Chapter 5

Fifteenth Report: Interim Report for the s.206(d) Inquiry - Proceedings of Conference on 12 March 1999
Table of Contents

Chapter 5

Extent of Extinguishment - s.206(d)(iv)

Mabo (No2)

5.1 On 3 June 1992 the High Court handed down its decision in Mabo v State of Queensland (No2) (1992) 175 CLR 1. By a 6:1 majority, the Court recognised the existence of native title, thus overturning the doctrine of terra nullius in Australia.

5.2 The majority decided that native title had survived the acquisition of sovereignty because, while the Crown had acquired radical title to all land within its sovereignty, it had not thereby achieved absolute beneficial ownership of that land. [1] That is, radical title had not extinguished native title; rather, native title existed as a burden on the radical title. Further, certain acts had not extinguished native title on the Murray Islands. The Court held that neither the annexation of the islands to the colony of Queensland in 1879, nor their being set apart from sale pursuant to the Crown Lands Alienation Act 1876 (Q), had extinguished native title.

5.3 Because the High Court had acknowledged the possibility of extinguishment, and because there had been activity with the potential to extinguish, the Court did not acknowledge native title over the entirety of the islands. In fact, the judges differed significantly in their opinions. Nevertheless, Justice Brennan was categorical in his view that the valid grant of freehold and leasehold title extinguished native title to the extent of the inconsistency:

On this opinion, native title was a vulnerable title; valid alienation of land by the Crown would extinguish native title to the extent of the inconsistency. While Justice Brennan expressed this clear view, the majority in Mabo (No2) did not decide the question whether leases extinguished native title.

5.4 In Mabo (No2) the High Court had considered a special lease of two acres to the London Missionary Society in 1882. Brennan J (with Mason CJ and McHugh J concurring) expressed the view that the lease extinguished native title, as did Dawson J. Deane, Gaudron and Toohey JJ refrained from expressing their views on the issue. Further, in considering the effect of a (1931) twenty-year lease over Dauar and Waier for a sardine factory, Brennan J stated (Mason CJ and McHugh J concurring) that native title had been extinguished by the valid grant of a leasehold estate. [3] Brennan J decided that native title would have been extinguished even though the lease was subject to the condition that the lessees would not obstruct or interfere with the Meriam people's use of their tribal gardens or fishing on the reefs. While Dawson J expressed a similar view, Deane and Gaudron JJ believed that the sardine factory lease would not have extinguished native title. Toohey J did not comment on this issue.

5.5 The native title acknowledged in Mabo (No2), then, did not include the areas of the Murray Islands covered by the 1882 lease to the London Missionary Society (on Mer) and the 1931 sardine factory lease (on Dauar and Waier). The Mabo decision put 'to one side':

5.6 Accordingly, in that the High Court was not asked to answer the question, it did not provide a decision on the extinguishment of native title by leases. At most, in Mabo (No2) some interim guidance could be discerned concerning the principles of extinguishment for native title up to the date of the decision. The following could be drawn from Justice Brennan's opinion:

5.7 Justice Brennan then noted the practical effect of these principles:

5.8 The extent to which caution was appropriate about this opinion is demonstrated by the Attorney-General's Department description of the principles of extinguishment effective upon the Mabo (No2) decision:

5.9 Accordingly, and with the benefit of hindsight, in 1992 (immediately following the Mabo (No2) judgment) it should not have been considered possible to articulate clearly what may have been the implications of the judgment for extinguishment. At the most, native title could have been considered to have been extinguished over all country to the extent of inconsistency with freehold or leasehold grants, or which had been set apart for public use. About eighty percent of Australia would have been unavailable for native title claim under this scenario. However, in that the High Court did not provide a definitive view about the extinguishing effects of leases in Mabo (No2), it remained to be established whether forms of native title could have survived, or could be revived, over all but freehold grants in Australia.

5.10 In the Commentary on the Native Title Act 1993, published as a preface to the Act, the Commonwealth expressed its (then) understanding of the circumstances where native title would be extinguished by rights inconsistent with the continued enjoyment of indigenous rights and privileges. In addition to those instances where the traditional title holders lose their connection with the land, legislative or executive actions could be effective to extinguish. Notably, the Commentary confirmed that a clear and plain intention or clear and unambiguous words are required for extinguishment to have occurred by legislative or executive act. [8]

5.11 Importantly, however, the Preamble to the Act stated:

The Native Title Act 1993

5.12 The Native Title Act 1993 was enacted in response to Mabo (No2). Most sections commenced operation on 1 January 1994.

5.13 Based on the Commentary, the Commonwealth subsequently issued an explanation of the features of the Act including the recognition of native title rights, provision for the validation of past acts which may have been invalid and provision for a regime under which native title rights are protected or affected. [9]

5.14 In validating past extinguishing acts, the Act provided that the Commonwealth may grant compensation, even for the effect of State and Territory validations. The Commentary (p.C14) advised:

5.15 Where native title rights can be affected by future extinguishment, the Commonwealth expressed the following understanding of the Act:

Importantly, native title holders would be entitled to `just terms' compensation for any future extinguishment of their rights and interests.

5.16 In considering whether extinguishment of native title by inconsistent Crown grant gave rise to a claim for compensatory damages, the majority in Mabo (No2) held that the validity of such grants could not be challenged merely on the basis that they extinguished native title without compensation. This conclusion, however, was subject to the operation of the Racial Discrimination Act 1975 (RDA). The Commonwealth has commented:

5.17 The Native Title Act 1993 at s.14 provided for the validation of past (invalid) Commonwealth acts. Section 19 enabled States and Territories to validate their past (invalid) acts on the same terms. Again, the Commonwealth has commented:

5.18 Further, in April 1994 the Commonwealth [13] expressed the effect of this validation on native title as follows:

5.19 On 4 September 1997, when the Native Title Amendment Bill 1997 was first introduced into the House of Representatives, the Government advised that, generally speaking, the Native Title Act 1993 had only provided a framework for dealing with native title:

5.20 From January 1994, then, the Act was intended to be a (minor) statutory factor determining the extent of native title extinguishment. The common law continued to be a (major) potential determinant. Important cases to emerge were Waanyi, WA v The Commonwealth and Wik. [15]

Experience under the Native Title Act

Waanyi

5.21 Pursuant to s.61, the Native Title Act 1993 provided that claimants could lodge applications directly with the NNTT. In receiving claimant applications for determinations of native title under the Act, it was to be expected that the NNTT would form its own clear understanding (and express it) about the circumstances that extinguished native title. On 12 September 1994 the NNTT issued Revised Procedures governing the acceptance of applications. In regard to applications over freehold, the Tribunal confirmed that the Registrar would not accept an application unless the land was granted to an Aboriginal group under land rights legislation and where there was native title in existence beforehand; procedure 2 of Appendix A to the Revised Procedures refers. In relation to pastoral leases, the Tribunal stated that the Registrar would not usually accept an application if the land involved did not contain a reservation in favour of Aboriginal people. In such cases, the Registrar would refer the application to a Presidential Member of the Tribunal.

5.22 On 15 September 1994 the Tribunal President, Justice Robert French, published his (interim) Reasons for Ruling in relation to the Waanyi application. The Waanyi Peoples had lodged an application for native title determination on 27 June 1994; the area covered by the application, 247 hectares in the vicinity of Lawn Hill (250 kilometres north west of Mt Isa), is the site of the Century lead/zinc mine project.

5.23 Now, the Act originally provided that if the requirements of s.62 were met, the Registrar had to accept the application unless, pursuant to s.63, the application was considered to be frivolous or vexatious, or prima facie the claim could not be made out. The President concluded that, in deciding whether a prima facie case can be made out for a claim, the Presidential Member can form a concluded view on a question of law. Further, Justice French advised that:

5.24 Subsequently, on 14 February 1995, Justice French published his ruling in the Waanyi matter. The President found that, as a consequence of the operation of the Queensland Land Acts, there was by necessary implication a right of exclusive possession for two leases dated 1883 and 1905 (actually issued in 1904). Accordingly, Justice French concluded that because (in regard to the 1883 lease):

5.25 Importantly, Justice French's understanding of the extinguishing effects of such pastoral leases was probably consistent with the view then taken by the Keating Labor Government. In his Second Reading Speech on the Native Title Bill 1993, Prime Minister Keating drew attention to:

5.26 The question of the extinguishing effects of certain kinds of pastoral leases was further considered when the Waanyi appealed the Tribunal's decision to the Federal Court. [19] On 1 November 1995, by a majority of two to one, the Federal Court held that the Tribunal was correct to find that prima facie the claim could not be made out.

5.27 All three Federal Court judges observed that it was arguable that the 1883 lease as issued may have contained a reservation in favour of indigenous access and may not have extinguished native title. But for the majority (Hill and Jenkinson JJ), this made no difference to the result; in their view the 1904 lease (over the same area) had extinguished native title even if the 1883 lease arguably had not. In dissenting, Justice Lee observed that the 1904 lease was expressed to be `for pastoral purposes only': arguably the Crown intended this lease to be enjoyed in coexistence with traditional Aboriginal users of the land.

5.28 Although the Waanyi subsequently appealed to the High Court, the High Court's decision of 8 February 1996 [20] did not further inform the question of extinguishment. The High Court upheld the appeal, finding that the NNTT had incorrectly administered the s.63 prima facie acceptance test. The Court held that the NNTT must accept an application if, on its face, and on the face of the information supplied by the applicant, the claim is arguable, or `fairly arguable'.

5.29 Accordingly, six of the seven High Court judges considered it unnecessary, and on this occasion beyond the Court's power, to decide categorically whether the 1904 pastoral lease extinguished native title. Crucially, they agreed with Justice Lee of the Federal Court that it was arguable, at least on the limited information the NNTT was permitted to consider, that the 1904 lease did not extinguish native title. The Court directed that the claim be accepted and the hearing was terminated before argument could be heard on the issue of extinguishment.

WA v The Commonwealth

5.30 The next significant case involving the effect of the Native Title Act 1993 on extinguishment was Western Australia v the Commonwealth.

5.31 The Western Australian Government had reacted to Mabo (No2) and the Keating Government's proposed Native Title Act with its own legislation before the Commonwealth legislation was enacted. The Land (Titles and Traditional Usage) Act 1993 (WA) commenced operation on 2 December 1993. The Native Title Act 1993 received Assent on 24 December 1993 when ss.1 and 2 commenced; the balance of the Act came into effect on 1 January 1994. Professor Garth Nettheim has described the State legislation as follows:

5.32 Three separate actions came before the High Court in September 1994. Two actions challenged the validity of the State Act: first, Wororra and Yawuru Peoples v Western Australia and, second, Biljabu and Others (representing the Martu peoples) v Western Australia. The third was brought by Western Australia challenging the application and validity of the Native Title Act. The three cases were heard together:

5.33 The State of Western Australia, then, argued before the High Court that native title had been extinguished on British settlement; it further argued that the WA legislation, Land (Titles and Traditional Usage) Act 1993, had purported to extinguish any native title in the State and replace it with more limited statutory rights to traditional usage of land. On 16 March 1995 the High Court found against WA and confirmed that although an acquiring sovereign can extinguish rights and interests, the presumption in the case of the Crown is that no extinguishment is intended:

5.34 The High Court held that the Western Australian Act was invalid for inconsistency with the RDA (s.10) and the NTA. Moreover, the Court found that the Native Title Act 1993 (except s.12) was authorised by s.51(xxvi) of the Constitution (the races power) and was thus valid. This unanimous decision of the High Court has been described as a resounding confirmation of the broad application of the case's two parent decisions, Mabo (No1) and Mabo (No2). [24]

5.35 Importantly, Professor Richard Bartlett, counsel for the Martu, has concluded that the judgment in Western Australia v The Commonwealth stood for the proposition that native title was not extinguished except to the extent that inconsistent parcel-by-parcel land grants or appropriations were made:

The issue of the extinguishing effects of pastoral leases was again raised for determination in The Wik Peoples v Queensland & Ors.

Wik

5.36 While the Commonwealth had considered that native title was extinguished over land that was the subject of pastoral leases, and this understanding was expressed in the Commentary to the Native Title Act 1993, the Keating Government consistently maintained that final determination of the matter would be left to the courts.

5.37 The Wik case, which was to assume very considerable significance, had been commenced in the Federal Court on 30 June 1993 (prior to the introduction of the Native Title Bill 1993). The Wik Peoples made a claim for native title to land on Cape York Peninsula in Queensland. The Thayorre People joined the action, claiming native title rights to an area partly overlapping the Wik claim. Following the commencement of the Native Title Act on 1 January 1994, Justice Drummond adjourned part of the proceedings in the Federal Court to allow the Wik to begin separate proceedings in the National Native Title Tribunal. However, Justice Drummond reserved a number of questions concerning (inter alia) pastoral leases for consideration by the Federal Court. Justice Drummond handed down judgment on those matters on 29 January 1996.

5.38 Of the three leases considered by Justice Drummond, two were issued in 1915 and 1919 under the Land Act 1910 (Qld); these are known as `the Michellton leases'. The other lease, `the Holroyd lease', was issued in 1974 under the Land Act 1962-1974 (Qld). None of these leases contained an express reservation in favour of Aboriginal access to the leased land for any purpose.

5.39 On appeal in the Waanyi matter, a majority of the Full Court of the Federal Court held on 1 November 1995 that it was beyond argument that one of the Lawn Hill leases in North Queensland extinguished native title. On 29 January 1996, relying on the Full Federal Court's Waanyi judgment, Justice Drummond held in Wik that the three leases granted exclusive possession to the lessee and thus extinguished native title.

5.40 Crucially, however, on 8 February 1996 (and only some ten days following Justice Drummond's judgment), the High Court handed down its decision in the Waanyi appeal from the Federal Court decision (on which Justice Drummond had relied). In the Waanyi appeal, the High Court held that it was arguable (though not necessarily certain) that native title had survived a Queensland pastoral lease, even though such a lease lacked a reservation in favour of Aboriginal access. Of course, this raised uncertainty as to the conclusions reached by Drummond J about the pastoral leases in Wik.

5.41 On 15 April 1996, following the election of the Howard Government in March, the High Court agreed to hear an appeal from Justice Drummond's Wik decision. The High Court appeal was heard on 11, 12, and 13 June 1996.

5.42 On 23 December 1996, the High Court handed down its judgment in The Wik Peoples v The State of Queensland & Ors and The Thayorre People v The State of Queensland & Ors. By a 4:3 majority, the High Court held that certain pastoral leases in Queensland did not grant exclusive possession to pastoralists; therefore native title may have survived the grant of the lease. Importantly, the majority Justices regarded pastoral leases as a creation of Australian statute and held that the rights and obligations that accompany them do not derive from the common law principles relating to leasehold estates. [26]

5.43 The Attorney-General's Legal Practice issued Current Advice about this matter on 23 January 1997. The advice stated:

5.44 Notably, the Wik decision was consistent with WA v The Commonwealth in addressing the question whether native title is extinguished or impaired by the grant of inconsistent rights itself, irrespective of whether and how the grantee exercises those rights. Most of the majority High Court judges stated that the focus should be on the nature of the rights granted rather than on the actual use of the land or the activities of the grantee:

5.45 Prior to Wik, the extent to which pastoral leases extinguished native title was quite uncertain. Despite the confidence of the Commonwealth, the High Court in Mabo (No2) had not handed down a decision that settled this matter. The Wik judgment also did not clearly resolve the general issue: in Wik the High Court held that native title was not necessarily extinguished on the Queensland pastoral leases. Nevertheless, Father Frank Brennan [29] has pointed out that Wik provided authority for two new propositions of law:

That these propositions were `new' can be determined by comparing them with the position adopted by Justice Brennan in his Mabo (No2) judgment:

(While Justice Brennan maintained this opinion in Wik, his view did not prevail.)

5.46 Importantly from the perspective of extinguishment, Father Brennan commented that the new propositions gave native title far greater scope for survival than did the judgments in Mabo (No2). [31]

The Ten Point Plan

5.47 In May 1997 the Attorney-General's Department published an assessment of the implications of the Wik decision. It acknowledged that the decision made clear that the lessee's rights are circumscribed by the terms of the statute and the lease:

5.48 The assessment concluded that there was considerable uncertainty as to the practical effects of coexistence and the operation of the Native Title Act:

5.49 The Howard Government released its (amended) Wik 10 Point Plan on 8 May 1997. Points 2 and 4 are relevant to the question of extinguishment. Point 2 concerns confirmation of extinguishment of native title on `exclusive' tenures:

And Point 4 stated:

The Native Title Amendment Bill

5.50 The Native Title Amendment Bill (No2) 1997 was reintroduced into the House of Representatives on Friday 3 July 1998, incorporating amendments. The Bill passed the House on Friday 3 July and the Senate on Wednesday 8 July 1998.

5.51 In order to achieve Points 2 and 4 of the 10 Point Plan, Item 9 of Schedule 1 of the 1997 Amendment Bill inserted Division 2B into Part 2 of the Act. The Explanatory Memorandum advised that this Division confirms the effect on native title of various types of Commonwealth acts done on or before 23 December 1996 (date of the Wik decision) and seeks to reflect the Government's understanding of the common law of native title after the Wik decision. That Division also permits the States and Territories to confirm the effect of acts they had done on or before 23 December 1996. [34]

5.52 Notably, the Bill specifically defined the word extinguish in relation to native title to mean permanent extinguishment. The Explanatory Memorandum [35] advised that this means that there is no possibility of revival of the native title at some time after the extinguishment occurs, even if the extinguishing act ceases to exist. While acknowledging that some of the Justices in Wik specifically left open the question whether native title is permanently extinguished, the Explanatory Memorandum notes that in Larrakia People v Northern Territory of Australia and Oilnet (NT) Pty Ltd [36] O'Loughlin J stated:

5.53 The Explanatory Memorandum advised that the Government's policy was to provide that extinguishment is permanent. Accordingly, the Act now provides at s.23A:

And the word extinguish is now defined at s.237A of the Act to mean permanent extinguishment.

Effect of the Amendment Act

5.54 Up until the passing of the Native Title Amendment Bill (No2) 1997 on 8 July 1998, native title appeared to have been extinguished in the following circumstances:

5.55 Importantly, native title, where extinguished, is now permanently extinguished pursuant to the Native Title Act 1993 as amended by the Native Title Amendment Act 1998. Further, pursuant to the amended Native Title Act 1993, native title is now confirmed to have been extinguished by Acts pursuant to Schedule 1 of the amended Act.

5.56 Since the passing of the Native Title Amendment Act 1998 on 8 July 1998, native title has been extinguished in additional ways:

5.57 Nevertheless, since the passing of the Amendment Act, the scope for the recognition of native title has been widened with the judgment in Mary Yarmirr & Ors v Northern Territory of Australia [38] (`The Croker Island case'). In this case, Olney J made the first determination of native title in relation to an area of sea and seabed.

Summary

5.58 In summary:

The Committee's Duty

5.59 Pursuant to s.206(d)(iv) of the Native Title Act 1993 the Committee has the duty to report on the extent of extinguishment or impairment of native title rights and interests as a result of the operation of the Act.

 

Footnotes

[1] Mabo 2 (1992) 175 CLR 1, p.68.

[2] Mabo 2 (1992) 175 CLR 1, p.69.

[3] Mabo 2 (1992) 175 CLR 1, pp.72,73.

[4] Mabo 2 (1992) 175 CLR 1, p.2.

[5] Mabo 2 (1992) 175 CLR 1, pp.69,70.

[6] Mabo 2 (1992) 175 CLR 1, pp.69,70.

[7] Legal Practice Briefing Attorney-General's Legal Practice Number 11, 29 April 1994.

[8] Commentary on the Native Title Act 1993 Native Title Act 1993 AGPS 1994, p.C2.

[9] Native Title Amendment Bill 1997 Explanatory Memorandum, p.24.

[10] Explanatory Memorandum op.cit., pp.24,25.

[11] Legal Practice Briefing Attorney-General's Legal Practice Number 11, 29 April 1994, p.2.

[12] Legal Practice Briefing 29 April 1994, op.cit., p.5.

[13] Legal Practice Briefing 29 April 1994, op.cit., p.5.

[14] Explanatory Memorandum op.cit., p.53.

[15] (1996) 185 CLR 1; (1995) 183 CLR 373; (1996) 187 CLR 1.

[16] Reasons for Ruling in Relation to Criteria for Acceptance of a Native Title Determination Application National Native Title Tribunal 15 September 1994, p.32.

[17] Reasons for Ruling on Acceptance of a Native Title Determination Application National Native Title Tribunal 14 February 1995, p.65.

[18] House of Representatives Hansard, 19 October 1993, p.2093.

[19] North Ganalanja Aboriginal Corporation v Qld (1995) 61 FCR 1.

[20] North Ganalanja Aboriginal Corporation v Qld (1996) 185 CLR 595.

[21] Nettheim G `Western Australia v The Commonwealth' Aboriginal Law Bulletin Vol.3 No.73 April 1995, p.4.

[22] Nettheim G `Western Australia v The Commonwealth' op.cit., p.5.

[23] Western Australia v The Commonwealth (1995) 183 CLR pp.422,423.

[24] Cf Howard C The Second Native Title Case The Samuel Griffith Society 1996.

[25] Bartlett R 'Racism and the WA Government' Aboriginal Law Bulletin Vol.3 No.73 April 1995, p.9.

[26] Per Toohey J at 174; Gaudron J at 204; Gummow J at 226; and Kirby J at 266 and 279-280; Legal Practice Briefing Attorney General's Legal Practice Number 32, 20 May 1997.

[27] Legal Implications of the High Court Decision in THE WIK PEOPLES V QUEENSLAND Current Advice, The Attorney-General's Legal Practice, 23 January 1997, p.4.

[28] Legal Implications of the High Court Decision in THE WIK PEOPLES V QUEENSLAND op.cit., p.5.

[29] Brennan F `The Wik Judgment', a paper presented to the Social and Political Theory School Seminar at the Australian National University, 26 March 1997, p.7.

[30] Mabo 2 (1992) 175 CLR 1, p.68.

[31] Brennan F `The Wik Judgment' op.cit., p.7.

[32] Legal Practice Briefing 20 May 1997 op.cit.

[33] Legal Practice Briefing 20 May 1997 op.cit.

[34] Explanatory Memorandum op.cit., p.53.

[35] Explanatory Memorandum op.cit., p.61.

[36] Larrakia People v Northern Territory of Australia and Oilnet (NT) Pty Ltd (1998) 152 ALR 477.

[37] Note that on appeal in this case, Fejo v Northern Territory of Australia (1998) 156 ALR 721, the High Court confirmed extinguishment of native title upon freehold land and held that once extinguished, native title cannot `revive'.

[38] Mary Yarmirr & Ors v Northern Territory of Australia (1998) 156 ALR 370.