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The Native Title Amendment Bill 1997 - TENTH REPORT
Table of Contents

CHAPTER 3

CHAPTER 3

 

CHAPTER 3

Validation of Intermediate Period Acts

How the Problem Arose

3.1 At common law, native title can be extinguished by legislation or inconsistent Crown grant or Crown use, subject to the operation of the Racial Discrimination Act 1975 (the RDA). The decision of the High Court in Mabo (No 2) created doubt as to the validity of some acts that affected native title which occurred after the RDA came into force on 31 October 1975. It was accepted by the Parliament in 1993 that these 'past acts' should be validated. Accordingly, the Native Title Act 1993 contains provisions to achieve this (ss.14-20).

3.2 The Act removed the vulnerability of native title to extinguishment under the common law by providing that it could only be extinguished henceforth in one of the three ways provided in the Act (s.11). These are by agreement on the part of the native title holders, by the occurrence of a 'past act' that has been validated by the Act, or by the doing of a 'permissible future act' as defined in the 'future act' regime in the legislation.[1] Acts that ought to follow the 'future act' regime but fail to do so are as a result invalid to the extent that they affect native title (s.22).

3.3 As noted in Chapter 1 of this report, the Preamble to the Act reflects the view, widespread in 1993, that a grant of a pastoral lease had at common law extinguished any native title that may have existed in relation to that land. It followed logically from this view that acts relating to that land did not need to follow the 'future act' regime of the Act because there was no existing native title which they could affect. Some governments carried out acts based on this view. The Wik decision on 23 December 1996 made it clear that this view was not necessarily correct. An unknown number of acts occurred between the coming into operation of the Act and the date of the Wik decision that, with post-Wik hindsight, should have complied with the 'future act' regime but did not do so and are invalid to the extent that they affect native title.

3.4 It seems that the vast majority of these possibly invalid acts are not grants of pastoral leases. Rather they are mineral exploration permits issued on the basis that an earlier grant of a pastoral lease had extinguished any native title that might have otherwise existed.

Solution Proposed by the Bill

3.5 The Bill deals with the question of Wik-related invalidity by following the precedent set in the Parliament's 1993 response to the 'past act' invalidity created by the Mabo (No 2) decision. It provides for the validation of the acts, except those relating to land where the only type of lease ever granted over that land was a mining lease or where the land has always been vacant Crown land. The Bill defines the acts to be validated as 'intermediate period acts', with the period defined as being after 31 December 1993 and before 24 December 1996. The Bill contains provisions to validate such acts attributable to the Commonwealth (new s.22A). The Bill also enables a State or Territory to legislate to validate intermediate period acts attributable to it (new s.22F). The Bill requires the government doing the validating to pay compensation to any native title holders affected (new ss.22D, 22G).

Criticisms of the Bill's Solution

3.6 A number of criticisms were made in evidence and submissions to the Committee that the validation provisions go beyond what is necessary as a result of the Wik decision in several respects.[2] The main criticism was that the provisions are not justified in the first place.[3]

3.7 The Government has stated that it does not believe that invalidity is the appropriate consequence for acts done on the basis of what it regards as a legitimate assumption subsequently proved wrong.[4] The South Australian Solicitor-General, Mr Brad Selway QC, put a similar view on behalf of the South Australian Government:

    We say that the validation issue is sensible and appropriate simply because, if it is accepted that all parliaments and all governments in Australia took a reasonable position - we now know a wrong position, but a reasonable position - in thinking that native title had been extinguished on pastoral leases, then to put it bluntly there is a public policy issue which now needs to be resolved: what about the people who, in reliance upon that government position, have been prejudiced? Validation is the obvious answer. Compensation needs to be paid, we accept that. We say that there cannot be a sensible argument against that validation.[5]

3.8 Others however attacked the legitimacy of the assumption on which governments and others acted. For example, the National Indigenous Working Group told the Committee:

    no such assumption could have been made in good faith on the basis of competent legal advice, without at least acknowledging that there was a serious risk that the assumption was wrong.[6]

3.9 The Committee notes, however, that not all Indigenous leaders have accepted this view. For example, on 10 November 1993 Mr Noel Pearson said in an address to the National Press Club:

    I rule out the possibility in Queensland of people pursuing any rights in relation to pastoral leases owned by non-Aboriginal people ... and it's not in our interest to pursue challenges in relation to pastoral leases, particularly since there are no reservations of any Aboriginal rights to pastoral leases in Queensland. ... As to litigating on the basis of native title, it would be as fruitless as pursuing native title claims in relation to valid freehold titles.[7]

The Submission from the Queensland Government (p.30) quoted Mr Michael Mansell as saying that 'leasehold lands extinguished native title because they provide for the right to exclude others ...'.

3.10 It is also notable that the then Democrat Senator, Sid Spindler, told the Senate on 15 December 1993:

    The High Court's Mabo judgment deals with the proof required to establish native title. The report from the Senate Standing Committee on Legal and Constitutional Affairs states:

      Proof of the existence of native title is relatively difficult to establish. The elements include the need to show the existence of an identifiable community or group; that there be a traditional connection with the land under the laws and customs of the Aboriginal group; and that there has been a substantial maintenance of the connection since Crown sovereignty. These elements will place strict limits upon the making of successful claims to native title.

    In recognition of this difficulty, and the fact that over most usable land in Australia native title has been extinguished, this bill contains a provision for the establishment of a land acquisition fund and the government has made a commitment to create a social justice package due to be introduced as the second leg of the government's response to Mabo.[8]

3.11 Because native title had been extinguished over most useable land in Australia, the Native Title Bill 1993 contained a provision for the establishment of a land acquisition fund. This fund of about $1.29 billion will make $45 million available annually in perpetuity for the purchase of suitable land. When the legislation creating the land fund was passed in 1995 the Prime Minister, the Hon Paul Keating, said:

    This is going to be a great day for Aboriginal people. They will now have the twin parts, that is the two bits - the Native Title legislation for those that still have a traditional association with the land, and for those dispossessed of the land, they'll have the opportunity to buy land through a cogent coherent Aboriginal land fund.[9]

3.12 Much evidence was provided to the Committee on who, amongst the various governments and stakeholders in 1993, did and did not share in the assumption that pastoral leases extinguished native title.[10] Certainly the Keating Government adopted it as its working assumption. Senator the Hon Gareth Evans QC on behalf of that Government told the Senate during debate on the Native Title Bill on 20 December 1993:

    I am proceeding on the assumption that the native title has been extinguished by the pastoral lease concerned; that is the clear intimation from the High Court so far as the common law position is concerned. We have not determined that as a matter of statute. It has been left to be further explored if anyone wants to explore it. The working assumption is that the vesting of a pastoral lease extinguishes native title ...[11]

Further, in reference to Queensland pastoral leases, Senator Bob Collins assured the Senate prior to the passing of the Act in 1993:

    If those titles are valid, they extinguish native title.[12]

The Minister for Aboriginal and Torres Strait Islander Affairs, the Hon Robert Tickner, prepared a pamphlet entitled Rebutting Mabo Myths in June 1993 which was widely-circulated. It stated that the effect of the High Court's decision was to 'rule out any possibility that private land could be successfully claimed under Mabo'. It also stated:

    It is highly likely that the Mabo decision will only be of direct application to a small percentage of Aboriginal people and will apply mainly to remote Australia. ... ... Almost all farming and grazing land In Australia is held under freehold, perpetual leasehold or long-term leasehold titles. As a result of the High Court's decision, these lands cannot be successfully claimed because the grant of these titles extinguishes any native title.

3.13 Those opposing the legitimacy of the assumption note that the Wik litigation had commenced in the Federal Court in June 1993, before the Native Title Bill was debated and eventually passed by the Parliament. They argue that the question of whether a pastoral lease extinguished native title was therefore a live issue at the time, and that governments and others who chose to ignore this should not now be rescued by the passage of validation provisions. As the Aboriginal and Torres Strait Islander Social Justice Commissioner, Mr Michael Dodson, put it, in its present form the Bill provides dividends to those who ignored the warnings he gave in his 1993 and 1994 Native Title Reports.13

3.14 The Queensland Government responded to this argument by pointing out to the Committee that the consolidated statement of claim in the Wik case comprised over 90 pages and included a large number of claims, including one that the Queensland Parliament lacked the power to make laws which enable grants to be made which extinguish or impair aboriginal or possessory title. This particular claim was subsequently amended to apply only to grants of pastoral leases. The Queensland Government argued:

    Accordingly, to suggest that Queensland should not have dealt in pastoral leases, contrary to its best advice, simply because this claim was on foot is also to suggest that Queensland should have halted many actions including - ceased to grant any mining leases at all, even over freehold because minerals were under claim; stopped mining on the mining leases in question; ceased all activities on DOGIT lands throughout the State; ceased to grant any tenures under land legislation on the basis that such legislation was invalid; stopped all activities by landholders (including freehold until the amendment of the limitation of power point) under their tenures on the basis that such grants were invalid because the Parliament had no power to authorise their grant. ... Similarly, the significant majority of native title claims in Queensland accepted by the National Native Title Tribunal claim exclusive possession of land which is the subject of grants to third parties. Should the State and the tenure holders cease all activity with respect to such grants because the claim is for exclusive possession? Such a suggestion would be ridiculed.[14]

3.15 It is argued that to have assumed that pastoral leases did not extinguish native title would have been to ignore the decisions in the Waanyi case by French J. on 14 February 1995, by the Full Court of the Federal Court on 1 November 1995 and the decision by Drummond J. in Wik on 29 January 1996, all of which held that pastoral leases extinguished native title.[15] As the Commonwealth Government's submission noted:

    ... up until the Wik decision itself the binding judicial view was that pastoral leases extinguished native title although from Waanyi, it was an issue to be determined finally by the High Court.[16]

3.16 The submission from the Commonwealth Government also pointed out:

    ... the NNTT did not accept claims covering pastoral leases without reservations for the benefit of indigenous people for a period from 16 May 1994 (when the first NNTT `General Procedures for Applications for Native Title Determination and Compensation' were released) to 30 April 1996 (when the procedures were amended in response to the High Court's Waanyi decision). Clearly, there would have been little point in employing the available (albeit limited) future act provisions of the NTA on pastoral lease land where there are no reservations if the NNTT, operating under its general procedures, would not accept any claims in response.[17]

3.17 Some submissions referred to the fact that the Western Australian Government did follow the 'future act' provisions, once its own legislative attempt to deal with native title had been found unconstitutional by the High Court on 16 March 1995.[18] It is argued that other governments, Queensland in particular, should also have taken what is described as the cautious approach of following the 'future act' provisions. However, the Queensland Government told the Committee that the legislation governing pastoral grants in Western Australia contains reservation clauses for the benefit of Aboriginal people. The existence of reservation clauses meant that it was possible that native title rights and interests continued to exist on pastoral leases in Western Australia. This reasoning did not apply to Queensland, where such reservation clauses fail to appear in pastoral leases issued after 1910.[19]

3.18 Finally, the Commonwealth Government also noted that there was opportunity for dealings by government to be challenged in the courts by way of injunction at the time on the basis that the government had failed to comply with the 'future act' processes of the NTA. However, the Government told the Committee it knew of no successful challenge.[20]

3.19 The Committee agrees that in all the circumstances the validation provisions represent a reasonable solution to one of the impacts of the Wik decision.

 

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Footnotes:

[1] Western Australia v The Commonwealth (Native Title Act Case) (1995) 183 CLR 373, p.459.

[2] See for example the Submission from the National Indigenous Working Group, pp.22-24. For a response to these criticisms, see the Submission from the Commonwealth Government, pp.26-28.

[3] See for example the Submission from Australians for Native Title and Reconciliation, pp.11-12.

[4] Explanatory Memorandum, para.4.5; House of Representatives, Daily Hansard, 4 September 1997, p.7527; Submission from the Commonwealth Government, p.20.

[5] Evidence, p.1767.

[6] Submission from the National Indigenous Working Group, p.22.

[7] Quoted in the Submission from the Queensland Government, p.29.

[8] Senate Hansard, 15 December 1993, p.4640.

[9] ABC 7.30 Report, 2 March 1995.

[10] See for example the Submission from the Queensland Government, pp.15-32 which contains a broad range of quotes from representatives of governments and other stakeholders, including several spokesmen from Indigenous groups.

[11] Senate Hansard, 20 December 1993, p.5338.

[12] Senate Hansard, 20 December 1993, p.5288.

13 Submission from Mr Michael Dodson, Aboriginal and Torres Strait Islander Social Justice Commissioner, p.8.

[14] Queensland Government, Answer to Question taken on Notice on 30 September 1997 on why it did not follow the future act provisions, p.2.

[15] ibid.; see also Submission from the Commonwealth Government, p.24.

[16] Submission from the Commonwealth Government, p.24.

[17] Submission from the Commonwealth Government, p.23.

[18] Western Australia v The Commonwealth (Native Title Act Case) (1995) 183 CLR 373.

[19] Queensland Government, Answer to Question taken on Notice on 30 September 1997 on why it did not follow the WA example, p.1.

[20] Submission from the Commonwealth Government, p.25. See also the Submission from Fr Frank Brennan, p.1.

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