CHAPTER 7

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

CHAPTER 7

 

CHAPTER 7

Management of Claims and Compensation

Introduction

7.1 The Committee has considered several issues on which it should comment relating to the management of claims: Federal Court procedures in native title cases, the provision of legal aid and the sunset clauses. It should also deal with issues raised in relation to the compensation provisions in the Bill.

Federal Court Procedures in Native Title Proceedings

7.2 Section 82 of the Act makes the following provisions for the way in which the Federal Court is to operate in native title proceedings:

7.3 Mr Graeme Neate pointed out in his submission (pp.13-14) that while s.82(2) requires the Court to take into account cultural and customary concerns, it does not require the Court to always act in a way which is consistent with those concerns: nor does it require that the reasonable interests of other parties should be ignored. Nonetheless, in apparent response to concerns that this provision requires the Court to discriminate in favour of Indigenous parties to the detriment of others, the Bill proposes to delete this section and replace it with a new s.82 which is intended to provide the Court with greater discretion. The new s.82 provides:

7.4 The proposal to replace the existing s.82(1) with a new s.82(1) was criticised in evidence to the Committee.[1] For example, Mr Graeme Neate in his submission argued that the proposed amendment is neither necessary nor desirable for several reasons (pp.19-21):

7.5 The Committee notes that the National Native Title Tribunal also identified difficulties with the proposed provision, saying that it:

7.6 In regard to the question of prejudice, the Foundation for Aboriginal and Islander Research Action Aboriginal Corporation told the Committee that the change (the new s.82(2)) would afford customary concerns and Indigenous culture much less protection and as a result the court process would place more pressure on claimants: 'The impact for all parties will make proceedings more adversarial and technical - thus more time consuming and expensive'.[3] Mr Daniel O'Dea, a solicitor for the Ngaanyatjarra Council, told the Committee:

7.7 The Commonwealth Government informed the Committee that the aim of the amendment was to allow the Court properly to manage the proceedings before it and to balance the competing interests in litigation. It added:

7.8 The Committee does not object to amendments directed to this end. However, it wishes to draw attention to a problem with the drafting of the proposed amendment. Mr O'Dea noted that the amendment appears not to allow the Court to take account of Indigenous cultural and customary concerns if to do so would prejudice any other party. He suggested that this might, for example, prevent the Court from dealing appropriately with gender-specific evidence:

7.9 The Committee agrees that the wording of the proposed amendment needs to be altered to ensure flexibility.[6] The Court should be able to look not only at the prejudice to one party, but also take into account the benefits to other parties and the interests of justice. Only in cases of undue prejudice to one party should the Court be prevented from taking account of the cultural and customary concerns of Indigenous peoples.[7]

7.10 Accordingly, the Committee recommends that the Government redraft the proposed new s.82(2) so that it is only undue prejudice to another party that prevents the Court from taking account of the cultural and customary concerns of Indigenous peoples.

Legal Aid

7.11 The Committee received criticisms that legal assistance in native title matters was more readily available to Indigenous groups than to others, such as pastoralists. When the Act was passed in 1993 it was assumed that pastoral leases extinguished native title, as noted in Chapter 1. Hence it was not contemplated that pastoralists would frequently become involved in native title processes.

7.12 The Bill replaces the existing legal assistance provision, s.183, with a new section intended to give greater access to assistance for respondent parties. The requirement that the refusal of assistance would involve hardship to the applicant is removed. It is replaced with a requirement that 'in all the circumstances, it is reasonable that the application be granted'.

7.13 Other changes brought about by the new s.183 enable legal assistance to be provided for the negotiation of indigenous land use agreements as well as for contested native title matters.

Sunset Clauses

7.14 The Aboriginal Land Rights (Northern Territory) Act 1976 did not contain any 'sunset' provision when enacted. In 1987 it was amended to insert a provision which prevented the Commission from dealing with land claims lodged more than 10 years after the provision took effect (that is, 10 years after June 1987).[8] The Committee notes that that sunset provision was inserted by the Hawke Labor Government.

7.15 The Bill introduces two sunset provisions on the bringing of native title claims under the Act. The first provides that six years after the provision becomes law no new applications may be made to the NNTT for a determination of native title, although applications to vary or revoke previous determinations will still be permitted (new s.13(1A)). The second provides that no compensation applications may be made to the NNTT more than six years after the provision becomes law or more than six years after the act giving rise to the application occurs, whichever is the later (new s.50(2A)).

7.16 The provisions prevent native title claimants from using the special provisions of the Act, such as the right to negotiate and the services of the NNTT. However, they do not remove the basic protection against extinguishment given in s.11 of the Act. Neither do they remove common law rights to native title or compensation, or affect access to the courts to enforce such rights and obtain compensation.

7.17 The National Farmers' Federation argued in its submission that in order to provide certainty there should be no access to native title in any jurisdiction if it has not been determined or applied for under the Act by the sunset date.[9] On the other hand, corporate mining representatives told the Committee that the presence or absence of a sunset clause was not a major issue.[10] One of their representatives noted that it can be argued that, by the year 2004, the majority of Australia that is claimable will already be claimed and in the system, and that it would have very little material impact to continue it on after that date.[11]

7.18 Indigenous groups opposed the sunset provisions. For example, Mr Aden Ridgeway, the Executive Director of the NSW Aboriginal Land Council, told the Committee:

Others pointed out that because the sunset clause will only remove the system for the determination of claims, not the native title rights themselves, claims will have to be dealt with by more costly procedures in the ordinary courts. Community Aid Abroad, for example, told the Committee:

7.19 Similarly, the Australian Institute of Valuers and Land Economists told the Committee:

If this were to happen, the NNTT register of claims would no longer comprehensively reflect the existence of claims.

7.20 The National Native Title Tribunal's commentary on the Bill notes that the sunset provisions are inflexible. It suggests that the Federal Court should be given the power to extend the time within which applications may be made in order to prevent possible injustice.[15]

7.21 On balance, the Committee considers that the sunset provisions be retained.

Limits on Compensation

7.22 Courts have yet to establish authoritatively whether the compensation awarded to native title holders for extinguishment of their title may include an amount that reflects the special Indigenous attachment to the land (which may make the land more valuable to them than to a non-Indigenous freeholder.)

7.23 In late 1996 the New South Wales Government concluded an agreement to compulsorily acquire land at Crescent Head near Kempsey claimed by the Dunghutti people under the Act. The agreement provided the Dunghutti with a complex compensation package, including provisions for payments linked to the amounts received by the State when it eventually sells the land for residential development. According to media reports, the total value of the package exceeded the freehold value of the land by between twenty five and fifty percent and contained an element that reflected the special Aboriginal attachment to the land.[16] Because the agreement resulted from negotiation, not a determination, and was arguably influenced by unique factors, opinions differ on whether the compensation paid is any guide to the amount that a court would have awarded. The Committee observes that the State Government, needing to proceed with a half-completed housing development, was not in a strong negotiating position over the amount of compensation to be paid.

7.24 Earlier, in a future act determination in July 1996 the NNTT discussed in detail the criteria for assessing compensation. Pursuant to s.51 of the Act, the NNTT used in this case the compensation criteria in the Mining Act 1978 (WA) as the basis for assessing compensation. It did not accept the Western Australian Government submission that the amount of compensation payable under the Mining Act was limited to the amount that would be paid for the compulsory acquisition of the freehold.[17] The NNTT concluded that it could exceed this amount and, in a native title case, could take into account any special or unique aspects of the native title parties' links to the land in question.[18] The NNTT observed that the Act created a means by which the compensation rights enjoyed by the owners of freehold are conferred on native title holders and concluded:

7.25 The NNTT responded to the suggestion that it was difficult to place a monetary value on the peculiar features of native title by noting that in personal injury cases courts had awarded monetary compensation for such things as an inability to complete initiation rights, loss of ceremonial function and inability to partake in matters of spiritual and tribal significance.[20]

7.26 The Bill sets a cap on the amount of compensation payable under the 'future acts' regime in the Act for an act that extinguishes all native title in relation to particular land or waters. The cap is set at 'the amount that would be payable if the act were instead a compulsory acquisition of a freehold estate in the land or waters' (new s.51A(1)).

7.27 Mr Daniel O'Dea put to the Committee the concerns of the Ngaanyatjarra Council regarding the capping provision:

7.28 The Commonwealth Government informed the Committee that under the capping provision the compensation payable is not generally limited to the market value but extends also to compensation for severance, injurious affection, disturbance, special value and solatium or other non-economic loss.[22]

7.29 It is not clear to the Committee exactly how the capping provision will accommodate the special Indigenous attachment to land, where it can be shown to exist in particular compensation cases. In addition, it is not clear that the capping provision complies with s.51(31) of the Constitution. This provides that the Commonwealth can only legislate to acquire property on 'just terms'. As the Explanatory Memorandum notes (para.1.20): 'while the Commonwealth is of the view that the maximum compensation payable to a native title holder should be no more than that payable to a freeholder the courts have yet to determine this as satisfying the requirement for 'just terms' compensation'.

7.30 The Bill responds to this uncertainty by providing in the proposed s.51A(2) that the capping provision is subject to the existing s.53 of the Act. Section 53(1) requires the Commonwealth to top up any compensation otherwise payable by it to the level required of it by s.51(31) of the Constitution. As the Commonwealth Government's submission notes s.53 'ensures that if any provision of the Act, as amended by the Bill, requires just terms compensation but does not provide it, then just terms compensation is provided'.[23]

Size of the Compensation Bill

7.31 Mr Aden Ridgeway, Executive Director of the NSW Aboriginal Land Council, commented that the Commonwealth Government has embraced compensation as a remedy in the Bill, 'with seemingly little concern as to what the final cost may be'.[24]

7.32 The Explanatory Memorandum contains a Financial Impact Statement (pp.7-8). This makes the following comment on the cost to the Commonwealth of compensation payable as a result of enacting the Bill:

In addition, the Committee notes the evidence it received which highlighted the difficulty of defining whether the rights encompassed under native title approximate to something as extensive as freehold rights, or are less extensive rights to enter on land for ceremony, hunting and other purposes. This inability to define the scope of native title adds to the difficulty of estimating the amount of compensation payable.

7.33 Under the 1993 Act, an indeterminate quantum of compensation is payable for extinguishment on some pastoral leases and for some future acts. The Committee draws to the attention of the Parliament that this open-ended and unquantified liability to pay compensation will increase under the proposed amendments.

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Footnotes:

[1] See for example Evidence, pp.857, 885, 1077, 1184, 1677-1678.

[2] Justice RS French, President, and Patricia Lane, Registrar, National Native Title Tribunal, Response to the Native Title Amendment Bill 1997, September 1997, p.64.

[3] Submission from FAIRA, p.6.

[4] Evidence, p.1077.

[5] Submission from the Commonwealth Government, p.68. See also Evidence, p.2046.

[6] See also the Submission from Mr Graeme Neate, pp. 15-17 for detailed criticisms of the drafting of the proposed s.82(2).

[7] Evidence, pp.2052-2053.

[8] Aboriginal Land Rights (Northern Territory) Amendment Act 1987, s.25 inserting a new s.50(2A) into the original Act.

[9] Submission from the National Farmers' Federation, p.10; Evidence, p.589-90.

[10] Evidence, pp.475-76, 1507-08.

[11] Evidence, p.476.

[12] Evidence, p.710.

[13] Evidence, pp.1612-13.

[14] Evidence, p.809.

[15] Justice RS French, President, and Patricia Lane, Registrar, National Native Title Tribunal, Response to the Native Title Amendment Bill 1997, September 1997, pp.4, 49.

[16] 'What price native rights?' The Australian, 21 January 1997, p. 13; 'Deal makes native title more valuable than freehold' Australian Financial Review, 3 February 1997, pp.1, 8.

[17] State of WA, R V Thomas and others (Waljen), and Austwhim Resources NL and Aurora Gold (WA) Ltd, Application Nos: WF96/3 and WF96/12, NNTT, unreported, 17 July 1996, pp.94-95.

[18] ibid., pp.95-96, 97.

[19] ibid., pp.90, 92.

[20] ibid., p.92.

[21] Evidence, p.1075.

[22] Submission from the Commonwealth Government, p.12.

[23] Submission from the Commonwealth Government, p.12.

[24] Evidence, p.707.