
money from either the Commonwealth or other sources and, in doing
so, it may put Trust land up for collateral.(45)
Presumably this is to provide the Trust with greater flexibility in
managing its financial affairs. This has a precedent in section 50
of the Federal Airports Corporations Act 1986. However, it
is unclear how this provision will operate in practice as
presumably Trust land would only be attractive as collateral to a
private sector financier if the land could be built upon or
otherwise redeveloped to provide a commercial return. Given this,
it may be questionable whether a loan contract that exposed Trust
land to a possible court action to recover any default by the Trust
would be consistent with the objectives of the Trust.
Linkages with the
existing NSW planning and management regime
As discussed in the background to this Digest,
submissions on the exposure draft Bill also raised issues regarding
coordination between the Trust and relevant governmental planning
agencies.
Clause 71 provides that the
Trust, Trust land and Trust transactions are exempt from State
environment, planning and tenancy laws. This effectively maintains
the historical status quo regarding the relevant sites. The
explanatory memorandum comments that in relation to this
clause:
It is not the intention to circumvent State laws
but, in accepting its responsibility to secure the future of the
sites, the Commonwealth believes that the Trust must be able to
operate with a certain degree of autonomy. The Trust is expected to
work in close cooperation with the New South Wales government, and
is fully empowered to do so through its objects (clause 6) and
powers (clause 8). There is also a strong commitment to public
consultation in the development of management plans for each site
(clauses 29 and 30), and management plans will be enforced through
the Regulations.
Attachment 3 of the 1997 Heads of Agreement on
Commonwealth/State Roles and Responsibilities for the Environment
deals with compliance with State environment and planning. The
attachment says in part:
The Commonwealth agrees that the following
entities will be subject to State environmental planning laws...all
Commonwealth...statutory authorities whose primary functions are
commercial...all non-Commonwealth tenants and persons
undertaking activities on Commonwealth land (italics added by
author).
It is understood that the defence sites are
intended to remain 'Commonwealth places' under s.52 of the
Constitution even after they are vested in the
Trust.(46) For the purposes of interpreting the Heads of
Agreement, it seems reasonable to suppose that 'Commonwealth land'
can be equated with a 'Commonwealth Place'. If this is correct, the
effect of clause 71 would appear to be that any
tenants leasing Trust land would not be subject to State planning
laws, a position that seems contrary to the section of the Heads of
Agreement quoted above.
The Heads of Agreement also provides that:
'[t]he Commonwealth will ensure those authorities not [subject to
State laws] ...will observe equivalent [environment and planning]
processes and procedures to those of the States'. The Explanatory
Memorandum states that the statutory content of management
plans(47) 'will be expanded by regulation and endeavour
to complement existing NSW process' but it does not provide any
detail on how this is to be achieved. As already mentioned, the
Bill does provide that two of the six Trust members are to be
nominated by the NSW Government in recognition of 'the interest of
NSW in the management of the land and the Commonwealth commitment
to working closely with the NSW Government'(48). As yet
the NSW Government has however declined to nominate these
representatives. In March 1999 a NSW Government spokesperson was
reported to have said that they would not be party to the Trust
until NSW had agreement on its responsibilities and terms of
reference.(49)
Management plans for Trust lands
In submitting draft management plans for
approval, the Trust is required to provide the Minister with 'a
written report on its consultations'. While presumably this would
include a summary of the views contained in public submissions and
advisory committees, it is worth noting that at least some other
recent Commonwealth legislation concerned in part with the
preparation of management or development plans explicitly require
the decision-making Minister to be briefed on the comments received
in the public consultation process. For example, paragraph 92(2)(b)
of the Airports Act 1996 requires that a summary of
comments received through public consultation must accompany the
Ministerial submission for approval of a draft major development
plan. Similarly, paragraph 370(2)(a) of the Environmental
Protection and Biodiversity Conversation Act 1999 requires
that, in submitting a Commonwealth reserve management plan to the
Minister for approval, the Director of National Parks must provide
any comments received in response to the invitation to comment on a
draft of the plan. This more explicit approach may reflect the
Government's view of best practice in relation to consultation over
'legislative' decisions made under Commonwealth
legislation(50) and thus its inclusion could be
considered in amending this Bill.
Looking at the approval process, while the Bill
does not require the Minister to take into account any particular
factors in deciding whether or not to approve draft management
plans, the plan must accord with the objects of the
Act.(51) The Minister may approve the draft plan without
any changes, refer it back to the Trust(52) or reject
the plan outright.(53) It is arguable that it would be
within the Minister's power to reject or refer back the plan for
reasons that are not directly related to the objectives of the
Act.(54) Where the Minister rejects the Plan or refers
it back to the Trust, the Trust must go back and start the public
consultation process again, commencing with a notice of intent to
draft a management plan.
The Operation of the
Trust
The Minister may give written directions to the
Trust instructing it perform its functions and exercise its powers
in a certain manner. The Trust is obliged to follow any such
direction provided they do not conflict with the objects of the
Act. Any directions must be published in the Trust's Annual Report.
The provision for the relevant Minister to give directions to a
statutory authority is relatively common in Commonwealth
legislation. Depending on the legislation, the public recording of
such directions can be through tabling in the Parliament,
publishing in the Gazette or inclusion in the authority's annual
report. Obviously in the last case, there may be considerable delay
in the directions being publicly known, unless the Minister or
relevant authority also chooses to publicise them in more informal
manner, such as through a press release. No explanation is given in
the Explanatory Memorandum or the second reading speech as to why
the Government has chosen the annual report option given the likely
level of public interest in the operation of the Trust.
-
- The Hon Peter Costello, Second Reading Speech, Appropriation
Bill No.1 1999, Representative Debates, 13 May 1997 p.
3398.
- 1997-98 Budget Paper No.2, Budget Measures for
1997-98.
- Coalition Environment Policy, Protecting the Sydney Harbour
Foreshore, September 1998.
- Ibid.
- Ibid.
- Ibid.
- The Hon Kim Beazley, Labor's Program of Federation Capital
Works, 29 September 1998.
- Senator the Hon Robert Hill, Second Reading Speech, Sydney
Harbour Federation Trust Bill 1999, Senate Debates, 8
December 1999, p. 11366.
- The one change appears to be the removal of clause 67 which
dealt with a technical issue under the Acts Interpretation Act
1901.
- Senator the Hon Robert Hill, Second Reading Speech, op cit, p.
11367.
- According to Senator Hill's press release of March 13 1999, the
exposure draft was meant to be released 'within eight weeks'. It
was not released until five months later in mid August. Senator the
Hon Robert Hill 'Commonwealth Announces Interim arrangements for
Sydney Harbour Foreshore Properties' Media Release 13
March 1999.
- Answers to questions on notice, Senate Estimates
Hearings, Standing Committee on Environment, Communication,
Information Technology and the Arts, 2 December 1999.
- Ibid.
- Coalition Environment Policy, op cit.
- Answers to questions on notice, op cit.
- CH2M Hill Australia, Remediation Cost Estimate: Cockatoo
Island Contamination Study 1993
- See for example submissions by the Headland Preservation Group
(undated) and the Friends of Cockatoo Island, 10 September
1999.
- Mark Metherall 'Prime defence sites in limbo' Sydney
Morning Herald 9 March 1999 p 11.
- Linda Morris 'Harbour lands face sell-off, says Carr'
Sydney Morning Herald 15 February 2000 p. 8.
- Answers to questions on notice, op cit.
- Senator the Hon Robert Hill, Second Reading Speech,
Parliamentary Debates, op cit, p. 11367.
- The Interim Trust has met five times as at early 2000. The
proceedings of these meetings have been kept confidential. Answers
to Senate Estimates Hearings, op cit.
- Answers to questions on notice, op cit.
- See submissions by the National Trust of Australia (NSW), 16
September 1999, and the Headland Preservation Group, op cit.
- This is because, subject to very limited exceptions, State
legislatures have no constitutional power to 'impair the capacities
of the Commonwealth executive'. See discussion in the Report of the
House of Representatives Standing Committee on Environment and
Heritage, Environmental Management of Commonwealth Land,
1997 at Paragraph 2.35. The general position of the Department of
Defence in relation to State and Territory legislation is that they
'seek to observe the intent' of relevant legislation 'wherever
possible and practical' as part of its 'good neighbour
policy'.
- Australian and New Zealand Environment and Conservation
Council, Financial Liability for Contaminated Site
Remediation, April 1994. See recommendation 9, p. 12.
- That is, as opposed to the Commonwealth Government in
general.
- Australian National Audit Office, Environmental Management
of Commonwealth land site contamination and pollution
prevention, Report no.31 1995-96.
- House of Representatives Standing Committee on Environment and
Heritage, op cit.
- See http://www.nepc.gov.au/
- However, for the reasons mentioned in footnote 25, any
decisions made by the NSW government under the provisions of SEPP
56 could not be enforced in relation to the sites without the
consent of the Commonwealth.
- That is, the south side of the harbour from Darling Harbour to
Garden Island.
- Comments from the Sydney Harbour Foreshore Authority on the
Sydney Harbour Federation Trust Bill 1999 (date unknown)
- Since 1998, the NSW Government has been preparing a Sydney
Harbour Vision and Strategy to ' provide Government and
stakeholders with a clear direction for the future of the Harbour'.
As part of this process, a strategic program for Sydney Harbour is
due to be released sometime in 2000. See generally http://www.sydneyharbour.duap.nsw.gov.au/
- NSW Department of Urban Affairs and Planning 'Comments on the
Draft Bill to establish the Sydney Harbour Federation Trust' (date
unknown).
- It is unclear whether 'prepare' means in the context of the 18
month deadline - for example, does it mean complete a
draft plan for submission to the Commonwealth Minister for approval
or merely commence consultations regarding a draft plan?
- The Bill does not actually specify the sites to be covered by
the Trust. The sites only become 'Trust land' upon gazettal. See
Clause 21.
- Subclause 28(2).
- See the following section of this Digest, Operation of the
Trust, for more detail on advisory committees.
- These are: Kevin McCann (Chair), Barry O'Keefe, Kevin O'Brien,
Peter Lowry.
- See concluding comments.
- See clause 56.
- Activities might possibly include sale or leasing of Trust land
or buildings, venue hire or entry fees to Trust land or
buildings.
- Paragraph 7(e).
- Clause 63.
- This is to ensure that the Commonwealth retains constitutional
power over the Trust lands. They would obviously cease to be
Commonwealth places after sale or transferral to the NSW
government.
- See following section of this Digest Management Plans for
Trust Lands for more detail.
- Explanatory Memorandum, Clause 11. The Commonwealth Minister is
not obliged to appoint the NSW nominees.
- Mark Metherall, op cit.
- See The Hon Daryl Williams, MP, Legislative Instruments Bill
No.2 1999, Second Reading Speech, Parliamentary Debates,
16 June 1996, p. 2829.
- Subclause 28(1).
- The Minister may direct the Trust to undertaken additional
consultation and/or provide suggested alterations to the draft
plan: paragraph 31(2)(b).
- The Minister must give reasons to the Trust for rejecting the
draft plan: paragraph 31(2)(c).
- The Courts have generally allowed such decisions to stand if
the relevant legislation fails to provide an exhaustive list of
criteria on which decisions are to be based. See discussion on this
point in Bienke v Minister (1994) 34 ALD 413 at
428-431.
Angus Martyn
17 March 2000
Bills Digest Service
Information and Research Services
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