CHAPTER 4

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

CHAPTER 4

CHAPTER 4

 

CHAPTER 4

Confirmation of Past Extinguishment of Native Title

What the Bill Provides

4.1 Since the Mabo (No 2) and Wik decisions many people in both rural and urban areas have been concerned that they no longer enjoy the rights in land that they thought that they had. Rumour and misinformation have been spread that people could be forced off their land due to the existence of native title, and widespread uncertainty has resulted. Some of this incorrect information was presented to the Committee. Mr Jerry Callope of the Carpentaria Land Council indicated his belief that native title claims involving exclusive possession were able to be made over pastoral lease land. He was asked by the Committee if a native title claim for exclusive possession on a pastoral lease were to be successful, would it mean that the pastoralist would have to leave? He responded:

4.2 The Act at present contains little to reduce the uncertainty that has followed the Mabo (No 2) and Wik decisions. As the Explanatory Memorandum to the Bill points out (para.5.2), the Act says little about whether or where native title may still exist in Australia. At present, if a native title claim is registered, others with an interest in the land concerned have to be brought into the process even though the claim may contain ambit elements with no real prospect of success.

4.3 Mr John Clarke of the Western Australian Government's Native Title Unit told the Committee of the anxiety and anger that results when a native title claim is lodged that embraces freehold or other form of tenure where it has no prospect of success:

4.4 Mr Clarke described the claims involving freehold land in Western Australia:

Similarly, an officer of the Queensland Government told the Committee:

4.5 The Commonwealth has taken the view that the best way to limit the present uncertainty is to insert into the Act a clear statement of the impact of various types of tenures and activities that affect native title. The Government's declared aim in doing this is to restate the common law concerning the tenures that extinguish native title in whole or in part, not to alter that law to provide further extinguishment.[5] Under the common law as set out in the Mabo(No 2) and Wik decisions, native title has been extinguished by the grant of tenures conferring exclusive possession such as freeholds and residential leases, and extinguished to the extent of any inconsistency by non-exclusive agricultural and pastoral leases.

4.6 The Bill proposes to insert a new Division 2B into the Act to confirm that certain tenures have extinguished native title. It provides that 'previous exclusive possession acts' by the Commonwealth have extinguished native title (new s.23C). The Bill also defines a further category of acts which it calls 'previous non-exclusive possession acts' (new s.23F) consisting in the grant of non-exclusive agricultural and pastoral leases. It provides that Commonwealth acts in this category extinguish native title only to the extent that they confer rights that are inconsistent with native title rights (new s.23G). The Bill enables each State and Territory to legislate in the same way in relation to its acts in either category (new ss.23E, 23I).

4.7 The Bill defines 'previous exclusive possession acts' (new s.23B) as consisting of the grant or vesting before 24 December 1996 nominated estates or interests. These include freehold estates, commercial leases, exclusive agricultural and pastoral leases, residential leases, community purposes leases and other leases considered to confer exclusive possession. A 'previous exclusive possession act' also includes an interest listed in Schedule 4 of the Bill, which will become Schedule 1 of the Act as amended. The schedule lists classes of leases by State and Territory by reference to the particular Acts under which each class of lease was granted. There are no Commonwealth or Australian Capital Territory tenures listed in the schedule. Where a particular Act permitted leases to be granted for a variety of purposes, only some of which entailed exclusive possession, the schedule contains a list of purposes deemed to require exclusive possession. Only leases granted under the particular Act for such purposes qualify as scheduled interests. The definition of scheduled interest expressly excludes mining leases (new s.249C).

4.8 The Bill provides for 'just terms' compensation payable by the extinguishing government should these provisions extinguish a native title right that had not already been extinguished by the common law (new s.23J). The Explanatory Memorandum indicates that it is not expected that this compensation provision will need to operate: it has been included as a safeguard in the event that a court ever finds that extinguishment goes further than comprehended at present by the common law (para.5.45).

Criticisms of the Provisions

General Observations

4.9 Any confirmation that restricts itself to matters upon which the existing law is utterly clear and free from doubt will serve little useful purpose. Confirmation provisions that go beyond this (and enact what is, in effect, no more than a best estimate of what the law is) will result in an added measure of certainty. But of course they will also be open to claims that the courts could eventually arrive at some different result, and that the confirmation provision therefore is 'changing' the law.

4.10 Alternatives are to draft confirmation provisions according to some other, necessarily speculative, view of what the courts might eventually decide, or to leave matters to the process of case-by-case resolution through the courts.[6] This latter option was representative of some views expressed about the confirmation provisions in the Bill; indigenous interests and others opposed the provisions as pre-empting what the courts might decide or as going beyond what they believed that courts had already decided. For example, Mr Michael Dodson, the Aboriginal and Torres Strait Islander Social Justice Commissioner argued in his submission (p.12):

4.11 In this context the Committee notes the views put by Mr Brad Selway QC on behalf of the South Australian Government.[7] He pointed out that the clarification of native title rights by the courts on a case-by-case basis will result in extended periods of uncertainty and will be extraordinarily expensive to all parties. He said that any native title case which is disputed is expected to cost several million dollars to run, and there was simply not enough money available to let matters be dealt with on a case-by-case basis, even assuming that the courts could do so. He illustrated his argument by reference to the question whether freehold title extinguishes native title:

4.12 The Committee agrees that the issue concerning the types of tenures that extinguish native title should not be left to the courts, but should be resolved by the Parliament. Therefore it endorses the principle of the inclusion of confirmation provisions in the Bill. This leaves the question whether the exact details of the particular provisions in the Bill are appropriate.

Extinguishment is Permanent

4.13 One of the confirmation provisions said to be inappropriate is the provision that extinguishment is permanent.[9] At common law it is not clear whether there remains any possibility of native title reviving if the extinguishing act ceases to operate; the Wik decision gave no answer on this matter.[10] The Bill provides that, in order to avoid doubt, the word 'extinguish', in relation to native title, means permanent extinguishment, with no possibility of revival (new s.237A).

4.14 The Committee was told that this meaning given in the Bill reflects the understanding of the Parliament when the Act was passed in 1993.[11] On 20 December 1993 Senator the Hon Gareth Evans QC, speaking for the then Government, told the Senate:

The Commonwealth Government informed the Committee of the reasons for accepting this meaning:

4.15 The Committee agrees that the approach taken in the Bill is preferable to leaving the matter to be resolved through what may prove to be lengthy, expensive and uncertain court cases.

The Content and Effects of Schedule 4

4.16 The Supplementary Explanatory Memorandum which deals with Schedule 4 sets out in detail the criteria used by the Commonwealth to determine which interests were included in the schedule, and identifies the source of each criterion in the (not altogether consistent) judgments delivered by the four judges in the majority in the Wik decision (paras.36.24 to 36.39). The document explains the guiding principle as follows (para.36.23):

As a result of this approach, the schedule does not include pastoral leases or Iesser interests, such as licences or permits. 4.17 Importantly, the Committee was advised that the tenures included in the schedule comprise less that 7.7 per cent of the land area of Australia.[14]

4.18 Concerns were expressed that there had been insufficient consultation with stakeholders in the development of the content of Schedule 4. The Committee notes that there was discussion with stakeholders, including Indigenous representatives, once the content of the schedule had been sufficiently settled by the Government to enable an exposure draft to be provided on 20 August.[15] There was an opportunity to comment after this date and written submissions were received from Indigenous interests requesting the exclusion of certain leases, and some were excluded after re-examination.[16] Mr Graham Tanna of the Australian Government Solicitor's Office told the Committee of some of the changes made as a result:

4.19 In addition to discussion with Indigenous groups and other stakeholders, there was intense discussion with the States and the Northern Territory both before and after this date.

4.20 Concerns were raised in submissions and evidence that interests may have been included on the schedule which at common law did not confer exclusive possession.[18] The opposite criticism was also made: interests which it was argued ought to have been included were omitted because the Commonwealth could not be persuaded that they met the criteria.[19]

4.21 The Commonwealth Government told the Committee that it had applied rigorous scrutiny and did not simply accept all interests proposed for conclusion by the States and Northern Territory.[20] State officers told the Committee that the Commonwealth had been very conservative in what it had allowed to be included in the schedule, and they believed other items could have been added.[21]

4.22 An alternative to the schedule would be to leave the matter to the courts. The Commonwealth Government made the following observations about the merits of this alternative:

4.23 The Committee considers that the schedule has been compiled following a rigorous attempt to apply criteria consistent with the majority judgments in the Wik decision.

Land Currently Used for Indigenous Purposes

4.24 Under the confirmation provisions, the extinguishment is taken to have occurred at the time that the grant of the interest in the land was made (new s.23G(1)(c)). Combined with the provision that extinguishment is permanent, this means that no native title can exist on land where an extinguishing act occurred in the past, even though that act has completely lapsed or expired and the land is currently reserved and in use for Indigenous purposes (eg. as an Aboriginal reserve).

4.25 The Committee recognises that extinguishment in these circumstances may seem anomalous. However, the integrity and consistency of the scheme needs to be protected. The Committee therefore recommends that governments should deal with these situations on a sensitive case-by-case basis.

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Footnotes:

[1] Evidence, p.1546.

[2] Evidence, pp.1599-1600.

[3] Evidence, pp.1593-1594.

[4] Evidence, p.659.

[5] Explanatory Memorandum, para.5.3; House of Representatives, Daily Hansard, 4 September 1997, p.7527.

[6] See for example the Submission from Mr Michael Dodson, Aboriginal and Torres Strait Islander Social Justice Commissioner, p.12 on how the common law might develop in relation to extinguishment.

[7] Evidence, pp.1766-68.

[8] Evidence, p.1767. See similarly the Submission from the Commonwealth Government, pp.28-9.

[9] See for example the Submission from ATSIC, p.7.

[10] Attorney-General's Department Legal Practice Briefing, 23 January 1997, paras. 16-19; Evidence, pp.645-46.

[11] See for example, the Submission from Queensland Government, pp.20-21.

[12] Senate Hansard, p.5317.

[13] Submission from the Commonwealth Government, pp.18-19. The submission quotes a passage from Brennan CJ in the Wik case in which he identifies some of the difficult questions which would arise: (1996) 187 CLR at 95. The Queensland Government, Answer to Question taken on Notice on 30 September 1997 on the revival of native title, pp.2-3 provided examples based on actual land dealings of the sorts of difficulties associated with the possibility of revival.

[14] Submission from the Commonwealth Government, Attachment C.

[15] Evidence, p.622. See also advice by Mr Graham Tanna, Australian Government Solicitor's Office, Evidence, pp.2040-2041.

[16] Evidence, pp.636, 655.

[17] Evidence, p.2041.

[18] See for example the Submissions from ATSIC, p.7; from the Aboriginal Legal Service of Western Australia, pp.10-21.

[19] See for example the Submission from the NSW Farmers' Association, pp.22-28.

[20] See for example Evidence, pp.629, 634, 639.

[21] Evidence, pp.657-58.

[22] Submission from the Commonwealth Government, pp.31-2.