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

CHAPTER 5

CHAPTER 5

 

CHAPTER 5

Future Acts and Pastoral Leases

Introduction

5.1 In presenting the Native Title Amendment Bill 1997 on 4 September 1997 the Attorney-General confirmed that the amendments in the Bill put in place a more appropriate regime to deal with native title rights on pastoral lease land and other non-exclusive areas. They continue to protect any surviving native title rights but, in relation to pastoral lease land, they recognise that these can only be at most coexisting rights:

    Consistent with this philosophy of finding a balance among the rights of different parties, the amendments allow for the introduction of new processes for reaching land use decisions over pastoral lease land which give equivalent procedural rights to all parties with an interest in the land, including the pastoral leaseholder and the native title holder.[1]

The Commonwealth considers that the amendments protect the legal rights of pastoral lessees, and enable them to carry on their legitimate activities. The Committee notes that pastoralists can experience strong spiritual attachment to land on which they may have lived for generations.[2]

5.2 The Explanatory Memorandum advised that (p.15):

    The NTA provided that for certain 'permissible future acts', registered native title holders and registered native title claimants would have a right to negotiate before such an act could be undertaken. The acts to which the right to negotiate would apply were essentially acts relating to mining, the compulsory acquisition of native title for the purpose of making a grant to a third party, and any other acts approved by the Commonwealth Minister.

Further the Explanatory Memorandum (p.59) confirmed:

    The Bill clarifies the effect on native title of activities undertaken in accordance with a valid lease, licence, permit or authority [Schedule 1, item 10, section 44H]. Following the Wik decision there was concern raised that pastoral lessees may need to obtain the agreement of native title holders in order to conduct activities under their lease, such as construct a dam. These provisions are intended to ensure that, provided the lease is valid in accordance with the NTA, the lessee is able to carry on activities under the lease notwithstanding native title.

Opposition to the Commonwealth's Approach

NIWG

5.3 In its submission (p.7) the National Indigenous Working Group (NIWG) proposed that the maintenance of the existing right to negotiate over native title land that coexists with pastoral leases and within the boundaries of towns and cities is essential if any semblance of balance and fairness is to remain. The NIWG holds (p.7) that:

    It is not fair to say that native title holders should have the same 'rights' as pastoralists as native title is not a crown lease to run cattle or sheep. It is based on the laws and customs of the various Indigenous peoples around Australia and the legal rights that protect it should be based on those facts. Native Title includes the right to possess, occupy use and enjoy the land as well as the right to fish, hunt, camp, conduct ceremony and exclude others. As is the case with any form of title in Australia, the nature of the title determines the legal protection that it has for example, freehold titles often include a veto or partial veto. Clearly native title and pastoral leases are not comparable nor equal when viewed properly.

5.4 The NIWG advised that, in relation to pastoralists' activities, it is prepared to negotiate amendments that confirm the legitimate rights of pastoralists to the extent that there is any perceived uncertainty from the Wik High Court decision:

    This must of course, be based upon the principle that co-existence is the way forward.[3]

Particular concern was expressed by the NIWG concerning Subdivision G of the Bill:

    Although the section does not apply to an act which 'has the effect of converting' a non-exclusive agricultural or pastoral lease 'into a lease conferring rights of exclusive possession or into a freehold estate, over any of the land or waters covered by the lease', it will nevertheless involve the grant of permission to carry out more intensive activities than are permitted under the terms of the lease. There will be difficult questions as to whether the permissible upgrade has crossed the prohibited boundary and resulted in a conferral of rights of exclusive possession. This danger (and the accompanying uncertainty) would not arise with the NIWG proposal that is limited to confirming the right to carry on 'pastoral lease related acts', which might involve activities requiring a permission or grant of authority, but which were contemplated by the grant of the lease.[4]

The Racial Discrimination Act and the RTN

5.5 According to its submission (p.45), the NIWG considers that a proper interpretation of the International Convention on the Elimination of All Forms of Racial Discrimination (CERD) and the RDA requires that native title holders be accorded substantive or effective equality, rather than formal equity. On the basis of that test, the NIWG argues that the right to negotiate may be a necessary element of legislation recognising native title, if that legislation is not to be inconsistent with the principles underpinning the Racial Discrimination Act. If, on the other hand, formal equity is sufficient, both elements of the right to negotiate will nevertheless be seen as special measures justified by the past refusal to recognise native title rights and interests.

5.6 This is a matter that the Committee considered extensively in its seventh report entitled The Native Title Amendment Bill 1996 and The Racial Discrimination Act. For the reasons advanced in that report, the right to negotiate is a 'special measure' permitted but not required by the RDA. Accordingly, it is not necessary that it be maintained in its original form in the NTA. The Commonwealth Government advises (Submission, p.15) that:

    In amending the right to negotiate provisions, the Parliament is exercising the discretion it has in relation to instituting, maintaining and reformulating such special measures. To say that a special measure, once implemented, can never be amended, is to deny the sovereignty of Parliament, and to significantly overstate the requirements of the RDA and CERD.

5.7 The Committee notes that in his Second Reading speech on the Bill, the Leader of the Opposition, the Hon Kim Beazley, acknowledged that the principal offsetting benefit to Indigenous people for the wholesale validation of potentially invalid titles in the 1993 Act was the grant of a time-limited right to negotiate. This counters the argument that the right to negotiate is an inherent or necessary feature of native title.

The Essential Need for Amendments

5.8 One of the stated objects of the Native Title Act 1993 (NTA), set out in section 3 is:

    (b) to establish ways in which future dealings affecting native title may proceed and to set standards for those dealings ...

In this regard the Commonwealth submission explains reasons for alterations to the RTN regime. Although the NIWG asserts that the RTN must continue to apply to its current extent, the following scenarios listed in the Commonwealth's submission (p.6) demonstrate the limitations of the current NTA in relation to future dealings in land which may be subject to native title:

    * a pastoralist who wishes to provide an additional dam or watering point for stock on a pastoral lease which requires a permit under the relevant State/Territory water resources legislation;

    * the proprietor of a small industrial business situated on a lease in a regional town who wishes to extend a building but requires a building permit;

    * the owner of a horticulture lease who wishes to construct new infrastructure on the lease and needs an authority to do so;

    * a statutory authority wishing to build public housing or to construct a community facility on land held by trustees for the benefit of Aboriginal people;

    * a State wishing to issue a residential lease on freehold land owned by the State housing commission or to undertake excavation work in relation to such land; or

    * a State wishing to undertake development work in a national park such as the grant of a lease for a tourist cafe.

In each case, there is nothing in the NTA which prevents a native title claim being made over this land and indeed claims have been made and registered in relation to all of the kinds of land described:

    The NTA as currently drafted cannot for all practical purposes guarantee the validity of those proposals (whether or not there is a native title claim over the land).[5]

5.9 This point is also made clearly in the Explanatory Memorandum (p.86):

    More importantly, in relation to much of that area native title will only be a 'co-existing right'. Justice Toohey said in Wik (1996) 187 CLR 1 at 126-127 (quoting, in part, the judgement in Mabo (No.2)):

      "It is apparent that at one end of the spectrum native title rights may 'approach the rights flowing from full ownership at common law'. On the other hand they may be an entitlement 'to come onto land for ceremonial purposes, all other rights in the land belonging to another group'."

    It is clear that in relation to pastoral lease land, the native title rights cannot be the former, and may only be the latter. The assumption in the NTA that all native title rights will be high level rights is rendered false by the Wik decision. It is inappropriate therefore that the NTA should continue to give effect to that false assumption.

    For this reason, the amendments to the future act regime put in place more appropriate arrangements to deal with native title rights on pastoral lease land ...

5.10 Subdivision G of the Bill deals with this matter in four ways as explained in the Explanatory Memorandum (pp.85,86). First, Subdivision G ensures that acts which permit or require primary production activities, or activities incidental to primary production, can be validly done over non-exclusive agricultural or non-exclusive pastoral leases in force on 23 December 1996. The non-extinguishment principle applies to these acts and compensation is payable to native title holders.

5.11 Second, against the possibility that activities such as those normally conducted on pastoral leases may be 'future acts' for the purpose of the NTA, Subdivision G also ensures the validity of any primary production activities or incidental activities carried out on these non-exclusive leases. Native title holders have no right to be compensated when these activities are performed but they may be entitled to compensation for the grant of the right to carry on the activities. There is no need for the NTA to deal with primary production activities on leases with exclusive possession or freehold because these have extinguished native title and have been confirmed as doing so under new Division 2B.

5.12 Third, Subdivision G also ensures the validity of certain 'off-farm' activities which take place on areas adjoining or near the area used for primary production. It applies whether or not the land used for primary production is freehold, exclusive leasehold or non-exclusive leasehold. Future acts connected to primary production can take place validly on the adjoining or near areas so long as the acts do not stop any native title holders for those areas from having reasonable access to them. The non-extinguishment principle applies to these acts and native title holders are entitled to compensation from the relevant government.

5.13 Fourth, Subdivision G permits some future acts on non-exclusive pastoral leases which allow people to take and remove timber, gravel and other natural resources from land and waters. Any native title holders for the land need to be notified and given an opportunity to comment before the act takes place, and the act cannot involve mining (which is dealt with in Subdivision P). The non-extinguishment principle applies to these acts and native title holders are entitled to compensation from the relevant government.

5.14 In its submission (p.40) the Commonwealth reminded the Committee that the provision included in the current NTA to ensure that pastoral leases could be renewed (against the possibility that native title may not be extinguished by the grant of a pastoral lease) contained:

    * no right to negotiate for native title holders in the event of such a renewal;

    * no other procedural rights in those circumstances;

    * no right to compensation should there be impairment of native title by such a renewal; and

    * no statement about the impact of the renewal on native title.

In contrast, the Commonwealth points out (Submission, p.41) that provisions in Subdivision G:

    * ensure that exclusive possession cannot be granted under the guise of additional primary production rights (subsection 24GB(4));

    * protect the exercise of native title rights in particular circumstances (see subsection 24GB(3), subparagraph 24GD(e)(iii) and paragraph 24GE(1)(f));

    * ensure that native title rights are only 'suppressed' while the activities are carried out by applying the non-extinguishment principle (subsections 24GB(6), 24GD(3) and 24GE(3)); and

    * provide for compensation in the event of any impact on native title rights of the grant of additional rights to carry on other activities (subsection 24GB(7), 24GD(4) and 24GE(4)).

5.15 It is also most important to record that these provisions do not confer on the pastoralist or any other person any right to do the activities in question. Only the relevant State or Territory can confer such a right. As the Commonwealth has advised (Submission, p.40):

    The management of pastoral leases remains a matter for the relevant State and Territory government, as it always has been. The effect of the NTA, once it became apparent that native title may continue to exist on pastoral leases, was to (unintentionally) prevent the States and Territories from fulfilling that management task by making the grant of future rights, and even activities, 'impermissible' under the NTA. The effect of Subdivision G is restricted to ensuring that these activities are not invalid under the NTA (see Subdivision O) - it says nothing about their validity or lawfulness under the applicable legislation of the State and Territory.

Conclusion

5.16 The Committee accepts the Government's advice (Submission, p.9) that continuation of the current RTN is not possible in regard to pastoral leases. In so doing it is also mindful of ATSIC's in-principle support (Submission, p.2):

    It may also be desirable to streamline the Right to Negotiate processes to an extent. And, we have always recognised that there is a need to confirm in legislation that pastoralists can carry on activities associated with pastoralism without having to negotiate with native

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Footnotes:

[1] House of Representatives Daily Hansard 4 September 1997, p.7527.

[2]   See for example Evidence, p.571.

[3] NIWG Submission, p.7.

[4] NIWG Submission, pp.29-30.

[5] Commonwealth Government Submission, p.6. titleholders.

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