Professional Documents
Culture Documents
Student:
Kristy-Lee Malkki
Bachelor of Laws student, Edith Cowan University
Unit:
Contents
Introduction .......................................................................................................... 2
The Case of Peter Swift......................................................................................... 3
Private Property Rights ......................................................................................... 4
Land Clearing Restrictions .................................................................................... 6
No Compensation for Land Clearing Restrictions .................................................. 8
The Power of the State Legislature to Regulate Property Use ................................ 9
Statutory Provisions for Compensation in Western Australia ............................... 11
Constitution Act 1889 (WA) ........................................................................... 11
Land Administration Act 1997 (WA) .............................................................. 11
Planning and Development Act 2005 (WA) ..................................................... 12
Takings of Property on Just Terms Bill 2014 (WA) ......................................... 13
Section 51(xxxi) ................................................................................................. 13
An Acquisition of Property.............................................................................. 14
Just Terms....................................................................................................... 22
The Efficacy of Adopting s 51(xxxi) in Western Australia................................... 22
The Power of the State Parliament to Bind Successor Parliaments ....................... 25
Conclusion.......................................................................................................... 28
Bibliography ....................................................................................................... 30
Introduction
The Western Australian Parliament has enacted legislation to place
limitations on the use and enjoyment of property in areas declared
environmentally sensitive. Specifically, the Environmental Protection Act1
has removed private property owners privilege to clear native vegetation on
their land. In some cases this has been detrimental to land owners ability to
produce income off their property with the restrictions resulting in them
unable to cultivate their land or graze stock.
Statutory limitations on the use and enjoyment of property is not a foreign
concept to property owners, yet the land clearing restrictions are becoming
increasingly controversial as the statutory position becomes more stringent.2
Whether statutory provisions have eroded an individuals property rights
and privileges has been the focus of debate between advocates for the
environment, private property owners and legal and political minds. The
State Governments effort in environmental conservation is most topical,
especially where private property is affected with a substantial drop in value
without compensation.
There is no constitutional guarantee of compensation or just terms in the
Constitution Act 1889 (WA). The sovereignty of State Parliament allows it
to take, acquire or regulate the use of land, on terms it sees fit; 3 there is no
obligation on the State Parliament to compensate owners for their loss.
There are statutory provisions within Western Australia that compensate for
matters that do not qualify as an acquisition. 4 For example, the Planning
and Development Act provides for compensation for injurious affection
where adjoining land is detrimentally affected.5 The complexities of
injurious affection, however, will not be discussed in this research paper.
The present compensation provisions do not extend to limitations on the use
1
was not noted on his Certificate of Title. The restrictions on his use of his
property have resulted in him being unable to farm, cultivate or earn an
income from his land, the purpose for which he purchased it. Furthermore,
this detriment is not compensable under current statutory provisions within
Western Australia.
Mr Swifts case is not an isolated one.10 There is a number of
Environmentally Sensitive Areas declared within Western Australia. The
impact of Environmentally Sensitive Areas, specifically the restrictions
imposed on land clearing, has sparked a debate as to whether the statutory
provisions have eroded the use and enjoyment of a landowners bundle of
rights and whether such restrictions can amount to an acquisition attracting
compensation.
10
See also Water Corporation v Chief Executive Officer of the Department of Environment
[2006] WASC 256 and Szulc v Chief Executive Officer, Department of the Environment
and Conservation [No 4] [2012] WASCA 143.
11
Mabo v Queensland (1992) 175 CLR 1, 80-81.
12
Adrian J Bradbrook et al, Australian Real Property Law (Thomson Reuters, 5th ed, 2011),
55.
13
(1999) 201 CLR 351, [17].
14
(1923) 33 CLR 1, 12.
The Hon. Barry House MLC produced a report in relation to the impact of
the State Governments various actions on the use and enjoyment of
freehold and leasehold land in Western Australia. 15 It was reported that
many complaints expressed to the committee by private landholders indicate
a misunderstanding of the limitations concerning the concept of freehold
estate.16 A private landowner is entitled to a bundle of rights that attach to
their interest in land. However, as the Crown is effectively the ultimate
owner with the reversionary interest, the Crown has the power to take away
those rights; property rights are not absolute. 17 Furthermore, and more
importantly, a landowners freedom to use their land is not absolute. On this
point, it is said that:
His freedom to use the land is wide but not absolute. All sorts of
limitations are placed upon land use, some specific to the particular land
(such as restrictive covenants or easements) and some general to all land
(such as planning laws and environmental laws). The idea of the owner
having unrestrained freedom to use and abuse the land is a myth; it is not
this that can be used to define what ownership is, at least not ownership of
land.18
At common law, it has been long recognised that limitations can be placed
on a private landholders use and enjoyment of their land. However, with
the exception of a variety of torts that may control land use affecting
neighbours, 19 the common law does not recognise any obligation from a
private property owner to the general publics interest in environmental land
15
G M Bates, Environmental Law in Australia (Lexis Nexis Butterworths, 4th ed, 1995) 72.
1986 (WA).
22
Public Administration and Finance Committee, Parliament of Western Australia, The
Impact of State Government Actions and Processes on the Use and Enjoyment of Freehold
and Leasehold Land in Western Australia (2004) 258.
23
1986 (WA).
21
24
Douglas Brown, Land Acquisition (Lexis Nexis Butterwoths, 6th ed, 2009) 13.
(1915) 20 CLR 54, 77.
45
Durham Holdings Pty Ltd v New South Wales (2001) 205 CLR 399.
46
Ibid [12].
44
10
Durham Holdings Pty Ltd v New South Wales (2001) 205 CLR 399, 399.
Land Administration Act 1997 (WA); Planning and Development Act 2005 (WA).
49
Douglas Brown, Land Acquisition (Lexis Nexis Butterwoths, 6th ed, 2009) 13.
50
1997 (WA) ss 151-201.
51
Land Administration Act 1997 (WA) s161; public work is defined in Public Works Act
1902 (WA) s 2.
52
Land Administration Act 1997 (WA) s 151.
48
11
53
Ibid ss 202-255.
Land Administration Act 1997 (WA) s 241(7).
55
2005 (WA).
56
Ibid s 173.
57
Law Reform Commission of Western Australia, Compensation for Injurious Affection,
Discussion Paper No 98 (2007), 17.
58
Planning and Development Act 2005 (WA) s 174(3).
54
12
Section 51(xxxi)
As the Commonwealth is not a fully sovereign power, it has the power to
legislate only in areas conferred upon it. Section 51(xxxi) of the
Constitution confers a power upon Parliament to legislate with respect to
the acquisition of property on just terms from any State or person for any
purpose in respect of which the Parliament has power to make law. The
provision has assumed the status of a guarantee, not of just terms but against
acquisition of property without just terms. 59 It serves as a limitation also. In
59
Minister of State for the Army v Dalziel (1944) 68 CLR 261, 276.
13
Grace Bros Pty Ltd v Commonwealth, Dixon J stated that the inclusion of
the just terms element was to prevent arbitrary exercises of the power at the
expense of a State of a subject.60 Section 51(xxxi) requires that all property
acquired must be done so with regard to the terms of s 51(xxxi). Dixon CJ
stated that s 51(xxxi) abstracts power with respect to the acquisition of
property from the other paragraphs of s 51. 61 Dixon CJ summarised the
power of s 51(xxxi) in Attorney-General (Cth) v Schmidt in stating:
It is perhaps not easy to express in a paraphrase the extent of the operation
of s 51(xxxi) and thus to define its full scope and application but it is at
least clear that before the restriction involved in the words on just terms
applies, there must be a law with respect to the acquisition of property (of a
State or person) for a purpose in respect of which the parliament has power
to make laws. The expression for any purpose is doubtless indefinite. But
it refers to the use or application of the property in or towards carrying out
or furthering a purpose comprised in some other legislative power. 62
Much of the debate has stemmed from whether regulation of property can
amount to property that is able to be acquired, which will be considered
here.
An Acquisition of Property
In the earlier cases, acquisition of property was likened to dispossession or
an acquisition of an interest in land. For example, to establish a deprivation
of property, it was held by Starke J in Minister of State for the Army v
Dalziel that a deprivation of the right of possession is tantamount.63 In the
same case, Rich J held that deprivation of possession was insufficient; s
51(xxxi) extends to any acquisition of any interest in any property. 64
60
14
Dixon J applied Minister of State for the Army v Dalziel in his judgement in
Bank of New South Wales v Commonwealth.65 He held that the notion of
property in s 51(xxxi) should be construed broadly and free of any pedantic
limitation. 66 He stated:
[Section 51(xxxi) is] not to be confined pedantically to the taking of title to
some specific estate or interest in land recognised at law or in equity, but
extends to innominate and anomalous interests and includes the
assumption and indefinite continuance of exclusive possession and control
for the purposes of the Commonwealth of any subject of property.67
(1948) 76 CLR 1.
Bank of New South Wales v Commonwealth (1948) 76 CLR 1, 349.
67
Ibid 349-350.
68
(1979) 142 CLR 397.
69
Trade Practices Commission v Tooth & Co Ltd (1979) 142 CLR 397, 412-414.
70
Ibid citing Corpus Jusis Secundum.
66
15
71
16
property. As the State remains in all respects the owner the consent of the
Minister does not overcome or override an absence of consent by the State
in its capacity as owner.74
His honour also adopted a statement by Dixon J in the Bank of New South
Wales v Commonwealth which sought to infer that s 51(xxxi) provides a
protection against governmental interferences with his proprietary rights
without just recompense.75
Deane J, in dissent, had a much more enlivening view. If his view was
accepted in subsequent Courts, one could see the possibility that regulation
of property use amounts to acquisition of property. In affirming Stephen Js
judgement in Trade Practices Commission v Tooth, Deane J stated:
Wherethe effect of prohibition or regulation is to confer upon the
Commonwealth or another identifiable and measurable advantage or is
akin to applying the property, either totally or partially, for a purpose of the
Commonwealth, it is possible that an acquisition for the purposes of
s51(xxxi) is involved.
74
75
17
18
In Mutual Pools & Staff Pty Ltd v Commonwealth, the decision of Mason
CJ, Deane and Gaudron JJ stated:
The extinguishment, modification or deprivation of rights in relation to
property does not of itself constitute an acquisition of property. For there to
be an acquisition of property, there must be an obtaining of at least some
identifiable benefit or advantage relating to the ownership or use of
property. On the other hand, it is possible to envisage circumstances in
which an extinguishment, modification or deprivation of the proprietary
rights of one person would involve an acquisition of property by another
by reason of some identifiable and measurable countervailing benefit or
advantage accruing to that other person as a result.
Smith v ANL Ltd (2000) 204 CLR 493, [165] citing Tasmanian Dams Case (1983) 158
CLR 1, 145.
84
(1992) 177 CLR 106.
85
(1993) 176 CLR 480.
86
(1983) 158 CLR 1, 145.
87
(1992) 177 CLR 106, 198.
88
(1993) 176 CLR 480, 509.
89
Australian Tape Manufacturers Association Ltd v Commonwealth (1993) 176 CLR 480,
528 citing Bank of New South Wales v Commonwealth (1948) 76 CLR 1, 349-350.
19
90
Australian Tape Manufacturers Association Ltd v Commonwealth (1993) 176 CLR 480,
528
91
(1993) 176 CLR 480, 509.
92
Newcrest Mining (WA) Ltd v Commonwealth (1997) 190 CLR 513, 555.
93
Newcrest Mining (WA) Ltd v Commonwealth (1997) 190 CLR 513, 555.
94
Public Administration and Finance Committee, Parliament of Western Australia, The
Impact of State Government Actions and Processes on the Use and Enjoyment of Freehold
and Leasehold Land in Western Australia (2004) 360
95
Newcrest Mining (WA) Ltd v Commonwealth (1997) 190 CLR 513, 602.
20
96
21
Just Terms
In many cases, just terms simply means adequate compensation. In
Nelungaloo v Commonwealth,101 the High Court found that just terms
needed to reflect the market value acquired. On paying just terms for
property restrictions, Deane J in Tasmanian Dams Case suggested that the
compensation which would represent just terms for that type of acquisition
of property would be the difference between the value of the land without
and with the restrictions.102
Another alternative view of just terms is that of Mason CJ, Deane and
Gaudron JJ in Geogiadis v Australian & Overseas Telecommunications
Corporation. They found that if it is clear that there was some benefit
received by the Commonwealth and not merely a loss or a taking, then
there is no reason why what is received or benefited should not correspond
precisely with what was taken. 103
22
23
25
107
26
legislation. 113 It has previously been suggested that s 106 of the Constitution
or the Ranasinghe principle114 may be the source for the valid entrenchment
of provisions in the State Constitution. 115 This was not supported in
Attorney-General (WA) v Marquet.116 The majority found that s 106 is not a
source of power for entrenchment; it simply refers to the requirements of the
State Constitutions. It was emphasised that the requirements in s 106 is such
that State Constitutions are continued until altered in accordance with the
Constitution of each State, and is subject to the Constitution.117 The
Australia Act was enacted pursuant to the Commonwealths power under s
51(xxxviii) of the Constitution, therefore if s 6 of the Australia Act was
intended to cover the field with respect to manner and form requirements,
then it could not be inferred that s 106 offered an alternative source of
power for entrenching provisions. 118
It would be desirable for landowners if a provision is added to the Western
Australia Constitution to protect landowners regarding environmental
restrictions on the use and enjoyment of their property, specifically with
land clearing restrictions. The principle in Attorney-General (WA) v
Marquet dictates that the law entrenching, or purporting to entrench, the
restrictive provision is not required to be a law with respect to the
constitution, powers or procedures of Parliament. To effectively amend the
Western Australian Constitution, an entrenched provision may be protected
by manner and form constraints if it can be reasonably expected that any
law seeking to amend or repeal it in the future is a law with respect to the
constitution, powers or procedures of Parliament, as required by s 6 of the
Australia Act. While it can only be speculated, it is unlikely that any future
law seeking to amend or repeal a constitutional provision regarding
113
Anne Twomey, Manner and Form Limitations on the Power to Amend State
Constitutions (2004) 15 Public Law Review 18.
114
Bribery Commissioner v Ranasinghe [1965] AC 172, 197: a legislature has no power to
ignore the conditions of law-making that are imposed by the instrument which itself
regulations its power to make law.
115
Victoria v Commonwealth (1975) 134 CLR 81, 164; Wilsmore v Western Australia
[1981] WAR 159, 175; Skyring v Electoral Commission of Queensland [2001] QSC 080,
[22].
116
Attorney-General (WA) v Marquet (2003) 217 CLR 545, [80].
117
Ibid [67].
118
Ibid.
27
Conclusion
The Western Australian Parliaments enactment of the Environmental
Protection Act has adversely affected landowners use and enjoyment of
their land. Specifically, the native vegetation land clearing restrictions
remove private landowners privilege to clear their land. However, a
landowners freedom to use their land is wide but not absolute. Ultimately,
as the Crown in right of the State holds the reversionary interest, a private
landowner simply owns an estate in the Crowns land and not the land itself.
At common law, it has been long recognised that limitations can be placed
on a private landholders use and enjoyment of their land. The power of the
State legislature is such that it has the right to enact legislation for the
purposes of regulating property and restricting its use; a right stemming
from the sovereignty of Parliament.
There are statutory provisions within Western Australia that compensate for
matters that do not qualify as an acquisition, such as injurious affection, but
not for restrictions such as land clearing. As a solution, it was considered
whether applying the acquisition provision in s 51(xxxi) of the
Commonwealth Constitution to Western Australia would provide a
resolution of compensating land owners where the use of their property has
been detrimentally affected. The High Courts interpretation of s 51(xxxi)
has varied considerably. In Tasmanian Dams Case, Deane J contended that
restrictions on property use are equivalent to enforcing a restrictive
covenant, the benefit of which is a valuable asset held by the
119
28
29
Bibliography
a) Articles/Books/Reports
Bates, G M, Environmental Law in Australia (Lexis Nexis Butterworths, 4th
ed, 1995)
Birch, David, The slippery nature of a constitutional guarantee: acquisition
of water rights in ICM Agriculture v Commonwealth (2011) 13(3)
Constitutional Law and Policy Review 4
Bradbrook, Adrian J et al, Australian Real Property Law (Thomson Reuters,
5th ed, 2011)
Bright, Susan, Land Law: Themes and Perspectives (Oxford University
Press, 1st ed, 1998)
Brown, Douglas, Land Acquisition (Lexis Nexis Butterworths, 6th ed, 2009)
Carney, Gerard, An Overview of Manner and Form in Australia (1989) 5
Queensland University of Technology Law Journal 69
Clarke, Jennifer, Patrick Keyzer and James Stellios, Hanks Australian
Constitutional Law Material and Commentary (Lexis Nexis Butterworths,
9th ed, 2013)
Dixon, Rosalind, Overriding Guarantee of Just Terms or Supplementary
Source of Power?: Rethinking s51(xxxi) of the Constitution (2005) 27
Sydney Law Review 639
Gray, Kevin, Can environmental regulations constitute a taking of property
at common law? (2007) 24 Environmental and Planning Law Journal 161
Jacobs, Marcus, Law of Compulsory Land Acquisition (Thompson Reuters,
1st ed, 2010)
Lane, P H, Constitutional Law (2002) 76 Australian Law Journal 145
Public Administration and Finance Committee, Parliament of Western
Australia, The Impact of State Government Actions and Processes on the
30
b) Cases
Australia Capital Television Pty Ltd v The Commonwealth (No 2) (1992)
177 CLR 106
Australian Tape Manufacturers Association Ltd v Commonwealth (1993)
176 CLR 480
Attorney-General (Cth) v Schmidt (1961) 105 CLR 361
Attorney-General (NT) v Chaffey (2007) 81 ALJR 1388
Attorney-General (WA) v Marquet (2003) 217 CLR 545
Bank Nationalisation Case
Bank of NSW v Commonwealth (1948) 76 CLR 1
CJ Burland Pty Ltd v Metropolitan Meat Industry Board (1968) 120 CLR
400
Crane v Gething (2000) 60 ALD 493
31
32
c) Legislation
Australia Act 1986 (Cth)
Colonial Law Validity Act 1865 (Imp)
Commonwealth of Australia Constitution Act 1900 (Cth)
Constitution Act 1889 (WA)
Constitution Acts Amendment Act 1899 (WA)
Environmental Protection Act 1986 (WA)
Environmental Protection Amendment Act 2003 (WA)
Lands Acquisition Act 1989 (Cth)
Land Administration Act 1997 (WA)
Metropolitan Region Town Planning Scheme Act 1959 (WA)
Public Works Act 1902 (WA)
Town Planning and Development Act 1928 (WA)
Interpretation Act 1901 (Cth)
Interpretation Act 1984 (WA)
d) Other
Evidence to Public Administration and Finance Committee, Parliament of
Western Australia, Perth, 25 September 2002, 4 (Conservation Council of
Western Australia (Inc))
33
34