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Commonwealth v Western Australia [1999] HCA 5; 196 CLR 392; 160 ALR 638; 73 ALJR 345 (11 February 1999)
Last Updated: 18 March 1999
HIGH COURT OF AUSTRALIA
GLEESON CJ,
GAUDRON, McHUGH, GUMMOW, KIRBY, HAYNE AND CALLINAN JJ
THE COMMONWEALTH OF AUSTRALIA PLAINTIFF
AND
THE STATE OF WESTERN AUSTRALIA FIRST DEFENDANT
THE WARDENS OF THE SOUTH WEST
MINERAL FIELD SECOND DEFENDANT
MINERAL SAND MINING &
DEVELOPMENT PTY LTD THIRD DEFENDANT
ENMIC PTY LTD FOURTH DEFENDANT
Commonwealth of Australia v State of Western Australia [1999]
HCA 5
11 February 1999
C4/1998
ORDER
1. Demurrer by the State of Western Australia to the Commonwealth's Amended
Statement of Claim filed on 22 May 1998 allowed in so
far as it relates to that
part of the defence practice area outside the land within Melbourne Locations
3988, 3989 and 4004 but otherwise
overruled.
2. Demurrer by the Commonwealth to the State of Western Australia's
Counterclaim filed on 25 May 1998 allowed.
3. Matter stood over to be listed before a single Justice to make further or
consequential orders.
4. Costs of each demurrer, if they be sought, reserved for consideration of
a single Justice.
2.
Representation:
H C Burmester, Acting Solicitor-General for the Commonwealth, with
M J Hawkins and M A Perry for the plaintiff (instructed
by Australian
Government Solicitor)
R J Meadows QC, Solicitor-General for the State of Western Australia, with J C
Pritchard for the first defendant (instructed by
Crown Solicitor for the State
of Western Australia)
No appearance for the second, third and fourth defendants
Interveners:
D Graham QC, Solicitor-General for the State of Victoria, with C M Caleo
intervening on behalf of the Attorney-General for the State
of Victoria
(instructed by Victorian Government Solicitor)
B M Selway QC, Solicitor-General for the State of South Australia, with
J Hughes intervening on behalf of the Attorneys-General
for the States of
South Australia and New South Wales (instructed by Crown Solicitors for the
States of South Australia and New South
Wales)
Notice: This copy of the Court's Reasons for Judgment is subject to formal
revision prior to publication in the Commonwealth Law
Reports.
CATCHWORDS
The Commonwealth of Australia v The State of Western Australia &
Ors
Statutes - Construction - Whether Mining Act 1978 (WA) applies to land
owned or leased by the Commonwealth.
Real property - Grants - Freehold grant - Crown lease - Reservations for mining
and minerals - Construction of reservations.
Constitutional law - Effect of s 64 of the Judiciary Act 1903 (Cth) -
Application of Mining Act 1978 (WA) to land owned or leased by the
Commonwealth.
Constitutional law - Inconsistency of laws - Whether Lands Acquisition
Act 1989 (Cth) inconsistent with Mining Act 1978 (WA).
Constitutional law - Inconsistency of laws - Whether Defence Force Regulations
(Cth) inconsistent with Mining Act 1978 (WA).
Constitutional law - Acquisition of property - Whether Defence Force
Regulations (Cth) effect an "acquisition of property" under
s 51 (xxxi) of the
Constitution.
Words and phrases - "Crown land" - "operational inconsistency" - "private
land".
The Constitution, ss 51(xxxi), 109.
Commonwealth Places (Application of Laws) Act 1970 (Cth), s 4(1).
Judiciary Act 1903 (Cth), s 64.
Lands Acquisition Act 1955 (Cth), ss 8, 51 & 53(2).
Lands Acquisition Act 1989 (Cth), Pt X.
Defence Force Regulations (Cth), Pt XI.
Mining Act 1978 (WA).
- GLEESON CJ AND GAUDRON J. The Commonwealth uses land at Lancelin
in Western Australia as a defence practice area ("the defence practice
area").
It owns the fee simple in part of the land known as Melbourne Locations 3989
and 4004 ("the freehold land"). It holds another
part of the land, Melbourne
Location 3988, as lessee under a Special Lease from the State of Western
Australia ("the leasehold
land"). The remaining land surrounds the
leasehold land ("the perimeter area"). It is owned by the State of
Western Australia.
The Commonwealth may have some arrangement with the State
with respect to its use but, if so, that does not appear from the
pleadings.
- Application has been made by Mineral Sand Mining & Development Pty Ltd
and Enmic Pty Ltd, the third and fourth defendants, respectively,
for the grant
pursuant to the Mining Act 1978 (WA) of exploration licences over part
of the defence practice area. One application (No 70/1425) is in respect
of an area
which encompasses part of the leasehold land and part of the
perimeter area. Another (No 70/1542) covers part of the freehold
and
leasehold lands and part of the perimeter area and the other application
(No 70/1549) covers part of the freehold and leasehold
lands. The
applications were lodged on 10 February 1994, 9 November 1994 and
10 January 1995, respectively.
The proceedings
- Proceedings were commenced in this Court by the Commonwealth
against the State of Western Australia, the Wardens of the South West
Mineral
Field ("the Mining Wardens") and the third and fourth defendants. By its
Amended Statement of Claim, the Commonwealth seeks
declarations that the Mining
Wardens do not have jurisdiction to entertain applications for mining tenements
over any part of the
defence practice area; that, to the extent that the
Mining Act purports to apply to any part of that area, it is invalid;
and, finally, that the Mining Act "does not bind the Crown in the right
of the Commonwealth."
- The State of Western Australia demurred to the Commonwealth's Amended
Statement of Claim. Additionally, it counterclaimed to the
effect that the
legislative provisions upon which the Commonwealth relies are invalid. It will
later be necessary to refer to the
counterclaim in more detail. For the
moment, it is sufficient to note that the Commonwealth has demurred to it.
History of and title to the defence practice area
- Before turning to the precise issues raised by the demurrers, it
is necessary to say something further with respect to the separate
areas which
together make up the defence practice area.
- The freehold land was acquired by agreement with the State of Western
Australia in two parcels, the first (Melbourne Location 3989)
in 1975 and the
second (Melbourne Location 4004) in 1977. The acquisition of both parcels was
for a public purpose and was effected
pursuant to s 7 of the Lands
Acquisition Act 1955 (Cth) ("the 1955 Acquisition Act")[1]. Crown Grants were issued by the Governor of Western
Australia and the Commonwealth became registered as proprietor in fee simple
of
both parcels pursuant to the Transfer of Land Act 1893
(WA).
- Each of the Crown Grants contains a reservation of minerals in the following
terms:
"... we do hereby save and reserve to Us, Our heirs and successors,
all Mines, of Gold, Silver, Copper, Tin, or other Metals, Ore
and Minerals, or
other substances containing Metals, and all Gems or Precious Stones and Coal or
Mineral Oil and all Phosphatic Substances
in and under the said land, with full
liberty at all times to search and dig for and carry away the same; and for
that purpose to
enter upon the said land or any part thereof".
They also contain a reservation of petroleum in these terms:
"... we do hereby, save and reserve to Us, Our heirs and successors
all petroleum (as defined in the Petroleum Act, 1967, and all amendments
thereof for the time being in force) on or below the surface of the said land
with the right reserved to Us,
Our heirs and successors and persons authorised
by Us, Our heirs and successors to have access to the said land for the purpose
of
searching for and for the operations of obtaining petroleum in any part of
the said land".
- There is a distinct difference between the reservation of
minerals and the reservation of petroleum. The latter allows that access
may
be had not only by "Us, Our heirs and successors" but also by "persons
authorised ... to have access ... for the purpose of searching
for and ...
obtaining petroleum". So far as concerns the reservation of minerals, a right
of entry is simply reserved "to Us, Our
heirs and successors".
- Whatever the extent of the reservation of petroleum and the associated right
of access, it follows from the limited nature of the
reservation of minerals
that it does not, itself, permit any person to be authorised to search for
minerals or to conduct mining
activities on his or her own behalf. Thus,
contrary to the primary argument for the State of Western Australia, it is
necessary
to inquire with respect to the freehold land whether such authority
can be conferred pursuant to the Mining Act.
- The leasehold land was demised by the State of Western Australia to the
Commonwealth for use as "a Naval Gunfire Support Range Danger
Area and Army
Training Area"[2]. It was demised pursuant to
s 7(4) of the Land Act 1933 (WA) for a period of 21 years from
1 July 1978[3]. The leasehold was also
acquired by the Commonwealth for a public purpose pursuant to s 7 of the
1955 Acquisition Act and the
lease registered pursuant to the Transfer of
Land Act.
- The Special Lease provides:
"it [is] at all times ... lawful for Us, Our Heirs and Successors,
or for any person or persons acting in that behalf by Our or Their
authority,
to resume and enter upon possession of any part of the said lands ... for the
purpose of exercising the power to search
for minerals and gems hereinafter
reserved".
The reservation of minerals and gems is in these terms:
"... we do hereby save and reserve to Us, Our Heirs and Successors,
all mines of gold, silver, copper, tin or other metals, ore, and
mineral, or
other substances containing metals, and all gems and precious stones, and coal
or mineral oil, and all phosphatic substances
in and under the said land, with
full liberty at all times to search and dig for and carry away the same".
- The reservation of access for the purpose of exploration is
expressed to be "for Us, Our Heirs and Successors, or for any person
or persons
acting in that behalf by Our or Their authority", whilst in relation to the
reservation of minerals and gems a right of
entry is reserved "to Us, Our Heirs
and Successors". Given the limited nature of the latter reservation, the
reservation of access
for the purpose of exploration must be construed as
confined to persons acting as servants or agents of the Crown.
- It follows that neither the reservation of access for the purpose of
exploration nor the reservation of minerals can be construed
as extending to
persons searching for minerals or conducting mining activities on their own
behalf. Thus, and again contrary to
the primary argument for Western
Australia, it is necessary to inquire with respect to the leasehold land, as
with the freehold land,
whether persons may be authorised pursuant to the
Mining Act to engage in exploration or other mining activities on that
land on their own behalf.
- The precise status of the perimeter area does not appear from the
pleadings, but the argument proceeded on the basis that it is unalienated
Crown
land which is included in the defence practice area either as a result of some
agreement with the State of Western Australia
or simply by force of
declarations made pursuant to reg 49(1) of the Defence Force Regulations
(Cth) ("the Defence Regulations"),
to which detailed reference will later be
made.
Use of the defence practice area
- In February 1944, an area around Lancelin Island was declared to
be an air gunnery and bombing area. On 28 October 1975 and
18 July
1978, authorisations were published in the Gazette pursuant to
s 69(1) of the Defence Act 1903 (Cth) for the use of an area for
military training. That land included part of what is now the defence practice
area.
- On 5 July 1985, 16 July 1987 and 17 October 1994, the
defence practice area was declared a defence practice area pursuant
to
reg 49(1) of the Defence Regulations[4].
The first such declaration was for use as a naval gunnery, and the second and
third for air to surface weapons firing. The relevant
parts of the first and
third of those declarations were still in force when the applications for
exploration licences were made[5].
- It seems that, so far as the perimeter area is concerned, the declarations
made under reg 49(1) of the Defence Regulations were
made with the consent
of the State for no such declaration is to be made with respect to private land
unless with the consent of
the occupier or unless it is "necessary or expedient
in the interests of the safety or defence ... to carry out ... a defence
operation
or practice"[6]. It is common ground
that, for the purposes of reg 49(1), the perimeter area is private land[7].
- According to the Commonwealth's Amended Statement of Claim, the defence
practice area has been used as follows:
"During 1993 the Army conducted operations in the defence practice
area on 203 days, the Navy on 125 days and the Airforce
on
36 days.
During 1994 the Army conducted operations in the defence practice area on
171 days, the Navy on 116 days and the Airforce
on 36 days.
During 1995 the Army conducted operations in the defence practice area on
190 days, the Navy on 117 days and the Airforce
on 36 days.
During 1996 the Army conducted operations in the defence practice area on
200 days, the Navy on 84 days and the Airforce
on 36 days.
During 1997 the Army conducted operations in the defence practice area on
207 days, the Navy on 125 days and the Airforce
on 7 days.
During 1998 to the 30th April 1998 the Army conducted operations in the
defence practice area on 82 days and the Navy on
72 days."
The Mining Act: issues with respect to
the freehold and leasehold lands
- So far as concerns the freehold and leasehold lands, the
Commonwealth contends that the Mining Act does not apply to them, or, as
it is put in the Amended Statement of Claim, "does not bind the Crown in the
right of the Commonwealth".
Further, it was put that the Mining Act
does not apply to the freehold land because of s 52(i) of the
Constitution[8]. It was also put by the
Commonwealth that, if the Mining Act purports to apply to the freehold
and leasehold lands, it is, to that extent, invalid by reason of inconsistency
with the Defence
Regulations, the 1955 Acquisition Act and the Lands
Acquisition Act 1989 (Cth) ("the 1989 Acquisition Act").
- It was also argued for the Commonwealth that the Mining Act is
invalid to the extent of its application to the freehold and leasehold lands by
reason of implied constitutional limitations on
State legislative power with
respect to the use by the Commonwealth of its property and, also, with respect
to Commonwealth property
used in connection with defence. It was also put that
there is a wider immunity with respect to defence activities. Further
reference
will be made to that argument in relation to the perimeter area.
The Mining Act: issues with respect to
the perimeter area
- So far as concerns the perimeter area, the Commonwealth argued
that the Mining Act is inconsistent with the Defence Regulations and, to
that extent, invalid by force of s 109 of the Constitution[9]. In the alternative, it was put that it was invalid
because of an implied constitutional limitation on State legislative power with
respect to the Commonwealth's capacity "to carry out defence activities as it
determines on land set aside ... for those purposes".
Further issues with respect to the freehold and leasehold
lands
- By its counterclaim, the State of Western Australia contends
that, if, by reason of any of the laws upon which the Commonwealth relies,
the
Commonwealth is entitled to prohibit or regulate exploration and mining on the
freehold and leasehold lands or the Mining Act is rendered invalid "so
that the [State] is unable to utilise the metals and minerals ... reserved to
it", the Commonwealth laws which
have that result are, to the same extent,
invalid as an acquisition of property contrary to s 51(xxxi) of the
Constitution[10]. This contention is restricted
to "metals and minerals" reserved to the State of Western Australia by the
Crown Grants and the Special
Lease. Thus, no question is raised as to the
acquisition of minerals in the perimeter area.
The Mining Act: the freehold and
leasehold lands
- If the Mining Act does not apply to the freehold or the
leasehold lands, no issue arises as to its validity in relation to those areas.
It is, therefore,
convenient to begin with the question of its application to
those areas. In this regard, it was put for the State of Western Australia
that the Mining Act applies to the freehold and leasehold lands of its
own force. In the alternative, it was argued that it is applied either by
s 64 of the Judiciary Act 1903 (Cth) or by the Commonwealth
Places (Application of Laws) Act 1970 (Cth).
- The Mining Act provides as to the circumstances in which persons may
engage in exploration or other mining activities on land in Western Australia
and regulates the conduct of those persons with respect to those activities.
It has no provision expressly binding the government
of Western Australia or
that of any other polity in the federation. Nor does it have any provision
expressly indicating whether
it applies to land owned by any other polity in
the federation. However, in terms, it applies to "Crown land" and land
reserved
for public purposes which are defined in such a way that the Act
applies to land owned or held by the State of Western Australia,
although not
in the same manner as for private land.
- So far as concerns Crown land, it is expressly provided in s 18 of the
Mining Act that all Crown land that is not already the subject of a
mining tenement is open for mining. Subject to any contrary intention,
"Crown
land" is defined in s 8(1) to mean:
"all land in the State, except -
(a) land that has been reserved for or dedicated to any public purpose
other than -
(i) land reserved for mining or commons;
(ii) land reserved and designated for public utility for any purpose under
the Land Administration Act 1997;
(b) land that has been lawfully granted or contracted to be granted in fee
simple by or on behalf of the Crown;
(c) land that is subject to any lease granted by or on behalf of the Crown
other than -
(i) a pastoral lease within the meaning of the Land Administration Act
1997, or a lease otherwise granted for grazing purposes only;
(ii) a lease for timber purposes; or
(iii) a lease of Crown land for the use and benefit of the Aboriginal
inhabitants;
(d) land that is a townsite within the meaning of the Land
Administration Act 1997"[11].
- The exception from the definition of "Crown land" of land
reserved or designated for a public purpose is of some significance. "Public
purpose" is also defined in s 8(1) and, again subject to a contrary
intention, means "any of the purposes for which land may be reserved under
Part 4 of the Land Administration Act 1997, and any purpose
declared by the Governor pursuant to that Act"[12].
- Private land is also open for mining and, by s 27 of the Mining
Act, it is provided that "a mining tenement may be applied for in respect
of any private land ... and such land is open for mining in
accordance with
this Act."[13] Again subject to a contrary
intention, "private land" is relevantly defined in s 8(1) to mean:
"... any land that has been or may hereafter be alienated from the
Crown for any estate of freehold, or is or may hereafter be the
subject of any
conditional purchase agreement, or of any lease or concession with or without a
right of acquiring the fee simple
thereof (not being a pastoral lease within
the meaning of the Land Administration Act 1997 or a lease or concession
otherwise granted by or on behalf of the Crown for grazing purposes only or for
timber purposes or a lease
of Crown land for the use and benefit of the
Aboriginal inhabitants) but -
...
(c) no land that has been reserved for or dedicated to any public purpose
shall be taken to be private land by reason only that any
lease or concession
is granted in relation thereto for any purpose".
- It is apparent from a comparison of the definitions of "Crown
land" and "private land" that land within exception (b) to the
definition
of "Crown land" (for ease of reference, land granted in fee simple) falls
within the definition of "private land" and
that land within exception (c)
(for ease of reference, Crown leases) also falls within the definition of
"private land", apart
from pastoral and grazing leases, timber leases and
Aboriginal leases which are Crown land. Land within exceptions (a) and
(d) to the definition of "Crown land" (for ease of reference, land reserved for
a public purpose and townsites) falls within neither
definition. However,
townsites and land reserved for a public purpose may be open for mining in
accordance with Div 2 of Pt III of the Mining Act. It will
later be necessary to refer to the provisions of Div 2.
- It is necessary to note three matters with respect to the definitions of
"Crown land" and "private land" in s 8(1) of the Mining Act. The
first is that, because of the definition of "public purpose", the exception of
land that has been reserved for a public purpose
from the definition of "Crown
land" does not extend to land that has been acquired by the Commonwealth for a
public purpose. The
second is that, as a matter of ordinary language, the
freehold and leasehold lands in the defence practice area fall, respectively,
within exceptions (b) and (c) to the definition of "Crown land" (land
granted in fee simple and Crown leases) and within the
definition of "private
land" ("land that has been ... alienated from the Crown for any estate of
freehold, or is ... the subject
... of any lease"). Thus, subject to any
contrary intention as allowed by s 8(1), the freehold and leasehold lands
are "private land" for the purposes of the Mining Act and open for
mining in accordance with s 27.
- The third matter to be noted with respect to the definitions of "Crown
land" and "private land" in s 8(1) of the Mining Act is that some
land, namely, land reserved for a public purpose and townsites, falls within
neither definition. That is a matter which
is relevant to the question whether
there is to be discerned a contrary intention so that, notwithstanding the
terms of the definitions,
land acquired by the Commonwealth for a public
purpose is neither "Crown land" nor "private land".
The Mining Act: principles of
construction and contrary intention
- It should at once be noted that, subject to express and implied
constitutional limitations, the various polities in the federation
may enact
legislation applying to each other and, also, to their property[14]. The question whether the legislation of one polity
applies to another is usually framed as a question whether it "binds the Crown
in right of a State" or, in the case of State legislation, "whether it binds
the Crown in right of the Commonwealth". In the present
case, however, the
question is not whether the Mining Act "binds the Commonwealth", but
whether it applies to lands acquired by the Commonwealth for a public
purpose.
- There is a common law rule or presumption that "no statute binds the Crown
unless the Crown is expressly named therein or unless there
is a necessary
implication that it was intended to be bound"[15]. And it was held in Bradken Consolidated Ltd v Broken
Hill Proprietary Co Ltd that, within Australia, that presumption applies to
"the Crown in all its capacities" and not simply "the Crown in right of
the
community whose legislation is under consideration"[16], to use expressions which were used in that case[17].
- It would be preferable, in our view, and more consonant with our
constitutional arrangements, if the presumption that a statute "does
not bind
the Crown" were expressed as a presumption that a statute which regulates the
conduct or rights of individuals does not
apply to members of the executive
government of any of the polities in the federation, government
instrumentalities and authorities
intended to have the same legal status as the
executive government, their servants or agents. For ease of reference, we
shall refer
to that presumption as the presumption that legislation does not
apply to members of the executive government.
- As already indicated, however, this case is concerned with a slightly
different presumption, namely, that a statute does not divest
the Crown of its
property, rights, interests or prerogatives unless that is clearly stated or
necessarily intended[18]. Again, for ease of
reference, we shall refer to that presumption as the presumption that
legislation does not affect government
property.
- The rationale for the presumption that a statute does not apply to members
of the executive government was identified in relation
to the United States of
America by Story J in United States v Hoar in these terms:
"In general, acts of the legislature are meant to regulate and
direct the acts and rights of citizens; and in most cases the reasoning
applicable to them applies with very different, and often contrary force to the
government itself."[19]
The same reason was given by Gibbs ACJ in Bradken for
holding that, in Australia, the presumption extends to all governments, not
just the government of the enacting polity[20].
- Speaking of legislation enacted by the Commonwealth Parliament,
Gibbs ACJ observed in Bradken that legislation "may have a very
different effect when applied to the government of a State from that which it
has in its application
to ordinary citizens."[21] That is also true of State legislation when applied to
members of the executive government of the Commonwealth. And it is, perhaps,
more obviously so in the case of legislation affecting government property,
whether the legislation in question is that of a State
or that of the
Commonwealth. For that reason, the presumption with respect to government
property should be expressed as a presumption
with respect to the property of
all polities in the federation, not simply that of the enacting polity.
Moreover, it would be anomalous
if the presumption were not to operate in the
same way as the presumption with respect to members of the executive
government.
- Reference was made earlier to the fact that there is land in Western
Australia that falls neither within the definition of "Crown
land" in
s 8(1) of the Mining Act nor within the definition of "private
land". Were those definitions exhaustive, in the sense of embracing all land
in Western Australia,
the conclusion that the Mining Act was intended to
apply to land acquired by the Commonwealth for public purposes would be
inescapable.
- Given, however, that the definitions of "Crown land" and "private property"
are not exhaustive and given, also, the presumption that
a statute does not
detract from the property rights of a State or of the Commonwealth, it is
necessary to ask whether the Act was
intended to apply to Commonwealth land.
More precisely, it is necessary to ask whether there is to be discerned a
contrary intention
so that land acquired by the Commonwealth for a public
purpose falls neither within the definition of "Crown land" nor that of
"private
land".
- It is not unusual for a State statute to be expressed to bind "the Crown in
right of" that State, but for the statute to be silent
with respect to its
application to the Commonwealth. Nor is it unusual, in that situation, for
there to be special provision as
to the manner in which the statute is to apply
to members of the executive government or to the property of the State. In
that situation,
it may be taken that the Parliament recognised that it would be
inappropriate for the statute to apply to government property or
personnel in
precisely the same way as it does to individuals.
- Moreover, if it has been recognised by the legislature that it would be
inappropriate for legislation to apply to government property
or personnel in
the same way as it applies to individuals, it may be inferred from its silence
with respect to other polities in
the federation that it was not intended that
it should apply to their property or personnel. That is because, if the
legislature
has recognised that a statute will or may have a different impact
on government property or personnel, it ought not be assumed that
it intended
to subject the property and personnel of the other polities in the federation
to a regime which it recognised was inappropriate
in its own
case.
- As earlier indicated and unless a contrary intention appears, the
Commonwealth's freehold and leasehold lands fall within the definition
of
"private land" in s 8(1) of the Mining Act. However, the lands
owned or held by the State of Western Australia are generally either "Crown
land" as defined in the Act or land
falling within exception (a) to that
definition (land reserved for a public purpose). And special provision is made
in the
Mining Act with respect to Crown land and land reserved for a
public purpose. In this regard, the first provision that should be noted is
s 19(1)(a) which enables the Minister to "exempt any land, not being
private land or land that is the subject of a mining tenement or of an
application therefor", from the operation of the Mining Act[22].
- Further, as already noted, special provision is made in Div 2 of
Pt III of the Mining Act with respect to land reserved for a public
purpose[23]. As explained earlier, that land
is not included within the definition of "Crown land". Under Div 2 of
Pt III, no mining can be carried out on specified lands, including certain
lands which are reserved under Pt 4 of the Land Administration
Act[24], other than with the
consent of the Minister[25]. And in the case
of some of those lands[26], the grant of a
mining lease is subject to the consent of both Houses of Parliament[27].
The Mining Act does not apply of its own
force to the freehold and leasehold lands
- The Mining Act's provisions enabling the exemption of
land that is not private land and requiring Ministerial consent for mining on
land reserved
under Pt 4 of the Land Administration Act are to be
taken as legislative recognition that it was not appropriate for lands owned or
held by the State to be dealt with in precisely
the same way as private land.
It is not to be assumed that the legislature considered that land acquired by
the Commonwealth for
a public purpose was to be subject to a regime considered
inappropriate for land owned or held by the State of Western
Australia.
- In the circumstances, the different treatment of that land is to be taken
as signifying a contrary intention for the purposes of s 8(1) of the
Mining Act. More precisely, it is to be taken as signifying that land
acquired by the Commonwealth for a public purpose falls neither within
the
definition of "Crown land" nor "private land". In consequence, the Act does
not apply of its own force to the freehold and leasehold
lands in the defence
practice area.
Section 64 of the Judiciary Act
- Section 64 of the Judiciary Act relevantly provides:
" In any suit to which the Commonwealth ... is a party, the rights
of parties shall as nearly as possible be the same ... as in a
suit between
subject and subject."
- It was contended for the State of Western Australia that the
proceedings in this Court are a "suit" for the purposes of s 64 of the
Judiciary Act and that the demurrer is to be determined on the basis
that s 64 operates to apply the Mining Act to the Commonwealth.
Were that the issue, the argument would find support in The Commonwealth v
Evans Deakin Industries Ltd[28]. It was
held in that case that a State law which did not purport to apply to the
Commonwealth operated to confer a right of action
against the Commonwealth once
proceedings were commenced against it.
- The issue in this case, however, is not the operation of s 64 of the
Judiciary Act in proceedings in this Court. The question is whether
mining tenements may be granted pursuant to the Mining Act over the
freehold and leasehold lands. They can only be granted on application. And as
the Mining Act does not apply to those lands of its own force, they can
only be granted if some other law - for present purposes, s 64 of the
Judiciary Act - operates to apply that Act to the process of determining
whether an application should be granted[29].
In this case, this question is whether s 64 applies the Mining Act
to the proceedings in the warden's court[30].
- As a matter of ordinary language and, also, as a matter of context, the
word "suit" in s 64 of the Judiciary Act refers to proceedings for
the determination of existing rights and obligations or other proceedings which
involve the exercise of
the judicial power of the Commonwealth[31]. An application for the grant of a mining tenement is
not an application to determine existing legal rights and obligations. Rather,
it is an application for the creation of new rights and obligations. In
essence, that is an administrative function to be performed
by wardens in
accordance with the Mining Act.
- Although it may be that, in the discharge of some functions conferred by
the Mining Act, wardens exercise what would ordinarily be regarded as
judicial power, they do not exercise any part of the judicial power of the
Commonwealth. Given that that is so and given, also, the nature of their
function with respect to applications for the grant of
mining tenements,
proceedings in the warden's court are not a "suit" for the purposes of
s 64 of the Judiciary Act[32]. It
follows that s 64 does not operate to apply the Mining Act to the
Commonwealth in those proceedings.
Commonwealth Places (Application of Laws) Act
- It was also put for the State of Western Australia that
s 4(1) of the Commonwealth Places (Application of Laws) Act applies
the Mining Act to the freehold and leasehold lands in the defence
practice area. Section 4(1) provides:
" The provisions of the laws of a State as in force at a time
(whether before or after the commencement of this Act) apply, or shall
be
deemed to have applied, in accordance with their tenor, at that time in and in
relation to each place in that State that is or
was a Commonwealth place at
that time."
- When properly construed, the Mining Act does not apply,
and does not purport to apply, to land acquired by the Commonwealth for public
purposes. Section 4(1) operates to apply State laws "in accordance with
their tenor", not to rewrite them. Accordingly, it does not operate to apply
the
Mining Act to the freehold and leasehold lands in the defence
practice area.
The State's demurrer: freehold and leasehold lands
- As the Mining Act does not apply of its own force to the
freehold and leasehold lands and is not applied to them by s 64 of the
Judiciary Act or by s 4(1) of the Commonwealth Places
(Application of Laws) Act, the State's demurrer must be overruled so far as
it concerns those lands. That being so, it is unnecessary to consider the
Commonwealth's
contentions as to the invalidity of the Mining Act in
relation to the freehold and leasehold lands by reason of inconsistency,
s 52(i) of the Constitution or implied constitutional limitations on State
legislative power.
The Mining Act: the perimeter area
- As already indicated, the argument in this Court proceeded on
the basis that the perimeter area is unalienated Crown land. It was
common
ground that, on that basis, it falls within the definition of "Crown land" in
s 8(1) of the Mining Act and is open for mining unless, in its
application to that land, the Mining Act is inconsistent with the
Defence Regulations or is otherwise invalid by reason of a constitutional
immunity with respect to land
set aside for defence purposes.
The Mining Act: inconsistency with the
Defence Regulations
- For the purposes of s 109 of the Constitution, the question
of inconsistency is ordinarily determined by asking whether the Commonwealth
law "covers the field"[33], or, whether the
State law would, if valid, "alter, impair or detract from the operation" of the
Commonwealth law[34]. On other occasions, the
question may simply be whether, for example, the laws cannot be obeyed
simultaneously[35] or whether one law takes
away what the other confers[36].
- To say that a Commonwealth law "covers the field" is simply to say that
there is to be discerned an intention on the part of the Parliament
of the
Commonwealth that its legislation should be an exclusive and exhaustive
statement of the law on the topic with which it is
concerned[37]. In this case, the question is whether the Defence
Regulations evince such an intention with respect to private land included in
a
defence practice area.
- As already indicated, land which is private land for the purposes of the
Defence Regulations may be declared a defence practice area
under
reg 49(1). By reg 51(1) of the Defence Regulations, a chief of staff
may authorise the carrying out of a defence
operation or practice in an area
that has been declared a defence practice area. And where an authorisation is
issued under reg 51(1),
"such notice ... as is reasonably required for the
protection of persons or property" must be given under
reg 52(1).
- By regs 53(1) and (2), it is an offence for a person to be in a
defence practice area without reasonable excuse, or, to permit
a vehicle,
vessel or aircraft to be in a defence practice area (again, without reasonable
excuse) "at a time specified in an instrument
under subregulation 51(1)",
except with the permission of the authorising officer or of a participating
officer[38]. If permission is given, it is an
offence to disobey a condition attached to that permission[39]. Moreover, by reg 54, persons, vehicles, vessels
and aircraft in the defence practice area without permission at the time of
a
defence operation or practice authorised under reg 51(1) may be
removed.
- One other provision of the Defence Regulations should be noted.
Regulation 57(1) relevantly provides:
"The Commonwealth shall pay reasonable compensation to a person who:
...
(b) sustains loss or damage by reason that an area is declared to
be a defence practice area under subregulation 49(1);
(c) sustains loss or damage by reason of the use of land for the purposes of
a defence operation or practice authorized under regulation 51;
or
(d) sustains loss or damage otherwise caused by the operation of this
Part."[40]
- It is clear that the regulations to which reference has been
made constitute an exhaustive statement of the Commonwealth's rights
and
obligations with respect to private land in a defence practice area. However,
they make limited provision as to the rights and
obligations of other persons.
Save to that limited extent, their rights and obligations are left to the
general law[41]. Accordingly, it cannot be
said that the Defence Regulations manifest an intention to "cover the field"
with respect to the rights
and obligations of persons other than those acting
for or on behalf of the Commonwealth in relation to the perimeter
area.
- Nor, in our view, can it be said that any provision of the Mining
Act would, if valid, alter, impair or detract from the operation of the
Defence Regulations or that the Act is otherwise inconsistent
with the
Regulations because, for example, the Act and the Regulations cannot be obeyed
simultaneously or one takes away what the
other confers. That is because the
Mining Act does not confer rights to enter upon or use land in the
perimeter area. Rather, it simply allows that authority may be granted to
persons to enter or conduct mining operations on that land.
- The Defence Regulations do not operate to prevent entry or activity on the
perimeter area, except if a defence operation or practice
has been authorised
by a chief of staff pursuant to reg 51(1). It would seem clear that, were
authority to be granted pursuant
to the Mining Act to enter upon or
conduct mining activities on land in the perimeter area at a time or times
specified in an authorisation under reg 51(1)
for the conduct of a defence
operation or practice, there would be direct inconsistency between that
authorisation and the authority
granted under the Mining Act. That
inconsistency would result from the inconsistent operation in the particular
circumstances of the Mining Act and the Defence Regulations -
"operational inconsistency", as it is called[42].
- Section 109 of the Constitution operates to render a State law
inoperative only to the extent of its inconsistency with a law of the
Commonwealth and only for so
long as the inconsistency remains[43]. Although there may be "operational inconsistency"
between the Mining Act and the Defence Regulations in the event and to
the extent that authority is conferred pursuant to the former to enter upon or
engage
in activities on land in the perimeter area at a time when a defence
operation or practice is authorised under reg 51(1) of
the Defence
Regulations, that situation has not yet arisen. Thus, at the present time,
there is no inconsistency between the Mining Act and the Defence
Regulations.
Implied immunity with respect to land "set aside for defence
purposes"
- The argument that there is an implied constitutional immunity
from State laws which operate with respect to land "set side for defence
purposes" must be rejected. The Commonwealth Parliament has power to legislate
with respect to defence[44] and, subject to
just terms, to legislate for the acquisition of land or other property for
purposes which include defence[45]. Moreover,
s 52(i) of the Constitution confers immunity from State law in the sense
that it makes Commonwealth legislative power with respect to "places acquired
by the
Commonwealth for public purposes" exclusive. Clearly s 52(i)
includes places acquired for defence purposes.
- Given the Commonwealth's power to legislate with respect to defence and the
acquisition of property and, given also, the terms of
s 52(i) of the
Constitution, there is no room for an implication of the kind for which the
Commonwealth contends.
The State's demurrer with respect to the perimeter area
- As there is no present inconsistency between the Mining
Act and the Defence Regulations in their application to the perimeter area
and no immunity of the kind for which the Commonwealth contends,
the State's
demurrer should be upheld so far as it concerns that area.
The State's counterclaim: acquisition other than on just
terms
- As already indicated, the counterclaim is confined to the
freehold and leasehold lands. It is in these terms:
"If the operation of:
(a) s 124 of the Lands Acquisition Act 1989 and
s 53(2) of the Lands Acquisition Act 1955 (as applied by
section 124(8) of the Lands Acquisition Act 1989 (Cth)); or
(b) Part X of the Lands Acquisition Act 1989, including
sections 51 and 53(2) of the Lands Acquisition Act 1955 (as applied
by s 124(8) of the Lands Acquisition Act 1989); or
(c) Section 8 of the Lands Acquisition Act 1955 and
section 134 of the Lands Acquisition Act 1989; or
(d) Regulations 49-53 of the Defence Force Regulations;
have the consequence that:
(e) the [Commonwealth] is entitled to prohibit or to regulate the
exploration for, and mining of, all metals and minerals which are
situated on
or in land the subject of Melbourne Locations 3988, 3989 and 4004; or
(f) the Mining Act 1978 is rendered invalid and inoperative
so that the [State of Western Australia] is unable to utilise the metals and
minerals or its
rights associated therewith which are reserved to it;
as the [Commonwealth] contends in its Statement of Claim,
then those provisions effect an acquisition by the [Commonwealth] of property
of the [State of Western Australia], otherwise than
on just terms, and contrary
to s 51(xxxi) of the Constitution."
- Section 124(1) of the 1989 Acquisition Act permits of the
making of regulations providing "for or in relation to prohibiting or
regulating ...
(a) the exploration for minerals on relevant land;
(b) the mining for, or recovery of, minerals on or from relevant
land;
(c) the carrying on of operations, and the execution of works, for a purpose
referred to in paragraph (a) or (b)."
Section 51(1) of the 1955 Acquisition Act provides that "[t]he
Governor-General may authorize the grant of a lease or licence
... to mine for
minerals on land ... vested in the Commonwealth." And s 53(2) of that
Act, relevantly allows the Minister to
"authorize the grant of easements, or
other rights, powers or privileges ... over or in connexion with, land vested
in the Commonwealth."
Both ss 51 and 53(2) are continued in force by
s 124(8) of the 1989 Acquisition Act until regulations are made under
s 124(1) of the latter Act.
- Apart from s 124, no provision of Pt X of the 1989 Acquisition
Act bears on the prohibition or regulation of exploration or mining on land
vested in the Commonwealth. Further, neither s 8 of
the 1955 Acquisition
Act nor s 134 of the 1989 Acquisition Act bears on that issue. Each is
concerned with the validity of assurances and provides to the effect that,
where an instrument or assurance
is executed by the Governor of a State to give
effect to an agreement with the Commonwealth for the acquisition of an interest
in
Crown land, that instrument or assurance is "valid and effectual to vest the
interest ... according to the tenor of the instrument
or assurance."[46]
- Assuming that s 124(1) of the 1989 Acquisition Act and ss 51 and
53(2) of the 1955 Acquisition Act apply to minerals which are not owned or
vested in the Commonwealth (although,
that seems unlikely), it is possible that
regulations might be made or steps taken to prohibit or regulate mining on land
vested
in the Commonwealth, including the freehold and leasehold lands in the
defence practice area. In that event, the regulations or
steps taken might
operate to negate the reservations in the Crown Grants and the Special Lease.
And in that event, a question could
arise whether there was an acquisition
other than on just terms. But until regulations are made pursuant to
s 124(1) of the 1989 Acquisition Act or steps taken pursuant to ss 51
or 53(2) of the 1955 Acquisition Act, that question does not
arise.
- Even if regulations can be made under s 124(1) of the 1989 Acquisition
Act or steps taken pursuant to ss 51 or 53(2) of the 1955 Acquisition Act
to prohibit or regulate mining on the freehold and leasehold
lands, no question
arises as to inconsistency between those Acts and the Mining Act. No
question arises because the Mining Act does not apply to that land. And
for the same reason, no question arises as to inconsistency between the
Mining Act and regs 49-53 of the Defence Regulations.
- There remains the question whether regs 49-53 effect an acquisition of
the minerals reserved to the State by the Crown Grants
and the Special Lease.
The regulation central to this question is reg 51(1) which permits
authorisations to be issued with the
effect that no person, vehicle, vessel or
aircraft can be on any part of the defence practice area at the time specified
in the authorisations.
- Neither reg 51(1) nor any of the other regulations in Pt XI of
the Defence Regulations has any direct operation which might
be thought to
amount to an acquisition of property. It may be that authorisations under
reg 51(1) have been so numerous that,
if valid, the State's present rights
of access and, perhaps, its rights to the minerals have been acquired, at least
for the period
during which those authorisations have been issued. However,
that is simply a matter of speculation. The pleadings do not indicate
how
often authorisations have been given under reg 51(1), whether with respect
to the freehold and leasehold lands or any other
part of the defence practice
area.
- Even if it be the case that authorisations under reg 51(1) of the
Defence Regulations have issued with such frequency as to raise
a question of
acquisition other than on just terms, no question would arise as to the
validity of the regulation. That is because
it would be read down within
constitutional limits and, when read down in that way, it would not permit of
authorisations effecting
an acquisition of property other than on just
terms.
- It follows that none of the provisions specified in the State's
counterclaim effect any acquisition of property. Thus the Commonwealth's
demurrer must be upheld.
Conclusion
- So far as concerns the freehold and leasehold lands, the State's
demurrer should be overruled; so far as concerns the perimeter area,
the
State's demurrer should be upheld. The Commonwealth's demurrer to the State's
counterclaim should also be upheld.
- The matter should be stood over to be listed before a single Justice to
make orders for the disposition of the action, including a
declaration that the
Mining Act does not apply to the freehold and leasehold lands, and
orders dismissing the State's counterclaim and providing as to costs, if they
be sought.
- McHUGH J. Subject to two matters, I agree with the judgment of
Hayne J in this matter.
- The first matter to which I refer is his Honour's discussion of the
capacity of the States to bind the Commonwealth. I have expressed
my views on
that subject in my judgment in Re Residential Tenancies Tribunal (NSW);
Ex parte Defence Housing Authority[47] in terms which do not fully accord with the discussion of
Hayne J in this case. No doubt it will some day be necessary to determine
whether the views expressed by Dawson, Toohey and Gaudron JJ in
Re Residential Tenancies[48] to which Hayne J refers have finally settled
the question of the States' capacity to bind the Commonwealth. But it is not
necessary
to do so for the purposes of this case.
- The second matter is whether the Crown grants created contractual rights in
favour of the State. I think that the better view of
those instruments is that
they created contractual rights in favour of the State. But assuming that is
so, those rights cannot bear
on whether the Mining Act 1978 (WA), on its
proper construction, applies to the land held by the Commonwealth.
Nevertheless, I think that the arguable existence
of these rights should be
noted. If they exist, they may be exercised by the State against the
Commonwealth. Their scope will depend
not only on the terms of the grants but
also on any restrictions which arise from valid Commonwealth legislation. If
those contractual
rights exist and if Commonwealth legislation has the effect
of modifying them, the legislation may effectuate an acquisition of property
within the terms of s 51(xxxi) of the Constitution. In that event, the
modification will be unlawful unless the legislation provides just terms for
the modification.
- However, these matters do not arise for decision in this case. The
Commonwealth has not sought to deny that the State has contractual
rights under
the Crown grants; nor has the Commonwealth sought to argue that there is any
legislation which would impact upon these
rights. Furthermore, the State has
not attempted to enforce any contractual rights that it may have under the
grants. That being
so, it is not necessary to determine either the scope of
the grants or whether, if the State sought to rely upon them, they would
or
could be affected by Commonwealth legislation.
- Subject to these matters, I agree with the judgment of Hayne J and the
orders which he proposes.
- GUMMOW J. These cross-demurrers raise issues of law respecting the
relationship between Commonwealth and State law which bear upon
the exploration
for minerals at sites in Western Australia. The Commonwealth (which is the
plaintiff in the action) and the State
(the first defendant) each assert that
the operative legal regime is that established by its own laws. In order to
state the issues
with more precision, it is convenient to begin with the
immediately relevant federal law.
- Section 124(1) of the Defence Act 1903 (Cth) ("the Defence
Act") empowers the Governor-General to make regulations, not inconsistent with
the statute, which are necessary or convenient to be prescribed
for carrying
out or giving effect to the statute. Part XI (regs 48-57C) of the
Defence Force Regulations ("the Defence Regulations") made under the Defence
Act is headed "DEFENCE PRACTICE AREAS". Part XI establishes a regime for
the control of activities in defence practice areas. The phrase "defence
practice area" means (reg 48)
"any area of land, sea or air declared by
the Minister under regulation 49". Regulation 49(1) empowers the
Minister, by
notice published in the Gazette, to declare any area of
land, sea or air in or adjacent to Australia to be a defence practice area for
carrying out a defence operation
or practice of a kind specified in the
notice.
- The Lancelin Training Area comprises defence practice areas which were
declared for naval gunnery and air to surface weapons firing
purposes by
notices under reg 49(1) dated respectively 5 July 1985 and
17 October 1994. The Lancelin Training Area
is situated on the coast of
Western Australia, about 130 kms north of the naval base at HMAS Stirling,
Cockburn Sound. Within,
but not occupying the whole of, that area at Lancelin
("the Defence Practice Area") lie three parcels of land. In respect of two
of
these parcels ("Melbourne Location 3989" and "Melbourne Location 4004") the
Commonwealth is registered as owner in fee simple
under the Transfer of Land
Act 1893 (WA) ("the Transfer of Land Act"). In respect of the third
("Melbourne Location 3988") the Commonwealth is lessee under a Special Lease
from the State of Western
Australia ("the Special Lease"). Save where the
contrary is indicated, the term "Melbourne Locations" will be used in these
reasons
to identify the two freehold Melbourne Locations 3989 and
4004.
- The Special Lease was acquired to provide a "buffer area". It was executed
and registered on 3 October 1978. The term is 21 years
from
1 July 1978 and there is a yearly rent of $360. The Commonwealth's title
to Melbourne Location 3989 was registered on
7 November 1977 and that to
Melbourne Location 4004 on 9 January 1978. The areas of the Melbourne
Locations and of the
Special Lease are respectively 591.7527 ha,
336.8413 ha and 11,853 ha. The grants of the Melbourne Locations
were made
in consideration of payments by the Commonwealth to the State of
$1,480.50 and $842 respectively. The agreed price of $1,480.50
corresponded
with a valuation and that of $842 at the time was considered reasonable by a
valuer.
- Section 7(4) of the Land Act 1933 (WA) ("the Land Act")[49], at all material times, has been in the
following form:
"The Governor is authorized to agree with the Governor General of
the Commonwealth or other appropriate authority of the Commonwealth
for the
sale or lease of any Crown lands to the Commonwealth and to execute any
instruments or assurance for granting, conveying
or leasing the land to the
Commonwealth."
The title of the Commonwealth to the two Melbourne Locations and
under the Special Lease was acquired consensually and respectively
as grants
and a lease pursuant to s 7(4) of the Land Act. It will be necessary
later in these reasons to refer to other provisions
of s 7 of the Land Act
and to relevant enabling laws of the Commonwealth. It should be noted at this
stage that the Lands Acquisition Act 1955 (Cth) ("the Acquisition Act")
was effective by its own force to vest title in the Commonwealth.
Section 8(1) thereof stated:
"Where an agreement is entered into by the Commonwealth with a
State for the acquisition of Crown land, an instrument or assurance
executed by
the Governor of that State for the purpose of carrying out the agreement is, by
force of this Act and notwithstanding
anything in the law of the State, valid
and effectual to vest the land in the Commonwealth according to the tenor of
the instrument
or assurance."
The Acquisition Act was repealed by the Lands Acquisition (Repeal
and Consequential Provisions) Act 1989 (Cth) with effect at the
commencement on 9 June 1989 of the Lands Acquisition Act 1989 (Cth)
("the 1989 Act").
- Each of the Crown grants for the Melbourne Locations and the Special Lease
contain what are identified therein as savings and reservations
in respect of
what might shortly be called mines and minerals. The term "reservation" is to
be understood to identify not subject-matter
newly created out of the grant or
demise but that which was excepted or kept back from the grant or demise[50]. The Commonwealth does not contend that it
has the property in the minerals so reserved to the State. However, it
contends that
the law of the State is ineffective to dispose of rights to the
surface and over the land embraced in the grants to the
Commonwealth.
- The second defendants ("the Wardens") are the Wardens of South West Mineral
Field established under Pt II (ss 10-16) of the Mining Act
1978 (WA) ("the Mining Act"). Part IV, Div 2 (ss 56B-70)
provides for the grant by the Minister for Mines of exploration licences after
the taking of steps which may involve the furnishing
of a warden's report
(s 59). The Minister is bound to consider such a report but may grant or
refuse to grant an exploration licence irrespective of whether
the warden has
recommended for or against a grant[51]. The
third and fourth defendants ("the Applicants") are companies incorporated under
the law of the State and each has lodged applications
for the grant of
exploration licences under the Mining Act. The areas the subject of the
applications are wholly within the Defence Practice Area. One application
(No 70/1425) is in
respect of an area partly within the Special Lease.
The others (Nos 70/1542 and 70/1549) are areas partly within one or more
of the Melbourne Locations and the Special Lease. In each case, the balance of
the areas which fall outside the Melbourne Locations
and the Special Lease, as
the case may be, still fall within the Defence Practice Area.
- Section 53(2) of the Acquisition Act stated:
"The Minister may authorize the grant of easements, or other
rights, powers or privileges (other than leases or occupation licences),
over
or in connexion with, land vested in the Commonwealth."
By instrument dated 29 November 1985 ("the Commonwealth
Authority"), which recited the effect of s 53(2), that there was
vested in
the Commonwealth land within the State of Western Australia, minerals in or
under which were owned by the State, and that
the State desired empowerment to
grant exploration licences with respect thereto, the Minister for Local
Government and Administrative
Services, on certain conditions, authorised the
State to grant such exploration licences "on behalf of the Commonwealth". The
State
Minister for Mines does not intend to exercise the Commonwealth Authority
in dealing with the Applicants. In substance, the case
for the State is that
it is unnecessary for the State Minister to rely upon any authority in addition
to that conferred by State
law, in particular by the Mining Act.
- Exploration licences if granted to the Applicants would confer certain
rights upon them. These would include authority to enter and
re-enter the land
subject to the licence and to perform operations such as the digging of pits
and the sinking of bores in or under
the land (Mining Act, s 66). The
Commonwealth submits that s 66 is ineffective to confer such authority not
only with
respect to so much of the Defence Practice Area as comprises the
freehold and leasehold areas, being the land in the Melbourne Locations
and
under the Special Lease, but also with respect to the balance of the Defence
Practice Area. However, as will appear, the declaratory
relief to which the
Commonwealth is entitled is limited to the lack of State authority with respect
to the freehold and leasehold
areas.
The issues on the demurrers
- By its Amended Statement of Claim, the Commonwealth claims
declarations that the Mining Act "does not bind the Crown in the right of the
Commonwealth", that the Mining Act is invalid in so far as it purports to apply
to land comprised within the Defence Practice Area or to the Special Lease or
the Melbourne
Locations, and that the Wardens do not have jurisdiction to deal
with applications with respect to those areas.
- The State demurs. The grounds for the State's demurrer are that
(i) the Mining Act "binds the Crown in the right of the Commonwealth" and
applies to the land within the Melbourne Locations and the Special Lease;
(ii) contrary to the position taken by the Commonwealth, no relevant
provisions of the Mining Act in their application to the Defence Practice Area,
the Melbourne Locations and the Special Lease are rendered invalid by
s 109 of the Constitution by reason of any inconsistency with the law of
the Commonwealth, including Pt XI of the Defence Regulations;
(iii) this has two limbs, namely (a) the Melbourne Locations are not
"places acquired by the
Commonwealth" within the meaning of s 52(i) of the
Constitution and, in the alternative, (b) the Mining Act applies to the
Melbourne Locations by virtue of the operation of the Commonwealth Places
(Application of Laws) Act 1970 (Cth) ("the Application of Laws Act");
(iv) the Mining Act, in so far as it applies to land within the Melbourne
Locations and the Special Lease, does not interfere with or adversely affect
the capacity of the Commonwealth to control and make use of the land nor does
it derogate from or adversely affect the interest therein
held by the
Commonwealth; and (v) in the alternative to (ii), s 64 of the
Judiciary Act 1903 (Cth) ("the Judiciary Act") renders the Mining Act
binding upon the Commonwealth, at least in the present suit in this
Court.
- If on its face the Application of Laws Act did not apply to the Melbourne
Locations, ground (iii)(b) would be determined adversely to the State, even if
the outcome of ground (iii)(a)
were that the Melbourne Locations are not
"places" upon which s 52(i) of the Constitution operates. Ground (iv)
does not arise if the Mining Act does not apply to the areas of the Melbourne
Locations and the Special Lease. There would then be no occasion to consider
the decision
in Re Residential Tenancies Tribunal (NSW); Ex parte
Defence Housing Authority[52].
- By its counterclaim, the State claims a declaration that, in so far as the
laws of the Commonwealth relied upon by the Commonwealth
to support its claim
of inconsistency with the Mining Act result in the acquisition by the
Commonwealth of the property of the State, they are invalid. To this the
Commonwealth demurs.
It does so on the grounds that (i) none of the laws
in question "effect an acquisition of property on other than just terms";
(ii) the Commonwealth acquired its interest in each of the Melbourne
Locations and the Special Lease "by voluntary agreement,
and as such acquired
its property on just terms"; and (iii) Pt XI of the Defence
Regulations, in reg 57, "allows for the acquisition of property on just
terms". If the Commonwealth fails upon
its claims of inconsistency, the
occasion for the counterclaim by the State, and the demurrer by the
Commonwealth to it, will not
arise.
The subject-matters of the grants and Special Lease
- It is necessary to begin by determining the nature and extent of
the subject-matter comprised in the grants of the Melbourne Locations
and the
demise by the Special Lease. These were authorised by s 7(4) of the Land
Act which provided for the making and implementation
of agreements between the
Governor and the Governor-General with respect to "any Crown lands". In
s 3(1), "Crown Lands" was
defined, with immaterial exceptions, to mean and
include "all lands of the Crown vested in Her Majesty".
- The term "lands" was not defined. However, s 7(2) spoke of "grants
and other instruments disposing of any portion of Crown lands
in fee simple or
for any less estate". This indicates a recognition in the Land Act of the
distinction between the identity of the
particular estate or interest in land
which is the subject of the grant and the quantum of that estate or interest on
the one hand
and the ordinary meaning of "land" on the other. This ordinary
meaning was identified by Knox CJ and Starke J in The Commonwealth
v New South Wales[53] as some "defined
portion of the terrestrial globe".
- The State referred to the principle that the words of an instrument are to
be taken against the party employing them except in the
case of the Crown and
emphasised that here the grantor and lessor was the Crown. The consequence
would be to render applicable the
statement by Slade J in Earl of
Lonsdale v Attorney-General[54]:
"[I]f the wording of a grant by the Crown is clear and unequivocal,
the grantee is entitled to rely on it as much as if the grantor
had been any
other subject of the Crown; if, on the other hand, the wording is obscure or
equivocal, the court must lean towards
the construction more favourable to the
Crown, unless satisfied that another interpretation of the relevant words in
their context
is the true one."
However, the authorities, as is indicated in the statement by
Slade J, have been concerned with cases arising between Crown
and subject.
Here, the parties to the instruments are two bodies politic. In those
circumstances, the better approach is merely
to seek the proper construction of
the instruments in the light of the surrounding circumstances at the time they
were executed[55].
- In each grant in respect of the Melbourne Locations, the subject-matter, to
be held by the Commonwealth in fee simple, was identified
as "the natural
surface and so much of the land as is below the natural surface to a depth of
12.19 metres" of the tract or parcel
of land comprising the specified hectares.
The demise the subject of the Special Lease also was identified as the natural
surface
and so much of the land as is below the natural surface to a depth of
12.19 metres of the piece or parcel of land containing the
specified
hectares.
- Each Melbourne Location grant contained reservations expressed relevantly
in identical terms[56]. There was (i) a
reservation in favour of the Crown in right of the State of all minerals "in
and under the said land, with
full liberty at all times to search and dig for
and carry away the same; and for that purpose to enter upon the said land or
any
part thereof"; (ii) a power to the Crown, and any person or persons
acting on that behalf by authority of the Crown, to resume
not more than
one-twentieth of the whole of the lands granted for the purpose of exercising
the power to search for minerals reserved
in (i); and (iii) a separate
reservation in favour of the Crown of petroleum, as defined in the Petroleum
Act 1967 (WA) ("the Petroleum Act"), with the right reserved to the Crown
and persons authorised by it to have, subject to and in accordance with the
provisions of
the Petroleum Act, access to the land for the purpose of
searching for and the operations of obtaining petroleum.
- The power of resumption without compensation conferred by (i) was
expressed to be subject to s 141 of the Land Act. The effect
of
sub-s (1) thereof was to require compensation in respect of resumptions
after five years from the date of the grant and to
assess the compensation by
setting off against the value of the land resumed any increase in value of the
land remaining which was
due to or arose out of the resumption.
- It will be noted that (ii) and (iii), but not (i), specify the exercise of
rights not only by the Crown but also by persons authorised
by it. The Special
Lease contained reservations to the effect of (i) and (ii) but not (iii). The
reservations to the effect of
(i) deal with the minerals themselves and
their exploitation but do not provide for the exercise of rights in relation
thereto
by those acting by authority of the Crown. Nor do they refer to the
mining legislation. These reservations should not be read as
reserving to the
State a power now exercisable by the State of granting rights under the Mining
Act where, under that statute, the State otherwise does not have such
power.
- The Special Lease also contained eight conditions. These included a
restriction on use of the land for any purpose other than a Naval
Gunfire
Support Range Danger Area and Army Training Area, without the prior approval in
writing of the State Minister for Lands (condition 1)
and a requirement
that the Commonwealth give to the State Department of Mines at least six weeks'
notice of firing dates whenever
an exercise was contemplated
(condition 8). In addition, the Commonwealth was obliged to permit
occupation by authorised bee-keepers,
fishermen, prospectors and miners,
consistent with the safe and effective use of the area for its leased purposes
(condition 3).
- The effect of condition 3 of the Special Lease and of the
reservations, particularly (i) and (ii) in their respective operations
in the
grants and the Special Lease, was to qualify the enjoyment of the rights of
ownership and exclusive possession which otherwise
were conferred by the State
upon the Commonwealth. For example, action authorised or permitted thereby
would be an answer to an
allegation of trespass[57].
- The question then is whether the rights and obligations created or imposed
by or pursuant to the Mining Act bear upon the subject-matter, identified as
indicated, of the grants and demise to the Commonwealth.
Does the Mining Act "bind the Commonwealth"?
- The phrase "the Crown" has come to be used in the law in
various senses. Perhaps its oldest meaning is to identify the body politic
itself. In discussing the structure of government as it has developed in the
United Kingdom, Lord Templeman, in M v Home Office[58], distinguished between "the monarch and the executive".
In the joint judgment in Bropho v Western Australia[59], reference was made to the development from "the Crown"
as encompassing little more than the Sovereign, the monarch's direct
representatives[60] and the basic organs of
government to the situation in Australia where "the activities of the executive
government reach into almost
all aspects of commercial, industrial and
developmental endeavour" and statutory instrumentalities operate on the same
basis as private
enterprise. In Bropho v Western Australia, the Court
approached from this starting point the meaning now to be given to the
presumption that statute does not "bind the
Crown" and to the doctrine of
the "shield of the Crown". Thus, the phrase "the Crown" is used here to
identify the operations of
the executive government and its statutory
instrumentalities. Where, as in the present case, title to land or other
assets is vested
in "the Crown", the body politic itself may be identified as
owner, and the expression "bind the Crown" will indicate that the enjoyment
of
the rights otherwise enjoyed as owner is qualified in some way.
- "The Crown" may identify not a body politic or the executive government
thereof but those rights, privileges or immunities identified
with the royal
prerogative. Speaking of one such prerogative in The Commonwealth v
Cigamatic Pty Ltd (In Liquidation), Dixon CJ said[61]:
"In the first instance the Commonwealth rests its claim on the
right at common law of the Crown to priority of payment when in any
administration of assets debts of equal degree due to the Crown and due to
subjects of the Crown come into competition. This right
arose from the
sovereignty of the Crown and was accordingly expressed in terms of prerogative
but it is today one of the fiscal rights
of government and of course it clearly
attaches to the Commonwealth."
Here, the term "bind the Crown" refers to the abridgement or
abolition of some special right, privilege or immunity setting the executive
government apart from citizens generally[62].
More generally, the "prerogative" may identify "the powers accorded to the
Crown by the common law"[63] or "the power of
the Crown apart from statutory authority"[64].
Here, the question whether a particular statute "binds the Crown" is more
likely to turn upon the application, to such activities
of the executive
government as the making of contracts, of a law of general operation[65].
- The remarks of Dixon CJ in Cigamatic also indicate the
difficulties which may attend the concurrent existence of several bodies
politic within the one federal structure
and the allocation between the
respective executive governments in a federation of the prerogative rights
enjoyed in a unitary state[66]. Issues of a
constitutional and federal character also arise when the legislature of one
body politic in the federation attempts
to abolish or curtail the prerogatives
attached to the executive government of another or to subject that other
executive government
to the obligations created by its laws. In Australia, the
expression "bind the Crown" has been used in this context. Jacobsen v
Rogers[67] is an example. However, it
should be noted that the issue in that case was approached by the majority on
the footing that[68]:
"Once it is seen that the Commonwealth intended by s 10 to
bind its own executive government, there is no reason to suppose that it did
not intend to bind the executive governments of the
States."
- The State alleges in its Statement of Defence that the Mining
Act "binds the Crown in right of the Commonwealth, and applies to the land
within [the] Melbourne Locations [and the Special Lease]".
The expression
"bind" when used with respect to a body politic or the executive branch of
government invites, if not requires, identification
of the particular
activities and interests of government which would be affected if the law in
question has the operation it is said
to have[69]. This is because, as Brennan CJ put it in Re
Residential Tenancies Tribunal (NSW); Ex parte Defence Housing Authority[70]:
"'bound' may have a different significance when the proposition
refers to laws of different kinds".
Further, as indicated above, the phrase "bind the Crown" may be
somewhat inapt or misleading when employed in articulation of justiciable
issues which arise from the mutual legal relations between the Commonwealth and
a State under the Constitution.
- The Constitution, in terms, distinguishes between dealings between or
involving the Commonwealth and the Parliament of a State (ss 111, 123,
124) and those between or involving the Commonwealth and the "Executive
Government" of a State (s 119). Section 85 provides for the vesting
in or acquisition by "the Commonwealth" of property of "a State" and
s 51(xxxi) speaks of the acquisition of property "from any State". The
constitutional provisions do not operate by reference to distinctions
drawn
between "the Crown" in one "capacity" and "the Crown" in another
"capacity"[71].
- The present issue between the Commonwealth and the State is better
understood as being whether, by reason of the express terms in
the Mining Act
or by its necessary intendment, the land comprised in the Melbourne Locations
and the Special Lease is open for mining in accordance
with the Mining Act.
There are no such express terms. In particular, there is no statement in the
Mining Act that its operation in respect of land and interests in land applies
to land held by the Commonwealth or that references therein to
the Crown
include the Crown in right of the Commonwealth[72]. The issue thus becomes whether on its true construction
the Mining Act evinces the necessary intendment. The State submits that there
is that intendment. That submission should not be accepted.
- The State submits that "at least in so far as the Commonwealth is the
owner of private land" the Mining Act evinces an intention that ownership and
enjoyment of the land may be affected by mining tenements (in this case,
exploration licences)
granted under the Mining Act. However, upon its proper
construction the Mining Act has no such operation. In particular, neither the
subject-matter of the grants in respect of the Melbourne Locations nor that
demised
by the Special Lease falls within any of the Divisions of Pt III
of the Mining Act.
- The Mining Act replaced the Mining Act 1904 (WA) ("the 1904 Act").
The scheme of Pt III of the Mining Act (ss 18-39) is to open for
mining thereunder Crown land
(Div 1 (ss 18-22)), private land
(Div 3 (ss 27-39)) and what in the heading to Div 2
(ss 23-26A) are
identified as "Public Reserves, etc". A different
regulatory regime is prescribed with respect to each Division in Pt III.
The closest restrictions are those prescribed by Div 2 with respect to
public reserves and the like. However, the effect of
ss 21 and 22 is that
private land under Div 3 may be taken or resumed so as to acquire the
character of Crown land within
the operation of Div 1. It will be
necessary to refer later in these reasons to this relationship between
Div 1 and Div 3.
- The term "Crown land" upon which Div 1 turns is defined in
s 8(1) as meaning "all land in the State" with specified exceptions.
One
exception is land "lawfully granted or contracted to be granted in fee simple
by or on behalf of the Crown" (par (b)).
Another is land that, with
immaterial exceptions, is "subject to any lease granted by or on behalf of the
Crown" (par (c)).
- The functions of government identified by these references to grants
respecting land in the State are, in the absence of express terms
or necessary
intendment to the contrary, to be taken as activities of the Executive
Government of the State[73]. The entire
management of the waste lands in Western Australia had been vested by the
Imperial Parliament in the Western Australian
legislature by s 3 of the
Western Australia Constitution Act 1890 (Imp)[74]. Thereafter, subject to the operation of the
Constitution and laws of the Commonwealth, dealings in Crown land, including
mines and minerals thereon and therein, could only be authorised
and supported
by the statute law of Western Australia[75].
To adapt what was said by Dixon J in Essendon Corporation v Criterion
Theatres Ltd[76], there is "no logical
ground" for expanding the meaning given in the Mining Act to the Crown "to
cover the Commonwealth"; having
regard to the history of the disposition of
Crown lands, "[t]he presumption is the other way".
- When the Mining Act was introduced, this state of affairs was recognised
and implemented by s 7 of the Land Act. Sub-sections
(1)-(3) thereof then
stated:
"(1) The Governor is authorized, in the name and on behalf of
Her Majesty, to dispose of the Crown lands within the State, in
the manner
and upon the conditions prescribed by this Act or by regulations made
thereunder.[[77]]
(2) All grants and other instruments disposing of any portion of Crown
lands in fee simple or for any less estate made in accordance
with this Act
shall be valid and effectual in law to transfer to and vest in possession in
the purchasers the land described in such
grants or other instruments for the
estate or interest therein mentioned.
(3) The Governor is authorized to make such grants and other instruments,
upon such terms and conditions as to resumption of the
land or otherwise as to
him shall seem fit."
Section 7 also recognised, in sub-s (4) set out earlier in
these reasons, that, as a consequence of federation, the Commonwealth
and
States were organisations or institutions of government, possessing distinct
individualities, which might enter into mutual legal
relations[78].
- When references to Crown grants and the definition of "Crown land" in the
Mining Act to which I have referred are read with s 7
of the Land Act, it
becomes apparent that the grants and lease by which the Commonwealth acquired
from the State the Melbourne Locations
and the Special Lease took the subject
land outside the definition of Crown land in the Mining Act. It follows that
the subject
lands are not within Div 1. It is not suggested that they
fall within Div 2. The question then is whether they fall within
Div 3 as "private land" which s 27 thereof provides is "open for
mining in accordance with this Act".
- The classification in Pt III of the Mining Act of "land open for
mining" reflects that which developed in the course of Australian
colonial
administration between (i) the waste lands of the Crown (ie, those not yet
appropriated by subjects under any title
from the Crown, whether by grant for
an estate or by lease for a term of years, or on other statutory tenure);
(ii) lands dedicated
and set apart for some public use or purpose; and
(iii) lands previously within (i) but now the subject of appropriation by
subjects as aforesaid. The history of the matter is detailed in Williams v
Attorney-General for New South Wales[79],
particularly by Barton ACJ[80],
Isaacs J[81] and Higgins J[82]. The Mining Act replaced the 1904 Act.
This had contained definitions of "Crown Land" (s 3) and "Private Land"
(s 115),
from which the definitions of those terms in s 8(1) of the
Mining Act were later developed.
- With exceptions and qualifications not of immediate importance (save that
in par (c) no land which "has been reserved for or
dedicated to any public
purpose shall be taken to be private land by reason only that any lease or
concession is granted in relation
thereto for any purpose"), the definition in
s 8(1) of "private land" means:
"any land that has been or may hereafter be alienated from the
Crown for any estate of freehold, or is or may hereafter be the subject
of any
conditional purchase agreement, or of any lease or concession with or without a
right of acquiring the fee simple thereof
...".
- It was submitted by the State that the Melbourne Locations had
been "alienated from the Crown for [an] estate of freehold" and that
the land
the subject of the Special Lease was "the subject ... of [a] lease" within the
meaning of this definition. The result is
said to be that the Melbourne
Locations are "private land" open for mining in accordance with s 27.
However, the background
of the matter and the scheme of Pt III suggest
that the alienation spoken of in the definition of "private land" is that in
favour of a private as distinct from a public alienee and, in particular, not
an alienation from one body politic in the federal
structure to another. The
definition of "private land" in the Mining Act is to be read with the
provisions in s 7 of the Land
Act, in particular with sub-ss (1)-(3)
of s 7. These deal with the disposal of Crown lands by grant and other
instruments,
whilst sub-s (4) provides for sale or lease by agreement with
the Commonwealth. The phrase "alienated from the Crown" in the
definition of
"private land", upon which Div 3 of Pt III of the Mining Act turns,
is more apt to describe the former rather
than the latter species of dealing
under s 7 of the Land Act.
- Further, the Mining Act (in ss 21 and 22) provides for the taking or
resumption on behalf of the State pursuant to the Land Acquisition and
Public Works Act 1902 (WA) of any private land, whereupon it is to be taken
for the purposes of the Mining Act to be Crown land to which Div 1 rather
than Div 3 of Pt III applies. If the legislature of the State had
been determined to provide for the taking or resumption
of land or interests in
land vested in the Commonwealth, then, given the serious constitutional
question that would arise, it would
be expected that the legislature would have
plainly indicated that intention. The failure to do so with respect to the
definition
of "private land" suggests that Div 3 is concerned with land
held by private parties rather than by the federal body politic.
- In addition, the particular treatment in Pt III of State public
purposes is a significant guide to construction. There is excluded
from the
"Crown land" which is open for mining under Div 1 land which has been
reserved for or dedicated to a wide range of
public purposes. This follows
from the exception in par (a) of the definition of "Crown land" and the
definition of "public
purpose", both in s 8(1). Reference has been made
above to the treatment of land reserved for or dedicated to public purposes
by
par (c) of the definition of "private land". The result, broadly, is to
place outside Div 1 and Div 3 land reserved
for or dedicated to State
public purposes. Such provision as is made with respect to them is found in
the special and limited provisions
of Div 2.
- If the submissions for the State be accepted, land or interests therein
which are vested in the Commonwealth would fall within Div 3
as "private
land". The differential treatment then apparent between State and Commonwealth
public purposes would raise a serious
constitutional issue. It should be
accepted that a State may not legislate in a way that discriminates against the
Commonwealth
by placing upon it a special burden or disability[83]. The phrase "public purposes" of the Commonwealth
expresses "a large and general idea"[84].
This comprehends the defence purposes in pursuance of which the Commonwealth
acquired the Melbourne Locations and took the Special
Lease.
- If the construction advanced by the State as to the scope of Div 3 of
Pt III of the Mining Act were correct, the Part would
operate by reference
to a distinction which some overriding law, namely the Constitution, decrees to
be impermissible[85]. A construction which
avoids that result is to be preferred.
- For these reasons, the submissions by the State on the construction of the
Mining Act should not be accepted. The operation of that
legislation does not
extend to that land or interest in land which constitutes the subject-matter of
the title vested in the Commonwealth
with respect to the Melbourne Locations
and the Special Lease.
- The Commonwealth, in its action, should have declaratory relief to reflect
that situation. With respect to that portion of the Defence
Practice Area
which is outside the freehold and leasehold areas, the Commonwealth relies
primarily upon a submission as to inconsistency
between the Mining Act and
Pt XI of the Defence Regulations. Consideration will be given to that
submission after dealing with
the balance of the demurrer by the State.
The consequences of the limited operation of the Mining
Act
- The result of the foregoing is that the State fails on ground
(i) for its demurrer, namely that the Mining Act "binds the Crown in
the right
of the Commonwealth" and applies to the subject-matter of the Melbourne
Locations and the Special Lease. Ground (iv)
of the demurrer does not
arise because it presupposes that the Mining Act does have such an application.
By reason of its limited
operation, the Mining Act does not derogate from or
adversely affect the interest in the Melbourne Locations and the Special Lease,
nor does it interfere with or adversely affect the capacity of the Commonwealth
to control and make use of the subject-matter of
the Melbourne Locations and
the Special Lease. However, it will be necessary to refer further to the
significance which remains
in giving effect to the reservations in the relevant
instruments and the conditions attached to the Special Lease. These generate
rights and obligations arising in contract and under the law of real property
with respect to reservations from grants, rather than
under the terms of the
Mining Act.
- The limited reach of the Mining Act also has the consequence that the
State fails in respect of ground (iii)(b) for its demurrer.
This was put
on the footing that if, contrary to the submission by the State and in
accordance with the submission for the Commonwealth,
the Melbourne Locations
were "places acquired by the Commonwealth"[86]
within the meaning of s 52(i) of the Constitution[87], the result was to engage the Application of Laws Act and
apply the Mining Act to the Melbourne Locations.
- Section 4(1) of the Application of Laws Act states:
"The provisions of the laws of a State as in force at a time
(whether before or after the commencement of this Act) apply, or shall
be
deemed to have applied, in accordance with their tenor, at that time in
and in relation to each place in that State that is or was a Commonwealth place
at that time." (emphasis added)
- The first question that arises with respect to the operation of
s 4(1) upon the use to which any land may be put is whether,
in accordance
with its tenor, the State law would restrict that use[88]. The State provisions can apply only "in accordance
with their tenor" and thus within their limits, most plainly as to locality.
Many State laws have only a local operation so that "the provisions of a
municipal by-law in Gundagai should not be applied in the
Richmond Air Force
Base"[89]. The limited reach of the Mining
Act, upon its true construction, differs in degree but not nature from the
local law referred to
in this example. Further, par (b) of s 4(2)
puts it beyond doubt that s 4(1) does not operate:
"so as to make applicable the provisions of a law of a State in or
in relation to a Commonwealth place if that law would not apply,
or would not
have applied, in or in relation to that place if it were not, or had not been,
a Commonwealth place".
- The issues which remain for consideration concern (i) the
rendering of the Mining Act "binding on the Commonwealth" by the force
of
s 64 of the Judiciary Act; and (ii) the absence (asserted by the
State and disputed by the Commonwealth) of any inconsistency between a law of
the State
and a law of the Commonwealth within the meaning of s 109 of the
Constitution.
Section 64 of the Judiciary Act
- This states:
"In any suit to which the Commonwealth or a State is a party, the
rights of parties shall as nearly as possible be the same, and
judgment may be
given and costs awarded on either side, as in a suit between subject and
subject."
- In The Commonwealth v Evans Deakin Industries Ltd[90], five members of this Court[91] rejected the view taken by the New South Wales Court of
Appeal in Australian Postal Commission v Dao[92] that s 64 did not begin to operate against the
Commonwealth until there was otherwise a cause of action which brought the
Commonwealth before
the court as a party. It was held that, whilst there must
be a suit to which the Commonwealth is a party before s 64 commences its
operation[93], this does not mean that the
cause of action must arise under some other law before s 64 may apply[94]. The commencement of a suit against the
Commonwealth, the precondition for the operation of the section, was satisfied
by the bringing
of an action against the Commonwealth in a court of competent
jurisdiction.
- In the present case, the Commonwealth did not seek leave to re-open
The Commonwealth v Evans Deakin Industries Ltd. Rather, the
Commonwealth emphasised that the application of s 64 must depend upon the
subject-matter in respect of which the rights of parties otherwise would differ
and the meaning of the phrase
"the rights of parties shall as nearly as
possible be the same"[95].
- The State submitted that the Mining Act is binding on subjects who own
private land to which Div 3 of Pt III of the Mining
Act applies and
that the effect of s 64 was to render that law of the State binding on the
Commonwealth. One difficulty with
that proposition is that, as indicated
earlier in these reasons, the Commonwealth does not own private land within the
meaning of
Div 3 of Pt III of the Mining Act. The phrase "as nearly
as possible" cannot operate to alter the nature of respective
rights in
relation to different subject-matter. Further, here the Commonwealth acquired
the freehold and leasehold titles for defence
purposes and was thus performing
a function peculiar to government. The phrase "as nearly as possible" does not
embrace such a situation.
This conclusion is not foreclosed by The
Commonwealth v Evans Deakin Industries Ltd[96].
- There is a further ground which denies the application here of s 64.
The proceeding in this Court answers the description in
s 64 of a suit to
which the Commonwealth is a party. However, the issue is whether s 64
applies in respect of the steps
to be taken by the Wardens upon the
applications by the Applicants. The nature of the authority exercised by the
Wardens is explained
earlier in these reasons.
- The Commonwealth has lodged objections to those applications.
Nevertheless, the Wardens are not engaged in the adjudication of a matter
in
which a State court is exercising federal jurisdiction with which it has been
invested by a law made by the Parliament under s 77(iii) of the
Constitution[97].
- Accordingly, s 64 has no relevant application.
Inconsistency and acquisition of property of the State
- The principles with respect to the application of s 109 of
the Constitution which are to be deduced from the decisions of this Court were
considered by Mason CJ, Deane, Toohey and Gaudron JJ in P v
P[98]. Their Honours explained that the
terms and operation of the Commonwealth law in question may disclose a
legislative intent to cover
the relevant field. If so, s 109 will apply
to render invalid the State law to the extent that it intrudes within the area
validly occupied by the federal law. If
the terms and operation of the federal
law disclose no such legislative intent, the existence and extent of
inconsistency will depend
upon the terms and operation of the Commonwealth and
the State law. When that is so, commonly the State law will be inconsistent
with the Commonwealth law and invalid only to the extent that it would "alter,
impair or detract from"[99] the operation of
the Commonwealth law.
- In particular, as was emphasised in The Kakariki[100], the federal law may not be an exhaustive statement of
rights and liabilities with respect to a particular subject-matter, but may
confer upon the executive government a power with respect to a particular
subject the exercise of which is intended to be exclusive.
Section 109
then operates at the time of the exercise of that power. In R v Winneke; Ex
parte Gallagher, Mason J referred to The Kakariki, saying[101]:
"In cases of this kind, which arise out of the coexistence of
Commonwealth and State powers potentially capable of being exercised
with
respect to the same property, no inconsistency will arise until the powers are
actually exercised."
The terms in s 109 "a law of a State", "a law of the
Commonwealth" and "to the extent of the inconsistency" have what Taylor J
in Butler v Attorney-General (Vict)[102] identified as "a temporal as well as a substantive
connotation". The relevant "law of the Commonwealth" may not enliven the
operation
of s 109 until the executive government has implemented the law
by taking the action which it authorises. This notion of "operational
inconsistency"
is important for the present case.
- It is convenient to begin with the laws upon which the Commonwealth
relies. First, the Commonwealth submits that Pt X of the 1989 Act is an
exhaustive code for the disposition of interests in land vested in the
Commonwealth and that it excludes the operation of State
law such as the Mining
Act which might otherwise empower the State to deal with interests in such
land. In particular, the contention
is that the rights conferred by an
exploration licence under the Mining Act, to which reference has been made
earlier in these reasons,
would involve the disposition of part of the
interests vested in the Commonwealth in freehold and leasehold with respect to
the Melbourne
Locations and the Special Lease. This would be so despite the
operation of the reservations in the grants and in the Special Lease
and the
conditions attached to the Special Lease.
- These submissions should not be accepted. Part X (ss 117-124)
of the 1989 Act is headed "DEALINGS IN LAND VESTED IN ACQUIRING AUTHORITIES".
The Commonwealth is an "acquiring authority" (s 6). Section 117
restricts the disposition by an acquiring authority of an interest in land.
Section 118 empowers the Minister to direct that an interest in land
vested in the Commonwealth be transferred to a particular Commonwealth
authority.
Sections 119, 120 and 121 are concerned with disposal by an
acquiring authority of interests in land and s 123 with the extinguishment
of easements where, it appears, the dominant tenement is owned by an acquiring
authority. Section 122 authorises the dedication to a public purpose of
land vested in the Commonwealth.
- None of these provisions supports the characterisation of Pt X as the
complete and comprehensive code which the Commonwealth contends supplants what
otherwise would be rights conferred by exploration
licences under the Mining
Act or the power to grant such licences. Part X cannot be construed as
covering any relevant field
which extends beyond the disposition of interests
in land vested in the Commonwealth to include the disposition of interests
which
are not so vested and, indeed, which were reserved and held back from the
vesting in the Commonwealth.
- The Commonwealth placed particular, and distinct, reliance upon
s 124, sub-s (8) of which presently preserves the operation
of
certain provisions of the Acquisition Act. These include s 53(2), the
text of which was set out earlier in these reasons
in the course of explaining
the reliance upon it for the Commonwealth Authority given to the State on
29 November 1985.
- Section 53(2) provides the conferral of authority to grant easements
or other rights, powers or privileges (not being leases
or occupation licences)
"over or in connexion with, land vested in the Commonwealth". A right, power
or privilege may be conferred,
for example, pursuant to the Commonwealth
Authority, to enter upon the Melbourne Locations and the Special Lease and
conduct activities
there involving the digging of pits and the sinking of bores
into the 12.19 metres below the natural surface. A party so authorised
would, without more, still lack the authority to excavate, extract or remove
the minerals or, in the case of the Melbourne Locations,
petroleum, which is
reserved to the State.
- Any question of the application of s 109 of the Constitution would
involve what has been identified earlier in these reasons as operational
inconsistency. No such right, power or privilege
has been granted pursuant to
authority conferred by the Minister under s 53(2). Much might turn upon
the actual terms of such a grant. In the meantime, the better view is that the
circumstance that the two legal
regimes "make contact the one with the other"[103] in this way does not attract the
operation of s 109. Rather, the decisions in cases such as Airlines of
NSW Pty Ltd v New South Wales [No 2][104] and Commercial Radio Coffs Harbour v Fuller[105] are in point. The pursuit of a
particular economic activity with respect to an area, the ownership of which is
divided between Commonwealth
and State in the particular fashion disclosed in
this case, requires compliance with both legal regimes.
- The Commonwealth also referred to s 8(1) of the Acquisition Act, the
text of which is set out earlier in these reasons. However,
this provides for
a vesting in the Commonwealth "according to the tenor of the instrument or
assurance". It thus recognises that
which was held back by the State under the
reservations. It is not to the point that that which was granted to the
Commonwealth
takes full effect notwithstanding anything in State law to the
contrary. That which takes full effect is that which was vested according
to
the tenor of the instrument or assurance.
- There is nothing in these laws of the Commonwealth which is inconsistent
with the application of the Mining Act to the subject-matter
held back by the
State under the reservations. Accordingly, the Commonwealth laws do not effect
an acquisition of the property of
the State.
The Defence Regulations
- The Commonwealth placed greatest reliance upon the operation of
the Defence Regulations with respect to defence practice areas.
This was on
the footing that, whilst those portions of the Defence Practice Area which fell
outside the Melbourne Locations and the
Special Lease were otherwise open to
mining under the State law, that law was inconsistent with the Defence
Regulations.
- The Commonwealth also submitted, as an apparent corollary, that, to the
extent that there was no operational inconsistency, the State
law was beyond
power because it interfered with or adversely affected the Commonwealth
"to discharge its constitutional obligations
in areas set aside for
defence purposes". That submission, which is not without its difficulties,
will not fall for consideration
in advance of the determination, in a properly
constituted action, of the existence of operational
inconsistency.
- As indicated earlier in these reasons, it was pursuant to reg 49 that
the Minister established the Lancelin Training Area as
the Defence Practice
Area. The scheme of Pt XI (regs 48-57C) of the Defence Regulations
involves the imposition of prohibitions,
contravention of which a penalty is
prescribed, by reg 53, upon persons without reasonable excuse being in a
defence practice
area at a time specified in an instrument issued under
reg 51(1). A person whose presence contravenes reg 53 may be removed
(reg 54).
- Regulation 51(1) empowers a chief of staff, in writing, to authorise
the carrying out in a defence practice area of defence operations
"at a time
specified in the instrument". The Commonwealth uses land within the Lancelin
Training Area, including land within the
Melbourne Locations and the Special
Lease, at the times specified in instruments issued under
reg 51.
- Paragraphs (b) and (d) of reg 57(1) state that the Commonwealth
shall pay reasonable compensation to a person who sustains
loss or damage by
reason that an area is declared to be a defence practice area under
reg 49(1) or who sustains loss or damage
otherwise caused by the operation
of Pt XI. Persons aggrieved by a refusal to pay compensation or by the
amount thereof may
apply to a "reviewing authority" established under
reg 57A, from whose decisions there is review under the Administrative
Appeals Tribunal Act 1975 (Cth) and whence an "appeal" on a question of law
lies to the Federal Court under s 44 of that statute.
- There is a dispute, crystallised in the demurrer by the Commonwealth, as
to whether upon its true construction reg 57 and the
"appeal" structure
described above[106] provide just terms for
the acquisition of property within the meaning of s 51(xxxi) of the
Constitution. It is unnecessary to resolve various issues of construction of
Pt XI of the Defence Regulations and to determine this constitutional
question in the present case. The State correctly submits that no
exploration
licences have been granted by its Minister for Mines under Pt IV,
Div 2 of the Mining Act with respect to any
portion of the Defence
Practice Area and that any inconsistency, the presence of which may activate
the constitutional guarantee,
would be operational in nature.
- Not only have the Applicants yet to receive any grant of exploration
licences pursuant to the Mining Act, but, for reasons yet to
appear, they may
never do so. Again, those bee-keepers, fishermen and others whose occupation
the Commonwealth is obliged by condition
3 of the Special Lease to permit may
assert that they have sustained loss or damage by the operation of Pt XI
but no such claim
is made in this action.
- Further, it is by no means inevitable that the provisions of the Mining
Act and of Pt XI of the Defence Regulations would operate
inconsistently
in the circumstances of this case. Section 57(1) of the Mining Act
empowers the Minister to grant a licence
on such terms and conditions as the
Minister may determine. Although one of the rights conferred upon the grantee
of an exploration
licence is authority to enter and re-enter the land the
subject of the licence (s 66(a)), that right is "subject to [the Mining]
Act" and is to be exercised "in accordance with any conditions to which the
licence may be subject". Thus, exploration licences may
be granted by the
Minister for Mines in terms which do not permit the holders to be present on
any portion of the Defence Practice
Area at the same time as defence operations
are conducted. In such a situation, there would be no operational
inconsistency because
the prohibition upon the presence of non-defence
personnel in the Defence Practice Area is limited by reg 53 to the time
specified
for the conduct of the defence operation.
- In any event, the State's counterclaim is limited to the alleged
acquisition by the Commonwealth of the property of the State, not
any third
party. The restrictive operation of Pt XI upon the reservation to the
State and its exploitation thereof conceivably could deny to the State the
"substance" and "reality"
of its proprietary interest[107] or "everything that made [it] worth having"[108]. However that may be, the potentiality
of that result does not attract s 51(xxxi) to the state of affairs now
disclosed on the pleadings. The present case stands in quite a different
position to that in Minister of State for the Army v Dalziel[109]. There, reg 54 of the National
Security (General) Regulations, made under s 5 of the National Security
Act 1939 (Cth), empowered the Minister of State for the Army in certain
circumstances to take possession of any land for a period to
end not later than
six months after the cessation of war[110].
Possession had been taken of certain land occupied by the respondent as a
weekly tenant and litigation then was instituted by the
respondent in which he
relied upon s 51(xxxi).
- As this action is constituted, no law of the State is rendered invalid to
the extent of an inconsistency with a law of the Commonwealth.
Therefore,
there arises no question of the operation of s 51(xxxi) to invalidate any
relevant law of the Commonwealth. The
relief the State seeks in its
counterclaim turns upon such an invalidating operation of s 51(xxxi). It
follows that, on its
counterclaim, the State is not entitled to relief.
Conclusion
- The demurrer by the Commonwealth to the counterclaim by the
State should be allowed. The declaration sought by the State in its
counterclaim should not be made. The demurrer by the State to the
Commonwealth's Amended Statement of Claim should be upheld to
the extent that
Pt XI of the Defence Regulations has not been shown by the Commonwealth to
operate so as to deny to those portions
of the Defence Practice Area which fall
outside the three Melbourne Locations (that is to say, outside the freehold and
leasehold
areas) the character of land open for mining under the provisions of
Pt III of the Mining Act. The result is that the Commonwealth,
in its
action, will be entitled to limited declaratory relief with respect to the
freehold and leasehold areas. The precise terms
of that relief will be for the
Justice disposing of the action but sufficient relief to the Commonwealth would
be a declaration that
the land and interests in land within the Melbourne
Locations 3988, 3989 and 4004, as identified in the Amended Statement of Claim
and vested in the Commonwealth, are not land open for mining under the
provisions of Pt III of the Mining Act. Costs of the
demurrers, if
sought, should be reserved to the disposition of the action.
- KIRBY J. These proceedings concern the intersection of federal and
State law. Before the Court are countervailing claims of inapplicability
or
invalidity of the laws said to be inconsistent.
The facts, pleadings and issues
- Most of the facts necessary to my reasons are set out in the
opinions of the other members of the Court. The issues for decision
also
appear there. Those issues arise out of the pleadings of the principal
antagonists. These are the Commonwealth of Australia
and the State of Western
Australia. To the Commonwealth's amended statement of claim seeking certain
declarations, Western Australia
has pleaded additional facts and has demurred.
It contends that, as a matter of law, the facts pleaded in the statement of
claim
do not entitle the Commonwealth to any of the relief sought. As well,
the State has lodged a counterclaim. This asserts, in effect,
that, if the
Commonwealth is entitled to the legal rights it claims, the provisions of
federal law upon which it relies effect an
acquisition of the State's property
otherwise than on just terms and are thus contrary to the Constitution[111]. Insofar as the federal laws have that
effect, Western Australia by its counterclaim seeks a declaration that they are
invalid.
To this counterclaim, the Commonwealth has, in turn,
demurred.
- The proceedings originally began in this Court on a motion for a writ of
prohibition and a declaration against the Wardens of the
South West Mineral
Field (appointed under the Mining Act 1978 (WA)[112]) and two named companies (Mineral Sand Mining &
Development Pty Ltd and Enmic Pty Ltd). Those companies have applied to the
Wardens under that Act for the grant of mineral exploration licences.
One such application came before a Warden for hearing. The Commonwealth took a
preliminary
objection, asserting that the Warden lacked jurisdiction under the
Act to grant a licence. The Warden overruled the objection[113]. The Warden made it clear that, unless stopped, he
would proceed to determine the application in accordance with the Mining
Act. This ruling led first to an application to the Supreme Court of
Western Australia where Scott J[114]
granted an order nisi for a writ of certiorari to permit review of the
Warden's decision. Later, the Commonwealth commenced proceedings in this Court
for
constitutional prohibition. McHugh J granted an order nisi. However,
after the Commonwealth filed the statement of claim in
the present suit, the
motion for the writ of prohibition was, by consent of the parties,
discontinued[115]. That left the issues to
be decided on the present pleadings. The Wardens and the two companies
submitted to the orders of this
Court. The Commonwealth and Western Australia
advanced their conflicting positions. Other States intervened, principally to
support
Western Australia.
The Defence Practice Area at Lancelin
- Affidavit material filed in the prohibition proceedings was
left before the Court. It gives some background information, much of
it in the
public record, about the use of the Lancelin Training Area in Western
Australia. It is a defence practice area ("DPA")
under the Defence Force
Regulations (Cth) made pursuant to the Defence Act 1903 (Cth)[116]. However, so far as the cross-demurrers
are concerned, they confine attention to the facts which the parties have
severally pleaded.
They each ask whether those facts, if established, would
have the legal consequences which the parties separately assert[117]. If the facts pleaded are insufficient, in law, to
have the consequences suggested, the claim or counterclaim concerned must be
sent for trial in the ordinary way.
- In elaboration of its demurrer, Western Australia annexed to its pleading
a number of original documents, being those connected with
two grants of
interests in fee simple (Locations 3989 and 4004) and the special lease
(Location 3988) all within the DPA. As well,
Western Australia annexed the
authorities approved under the Defence Act[118] and declarations made pursuant to the Defence Force
Regulations[119]. The latter define the DPA
in question, and the area of sea off the coast which was declared part of the
DPA for the purposes of
the Regulations. According to the declarations in
force at the relevant time, and still in force, the DPA may be used for naval
gunnery and air to surface weapons firing[120].
- The outer perimeter of the DPA, extending into the sea, defines its
boundaries. The inner perimeter defines the interest acquired
by the
Commonwealth from Western Australia under the special lease (Location 3988).
The two areas comprising the fee simple grant
are within that area (Locations
3989 and 4004). The other lines on the map portray the perimeters of the land
referred to in various
mineral exploration licence applications lodged with the
Wardens. It is sufficient to note that some of these extend over land held
by
the Commonwealth in fee simple and under the special lease. Some extend into
the area within the outer perimeter where the land
is not held by the
Commonwealth pursuant to any grant of leasehold or freehold. This is
unalienated Crown land of the State of Western
Australia. The Commonwealth's
interest in the land arises only as that land has been designated part of the
DPA. A map shown in
the attached Figure makes the position clearer.

The Commonwealth's claim for relief is not theoretical or premature
- I agree with Gummow J that, properly construed, the
Mining Act of Western Australia does not bind the Commonwealth (or the
Crown in right of the Commonwealth) and does not apply to the land held
by the
Commonwealth pursuant to the grants in fee simple or under the special lease.
Other considerations arise in relation to the
balance of the DPA. I also agree
with Gummow J's reasons for holding that the Mining Act is not made
applicable to the areas of land acquired in fee simple by force of the
Commonwealth Places (Application of Laws) Act 1970 (Cth), s 4(1).
Similarly, I agree that the Judiciary Act 1903 (Cth), s 64 cannot
apply (even if The Commonwealth v Evans Deakin Industries
Ltd[121] is correctly decided[122]) to import into the rights of the parties
the entitlements and obligations laid down by the Mining Act which do
not, by their terms, apply to them. On this question, I also agree with the
additional reasons given by Hayne J for
coming to that opinion. The
result, if the matter stopped here, is that the Commonwealth would be entitled
to limited declaratory
relief with respect to the freehold and leasehold areas.
But the matter does not stop here. A more fundamental problem arises requiring
broader relief.
- All of the foregoing conclusions have no greater effect than to demolish
the primary foundation of Western Australia's demurrer, relying
as it chiefly
does upon the State's attempt to apply to the Commonwealth's freehold and
leasehold lands the detailed regime of the
State Mining Act which the
Wardens have upheld. However, it seems apparent from the cross-demurrers, the
history of the litigation and the relief
which the parties severally seek from
this Court, that such conclusion by no means resolves the practical dispute now
before us.
Gummow J and Hayne J have expressed the opinion that the
other issues between the Commonwealth and Western Australia are
not
crystallised at this stage[123], are
premature or hypothetical[124]. Attractive
as it would be to agree in those propositions, I cannot do so.
- The issues in suit between the parties are by no means theoretical.
Concrete applications for actual exploration licences under the
Mining Act
have been filed in the Warden's Court. They have been filed on behalf of
the corporate parties to these proceedings (the third and
fourth defendants).
Jurisdiction to determine these applications has been upheld by the relevant
Warden (the second defendant).
His decision is supported in this Court by
Western Australia. The Commonwealth seeks a declaration that the Wardens have
no jurisdiction
to consider applications for mining tenements in or over any of
the land within the DPA. Alternatively, the Commonwealth seeks a
declaration
that there is no such jurisdiction over any land held by the Commonwealth in
fee simple or under its special lease.
Its submissions are either right or
wrong. Unless this Court determines that question, the Wardens will presumably
continue to exercise
the jurisdiction which is in contest. In particular,
unless this Court resolves the Commonwealth's assertion that the designation
of
the DPA covering the three categories of land renders the Mining Act
inapplicable, there will be no legal impediment to the continued exercise
of jurisdiction by the Wardens. This will be so despite
the fact that the
Commonwealth asserts that any such exercise of jurisdiction is inconsistent
with federal law[125] and thus, to the
extent of the inconsistency, is invalid under the Constitution[126]. Only if this question is decided, will the validity
of Western Australia's counterclaim arise for decision.
- It is true that a Minister in the Government of Western Australia is
empowered by the Mining Act to grant or refuse an exploration licence in
his or her discretion[127]. However, the
scheme of that Act, and its proper operation according to its terms, envisages
that such discretion will be exercised
after receiving a report from the Warden
which recommends the grant or refusal of the exploration licence and sets out
reasons for
such recommendation[128].
Clearly, the Warden is not expected to waste public time or the time of the
parties. The hearing by the Warden's Court is the first
step on a path towards
an exploration licence in a specified area and subject to specified conditions.
The Commonwealth contends
that the exercise of such jurisdiction is
fundamentally misconceived. Its contention goes beyond its assertion that the
Mining Act does not, of its own terms, or by force of the application of
federal law, apply to the three categories of land in which the Commonwealth
is
interested. The Commonwealth says that, even beyond its particular
acquisitions under federal law[129], the
designation of the area as a DPA, containing all of the land in question, is
fundamentally incompatible with the purported operation
in such a DPA of a
State legal regime enacted to facilitate, and result in, the grant of licences
to explore for minerals and, by
inference, eventually to exploit those which
are discovered. In my view, this Court is obliged to decide the parties'
competing
claims. If jurisdiction does not exist in the Warden's Court, this
Court must say so.
Inconsistency: the Mining Act and
Defence Force Regulations
- The Mining Act does not apply to the land held by the
Commonwealth in freehold or leasehold. No question of inconsistency between
the Mining Act and the Defence Force Regulations therefore arises
regarding such land. However, different considerations apply to the
unalienated
Crown land. Subject to questions of inconsistency and acquisition
other than on just terms, that land is open to mining under the
Mining
Act.
- It was not contested that the Defence Force Regulations were made for a
purpose in respect of which the Parliament of the Commonwealth
has powers to
make laws. The most obvious head of power in question is that conferred to
make laws with respect to "[t]he naval
and military defence of the Commonwealth
and of the several States"[130]. Plainly,
even in a time of peace, it is essential to the nation's defence that its
forces train with, and test, weapons including
by the use of naval gunnery and
by air to surface weapons firing. For that purpose, it is necessary and
expedient to have designated
areas of land and sea within which such weapons
may be tested without unacceptable risks to human life or limb, property or the
environment.
The conduct of training, manoeuvres and other military exercises
within designated DPAs is an inescapable concomitant of the effective
defence
of the Commonwealth. So potentially important is that activity to the
continued existence of the Commonwealth (and of the
States) that incompatible
activities purportedly authorised by State law could not be permitted if doing
so "would alter, impair
or detract from"[131] the fulfilment of the federal law made for the purposes
of national defence. Any such State law would then be inconsistent with
the
federal law in question. The latter would prevail. The former, to the extent
of the inconsistency, would be invalid[132].
- As the Constitution provides, the comparison which is to be made is not,
primarily at least, between possible applications of the federal and State laws
in the particular case, although this may disclose operational inconsistency
between them. It is no answer to a complaint of constitutional
inconsistency
that conditions might be imposed on an exploration licence granted under
the Mining Act which could have the effect of avoiding conflict
with the Defence Force Regulations and their requirements. Or that mining
licensees
could scurry in and out of the DPA, avoiding the weapons and military
exercises and confining their activities to compatible works,
perhaps with a
"pick and shovel"[133]. The comparison
mandated by the Constitution is between the laws themselves[134]. It is now clearly established that there may be
inconsistency within s 109 of the Constitution although it is possible to
obey both the State law and the federal law[135]. In Clyde Engineering Co Ltd v Cowburn[136], Knox CJ and Gavan Duffy J
explained:
"Two enactments may be inconsistent although obedience to each of
them may be possible without disobeying the other. Statutes may
do more than
impose duties: they may, for instance, confer rights; and one statute is
inconsistent with another when it takes away
a right conferred by that other
even though the right be one which might be waived or abandoned without
disobeying the statute which
conferred it."
It is for this reason that a State law may not impair the enjoyment
of a right conferred by federal law. If a State law "would vary,
detract from,
or impair the operation of a law of the Commonwealth"[137] it is inconsistent with that law. It is thus invalid
under the Constitution. For example, in Australian Mutual Provident
Society v Goulden[138], the Court
held the provision of the State law to be invalid under s 109 of the
Constitution as it "would qualify, impair and, in a significant respect, negate
the essential legislative scheme of the Life Insurance
Act".
- The Mining Act, which the Commonwealth says is invalid to the
extent of inconsistency with the Defence Force Regulations confers a
broad range of rights which devolve upon a person granted an exploration
licence, such as the corporate defendants seek
here. Such a licence authorises
the holder to enter and re-enter the land the subject of the licence with such
agents, employees,
vehicles, machinery and equipment as may be necessary to
explore for minerals in, on, or under, the land[139]. It authorises the licensee to carry on such
operations as are necessary to explore for minerals (including by digging pits,
trenches
and holes, and sinking bores and tunnels)[140]. It authorises the licensee to excavate earth to the
extent specified and to take and divert water[141]. The purpose of the Mining Act is
obviously to encourage and promote mining and exploration. The grant of an
exploration licence is therefore designed to impose
on the licensee an
obligation actively to exercise the licensee's privileges. The Act attaches
various conditions to the grant of
an exploration licence[142]. It also creates a number of corresponding offences.
These include destroying marks or obstructing any person marking out or
surveying
any land pursuant to the Act, interfering with the carrying
out of works by persons lawfully engaged in connection with a survey that is
being made under the Act
and, without lawful excuse, obstructing or hindering
the holder of a mining tenement in the execution of rights conferred under the
tenement[143]. The holder of an exploration
licence may also hold a miscellaneous lease which may be granted for prescribed
purposes[144]. These may include a road,
pipeline, aerodrome or any other approved purpose directly connected with the
mining operation[145]. In addition, the Act
confers on the holder of an exploration licence the right to secure a mining
lease over the land[146]. The latter has
been described as a "statutory right"[147],
although the Minister enjoys power to terminate or summarily refuse some
applications on public interest grounds[148]. Where a mining lease is granted, being the desired
objective of a successful outcome of an exploration licence, the holder is
entitled
under the Mining Act to work and mine the land. It is then
empowered to do all things that are necessary to carry out mining operations
in, on or under
the land and to occupy and enjoy the land in respect of which
the mining lease is granted[149]. A general
purpose lease may be granted to an exploration licence holder over land outside
and subject to the exploration licence[150].
This will entitle the lessee "to the exclusive occupation of the land in
respect of which the general purpose lease was granted"[151].
- The scheme which is thus set in place for the grant of mining tenements
under the Mining Act (including exploration licences) may be compared
with the federal law upon which the Commonwealth relies to oust the Mining
Act and thus to expel the jurisdiction of the Wardens. Where an area of
land is declared to be a DPA[152], the
Commonwealth thereby assumes the power to control access to such land. That
power is in direct conflict with any purported
grants of rights of access,
entry and occupation which it would be the purpose of a mining tenement
(including an exploration licence)
to confer on the holder under the Mining
Act. In particular, the Commonwealth is empowered by the Regulations to
exclude and remove persons from a DPA for the duration of defence
force
practices specified by notice[153]. There
is no limitation on the frequency of such practices. Nor is there any
restriction on when operations may occur, or the length,
variety or intensity
of particular operations (whether for hours, days or months). The requirement
that notice be given is not an
absolute one[154]. It must be given "as is reasonably required" having
regard to risks to persons and property. But so far as the federal law is
concerned, it confers upon the Commonwealth powers to regulate access to, and
use of, the land without any hint of the inhibition
that might arise in the use
of land susceptible to mining exploration approved and regulated by State
officers under State law.
- Whereas by the Mining Act, the holder of a mining tenement
(including an exploration licence) has rights of entry at will and, indeed, an
obligation to exercise
such rights which may not be lawfully impeded or
obstructed, it is an offence against the Defence Force Regulations[155] to remain upon a DPA, without permission,
at any time specified in an instrument. Persons on a DPA in contravention of
this provision
may be removed[156].
Interference with equipment or with the operation of equipment installed
pursuant to the Regulations is prohibited[157]. This is so irrespective of whether a practice has
been authorised or not.
- The foregoing provisions demonstrate to my mind a direct conflict between
the provisions of the State law and of the federal law in
question. The most
obvious inconsistency concerns the designation of the person having the power
to decide who may, and may not,
have access to, enter upon or remain on the
land comprising the DPA. The large powers conferred by the Mining Act
upon a tenement holder in some circumstances override even the rights of a
grantee of an estate in fee simple. This is apparent from
the language of that
Act[158]. The Act provides for the
landowner to take possession of the land on termination of a mining tenement
(including an exploration
licence). This provision, if it were to apply to
land within a DPA, would conflict directly with, and impair, the exercise of
the
power of the Commonwealth to control access to such land so long as it
remained subject to a declaration under the Defence Force
Regulations[159].
- To the terms of the Regulations must be added the facts pleaded by the
Commonwealth which Western Australia does not dispute[160]. These assert that the land held in fee simple and
pursuant to the special lease, as well as "the land outside those areas but
within
the [DPA]" is used for the purpose of defence and the training of
defence forces on a large number of days of any given year. The
particulars of
use, accepted by Western Australia, indicate the intensiveness of the defence
operations conducted in the Lancelin
DPA. The number of operations are
expressed in terms of succeeding years:
1993: Army, 203 days; Navy, 125 days; Airforce, 36 days.
1994: Army, 171 days; Navy, 116 days; Airforce, 36 days.
1995: Army, 190 days; Navy, 117 days; Airforce, 36 days.
1996: Army, 200 days; Navy, 84 days; Airforce, 36 days.
1997: Army, 207 days; Navy, 125 days; Airforce, 7 days.
1 January to 30 April 1998: Army, 82 days; Navy, 72 days.
- Allowing for some overlap and for joint operations, the level
of use is clearly substantial. It is open to inference that, during,
immediately before and after such use, movement and operations (as for mineral
exploration) would be out of the question. Similarly,
vehicles, heavy
equipment, mine shafts and the like would be at risk of destruction unless
removed although doubtless a humble pick
and shovel could be left behind. Even
outside the actual periods of naval gunnery and the firing of air to surface
weapons, there
could be hazards in the use of the land arising from unexploded
ordnance. With all respect to those of a different view, the notion
that
mineral explorations could proceed on such land in the way envisaged by the
State Mining Act, at least otherwise than by the express authority of
the Commonwealth and under its control[161],
appears completely fanciful.
- Once land is brought within a DPA, the Mining Act with its
procedures and permissions conferring legal rights and imposing legal
obligations cannot apply so long as the designation
of the DPA remains in
force. It is scarcely surprising that this should be so given the high
constitutional function which the Defence
Force Regulations secure. The
corporate defendants have applied for the exercise by the Wardens of the
jurisdiction conferred by
the Mining Act directed to the grant of a
mining tenement comprising an exploration licence. There is no ultimate
purpose in such applications other
than the grant of such licences. However,
if such a licence were granted, it would be inconsistent with the incidents,
nature and
purposes of a DPA. Accordingly, the Wardens' jurisdiction does not
exist in such an area. It is not a case that the jurisdiction
might be warped
and altered to conform to the requirements of federal law governing the DPA.
That would amount to a distortion, not
an application, of the Mining Act
whose object is to facilitate and encourage exploration for minerals. Upon the
land in the DPA, that purpose is simply not available,
at least by the
authority and decisions of a State Warden and a State Minister. To permit
their decisions to affect the land in
question would be to alter, impair or
detract from the operation of federal law. To the extent that the State law
purports to do
this, it is invalid within the area of the DPA. If the federal
law is valid, the land within the DPA is not available for mineral
exploration
governed by State law.
- This conclusion of direct inconsistency between the Mining Act and
Defence Force Regulations, taken on its own, would entitle the Commonwealth to
the first declaration it claims, relating to the
absence of jurisdiction in the
Wardens. It would also warrant a declaration in the form secondly sought to
the effect that the Mining Act, insofar as it purports to apply
to any land within the DPA, is invalid. In order to achieve the Commonwealth's
objectives, it would
be unnecessary to make the third declaration and the
alternative forms of the first and second. However, these conclusions require
consideration of the counterclaim by Western Australia. It asserts,
relevantly, that the Defence Force Regulations, regs 49
to 53, effect an
acquisition of property of the State otherwise than on just terms and are thus
invalid under the Constitution. To this counterclaim, the Commonwealth has
demurred.
The State's interests in the land within the DPA are
"property"
- It was not disputed in these proceedings that the portion of
the DPA which fell beyond the land held by the Commonwealth under the
grants in
fee simple, or pursuant to the special lease, amounted to unalienated Crown
land vested in the Crown in right of Western
Australia[162]. As such, the land was subject to disposal in
accordance with the Land Act 1933 (WA)[163]. Specifically, inconsistent federal law aside, it was
open to the State, in accordance with the Mining Act and for fees
recoverable by it, to provide for exploration licences in respect of
such land. Even in relation to the land within the DPA in respect of which fee
simple interests or leasehold interests had been granted to the Commonwealth,
Western Australia retained defined rights over the
minerals beneath the land
surface which were not granted to the Commonwealth but reserved and "held back"
to the Crown in right of
the State[164]. To
the extent that the Defence Force Regulations have the consequence that the
Commonwealth is entitled to prohibit or to regulate
the exploration for, and
mining of, metals and minerals which are situated on or in the DPA, a question
of acquisition otherwise
than on just terms arises.
- The starting point is a reminder of the purpose of the constitutional
"just terms" requirement. It is to ensure, in the interests
of the community
at large, that a State or other owner of property compulsorily acquired by the
Commonwealth for its purposes is
not required to sacrifice that property for
less than it is worth[165]. Unless it is
shown that what is gained is full compensation for what is lost, the "terms"
provided by the Commonwealth are not
"just". The acquisition law is invalid
because it does not meet the standards set by the Constitution. The terms of
the paragraph refer expressly to the acquisition of property "from any
State or person"[166]. This Court is
ordinarily concerned with acquisitions of property, or suggested acquisitions,
from persons. But this is a case
where the acquisition is alleged to be from a
State and clearly that is contemplated by the power. Three questions are
raised.
Is what the Commonwealth secured "property"? Has there been an
"acquisition" for a purpose in respect of which the federal Parliament
has
power to make laws? If so, does the law, pursuant to which the acquisition of
property has occurred, provide "just terms"?
- The concept of "property" has been applied most broadly[167]. It extends beyond conventional estates and interests
recognised at law and in equity whether in realty or in personality. It
includes
"innominate and anomalous interests"[168]. The scope of "property" in the present context is
best illustrated by Minister of State for the Army v Dalziel[169]. The National Security (General)
Regulations, reg 54, provided for the Minister, on behalf of the
Commonwealth, to take possession
of any land for defence purposes and to use it
as fully as if the Minister had an unencumbered interest in fee simple in the
land.
The Commonwealth, however, took neither the existing leasehold nor the
fee simple. As in the present instance, there was no dispute
that the
Regulation was otherwise valid, being for the defence of the country[170]. As here, what was disputed was whether
the Regulation provided for an "acquisition" within the Constitution and, if
so, whether another regulation, reg 60H, afforded "just terms". This
Court, by majority, answered the first question
in the affirmative[171] and the second in the negative[172]. The contention that the Commonwealth's
interest was a mere statutory creation, neither recognised by the common law
nor equity
and thus not "property", was rejected. Starke J explained[173]:
"Now is this right of the Commonwealth an acquisition of property
within the meaning of the Constitution? It is said ... that to gain a mere
temporary possession of property is not expressed by the word acquire, but by
such words as
gain, obtain, procure, as to obtain (not acquire) a book on loan.
But the construction of the Constitution cannot be based on such refinements.
However, the ownership of the land the possession of which is taken under
reg 54 is not
transferred to the Commonwealth nor is any estate therein,
but a temporary possession. The right conferred upon the Commonwealth
may be
classified, I think, under the denomination of jura in re aliena, and so
a right of property, the subject of acquisition. Nothing is gained by
comparing the right given by reg 54 to the Commonwealth
with various
estates or interests in land of limited duration or with rights over the land
of another recognized by the law, for
it is a right created by a statutory
regulation and dependent upon that regulation for its operation and its effect.
And the operation
and effect of the regulation gives the Commonwealth the right
to possession of the land of another for a period, limited only as
already
mentioned, and to do in relation to the land anything which any person having
an unencumbered interest in fee simple in the
land would be entitled to do by
virtue of that interest ... The Commonwealth ... cannot so exercise its
legislative power of acquisition
unless the terms are just."
- The Commonwealth submitted that it had not "acquired" such
interests from Western Australia. Certainly, it had not gone through
a process
of compulsory acquisition as permitted by the successive federal Lands
Acquisition Acts[174]. Yet, although
the continuing or residual interests of the State (accepted as identical for
present purposes with the interests
of the Crown in right of the State)
differed as between those parcels of land within the DPA in which the
Commonwealth had its various
interests, it is impossible to dispute that with
respect to all of the land within the DPA, the State had interests in
the nature of "property". Especially is this so if the reasoning in Dalziel
is kept in mind. It is most obviously so in the areas of DPA beyond the
Commonwealth's fee simple and leasehold interests. But it
is also true of the
freehold and leasehold areas themselves. To establish an "acquisition" it is
sufficient to show that the Commonwealth
has derived an "identifiable benefit
or advantage"[175]. The question is whether
the State was deprived of "the reality of proprietorship"[176].
The value of Western Australia's interests would vary as between the different
parcels, reflecting the State's separate interests
in each. But "property" it
is. And, relevantly, property of the State. If the Commonwealth has
"acquired" such property, the law
with respect to such acquisition must provide
"just terms".
The federal law effects an "acquisition"
- The word "acquisition" is not to be treated pedantically. It
is not limited to the physical taking of title or possession in, relevantly,
a
State's "property". Nor is it to be confined by reference to traditional
conveyancing principles and procedures[177].
The present is not a case where the State's property interests have been
extinguished by federal law. So far as the land acquired
in fee simple is
concerned, the mineral interests reserved by the grant would remain for
exploitation or disposal by the State were
the Commonwealth to terminate its
interest in the Lancelin Training Area and surrender or sell the land to the
State or sell it to
a private purchaser. Similarly, the State's interest in
the land governed by the special lease would revive at the conclusion of
the
term if there were no renewal of the lease, provided the designation of the
entire area as a DPA were likewise terminated. It
is this designation, and the
consequent operation of the Defence Force Regulations which has the effect,
whilst it endures, of "modifying"
or "depriving" the State of its property
interests[178].
- So long as that modification or deprivation endures it represents an
"acquisition" for constitutional purposes. It is a fundamental
mistake to
confine the notion of "acquisition" to the taking of full ownership of the
"property" concerned. Dalziel illustrates this point beyond argument.
There the "acquisition" comprised the taking of possession of vacant land and
then for a period
limited to the duration of the War and six months thereafter.
It is sufficient that such advantage should flow from the use of the
property
for at least such time as constitutes "acquisition". Similarly, it is
erroneous to conclude that the only "acquisitions"
to which the Constitution
addresses its attention are those achieved by the processes of compulsory
acquisition established by the Lands Acquisition Acts. The
constitutional provision is designed to provide protection against the taking
of property interests which fall short of ownership
and for durations of
control falling short of permanency. All that is necessary is that the
Commonwealth should have acquired an
"identifiable benefit or
advantage".
- It is not essential that the benefit acquired by the Commonwealth should
exactly correspond with the rights which the property owner
has lost in the
transaction[179]. Were it otherwise, the
Commonwealth could readily avoid the constitutional guarantee[180]. It could evade the obligation to pay "just terms" for
the loss of mining interests because a federal interest existed to establish
a
national park[181]. It could avoid the
payment of just terms for large scale investment in petroleum exploration in
the name of legitimate foreign
policy objectives[182]. Or, as here, it could decline to provide just terms
to compensate a State for the loss of its proprietary interests in minerals
and
their exploration because of the needs of national defence. Because national
defence is also (as the Constitution states) the defence "of the several
States"[183] it may be that in the future,
as in the past, cooperative arrangements would be made by the States for the
use by the Commonwealth
of unalienated Crown land of the States for defence
purposes. But where there is no agreement or the State disputes that the
federal
law providing for acquisition of property from it provides "just
terms", the Constitution's requirements are clear. The federal
Parliament can
enact a law for the acquisition of property for a purpose in respect of which
it has the power to make laws. But
it cannot do so at the expense of a State
or of any person. The prerequisite of the validity of such federal law is that
it provides
for acquisition of the property on "just terms".
- In the view which I take of the effect of the Defence Force Regulations,
it is unnecessary for me to examine the operation of the
Lands Acquisition
Acts as they provide the federal receptacle for the acquisition of the fee
simple and leasehold interests within the DPA. Because of those
Regulations
the entire area, and access to it, come under the power of the Commonwealth.
The identifiable benefit or advantage to
the Commonwealth was the ultimately
unimpeded control which it thereby gained over the entire DPA, undifferentiated
as to parts.
The loss of property interests suffered by the State is the loss
of control over, and potential revenue from the exploitation of
minerals found
in the DPA during the currency of the designation of the area as a DPA. There
is an adequate correspondence between
the loss of the State's interest and the
countervailing benefit or advantage gained by the Commonwealth[184]. The one is the result of the other. At the very
least, the Commonwealth, by reason of the Defence Force Regulations, acquired
the benefit of relief from the burden of the State's interests[185]. For that relief, which will endure during the
currency of the DPA, the federal law to be valid must provide "just terms".
The federal law provides "just terms" and is valid
- The Commonwealth argued that, if the foregoing conclusions were
reached, the Defence Force Regulations adequately provided for the
payment of
just terms and so were valid. The relevant Regulations are regs 57 and
57A. They appear under the heading "Compensation
for loss, injury or damage".
The pertinent provisions of reg 57 read:
"(1) The Commonwealth shall pay reasonable compensation to a person
who:
...
(b) sustains loss or damage by reason that an area is declared to be a
defence practice area under subregulation 49(1);
(c) sustains loss or damage by reason of the use of land for the purposes
of a defence operation or practice authorized under regulation
51; or
(d) sustains loss or damage otherwise caused by the operation of this Part."
- The machinery for the provision of such compensation involves
the making of a written claim[186]. If no
decision is made on such claim within 60 days a decision is deemed to have been
made refusing compensation[187]. Provision
is made for the review of a decision refusing compensation or in respect of an
amount of compensation paid which is claimed
to be inadequate. Such review is
conducted by a person or a board of persons appointed by the Secretary of the
Department of Defence[188]. Within 60 days
this "reviewing authority" is obliged to make a decision[189]. A person whose interests are affected is then
entitled to apply to the Administrative Appeals Tribunal for further review of
that
decision[190]. Under the
Administrative Appeals Tribunal Act 1975 (Cth), an "appeal" to
the Federal Court of Australia on a "question of law" lies from any decision of
the Tribunal[191]. These provisions fall
short of the conferral of an express right to just terms enforceable in a court
of law[192]. Nor is there an express
entitlement to interest. However, the Commonwealth submitted that the
Regulations sufficiently met the
constitutional requirement, if that were
necessary. Western Australia submitted that they did not.
- In resolving the dispute it is appropriate to deal first with a point of
construction argued by Western Australia. It was submitted
that reg 57
did not "evince any intention to apply to a State" and that, therefore, the
Regulations contained no provisions
whatever for "just terms" where property
was acquired from a State. This submission must be rejected. By the Acts
Interpretation Act 1901 (Cth)[193]
expressions used in any federal Act to denote persons generally (such as
"person" ...) are to be read, unless the contrary intention
appears, as
including a reference to a body politic. Thus, in a federal Act, a reference
to "person" will ordinarily be broad enough
to include a reference to a State.
Also by the Acts Interpretation Act, it is provided that where an Act
confers upon an authority power to make (relevantly) Regulations, unless the
contrary intention appears,
"expressions used in any instrument so made ...
shall have the same meanings as in the Act conferring the power". Furthermore,
the
Acts Interpretation Act shall "apply to any instrument so made ...
as if it were an Act and as if each such ... regulation ... were a section of
an Act"[194].
- Accordingly, where the Defence Force Regulations provide that the
Commonwealth shall pay "reasonable compensation to a person who
sustains loss
or damage by reason that an area is declared to be a [DPA]"[195] etc they are, by force of the Acts Interpretation
Act, to be read as including an obligation to pay reasonable compensation
to a State. There is no provision in the Regulations suggesting
a contrary
intention. If the requirement that such compensation be paid to a State were
constitutionally essential to the validity
of the Regulations (as I think to be
the case), that would afford an additional reason for construing the
Regulations in a way which
would conform to the Constitution where the contrary
construction would not.
- But does the scheme for the payment of compensation provided in the
Regulations meet the necessities established by the Constitution as explained
by this Court? The requirement that the federal law permitting an acquisition
of property by the Commonwealth should
provide "just terms" is one essential to
the valid exercise of constitutional power[196]. However, because it is part of the "composition" of
the legislative power in question, a measure of latitude will be accorded to
the Parliament in respect of the provisions it makes on the subject[197]. The use of the precise words of the
constitutional formula is not essential, although it is not unknown for the
Parliament, perhaps
for greater safety, to make express its purpose that an Act
shall provide "just terms" and that the phrase shall "have the same meaning
as
in paragraph 51(xxxi) of the Constitution"[198]. Alternatively, synonyms may be used[199]. There is no statement in the Defence Force
Regulations which is precisely equivalent to these formulations; but that is by
no means
fatal.
- Where different language is used, it is for the courts to determine
whether that language provides the "just terms" essential to validity,
or not[200]. The word "compensation", which is
common in this area of legislative discourse, has been held apt to meet the
"just terms" requirement[201]. That word is
used, for example, throughout the Lands Acquisition Acts dealing with
the consequences of acquisition by the Commonwealth of property interests[202]. Various attempts have been made by this
Court to explain what will be required of federal law so that it meets the
"just terms"
precondition to validity. Several of these attempts have been
expressed in language to the effect that the law must make provision
which is
"not unreasonable"[203]. I regard this as a
rather unhelpful elaboration[204]. It is
devoid of any real content. It does no more than to distract attention from
the language used in the Constitution itself.
- That language requires that the federal law should include appropriate
"terms" to ensure economic fairness to the State or person
whose property has
been acquired. It is important not to lose sight of the object of the
requirement. It reflects a basic principle
of fundamental civil rights[205]. It ensures that, where the Commonwealth
takes over the proprietary interests of others (whether permanently or for any
period that
qualifies as an "acquisition") it will compensate the subject of
the acquisition justly. Doing so will ensure that the true costs
of the
Commonwealth's activities, at least where performed pursuant to federal law,
will not fall unjustly on those whose property
rights are extinguished or
diminished. It will also ensure that, before acquisitions take place pursuant
to federal law, proper
consideration is given to the costs for which the
Commonwealth is thereby rendered accountable. It is useful to keep these
objectives
in mind in testing whether a particular legislative provision for
compensation meets the stringent constitutional requirements.
- Now turn back to the Defence Force Regulations. They use the words
"reasonable compensation". It is to be paid in a broad range
of circumstances
where the person (ie the "State") sustains "loss or damage". It is true that
this phrase falls short of one of
the formulations in the Lands Acquisition
Act 1989 which talks of "loss, injury or damage suffered, or expense
reasonably incurred"[206]. However, the
additional words add little of substance or relevance in the circumstances of
the State's potential claim here. That
claim would be adequately encompassed
by the words "loss or damage". The breadth of the circumstances giving rise to
an entitlement
to "reasonable compensation" goes beyond the "loss or damage"
caused by the mere declaration of an area as a DPA[207]. Were there to be any damage to the mineral deposits
of, or reserved to, the State by the defence operations or practice in the
DPA,
it would be covered[208]. To catch any
possible residue of harm, the Regulations afford a right to the payment of
"reasonable compensation" for any loss
or damage sustained which is "otherwise
caused by the operation of this Part"[209].
The scope of the circumstances encompassed by the entitlement to compensation
could therefore not be broader. I see no reason why
it would not be construed,
in an appropriate case, to include provision for interest if this were
necessary to render the compensation
"reasonable" where otherwise it would not
be.
- It is true that the Defence Force Regulations do not contain an
elaboration of the notion of "compensation" such as appears in the
successive
federal Lands Acquisition Acts. But neither is the concept of "just
terms" elaborated in the language of the Constitution. If the words
"reasonable compensation" in the Regulations were construed to conform to the
constitutional requirements, content
being provided to the extent necessary to
validity, the brevity of the formula would present no ultimate difficulty.
There is no
reason why the regulation should not be construed to conform to the
Constitution. There is every reason why it should.
- But can it be said that the failure to afford a right of action against
the Commonwealth immediately enforceable in a court of competent
jurisdiction[210] deprives the Regulations of an essential
attribute required by the Constitution? The facility to bring a claim directly
to a court of law has been a feature of successive Lands Acquisition Acts.
More recently, an alternative procedure of application to the
Administrative Appeals Tribunal has also been provided under that law[211]. The scheme of the Regulations falls
short of affording the facility of direct access to a court. However, the
Administrative Appeals
Tribunal is an independent national statutory body
enjoying wide jurisdiction and large powers. Some of its presidential members
are also federal judges. At least as it is presently constituted, I see no
reason why a facility of access to it, with "appeal"
on, and reference of,
questions of law to the Federal Court would fall short of according "just
terms" as constitutionally required.
There is, for example, nothing
intrinsically unjust in the Parliament's providing a procedure for determining
a quantum of compensation
"outside the ordinary judicial process"[212] provided procedural fairness is assured[213], no purported attempt is made to confer
on a tribunal the judicial power of the Commonwealth[214], the tribunal's decisions are susceptible to judicial
review including in this Court[215] and the
ultimate compensation afforded measures up to the constitutionally essential
requirement of "just terms". We should avoid
imposing a formalist
interpretation of the Constitution which confines all disputes about such
compensation to the courts. For many claimants courts are too slow, expensive
and effectively
unavailable for the enforcement of their rights. Tribunals may
be more innovative in their procedures, speedy and inexpensive and
thus more
likely, in a given case, to deliver the actuality of "just terms" as the
Constitution envisages. The fact that, in this case, the compensation claimed
would doubtless be substantial and the claimant is a State with
access to
skilled legal representation does not alter the general point. In contemporary
Australian society, tribunals may often
be more effective in affording true
justice. No constitutional impediment prevents the Parliament, in proper
cases, from enlisting
the services of tribunals, at least in the way done
here.
- Most, if not all, of the questions of importance which would be likely to
arise in compensation proceedings would be questions of
law. They would thus
eventually attract the jurisdiction of the Federal Court. In these
circumstances, I would not invalidate the
compensation provisions of the
Regulations on the ground that they laid down procedures falling short of
requirements deemed essential
to validity. At least in the context, and for
the purposes, of the compensation claims apt to arise under the Defence Force
Regulations,
the procedures of administrative, and ultimately judicial, review,
are within the latitude which a court will accord to the lawmaker.
Accordingly, the Regulations pass the test of affording "just terms" to any
State whose property is acquired by the declaration of
an area as a DPA or
otherwise by the operation of the Defence Force Regulations.
- The result is that Western Australia's counterclaim concerning the absence
of "just terms" in the applicable federal law fails. It
is unnecessary to
consider whether the Lands Acquisition Acts of the Commonwealth, as
applicable to the State's interests acquired here fall short of the
constitutional requirements. As those
requirements are met by the federal law
most directly applicable to use of the land as a DPA, and each of the
categories of Western
Australia's proprietary interests are within such land,
the complaints of the State about the other federal laws are inessential.
For
deprivation of any of its proprietary interests, Western Australia has
entitlements to compensation under the Regulations.
Those entitlements conform
to the constitutional requirement. The Commonwealth is therefore entitled to
succeed on its demurrer
to Western Australia's counterclaim.
Orders
- The demurrer by Western Australia to the Commonwealth's amended
statement of claim should be dismissed. The demurrer by the Commonwealth
to
the counterclaim of Western Australia should be allowed and the counterclaim of
Western Australia should be dismissed.
- The matter should be stood over to be listed before a single Justice to
make orders for the hearing and disposition of the action.
The precise terms
of that relief will be for the Justice concerned. Sufficient relief to the
Commonwealth in this Court would include
declarations:
(a) That the Wardens appointed pursuant to the provisions of the
Mining Act 1978 (WA) do not have jurisdiction to consider applications
for mining tenements in or over land within the Defence Practice Area at
Lancelin,
Western Australia so long as the land is declared to be a Defence
Practice Area within the meaning of the Defence Force Regulations;
and
(b) That the Mining Act 1978 (WA), in so far as it purports
to apply to any land comprised within the said Defence Practice Area, is
invalid.
Such declarations should be made. Costs of the demurrers, if
sought, should be reserved to the Justice disposing of the
action.
- HAYNE J. The central question in this matter is whether the State of
Western Australia can grant rights under the Mining Act 1978 (WA) ("the
Mining Act") in relation to any part of the land known as the Lancelin Training
Area.
- The Lancelin Training Area is on the coast of Western Australia, north of
the naval base at HMAS Stirling, Cockburn Sound. It has
been declared a
Defence Practice Area under reg 49 of the Defence Force Regulations.
(Those Regulations are made pursuant
to s 124(1) of the Defence
Act 1903 (Cth).) The Lancelin Training Area is a large area of land,
air and sea used for naval gunnery and for air to surface weapons
firing. It
includes three parcels of land in which the Commonwealth has an interest. The
Commonwealth is registered under the Transfer of Land Act 1893 (WA) as
proprietor of an estate in fee simple of two of those parcels - known as
Melbourne Location 3989 and Melbourne Location 4004.
The Commonwealth is
lessee of the third parcel under a Special Lease from the State of Western
Australia. The balance of the Defence
Practice Area is neither owned nor
leased by the Commonwealth.
- The Commonwealth acquired its interests in the three parcels of land I
have mentioned by agreements made under s 7(4) of the
Land Act 1933
(WA)[216]. Section 8(1) of the
Lands Acquisition Act 1955 (Cth) vested the land in the Commonwealth
"according to the tenor of the instrument or assurance"[217].
- The Commonwealth paid $1480.50 and $842 for the two freehold parcels. It
pays a yearly rent of $360 for the leasehold land.
- Both of the Crown Grants and the Special Lease reserve property in any
minerals on the land to the State. The Commonwealth does not
contend that it
has any property in those minerals. It does deny that the State can grant
rights under the Mining Act to enter any of the three parcels of land or to
explore for or recover any minerals that may be found on that land. And the
Commonwealth's
contention is not confined to these three parcels of land. It
contends that the State has no authority to grant rights under the
Mining Act
in relation to any of the other land in the Defence Practice
Area.
- By an instrument dated 29 November 1985, the Commonwealth Minister
for Local Government and Administrative Services gave authority
to the State to
grant exploration licences on behalf of the Commonwealth in respect of land
vested in the Commonwealth, the minerals
in or under which were owned by the
State. This authority referred to, and relied on, s 53(2) of the Lands
Acquisition Act 1955. That sub-section provided:
"The Minister may authorize the grant of easements, or other
rights, powers or privileges (other than leases or occupation licences),
over
or in connexion with, land vested in the Commonwealth."
The State does not intend to, and contends that it need not, rely on
this authority to grant rights under the Mining Act over any of the land within
the Defence Practice Area.
- The third and fourth defendants have applied for exploration licences
under the Mining Act. The areas that are the subject of the applications are
within the Defence Practice Area. One application is for an area of which
part
is in the land leased under the Special Lease; the other applications are for
areas that are partly within one or more of the
two freehold areas and the
leasehold area. Each application extends to areas within the Defence Practice
Area that are outside any
of these three parcels of land.
- The Mining Act provides for the steps that are to be taken on an
application for an exploration licence[218].
Those steps can include a Warden of Mines conducting a hearing[219] and giving the Minister a report recommending the grant
or refusal of the application and setting out the reasons for the
recommendation[220]. The Wardens of South
West Mineral Field (being the mineral field within which the Defence Training
Area lies) are the second defendants
to the action.
- By its Amended Statement of Claim, the Commonwealth seeks a declaration
that the Mining Act "does not bind the Crown in the right of the Commonwealth",
that the Mining Act is invalid in so far as it purports to apply to the Defence
Practice Area or the three parcels of land, and that the Mining Wardens
appointed under the Mining Act do not have jurisdiction to consider
applications for mining tenements in or over any land within the Defence
Practice Area or the
three parcels.
- The State of Western Australia demurred to this Amended Statement of Claim
and counterclaimed for a declaration that, in so far as
the laws that the
Commonwealth contends give rise to inconsistency of laws do so, they result in
the acquisition by the Commonwealth
of the State's property otherwise than on
just terms contrary to s 51(xxxi) of the Constitution and are invalid.
The Issues
- The issues presented by the demurrers can be identified as
follows:
1. In its terms, does the Mining Act give power to authorise
exploration and mining of the Defence Practice Area, including the three
parcels of freehold and leasehold
land?
2. In their terms, do the two Crown Grants to the Commonwealth and the
Special Lease to the Commonwealth reserve to the State of Western
Australia
power to permit exploration and mining of the land dealt with by the instrument?
3. Are some, or all, of the provisions of the Mining Act applied to any part
of the Defence Practice Area by either the Commonwealth Places (Application
of Laws) Act 1970 (Cth) ("the Application of Laws Act") or s 64 of the
Judiciary Act 1903 (Cth)?
4. If either of the first two questions is answered in the affirmative
(a) is the grant or reservation of that power inconsistent with a law of the
Commonwealth?
(b) is that law of the Commonwealth a valid law; in particular does it
constitute an acquisition of property otherwise than on just
terms, contrary to
s 51(xxxi) of the Constitution?
The Mining Act
- Does the Mining Act in its terms purport to permit the State to
grant rights over the land in the three parcels in which the Commonwealth has
an interest
or over the other parts of the Defence Practice Area?
- Part III of the Mining Act identifies "land open for mining". It divides
land open for mining into three categories -"Crown Land"[221], "Public Reserves, etc"[222] and "Private Land"[223] - and makes separate provision for each.
- Section 18 provides that "[a]ll Crown land, not being Crown land that is
the subject of a mining tenement, is open for mining ...". Section 23
provides that "[s]ubject to this Act, a mining tenement may be applied for" in
respect of a public reserve or other land of a kind
referred to in s 24 or
s 25 but "no mining shall be carried out on or under any such land
otherwise than in accordance
with a relevant consent obtained in relation to
that land under section 24 or section 25"[224]. Section 27(1) provides that "[s]ubject to this
Act, a mining tenement may be applied for in respect of any private land ...
and such land is open for mining in accordance with this Act".
- The Defence Practice Area does not come within any of the classes of land
specified in ss 24 and 25 of the Mining Act (that identify
the land
described in Div 2 as "Public Reserves, etc").
- The State submitted that for the purposes of the Mining Act the whole of
the Defence Practice Area, including the three parcels in which the
Commonwealth has interests in freehold or leasehold,
is open for mining in
accordance with the Act. It submitted that the three parcels in which the
Commonwealth has interests are "private
land" and that the balance of the
Defence Practice Area is "Crown land". The latter submission (that the balance
of the Defence
Practice Area is Crown land) was not, and could not be,
disputed. The former submission raises more difficult questions.
- Private land is defined in s 8(1) of the Mining Act as meaning -
"... any land that has been or may hereafter be alienated from the
Crown for any estate of freehold, or is or may hereafter be the
subject of any
conditional purchase agreement, or of any lease or concession with or without a
right of acquiring the fee simple
thereof (not being a pastoral lease within
the meaning of the Land Act 1933 or a lease or concession otherwise
granted by or on behalf of the Crown for grazing purposes only or for timber
purposes or a lease
of Crown land for the use and benefit of the Aboriginal
inhabitants) but -
(a) in relation to mining for minerals other than gold, silver and
precious metals, for the purposes of Division 3 of Part III, does
not include
land alienated before 1 January 1899, except as provided in that Division;
(b) other than in so far as the primary tenement may be treated as private
land in relation to mining for gold pursuant to a special
prospecting licence
or mining lease under section 56A, 70 or 85B, does not include land that
is the subject of a mining tenement;
and
(c) no land that has been reserved for or dedicated to any public purpose
shall be taken to be private land by reason only that any
lease or concession
is granted in relation thereto for any purpose".
- The State submitted that the two parcels of land in which the
Commonwealth has a freehold interest is land that has been alienated
from the
Crown for an estate of freehold, that the third parcel is land that is the
subject of a lease granted by the Crown and that
accordingly all three parcels
of land are private land for the purposes of the Mining Act.
- In considering that submission, it must be noted that the definition of
"Crown land" in s 8(1) excludes "land that has been lawfully granted or
contracted to be granted in fee simple by or on behalf of the Crown" and "land
that
is subject to any lease granted by or on behalf of the Crown" other than
specified types of leases[225] that are not
relevant for present purposes.
- When the definitions of "private land" and "Crown land" refer to land that
has been granted in fee simple by the Crown and to land
that is subject to a
lease granted by the Crown, do they refer to land that has been granted by the
State to the Commonwealth?
- It will be seen that the definition of "private land" does not use exactly
the same expressions as the definition of "Crown land".
The definition of
private land speaks in terms of land "alienated from the Crown for any estate
of freehold" and land that "is ...
the subject ... of any lease" whereas the
definition of Crown land refers to land "lawfully granted ... in fee simple by
or on behalf
of the Crown" and "land that is subject to any lease granted by or
on behalf of the Crown". I do not consider that anything turns
on these
differences. There is nothing in the different expressions to suggest that
land described as having been alienated from
the Crown is different from the
land that is described as having been lawfully granted by the Crown. For
present purposes the important
question is whether the land that is so
described (as alienated from, or lawfully granted by, the Crown) is intended to
include land
that has been granted to the Commonwealth.
- The references to grants by the Crown and to alienation from the Crown are
to be understood in the light of the provisions made in
that regard by the
Land Act. In particular, they are to be understood having regard
to the special provision made by s 7(4) of that Act which provides
for the
Governor of the State to agree with the Governor-General of the Commonwealth or
"other appropriate authority of the Commonwealth"
for the sale or lease of any
Crown lands to the Commonwealth. By contrast, sub-ss (1) to (3) of s 7
authorise the Governor
"in the name and on behalf of Her Majesty" to
dispose of the Crown lands within the State and to make valid and effectual
"[a]ll
grants and other instruments disposing of any portion of Crown lands in
fee simple or for any less estate" that are made in accordance
with that
Act.
- The references in the Mining Act to land "alienated from" or "granted by"
the Crown are more appropriate to describe land that has been dealt with in
accordance with
s 7(1) to (3) than land dealt with pursuant to the
separate and distinct regime prescribed by s 7(4). Central to the
operation
of the latter provision is agreement between Western Australia and
the Commonwealth for the sale or lease of the land whereas the
focus of the
former provisions is upon "grants and other instruments disposing" of the land.
Accordingly, when the Mining Act definitions refer to land alienated from, or
granted by, the Crown they are to be taken as referring to land dealt with in
accordance
with s 7(1) to (3); they do not refer to land dealt with in
accordance with s 7(4). To read the Mining Act otherwise would be to
ignore the distinction drawn by the Land Act.
- This conclusion is reinforced by the presumption that one polity in the
federation (here, Western Australia) does not intend to bind
another polity
(here, the Commonwealth) and it will be necessary to return to this
subject. But before doing so, it is necessary
to consider the consequences of
adopting the construction I favour (namely, that the references in the
definitions of private land
and Crown land to land granted by or alienated from
the Crown do not include land sold or leased to the Commonwealth pursuant to
s 7(4) of the Land Act). In particular, although the State
did not suggest that the three parcels of land held by the Commonwealth are
Crown land, the
definition of private land in the Mining Act must be understood
in the light of the definition of Crown land.
- Section 8(1) defines Crown land as meaning:
"... all land in the State, except -
(a) land that has been reserved for or dedicated to any public
purpose other than -
(i) land reserved for mining or commons;
(ii) land reserved and designated for public utility for any purpose under
the Land Act 1933;
(b) land that has been lawfully granted or contracted to be granted in fee
simple by or on behalf of the Crown;
(c) land that is subject to any lease granted by or on behalf of the Crown
other than -
(i) a pastoral lease within the meaning of the Land Act
1933, or a lease otherwise granted for grazing purposes only;
(ii) a lease for timber purposes; or
(iii) a lease of Crown land for the use and benefit of the Aboriginal
inhabitants;
(d) land reserved or constituted as a townsite under the Land
Act 1933".
It can be seen that Crown land is defined negatively, as "all land
in the State" except the types of land referred to in pars (a)
to (d). The
three parcels of land held by the Commonwealth do not come within either par
(a) or par (d). (They are not reserved
for or dedicated to a public
purpose as that term is defined in s 8(1)[226] and are not reserved or constituted as a townsite.)
And if none of the three parcels is private land they would not come within
par (b)
or par (c). On its face then, this might suggest, contrary
to the submissions of both the State and the Commonwealth, that
the land is
Crown land for the purposes of the Mining Act. But that is not so. The three
parcels of land are neither private land nor Crown land. The statutory
definitions of these expressions
must be read in the light of the presumption
referred to earlier, that one polity in a federation does not intend to bind
another
polity.
- The Mining Act contains no express statement about whether it is intended
to apply to the Crown (or as it is often put "binds the Crown") in right
of
Western Australia or the Commonwealth. Yet it is clear from the definition of
Crown land and from the scheme of the arrangements
made for mining on Crown
land and for mining on land of the kinds dealt with in Div 2 of
Pt III that the Act is intended to operate in relation to land that is
held by the State of Western Australia. And that conclusion follows
notwithstanding what the majority in Bropho v Western Australia[227] referred to as "the entrenched
presumption that a statute does not bind the Crown"[228]. Nor, given the terms of the Mining Act, is it
necessary to consider how strong that presumption may be. As was the case with
the legislation considered in Bropho, there is here no difficulty in
discerning in the provisions of the Mining Act a legislative intent that the
provisions of the Act apply to land of the State of Western Australia[229].
- But the conclusion that the Mining Act is intended to apply to land that
is land of the enacting State is not conclusive of whether the Act is intended
to apply to land
that is no longer held by the enacting State but is now held
by the Commonwealth. There are other considerations that affect that
question.
- It is as well to begin the examination of this question from some
fundamental propositions. First, it is well accepted that "the
Constitution is
predicated upon the continued separate existence of the Commonwealth and the
States, not only in name, but as bodies politic to
which the Constitution
proceeds to distribute powers of government"[230]. It has therefore been held that Commonwealth
legislative powers are impliedly restricted so as to preclude their exercise by
making
laws that single out a State, or the States as a group, so as to impose
on them some special burden or to inhibit or impair their
continued existence
or their capacity to function[231]. It is,
however, clear that subject to that limitation, the Commonwealth may, in the
exercise of its legislative powers affect the
executive capacity of a State.
The States, on the other hand, do not have specific legislative powers and do
not have power to affect
the capacities of the Commonwealth executive[232].
- The content and application of these principles has been controversial[233] and it may well be that there is still
room for doubt about them. But it is clear that whatever the content or
application of these
principles, it is not right to say that State laws cannot
by their own force bind the Commonwealth. A submission to that effect
was
expressly rejected by the majority in Re Residential Tenancies
Tribunal[234] and it is a proposition
that cannot be supported in principle. The contrary view expressed by
Fullagar J in The Commonwealth v Bogle[235]
"[t]o say that a State can enact legislation which is binding upon
the Commonwealth in the same sense in which it is binding upon
a subject of the
State appears to me to give effect to a fundamental misconception"
should be rejected for the reasons given by the majority in Re
Residential Tenancies Tribunal. No doubt, if State legislation contains no
provision dealing with its effect on the Commonwealth, deciding whether a State
law
is intended to bind the Commonwealth may be difficult. Further, if the
State law is intended to bind the Commonwealth, there may
be a difficult issue
about whether it is a law that affects the capacities of the Commonwealth
executive (as distinct from the particular
exercise of those capacities)[236]. But the first question is whether the
State law, in this case the Mining Act, is to be construed as intending its
operation to affect the Commonwealth.
- In Jacobsen v Rogers five members of the Court said that[237]:
"It must, we think, now be regarded as settled that the
application of the presumption that a statute is not intended to bind the
Crown
extends beyond the Crown in right of the enacting legislature to the Crown in
right of the other polities forming the federation[238]."
As was explained in Bropho[239], the application of the presumption that legislation
does not bind the Crown may require consideration of the strength that was
given
to it at the time the relevant legislation was enacted, at least in cases
where the question is whether the legislation affects the
executive of the
enacting polity. But it may be doubted that difficulties of that kind intrude
upon the present question which is
one concerning the intention of a
legislature to affect the executive of another polity in the
Federation.
- The various cases referred to in Bropho as warranting the
conclusion that the strength of the presumption may vary according to when
particular legislation was enacted are
cases that concern the effect of
legislation on the executive of the polity that enacts it. The presumption now
in question owes
its origin to the fact of federation and is a presumption that
is not encrusted with the extensive history of particular statements
of the
applicable rules of statutory construction that is mentioned in Bropho.
That being so, it may be doubted that the strength of the presumption should be
seen as varying over time.
- There would be a powerful indication of an intention that the Mining Act
should extend to land held by the Commonwealth if, on its face, it sought to
prescribe a regime governing mining on all land in the
State.
- The generality of the definition of Crown land ("all land in the State
except ...") coupled with the apparent matching of some
exceptions from
the definition of Crown land with some inclusions in the definition of private
land (notably the references to land
granted by or alienated from the Crown)
might suggest, at first sight, that the Mining Act is intended to apply one of
three possible regimes for mining to all areas of land in the State. And the
fact that the State claims
ownership of all minerals might reinforce that
impression. But closer examination of the Act reveals that this is not
so.
- As has already been noticed, the Mining Act makes special provision for
"land that has been reserved for or dedicated to any public purpose"[240]. Such land (with some exceptions that
are not material) is excluded from the definition of Crown land. Further, par
(c) of the
definition of private land makes plain that land "reserved for or
dedicated to any public purpose" is not to be taken to be private
land only
because some lease or concession is granted in relation to it for any
purpose.
- Division 2 of Pt III (ss 23-26A) deals with some, but not all, of the land
that is described as reserved for or dedicated to any public purpose.
Sections 24 and 25 identify the kinds of land to which the division
applies. The public purposes referred to in the definitions of private land
and
Crown land are limited to public purposes of the State[241], but not all such land is dealt with by this division.
In general, s 24 deals with national parks, nature reserves and the like
and s 25 with the foreshore, sea bed and navigable waters and with land
reserved as a townsite. The details of the application of these two
sections
is not important. What is significant is that consideration of these
provisions reveals that the Mining Act does not prescribe a regime for mining
in respect of all land in Western Australia.
- Further, the exclusion of land reserved for any State public purpose from
the definition of Crown land, coupled with the very limited
provisions made in
Div 2 of Pt III for mining of some, but not all, land reserved for such
purposes, suggests strongly that the Mining Act is not intended to apply to
land held by the Commonwealth.
- This conclusion does not depend upon the application of principles of the
land considered in Melbourne Corporation v The Commonwealth[242]. If, as was submitted by Western
Australia, the Mining Act did apply to land of the Commonwealth because
Commonwealth land is, for the purposes of the Act, "private land", the Act
would treat
that land in the same way as it treats privately held land.
Treatment in that way would not amount to some discrimination against
the
Commonwealth and would not amount to subjecting the Commonwealth to some
special burden or disability[243]. No
doubt, a conclusion that the Act was discriminatory or imposed some special
burden or disability on the Commonwealth would be
a powerful, perhaps decisive,
reason for deciding that the Act is not to be construed in a way that leads to
that result but, as
I say, I do not reach my conclusion by this path. For
present purposes it is important to note that, while there may be no relevant
discrimination or imposition of burden or disability, the construction of the
Act for which the State contends is one that does lead
to the differential
treatment of land held for State and for Commonwealth public purposes and the
treatment of Commonwealth land
as if it were private land. These are
conclusions that one should be slow to reach given the presumption that one
polity does not
intend, by its legislation, to affect the other polities in the
federation.
- There is one further (albeit less powerful) indication in the statute that
should be noted and suggests that the Mining Act is not intended to apply to
Commonwealth land. Section 21 of the Mining Act provides that land that
is not the subject of a mining tenement or land on which mining operations are
lawfully being carried on
under an agreement in writing with the owner of the
land may be "resumed on behalf of the Crown pursuant to the Land Acquisition
and Public Works Act 1902 as though the taking or resumption were required
for a public purpose". Section 22 then provides that "[w]here any private
land is taken or resumed" under s 21 "that land shall for the purposes of
this Act be taken to be Crown land". These provisions
are more consistent with
the private land provisions of the Mining Act applying only to land granted to
private holders than it is with their application to land held by the
Commonwealth.
- Taking account of these various matters I consider that the Mining Act
does not reveal an intention that it should apply to land granted to or leased
by the Commonwealth under s 7(4) of the Land Act. And that is so
notwithstanding that limiting the definition of private land to land that has
been alienated to private persons
requires that the equivalent exclusion from
the definition of Crown land should be limited in like fashion. Read as a
whole the
definition of Crown land must be read as referring to that part of
the waste lands in Western Australia[244]
still under the control of the State. That is, the definition of Crown land
should be read as referring to all land held by the
State that does not fall
within any of the exceptions mentioned. It is only if the definition of Crown
land is read in that way
that effect is given to the presumption that the
legislature of one polity does not intend to bind the other polities in the
federation.
- It is convenient to deal at this point with two particular arguments
- that the Application of Laws Act applies the Mining Act to the
three parcels of land held by the Commonwealth in freehold or leasehold; and
- that s 64 of the Judiciary Act requires that in the present
proceeding the Court apply the provisions of the Mining Act to regulate the
rights between the parties.
The Application of Laws Act
- The point can be dealt with shortly.
- Section 4(1) of the Application of Laws Act provides that:
"The provisions of the laws of a State as in force at a time
(whether before or after the commencement of this Act) apply, or shall
be
deemed to have applied, in accordance with their tenor, at that time in and in
relation to each place in that State that is or
was a Commonwealth place at
that time."
- If (as I consider is the case) the Mining Act does not provide
a regime for mining or exploration of the parcels of land owned or leased by
the Commonwealth the Application of Laws Act can lead to no different result.
Applying the Mining Act, in accordance with its tenor, provides no regime
regulating mining on the land.
- As for the balance of the Defence Practice Area, it is not a place
"acquired by the Commonwealth for public purposes" within s 52(i) of the
Constitution and is not a Commonwealth place under the Application of Laws Act.
The Application of Laws Act may therefore be put to one side.
Judiciary Act, s 64
- The present proceeding being one to which the Commonwealth or a
State is a party, s 64 of the Judiciary Act provides that "the
rights of parties shall as nearly as possible be the same ... as in a suit
between subject and subject". The State
submitted that because the Mining Act
applies the regime set out in Div 3 of Pt III to exploration and
mining on private land, s 64 of the Judiciary Act applies that
regime to Commonwealth land.
- The precise operation of s 64 may not yet have been fully elucidated.
But it must now be accepted that the rights referred to in the section are more
than procedural
and include the substantive rights to which effect is to be
given in the suit[245]. For present
purposes, what is important is that the section requires that the rights of
parties be as nearly as possible the same
as in a suit between subject and
subject.
- No doubt issues of the meaning and validity of the legislation that has
been relied on in the present proceeding could arise in litigation
between
subject and subject but if those issues did arise in such a suit, it could not
be suggested that the legislation should be
construed or given effect otherwise
than in accordance with the terms of the legislation and ordinary principle.
But the State's
reliance on s 64 seeks to go further than having the
legislation construed in accordance with its terms and having its validity
assessed according
to ordinary principles. It seeks to say that s 64
requires that those provisions of the Mining Act that apply to exploration and
mining of private land should be applied to the three parcels of land held by
the Commonwealth. That
is not to make the rights of the parties to the present
proceeding as nearly as possible the same as they would be in a suit between
subject and subject. The State seeks to make the rights of the parties
to the present proceeding as nearly as possible the same as they would be in
a
suit between the State and a subject. This is to create rights and
obligations that are not provided for by the legislation and that would not be
recognised
or enforced in any proceeding between subject and subject.
Section 64 does not lead to the conclusion for which the State contended.
The Provisions of the Crown Grants and the Special Lease
- The two Crown Grants and the Special Lease contain provisions
dealing with minerals and mining. Do those provisions permit the State
to
grant rights under the Mining Act?
- There are four reservations in the Crown Grants:
- first, a reservation in favour of the Crown "or for any person or
persons acting in that behalf by Our or their authority" to resume
and enter
upon possession of any part of the land (not exceeding one-twentieth of the
whole of the land) for purposes (among other
things) of exercising "the power
to search for minerals hereinafter reserved" and to do so without compensation;
- secondly, a reservation in favour of the Crown "or for any person or
persons acting in that behalf by Our or their authority" to
search and dig for
stones or other materials for works;
- thirdly, a reservation in favour of the Crown of all mines and minerals
"with full liberty at all times to search and dig for and
carry away the same;
and for that purpose to enter upon the said land or any part thereof"; and
- fourthly, a reservation in favour of the Crown of all petroleum on or
under the surface of the land "with the right reserved to
Us ... and persons
authorised by Us ... to have access to the said land for the purpose of
searching for and for the operations of
obtaining petroleum in any part of the
said land subject to and in accordance with ... the Petroleum Act 1967 ...".
- The Special Lease contains reservations to the same effect as the first
three reservations found in the Crown Grants; it does not
contain a reservation
equivalent to the fourth reservation about petroleum that is found in the two
Crown Grants.
- The first of these reservations confers a power to resume part of the land
granted or leased (up to one-twentieth of it). And it
speaks of persons
"acting in that behalf by Our or Their authority" doing so "for the purpose of
exercising the power to search for
minerals and gems hereinafter reserved".
The proposed grant of rights under the Mining Act is not a proposal to resume
the land. The first reservation therefore does not apply to the circumstances
now under consideration.
- In considering the construction of the other reservations, it is important
to note some differences between their terms. The first
two reservations speak
of persons "acting in that behalf by Our or their authority"; the third
reservation concerning mines and minerals
does not. The fourth reservation
(found in the Crown Grants but not in the Special Lease) refers expressly to
the Act that governs
exploration for, and recovery of, petroleum (the
Petroleum Act 1967 (WA)); the third reservation does not refer to the
Mining Act.
- The State contended that the reservations in the instruments should be
construed amply and in favour of the grantor because the grantor
was the Crown
but I doubt that the construction of these instruments should be approached
with any such predisposition when they
are instruments made between two
polities in the Federation. The principle of construction relied on by the
State finds its place
in the construction of grants by the Crown to a subject[246]. Other considerations intrude when the
instruments are made between two polities. In any event, however, the language
of the reservations
does not admit of the construction urged by the State. The
reservations do not reserve to the State the power to grant rights under
the
Mining Act.
- The reservation of mines and minerals in favour of the Crown does not
refer to "persons acting in that behalf by Our or their authority".
It does
not refer directly or indirectly to the Mining Act. In those circumstances it
cannot be said that that reservation was intended to reserve to the State of
Western Australia the power
to grant rights under the Mining Act. Nothing else
in the Crown Grants suggests the reservation of such a power.
- One of the conditions of the Special Lease obliges the Commonwealth to
permit occupation by authorised bee-keepers, fishermen, prospectors
and miners,
consistent with the safe and effective use of the area for its leased purpose
of "Naval Gunfire Support Range Danger
Area and Army Training Area". But even
taking that condition into account in construing that instrument, the
reservations that are
contained in the Special Lease (and, in particular, the
reservation of mines and minerals) cannot be read as reserving to the State
the
right to grant interests under the Mining Act.
- For these reasons the Mining Act does not prescribe a regime for
exploration or mining of the three parcels of land held by the Commonwealth in
freehold or leasehold.
But, of course, other considerations arise in relation
to the balance of the Defence Practice Area. That is unalienated Crown land
of
the State of Western Australia. Subject to questions of inconsistency and
acquisition other than on just terms, this land is
open for mining in
accordance with those provisions of the Mining Act that regulate mining and
exploration on Crown land.
Inconsistency and Acquisition of Property
- No question of inconsistency between the Mining Act and
Pt X of the Lands Acquisition Act 1989 arises. Neither the Mining
Act nor the terms of the reservations on the Crown Grants and Special Lease
authorise the granting of rights to explore for or mine on
the three parcels of
land in which the Commonwealth has an interest. Although the Mining Act does
authorise the granting of rights to explore for or mine on the balance of the
Defence Practice Area, the land has not been acquired
by the Commonwealth under
its lands acquisition legislation.
- For the reasons given by Gummow J, there may be a question of
inconsistency that arises from the particular operation of Pt XI of the
Defence Regulations (dealing with Defence Practice Areas) and the Mining Act
and a question of acquisition otherwise than on just terms. But those
questions would arise (and could be resolved) only in the
light of the
particular circumstances of a concrete case. Thus, to take only one obvious
example, very different considerations
may arise if unconditional permission
were given to conduct mining operations on the State's Crown land in the
Defence Practice Area
and notice was then given of a year long defence
operation affecting that area, from the considerations that would arise if the
permission
to conduct mining operations was conditional, or if a particular
defence operation would take only a few hours or days.
- For the reasons given by Gummow J, I agree that the declaration
sought by the State in its counterclaim should not be made.
- I agree with the orders proposed by Gummow J.
- CALLINAN J. In these reasons I refer to the land contained in the deeds
of grant and the leased land as the alienated land, and
the land outside the
alienated land but covered by the Declaration made under the Defence Force
Regulations (Cth) as the unalienated
land.
- Subject to the qualifications and additional matters which I will state I
agree with the following conclusions and reasons for judgment
of Hayne J: that
as a matter of construction the Mining Act 1978 (WA) has no application
to the lands contained in the alienated land; that the Commonwealth Places
(Application of Laws) Act 1970 (Cth) does not apply the Mining Act
to the alienated land; and, that s 64 of the Judiciary Act 1903 (Cth)
does not have the effect of enabling Western Australia and the Wardens of the
South West mineral field to grant rights and
interests in the alienated land in
accordance with the Mining Act.
- However I also agree with the reasons and conclusion of Kirby J, again,
subject to such qualifications as I state, that there is a
direct conflict
between State law, that is State law entitling the State to explore for
minerals and mine them on any of the lands,
and the Declaration made under the
Defence Force Regulations, if they are effective according to their tenor.
The effect of the reservations
- Leaving aside for present purposes the effect of the
Declaration, in my opinion, the reservations in the grants and the lease would
entitle the State of Western Australia to search for, win and transport
minerals from the alienated land (but not pursuant to the
Mining Act).
Their language is explicit and ample for those purposes. The reservations were
obviously made for good reason. Their language
should be given practical
utility. Indeed, even in the absence of their explicit language, those rights
would probably still be
exercisable by the State. As Porter LJ said in
Borys v Canadian Pacific Railway Co[247], delivering the advice of the Committee:
"... the absence of a clause giving a right to work does not
abrogate or limit the powers of the respondents. Inherently the reservation
of
a substance, which is of no advantage unless a right to work it is added, makes
the reservation useless unless that right follows
the grant. The true view is
that such a reservation necessarily implies the existence of power to recover
it and of the right of
working."
- Counsel for the Commonwealth, in argument went so far as to
assert that the reservations would permit mining of a minimal kind only,
mining
he argued, by pick and shovel only perhaps. At the time that the grants and
lease were made large scale mining operations,
utilizing open cuts, were
commonplace in Australia. That the possibility of operations of some magnitude
was within the contemplation
of the parties can be inferred from the
reservation in the grants of the right to resume up to one twelfth of the land
contained
in them to explore for minerals. The argument of the Commonwealth
must be rejected.
- To hold otherwise would be to confer upon the Commonwealth proprietary and
other rights which it chose not to acquire and for which
it did not pay. For
reasons which I will state I am of the opinion that a right to sterilize,
restrict or adversely affect the rights
of exploration and mining in or with
respect to land, is a right for which the Commonwealth, acquiring or deriving
the benefit of
that right should pay compensation on just terms.
The Defence Force Regulations and the declaration made under
them
- The Regulations made under the Defence Act 1903 (Cth)
relevantly provide as follows:
"Declaration of defence practice area
49(1) The Minister may, by notice published in the Gazette, declare
any area of land, sea or air in or adjacent to Australia to be a defence
practice area for carrying out a defence operation
or practice of a kind
specified in the notice.
(2) The Minister shall not make a declaration under subregulation (1) in
respect of private land unless:
(a) the consent in writing of the occupier of the land has first been
obtained; or
(b) it is necessary or expedient in the interests of the safety or defence
of the Commonwealth to carry out on that land a defence
operation or practice
of a kind specified in the notice without that consent.
(3) The Minister shall not, in a notice under subregulation (1), declare an
area of sea or air to be a defence practice area unless
it is an area of sea or
air in which it is necessary or expedient in the interests of the safety or
defence of the Commonwealth to
carry out a defence operation or practice of the
kind specified in the notice.
(4) Where the Minister declares a defence practice area under subregulation
(1), a chief of staff may from time to time, by notice
published in the
Gazette, authorise the installation, for a period not exceeding 2 years
that is specified in the notice, of equipment for defence purposes:
(a) in an area of sea that is, or is part of, the defence practice area; or
(b) on the sea-bed or in the subsoil beneath that area; or
(c) in the superjacent waters.
Tabling and disapproval of declarations
50(1) Where private land is the subject of a declaration made under
subregulation 49(1), the Minister shall cause a copy of the declaration
to be
laid before each House of the Parliament within 15 sitting days of that House
after the date on which the declaration was made.
(1A) If a copy of a declaration is not laid before each House of the
Parliament in accordance with the provisions of subregulation
(1), the
declaration shall be void and of no effect.
(2) If either House of the Parliament, within 15 sitting days of that House
after a copy of a declaration referred to in subregulation
(1) has been laid
before that House, passes a resolution disapproving of the declaration, then:
(a) if the declaration has not come into operation - it shall not come into
operation; or
(b) if the declaration has come into operation - the declaration shall cease
to have effect on the day on which the resolution is
passed.
Authorisation to carry out a defence operation or practice
51(1) A chief of staff may, in writing, authorize the carrying out in a
defence practice area, at a time specified in the instrument,
of a defence
operation or practice in which:
(a) members of the Defence Force;
(b) members of the armed forces of a country other than Australia; or
(c) members of the Defence Force and the armed forces of a country other
than Australia;
are to take part.
Notice to public of operation or practice
52(1) Where, under subregulation 51(1), a person authorizes the carrying
out of a defence operation or practice, that person shall
cause such notice of
the operation or practice to be given as is reasonably required for the
protection of persons or property that
may be affected by that operation or
practice having regard to:
(a) the time and place of the carrying out of the operation or practice;
(b) the nature of the equipment and ammunition proposed to be used in the
course of that operation or practice and the risk to those
persons or that
property or the injury or damage that is likely to arise from that use; and
(c) the forms of communication available to that person for the giving of
that notice to the public.
(2) Where a person authorises the installation of equipment under
subregulation 49(4), the person must cause such notice:
(a) of the installation as is reasonably required to advise persons in
reasonable proximity, within the defence practice area concerned,
of the place
where the equipment is installed; and
(b) of activities of those persons that would be likely to disturb the
equipment or interfere with its operation;
to be given to those persons, having regard to:
(c) the nature of the equipment; and
(d) the risk of damage to the equipment or interference with its operation;
and
(e) the forms of communication available to that person for the giving of
that notice to those persons.
Prohibition of being in a defence practice area
53(1) A person shall not, without reasonable excuse, be in a defence
practice area at a time specified in an instrument under subregulation
51(1)
relating to the carrying out in that area of a defence operation or practice,
except with the permission of:
(a) the chief of staff or other officer who authorized the operation or
practice; or
(b) an officer participating in the operation or practice.
...
(2) A person shall not, without reasonable excuse, permit any vehicle,
vessel or aircraft to be in a defence practice area at a time
specified in an
instrument under subregulation 51(1) relating to the carrying out of a defence
operation or practice, except with
the permission of:
(a) the chief of staff or other officer who authorized the operation or
practice; or
(b) an officer participating in the operation or practice.
...
(2A)Where the installation of equipment is authorised under subregulation
49(4), a person must not knowingly disturb the equipment
or interfere with its
operation, except with the permission of:
(a) a chief of staff; or
(b) an officer participating in a defence operation or practice in relation
to which the equipment was installed.
...
(3) Permission under subregulation (1), (2) or (2A):
(a) may be given if it is reasonably required for the protection of persons
and property in the defence practice area or for the safety
or defence of the
Commonwealth;
(b) shall be in writing;
(c) is effective for such period as is specified in the instrument; and
(d) is subject to such conditions (if any) specified in the instrument as
are reasonably required for the protection of persons and
property in the
defence practice area or for the safety or defence of the Commonwealth.
(4) Without limiting the generality of subregulation (3), the chief of
staff or other officer giving permission under subregulation
(1), (2) or (2A)
may impose conditions in relation to the conduct of persons in a defence
practice area or in relation to a vehicle,
vessel or aircraft in that area.
(5) A person shall not, without reasonable excuse, fail to comply with a
condition specified in an instrument of permission given
to the person under
this regulation.
...
(6) Where a vehicle, vessel or aircraft is in a defence practice area in
contravention of subregulation (2), (2A) or (5) each of:
(a) in the case of a vehicle - the driver, owner and the hirer (if any) of
the vehicle;
(b) in the case of a vessel - the master, owner and the charterer
(if any) of the vessel, and the agent (if any) for the vessel;
or
(c) in the case of an aircraft - the pilot, owner and the charterer
(if any) of the aircraft, and the agent (if any) for the
aircraft;
is guilty of an offence against subregulation (2), (2A) or (5), as the case
may be, but an offender is not liable to be punished more
than once in respect
of the same offence.
...
Removal from defence practice area
54(1) A person:
(a) who, in contravention of regulation 53, is, or permits a vehicle,
vessel or aircraft to be, in a defence practice area at a time specified in an
instrument under subregulation
51(1); or
(b) who fails to comply with a condition specified in an instrument of
permission given to that person under regulation 53;
may, without affecting any other proceedings that may be taken against the
person, be removed from the area by, or under the direction
of, a member of the
Defence Force, a member or special member of the Australian Federal Police or a
constable.
(2) Any vehicle, vessel or aircraft in a defence practice area in
contravention of regulation 53 may be removed from the area by, or under the
direction of, a member of the Defence Force, a member or special member of the
Australian
Federal Police or a constable.
Duties etc. of authorized officers
55 Where a member of the Defence Force gives a direction to a person under
regulation 54, the member shall, if requested by that
person, produce evidence
that he or she is a member of the Defence Force for inspection by that person
and, if the member fails to
do so, that person is not obliged to comply with
that direction.
Obstruction etc. of member of Defence Force etc.
56 A person shall not, without reasonable excuse, obstruct or hinder a
member of the Defence Force, a member or special member of
the Australian
Federal Police or a constable in the exercise by that member, special member or
constable of a power conferred by
this Part or obstruct or hinder a person
acting under a direction referred to in regulation 54.
...
Compensation for loss, injury or damage
57(1) The Commonwealth shall pay reasonable compensation to a person who:
(a) sustains loss or damage by reason of entry upon, and survey of, land in
accordance with regulation 58;
(b) sustains loss or damage by reason that an area is declared to be a
defence practice area under subregulation 49(1);
(c) sustains loss or damage by reason of the use of land for the purposes
of a defence operation or practice authorized under regulation 51; or
(d) sustains loss or damage otherwise caused by the operation of this Part.
(2) A claim for compensation under this regulation shall:
(a) be in writing, signed by the person making the claim; and
(b) be addressed to the Secretary.
(3) Where no decision is made in respect of a claim for compensation within
the period of 60 days after the date on which the claim
was made, a decision
refusing compensation shall be deemed to have been made."
- There are several matters to notice about the Regulations. A
Declaration made under them may be made unilaterally. A Declaration
may be
made as a matter of expediency. Equipment, in the discretion of a chief of
staff may be installed for up to two years (and
presumably for successive
periods of two years after notice published in the Gazette) anywhere
within a declared area. A Declaration has, in a relevant respect, the
character of subordinate legislation in that
it must be laid before Parliament
and be subject to disallowance there. It is entirely within the discretion of
a Chief of Staff
when, and where a defence operation or practice may be carried
out. It is impermissible for a person or a person's vehicle, vessel
or
aircraft to be in an area subject to a Declaration, at the place of, and during
the period of a notified defence practice without
reasonable excuse.
Conditions with respect to the presence of a person in a defence practice area
may be imposed by the Chief of
Staff or another officer. A breach of a
notification or condition constitutes an offence.
- Regulation 57 is concerned with the payment of "reasonable compensation".
The Commonwealth has 60 days within which to decide upon
a claim. There is no
provision for the determination of a claim by a court, or any procedure for its
enforcement, or the payment
of interest. The Regulations in this regard may be
contrasted with the elaborate provisions in respect of these matters contained
in the Lands Acquisition Act 1989 (Cth) Pts VII and VIII.
Has there been an acquisition of property?
- Loss or damage, the term used in reg 57, may not be a term
entirely apt to describe a diminution in value of real property or its
utility
for mining purposes (permanent or temporary) by reason of what, if they were
not otherwise authorised, would be regarded
as major trespasses and nuisance
able to be committed at will by a stranger.
- A right to mine is a valuable right. But that is not the only valuable
right that a State has with respect to land in which there
may be minerals.
The mere possibility of their existence will often, indeed usually, give rise
to a valuable right, or interest,
the right to explore for them, an assignable
right and one for which a State may expect to receive rent or other
consideration, and
other benefits, both tangible and intangible, such as,
perhaps, infrastructure on, and in the vicinity of the land, and economic
and
other advantages in a region that it may wish to promote. Interference with a
right of that kind plainly reduces the value of
such a right either temporarily
or permanently. Here the measure of control for which the Commonwealth
contends and which the Declaration
commands would involve a very substantial
restriction upon a right to explore for, win and transport minerals. Whilst
the test,
whether what the Commonwealth has done (here the making of the
Declaration) amounts to an "acquisition" in constitutional terms will
depend on
what might be able to be done under the statute or instrument authorising or
effecting the "acquisition", rather than what
the Commonwealth may at any one
time in its discretion actually choose to do, in this case, the uncontradicted
pleaded facts give
a good insight into just how intrusive and incompatible with
mining the Commonwealth's activities under the Declaration may be.
In this
regard I refer to, without repeating, the details of the extensive periods and
frequency of usage by the defence forces,
which are set out in the reasons for
judgment of Kirby J.
- In Minister of State for the Army v Dalziel[248] Starke J said:
"Property, it has been said, is nomen generalissimum and
extends to every species of valuable right and interest including real and
personal property, incorporeal hereditaments such
as rents and services, rights
of way, rights of profit or use in land of another, and choses in action. And
to acquire any such
right is rightly described as an `acquisition of property'.
On the other hand a mere personal licence such as is not assignable would
not
be rightly described as property[249].
There is no doubt, I think, that taking possession of land pursuant to reg 54
confers a definite legal right upon the Commonwealth
in the nature of
property[250], but I should not think that
the right acquired pursuant to reg 54 is assignable.
Now is this right of the Commonwealth an acquisition of property within the
meaning of the Constitution? It is said in the Imperial Dictionary that
to gain a mere temporary possession of property is not expressed by the word
acquire, but by such words as gain, obtain, procure,
as to obtain
(not acquire) a book on loan. But the construction of the Constitution
cannot be based on such refinements. However, the ownership of the land the
possession of which is taken under reg 54 is not transferred
to the
Commonwealth nor is any estate therein, but a temporary possession. The right
conferred upon the Commonwealth may be classified,
I think, under the
denomination of jura in re aliena, and so a right of property, the
subject of acquisition."
- And McTiernan J in the same case said[251]:
"The word 'property' in s 51 (xxxi) is a general term. It means
any tangible or intangible thing which the law protects under the name of
property. The acquisition
of the possession of land is an instance of the
acquisition of property."
- The intervention of governments acting by the unilateral stroke
of the executive pen, may produce quite different consequences from
the
transactions of ordinary citizens. "[I]nnominate and anomalous interests" may
be created[252]. Take this case. It is not
easy to find any perfect analogy between a proprietary right or interest that
might be created in private
law and what the Declaration, if valid, does for,
and provides to the Commonwealth.
- In The Tasmanian Dam Case[253]
four justices, Mason, Murphy, Brennan and Deane JJ held that the prohibitions
imposed by the World Heritage (Western Tasmania Wilderness)
Regulations (Cth)
and the World Heritage Properties Conservation Act 1983 (Cth), s 11
constituted an acquisition of property within the meaning of s 51(xxxi) of
the Constitution, the property in question being the benefit of the prohibition
of the exercise of the right to use and develop the land. But they
also held
that other restrictions upon activities said to be of a less restrictive kind
imposed by some other sections of the Commonwealth
legislation precluded the
proclamations in respect of those provisions from constituting an acquisition
of property.
- The same judges also held that such acquisitions of property as had
purportedly occurred were invalid because the relevant section
of the
legislation (s 17 of the World Heritage Properties Conservation Act) did
not confer an immediate right to be paid compensation and was therefore
intrinsically unfair.
- Mason J in his reasons drew a distinction between the approach to the
Fifth Amendment to the United States Constitution, "... nor shall private
property be taken for public use, without just compensation" and
s 51(xxxi) of the Australian Constitution. His Honour said of the
latter[254]:
"To bring the constitutional provision into play it is not enough
that legislation adversely affects or terminates a pre-existing
right that an
owner enjoys in relation to his property; there must be an acquisition whereby
the Commonwealth or another acquires
an interest in property, however slight or
insubstantial it may be."
- Mason J (whose reasoning was similar to that of Murphy J[255] and Brennan J[256]) then cited the following passage of Dixon J from the
Bank Nationalisation Case[257]:
"I take Minister of State for the Army v Dalziel[258] to mean that s 51(xxxi) is not to be
confined pedantically to the taking of title by the Commonwealth to some
specific estate or interest in land recognized
at law or in equity and to some
specific form of property in a chattel or chose in action similarly recognized,
but that it 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. Section 51(xxxi)
serves a double purpose. It provides the Commonwealth Parliament with a
legislative power of acquiring property: at the same time
as a condition upon
the exercise of the power it provides the individual or the State, affected
with a protection against governmental
interferences with his proprietary
rights without just recompense. In both aspects consistency with the
principles upon which constitutional
provisions are interpreted and applied
demands that the paragraph should be given as full and flexible an operation as
will cover
the objects it was designed to effect."
- For myself I would not regard that passage as authority for the
proposition that, for there to be an acquisition within the meaning
of s
51(xxxi), the Commonwealth must necessarily in all cases and for all purposes
have acquired an interest in property, however slight or insubstantial
it may
be. The real point about the exercise of power in respect of property by
governments (other than town planning and other
special or like powers which
may require separate consideration) is that they can effectively achieve the
benefit of many aspects
of proprietorship without actually becoming
proprietors, either of a property as a whole or some component of it.
- As I have already suggested analogies with dealings between voluntary
parties at arms length in a free market place are in many respects
illusory in
the context of the exercise of government power falling short of the assumption
of ownership by government. To be able
to prevent or restrict the usage of
property in a certain way is just as much an incident of ownership as is an
ability to use it
without restriction. It is no answer to say that an owner
who remains the owner of the property in name, and can use it perhaps
for one
or two limited purposes, but not for other proper and permissible, valuable
purposes, still has and enjoys proprietary rights.
- But in any event, in this case (as in The Tasmanian Dam Case),
there has, in a real sense, been an acquisition of something in the nature of a
valuable item of property. The Declaration may
be compared to a restrictive
convenant: if one person (for his or her own reasons) wishes to sterilize or
restrict the usages of
another person's land, the latter, in a free market
place, would demand recompense, and the former would expect to have to pay it.
The parties' rights and obligations would be defined by a restrictive covenant,
or perhaps in some cases an easement. The benefit
of each of these is
valuable, and of a proprietary kind and may, in some circumstances, be
assignable[259]. The covenantor or grantor
(and successors) wishing to be relieved of the burden, are potential
purchasers. And, subject to the
terms of the covenant and legislation
governing assignments, persons other than the covenantor and successors, may
also be potential
purchasers and assignees[260].
- In The Tasmanian Dam Case[261],
Deane J said that "laws which merely prohibit or control a particular
use of, or particular acts upon, property plainly do not constitute an
'acquisition'". With respect
I doubt whether such a statement can
categorically be made. However, in deciding that the legislation in
The Tasmanian Dam Case went beyond, as his Honour had defined it,
mere extinguishment or deprivation, he used language which might, with some
adaptations
be employed to describe the ambit of the Declaration made under the
Regulations in this case[262]:
"In the present case, the Commonwealth has, under Commonwealth Act
and Regulations, obtained the benefit of a prohibition, which
the Commonwealth
alone can lift, of the doing of the specified acts upon the HEC land. The
range of the prohibited acts is such
that the practical effect of the benefit
obtained by the Commonwealth is that the Commonwealth can ensure, by
proceedings for penalties
and injunctive relief if necessary, that the land
remains in the condition which the Commonwealth, for its own purposes, desires
to have conserved. In these circumstances, the obtaining by the Commonwealth
of the benefit acquired under the Regulations is properly
to be seen as a
purported acquisition of property for a purpose in respect of which the
Parliament has power to make laws. The 'property'
purportedly acquired
consists of the benefit of the prohibition of the exercise of the rights of use
and development of the land
which would be involved in the doing of any of the
specified acts. The purpose for which that property has been purportedly
acquired
is the `application of the property in or towards carrying out'
Australia's obligations under the Convention[263]. The compensation which would represent `just terms'
for that acquisition of property would be the difference between the value
of
the HEC land without and with the restrictions."
- The caution expressed by Hamilton[264] in my opinion has much to commend it:
"A necessary first step in formulating a test for s 51(xxxi)
... is for Australian courts firmly to grasp the principle that
the various
separate rights of user of property are in themselves property. The Court in
Dalziel's case[265] recognized that
by taking away some rights of user, in particular the right to possession, the
Commonwealth could make property practically
worthless. ... What needs to be
recognized is that property is a bundle of rights, and each right in that
bundle is itself property
the subject of acquisition. Whenever the
Commonwealth seeks to control the exercise of one of the rights in the bundle a
question
of acquisition is on the threshold."
- It follows, in my opinion, that the Declaration made under the
Regulations in this case involves a purported acquisition of property
within
the meaning of s 51(xxxi).
Just terms?
- In Grace Bros Pty Ltd v The Commonwealth[266], Dixon J referred to the need for legislation
authorising an acquisition by the Commonwealth to provide fair and just
standards of
compensation:
"The inquiry rather must be whether the law amounts to a true
attempt to provide fair and just standards of compensating or rehabilitating
the individual considered as an owner of property, fair and just as between him
and the government of the country. I say `the individual'
because what is just
as between the Commonwealth and a State, two Governments, may depend on special
considerations not applicable
to an individual."
- The Regulations that I have quoted do not in my opinion make
provision for such fair and just standards of compensation. There is
no stated
entitlement to interest[267]. They do not
confer an immediate right to payment. Payment depends, in the first instance
at least, upon the outcome of an administrative
process. The fact that the
process may be reviewable (and then only upon a very limited basis) by a Court
of the Commonwealth[268] appointed pursuant
to Chapter III of the Constitution can hardly be regarded as provision for fair
and just standards of compensation for acquisition on just terms[269].
- After all, until relatively recently substantial claims for compensation
following acquisition by the Commonwealth, were routinely
pursued in this
Court[270].
- In practice, actual loss or damage, and some of the effects of a
Declaration, a defence practice or a defence operation, may not be
ascertainable and calculable until they have long since occurred. Unexploded
and buried ordnance may constitute a special hazard,
particularly to miners.
This alone is likely to raise very serious doubts in the mind of a prospective
purchaser whether to purchase,
and as to an appropriate purchase
price.
- Very large sums of money, rights of personal significance to the persons
affected and distress at displacement are involved in many
compensation cases.
So too, difficult questions, not only of law but also of fact regularly arise
in such cases. There will often
be very marked differences between expert
witnesses on factual matters and the final issue of fair value. One very
fruitful area
of dispute in valuation cases is the identification of what is a
discrete question of law or of fact, or, commonly, mixed law and
fact. In
Melwood Units Pty Ltd v Commissioner of Main Roads [271], the Judicial Committee referred to errors in relation
to principles of valuation interchangeably with errors of law. All of this
gives rise to special and difficult problems upon which the courts have not
spoken with a unanimous voice as to what, in a particular
valuation case, will
constitute an appellable error of law[272].
The difficulties that have arisen in compensation cases are with respect well
described by Kirby P in this passage[273]:
"Because of the sparse economy and potential ambiguity of the
phrase 'the value of the land', a vast body of common law 'principle'
has been
developed by courts to give meaning to the phrase as it applies to recurring
fact situations following compulsory acquisition
of the land. About some of
the 'principles' developed by the common law there may be debate. Many of them
appear to fresh minds
to be ambiguous and contentious. Others appear to be
arbitrary categories of indeterminate reference, designed as much to obscure
the judicial leaps to judgment that are required in these cases as to provide
guidance about when, and how far, to leap[274]."
- These considerations highlight the undesirability of a
determination of compensation other than by a proper judicial process including
the availability of the usual, and not a restricted right of appeal or
review.
- Acquisition on just term is synonymous, in my opinion, with acquisition
according to justice and that means justice as administered
by a court or
tribunal fully and properly equipped to adjudicate upon all relevant matters
and not subject to a truncated review
or appellate process.
- In my opinion therefore, the State is entitled to explore for and win
minerals on the alienated land. The Declaration precludes mining
on neither
those lands nor on the unalienated land because it is invalid. How in fact
rights to explore and mine the alienated land
are to be exercised does not fall
for consideration in this case. The Mining Act is not, as I have said
the regime to regulate that exercise. In the case of petroleum (save for the
leased land in respect of which
there is no such reservation) because of the
express reference in the reservations to the Petroleum Act 1967 (WA),
the State may act under that statute. As for the means to be adopted for the
exploration for and exploitation of other minerals
on the alienated land, I
express no opinion.
- Hayne J has pointed to some differences in language in the reservations.
These might suggest that for some purposes (perhaps quarrying)
both the State
and persons authorised by it may enter upon the alienated lands, whilst for
mining purposes, this right of entry is
confined to the State. It is
unnecessary to decide here whether a narrow construction of that reservation is
required in light of
the fact that at the time of the grants and to the
knowledge of the parties, a State would rarely carry on a mining activity in
its
own right. Nor is it necessary for this Court in these proceedings to
determine whether the State would need a special statute or
whether it has
sovereign power otherwise to look for, and mine minerals other than petroleum
on the land subject to the grants, or
petroleum and other minerals on the
leased land.
- As for the unalienated land, in my opinion it is open for mining under the
Mining Act, or otherwise as the State may determine and is lawful
according to State law.
- I would have asked the parties to agree upon the form of appropriate
declarations and orders to reflect these reasons and granted
liberty to apply.
[1] The 1955 Acquisition Act has
since been repealed. At the time of the acquisitions, s 7(1) provided:
" The Minister may authorize the acquisition of land by the Commonwealth
by agreement for a public purpose approved by him."
[2]
Condition 1 of the Special Lease provides that the land is not to be used
for any other purpose "without the prior approval in
writing of the Minister
for Lands."
[3] At the relevant time, s 7(4)
provided:
" The Governor is authorized to agree with the Governor General of the
Commonwealth or other appropriate authority of the Commonwealth
for the sale or
lease of any Crown lands to the Commonwealth and to execute any instruments or
assurance for granting, conveying
or leasing the land to the Commonwealth."
The Land Act has been repealed and replaced by the Land
Administration Act 1997 (WA).
[4] Regulation 49(1) provides:
" The Minister may, by notice published in the Gazette, declare any
area of land, sea or air in or adjacent to Australia to be a defence practice
area for carrying out a defence operation
or practice of a kind specified in
the notice."[5]
The declaration of 16 July 1987 was revoked by that of
17 October 1994. The relevant part of the declaration of 5 July
1985
has since been revoked by a declaration of 3 March 1998, published in the
Gazette of 8 April 1998.
[6] Regulation 49(2) of the Defence
Regulations. Note that by reg 50 declarations with respect to private
land must be tabled
in Parliament and are subject to disallowance.
[7] Regulation 48 of the Defence
Regulations defines "private land" as "land that is not Commonwealth land" and
"Commonwealth land"
as "land belonging to, or in the occupation of, the
Commonwealth or a public authority under the Commonwealth but does not include
land the subject of a lease from the Commonwealth unless that lease is subject
to the condition that the land may be used by the
Defence Force or an arm of
the Defence Force for carrying out a defence operation or practice of a kind
specified in a notice under
subregulation 49(1)".
[8] Section 52 of the Constitution relevantly
provides:
" The Parliament shall, subject to this Constitution, have exclusive power
to make laws for the peace, order, and good government of the Commonwealth with
respect to-
(i) the seat of government of the Commonwealth, and all places acquired by the
Commonwealth for public purposes".[9]
Section 109 provides:
" When a law of a State is inconsistent with a law of the Commonwealth, the
latter shall prevail, and the former shall, to the extent
of the inconsistency,
be invalid."[10]
Section 51(xxxi) of the Constitution confers power to the
Commonwealth 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 laws".
This section has been construed as a guarantee of just terms. See, for
example, Minister of State for the Army v Dalziel [1944] HCA 4; (1944) 68 CLR 261 at
284-285 per Rich J; Bank of NSW v The Commonwealth [1948] HCA 7; (1948) 76 CLR 1
at 349-350 per Dixon J; Australian Tape Manufacturers Association Ltd v
The Commonwealth [1993] HCA 10; (1993) 176 CLR 480 at 509 per Mason CJ, Brennan,
Deane and Gaudron JJ; Newcrest Mining (WA) Ltd v The Commonwealth
[1997] HCA 38; (1997) 190 CLR 513 at 565 per Gaudron J, 595 per Gummow J,
652-653 per Kirby J; The Commonwealth v WMC Resources Ltd [1998] HCA 8; [1998] HCA 8; (1998) 72
ALJR 280 at 296-297 per Gaudron J, 329 per Kirby J; [1998] HCA 8; 152 ALR 1 at 24,
70.
[11] Section 8(1) of the Mining Act
was amended with effect from 30 March 1998 to reflect the repeal of
the Land Act 1933 and its replacement with the Land Administration
Act 1997. As nothing turns on these amendments, it is convenient to refer
to s 8(1) in its present form.
[12] Under s 41, which is in Pt 4
of the Land Administration Act, "the Minister may by order reserve Crown
land to the Crown for one or more purposes in the public interest." The
Land Act, which was in force when the applications for exploration
licences were made, contained a similar provision for the reservation of
land
(s 29). Clause 14(2) of Sched 2 of the Land Administration
Act provides:
" Any land reserved under section 29 of the [Land Act] and
remaining so reserved immediately before the [day that this Act is proclaimed]
is to be taken to be land reserved under section 41
of this Act."[13]
Note that for the purposes of Div 3 of Pt III of the Act, which
includes s 27, private land does not include "private
land that is the
subject of a mining tenement, other than in relation to mining for gold
pursuant to a special prospecting licence
or mining lease under
section 56A, 70 or 85B".
[14] As to a State law applying to the
Commonwealth, see Re Residential Tenancies Tribunal (NSW); Ex parte Defence
Housing Authority [1997] HCA 36; (1997) 190 CLR 410. As to a Commonwealth law applying to
a State, see Amalgamated Society of Engineers v Adelaide Steamship Co Ltd
[1920] HCA 54; (1920) 28 CLR 129.
[15] Bradken Consolidated Ltd v Broken
Hill Proprietary Co Ltd [1979] HCA 15; (1979) 145 CLR 107 at 116 per Gibbs ACJ. The
presumption is not to be treated as an inflexible rule involving a stringent
test
of necessary implication. See Bropho v Western Australia [1990] HCA 24; (1990)
171 CLR 1.
[16] [1979] HCA 15; (1979) 145 CLR 107 at 122-123 per
Gibbs ACJ, 129 per Stephen J, 136 per Mason and Jacobs JJ. See
also Jacobsen v Rogers [1995] HCA 6; (1995) 182 CLR 572 at 585 per Mason CJ,
Deane, Dawson, Toohey and Gaudron JJ; Re Residential Tenancies Tribunal
(NSW); Ex parte Defence Housing Authority [1997] HCA 36; (1997) 190 CLR 410 at 444 per
Dawson, Toohey and Gaudron JJ.
[17] [1979] HCA 15; (1979) 145 CLR 107 at 116 per
Gibbs ACJ.
[18] Attorney-General v Hancock [1940]
1 KB 427 at 439 per Wrottesley J, referred to in In re Telephone
Apparatus Manufacturers' Application [1963] 1 WLR 463 at 479 per
Upjohn LJ; [1963] 2 All ER 302 at 311. It seems that this presumption was
also applied in Bradken Consolidated Ltd v Broken Hill Proprietary Co Ltd
[1979] HCA 15; (1979) 145 CLR 107 at 124 per Gibbs ACJ, 129 per Stephen J,
137-138 per Mason and Jacobs JJ.
[19] (1821) 2 Mason 311 [26 Fed Cas 329 at
330], referred to in Roberts v Ahern [1904] HCA 17; (1904) 1 CLR 406 at 418.
[20] [1979] HCA 15; (1979) 145 CLR 107 at 122.
[21] [1979] HCA 15; (1979) 145 CLR 107 at 123.
[22] Section 19(1)(a) was amended with
effect from 14 October 1995. The words "land, not being private land or"
replaced the
previous words "Crown land, not being Crown". As nothing turns on
these amendments, it is convenient to refer to the section in
its present
form.
[23] As noted earlier, such land does not
include land acquired by the Commonwealth for a public purpose and the freehold
and leasehold
lands in the defence practice area do not otherwise come within
Div 2 of Pt III of the Act.
[24] Section 24(1)(a), (b) and (c). As
noted earlier, the definition of "public purpose" in s 8(1) of the
Mining Act includes "any of the purposes for which land may be reserved
under Part 4 of the Land Administration Act".
[25] Section 24(3)(a) and (5)(a).
[26] Section 24(1)(a) and (b).
[27] Section 24(4).
[28] [1986] HCA 51; (1986) 161 CLR 254.
[29] The definition of "mining tenement" in
s 8(1) of the Mining Act includes prospecting, exploration,
retention and miscellaneous licences and mining and general purpose leases. In
an application
for a prospecting or miscellaneous licence, the mining registrar
determines the application, unless there is a notice of objection
lodged in
which case the warden hears and determines the application (ss 42, 91,
92). In an application for any other mining tenement, the Minister has the
power to grant or refuse the lease or licence. If no notice
objection is
lodged, the mining registrar makes a recommendation to the Minister as to
whether to grant or refuse the application.
When there is an objection, the
warden hears the application and then makes a recommendation to the Minister
(ss 59, 70D, 75, 86).
[30] Three applications for exploration
licences were lodged pursuant to the Mining Act. The Commonwealth
lodged an objection to each of the applications and so the applications came
before the warden in accordance with
s 59 of the Act. On 23 June 1996,
Mining Warden PG Malone SM held that he had jurisdiction to hear
and make
recommendations on one of the applications (No 70/1425).
[31] Some powers have a "double aspect" so
that "they are properly characterised as judicial if conferred on a court and
non-judicial
if conferred on another body": Gould v Brown [1998] HCA 6; (1998) 72
ALJR 375 at 398 per Gaudron J; [1998] HCA 6; 151 ALR 395 at 424. See also Federal
Commissioner of Taxation v Munro [1926] HCA 58; (1926) 38 CLR 153 at 177 per
Isaacs J; R v Spicer; Ex parte Australian Builders' Labourers'
Federation [1957] HCA 81; (1957) 100 CLR 277 at 305 per Kitto J; R v Hegarty; Ex
parte City of Salisbury [1981] HCA 51; (1981) 147 CLR 617 at 628 per Mason J; Re
Ranger Uranium Mines Pty Ltd; Ex parte Federated Miscellaneous Workers'
Union of Australia [1987] HCA 63; (1987) 163 CLR 656 at 665; Precision Data Holdings
Ltd v Wills [1991] HCA 58; (1991) 173 CLR 167 at 189.
[32] Section 64 only applies in suits in
federal jurisdiction. See China Ocean Shipping Co v South Australia
[1979] HCA 57; (1979) 145 CLR 172 at 223 per Stephen J, 234 per Murphy J; Re
Residential Tenancies Tribunal (NSW); Ex parte Defence Housing Authority
[1997] HCA 36; (1997) 190 CLR 410 at 474 per Gummow J. In relation to proceedings in
an administrative tribunal see Re Residential Tenancies Tribunal (NSW); Ex
parte Defence Housing Authority [1997] HCA 36; (1997) 190 CLR 410 at 448 per Dawson,
Toohey and Gaudron JJ, 460-461 per McHugh J, 511 per Kirby J.
[33] See, for example, Clyde Engineering
Co Ltd v Cowburn [1926] HCA 6; (1926) 37 CLR 466 at 489-490 per Isaacs J; Wenn v
Attorney-General (Vict) (1948) 77 CLR 84 at 109 per Latham CJ;
Viskauskas v Niland [1983] HCA 15; (1983) 153 CLR 280 at 291.
[34] Victoria v The Commonwealth ("The
Kakariki") [1937] HCA 82; (1937) 58 CLR 618 at 630 per Dixon J.
[35] See, for example, Blackley v
Devondale Cream (Vic) Pty Ltd [1968] HCA 2; (1968) 117 CLR 253 at 258-259 per
Barwick CJ.
[36] See, for example, Botany Municipal
Council v Federal Airports Authority [1992] HCA 52; (1992) 175 CLR 453 at 464.
[37] See Ex parte McLean [1930] HCA 12; (1930) 43 CLR
472 at 483 per Dixon J; Viskauskas v Niland [1983] HCA 15; (1983) 153 CLR 280 at
291-292; Western Australia v The Commonwealth (Native Title Act
Case) [1995] HCA 47; (1995) 183 CLR 373 at 465-466 per Mason CJ, Brennan,
Deane, Toohey, Gaudron and McHugh JJ.
[38] In each case, the penalty is $500 or
imprisonment for 3 months or both.
[39] Regulation 53(5).
[40] Part XI, which comprises regs 48 to
57C inclusive.
[41] See with respect to laws which operate
against the background of the general law, Ansett Transport Industries
(Operations) Pty Ltd v Wardley [1980] HCA 8; (1980) 142 CLR 237 at 246 per
Stephen J; Dobinson v Crabb [1990] HCA 34; (1990) 170 CLR 218 at 231 per Dawson
and McHugh JJ; Re Residential Tenancies Tribunal (NSW); Ex parte
Defence Housing Authority [1997] HCA 36; (1997) 190 CLR 410 at 433 per Dawson, Toohey and
Gaudron JJ.
[42] Victoria v The Commonwealth ("The
Kakariki") [1937] HCA 82; (1937) 58 CLR 618; Re Tracey; Ex parte Ryan [1989] HCA 12; (1989) 166
CLR 518 at 599-600 per Gaudron J.
[43] Western Australia v The Commonwealth
(Native Title Act Case) [1995] HCA 47; (1995) 183 CLR 373 at 465 per
Mason CJ, Brennan, Deane, Toohey, Gaudron and McHugh JJ.
[44] Constitution, s 51(vi).
[45] Constitution, s 51(xxxi).
[46] Section 134(1) of the 1989
Acquisition Act. Section 8(1) of the 1955 Acquisition Act is to the same
effect except that it is concerned with "Crown land", rather than
"an interest
in Crown land".
[47] [1997] HCA 36; (1997) 190 CLR 410.
[48] [1997] HCA 36; (1997) 190 CLR 410.
[49] The Land Act was repealed by s 281
of the Land Administration Act 1997 (WA) but with the transitional,
savings and validation provisions set out in Sched 2 thereof.
[50] Wade v New South Wales Rutile Mining
Co Pty Ltd [1969] HCA 28; (1969) 121 CLR 177 at 194; Wik Peoples v Queensland
(1996) 187 CLR 1 at 200-201; cf Wardle v Manitoba Farm Loans Association
[1956] SCR 1 at 11-12.
[51] Hot Holdings Pty Ltd v Creasy
(1996) 185 CLR 149 at 166, 170-175.
[52] [1997] HCA 36; (1997) 190 CLR 410.
[53] [1923] HCA 34; (1923) 33 CLR 1 at 23. See also the
drawing of this distinction in Travinto Nominees Pty Ltd v Vlattas
[1973] HCA 14; (1973) 129 CLR 1 at 13, 28, 37; The Commonwealth of Australia v
Maddalozzo (1980) 54 ALJR 289 at 290, 292, 294; 29 ALR 161 at 164-165,
168-169, 172-173; Newcrest Mining (WA) Ltd v The Commonwealth [1997] HCA 38; (1997) 190
CLR 513 at 629.
[54] [1982] 1 WLR 887 at 901; [1982] 3 All ER
579 at 590-591. See also Hume Steel Ltd v Attorney-General (Vict)
[1927] HCA 24; (1927) 39 CLR 455 at 463, 465; Minister for Mineral Resources v Brantag Pty
Ltd, unreported, New South Wales Court of Appeal, 20 November 1997 at
7 per Mason P.
[55] Codelfa Construction Pty Ltd v State
Rail Authority of NSW [1982] HCA 24; (1982) 149 CLR 337 at 347-352; cf Investors
Compensation Scheme Ltd v West Bromwich Building Society [1997] UKHL 28; [1998] 1 WLR 896
at 912-913; [1997] UKHL 28; [1998] 1 All ER 98 at 114-115.
[56] The text of the reservation in respect
of Melbourne Location 3989 was as follows:
"PROVIDED, NEVERTHELESS, that, subject to section 141 of the Land Act, 1933,
it shall be lawful for Us, Our heirs and successors,
or for any person or
persons acting in that behalf by Our or their authority, to resume and enter
upon possession of any part of
the said land which it may at any time by Us,
Our heirs and successors, be deemed necessary to resume for roads, tramways,
railways,
railway stations, bridges, canals, towing paths, harbour or river
improvement works, drainage, or irrigation works, or quarries,
and generally
for any other works or purposes of public use, utility, or convenience, and for
the purpose of exercising the power
to search for minerals hereinafter
reserved, and such lands so resumed to hold to Us, Our heirs and successors, as
of Our or their
former estate without making to the said Grantee [the
Commonwealth], or any person lawfully claiming under him, any compensation
in
respect thereof, so nevertheless, that the land so to be resumed shall not
exceed one-twentieth part of the whole of the lands
aforesaid, and that no such
resumption be made of the part of any lands upon which any buildings may have
been erected, or which
may be in use as gardens, or otherwise, for the more
convenient occupation of any such buildings, or on which any other improvements
as defined by the Land Act, 1933, have been made, without compensation: AND
PROVIDED, ALSO, that it shall be lawful at all times
for Us, Our heirs and
successors, or for any person or persons acting in that behalf, by Our or their
authority, to search and dig
for and carry away any stones or other materials
which may be required for making or keeping in repair any roads, tramways,
railways,
railway stations, bridges, canals, towing paths, harbour works,
breakwaters, river improvements, drainage, or irrigation works, and
generally
for any other works or purposes of public use, utility, or convenience, without
making to the said Grantee, or any person
claiming under him, any compensation
in respect thereof; and we do hereby save and reserve to Us, Our heirs and
successors, all Mines,
of Gold, Silver, Copper, Tin, or other Metals, Ore, and
Minerals, or other substances containing Metals, and all Gems or Precious
Stones and Coal or Mineral Oil and all Phosphate Substances in and under the
said land, with full liberty at all times to seat and
dig for and carry away
the same; and for that purpose to enter upon the said land or any part thereof:
and we do hereby, save and
reserve to Us, Our heirs and successors all
petroleum (as defined in the Petroleum Act, 1967, and all amendments thereof
for the time being in force) on or below the surface of the said land with the
right reserved to Us,
Our heirs and successors and persons authorised by Us,
Our heirs and successors to have access to the said land for the purpose of
searching for and for the operations of obtaining petroleum in any part of the
said land subject to and in accordance with the provisions
contained in the
Petroleum Act, 1967, and all amendments thereof for the time being in force."[57]
cf The State of South Australia v The State of Victoria [1911] HCA 17; (1911) 12
CLR 667; affd [1914] UKPCHCA 1; (1914) 18 CLR 115 (PC).
[58] [1993] UKHL 5; [1994] 1 AC 377 at 395.
[59] [1990] HCA 24; (1990) 171 CLR 1 at 18-19. See also
Re Residential Tenancies Tribunal (NSW); Ex parte Defence Housing
Authority [1997] HCA 36; (1997) 190 CLR 410 at 427-428, 444-445, 453.
[60] For example, in Australia the provision
in s 2 of the Constitution for the appointment by the Sovereign of the
Governor-General as the representative of the Sovereign in Australia.
[61] [1962] HCA 40; (1962) 108 CLR 372 at 376-377.
[62] cf In re Silver Brothers Ltd
[1932] AC 514 at 524.
[63] Barton v The Commonwealth [1974] HCA 20; (1974)
131 CLR 477 at 498.
[64] Theodore v Duncan [1919] AC 696
at 706; [1919] UKPCHCA 3; (1919) 26 CLR 276 at 282; Amalgamated Society of Engineers v
Adelaide Steamship Co Ltd [1920] HCA 54; (1920) 28 CLR 129 at 143.
[65] Re Residential Tenancies Tribunal
(NSW); Ex parte Defence Housing Authority [1997] HCA 36; (1997) 190 CLR 410 at 424-425,
453.
[66] See Federal Commissioner of Taxation
v Official Liquidator of E O Farley Ltd [1940] HCA 13; (1940) 63 CLR 278 at 303-305;
Australian Communist Party v The Commonwealth [1951] HCA 5; (1951) 83 CLR 1 at
230-231; Campbell, "Parliament and the Executive" in Zines (ed),
Commentaries on the Australian Constitution, (1977) 88 at 88-90.
[67] [1995] HCA 6; (1995) 182 CLR 572.
[68] [1995] HCA 6; (1995) 182 CLR 572 at 591.
Brennan J (at 594) posed the question "does the law 'bind' the State?"
McHugh J (at 601) cited
the statement by Dixon J (in In re Foreman
& Sons Pty Ltd; Uther v Federal Commissioner of Taxation [1947] HCA 45; (1947) 74 CLR
508 at 529) that in "a dual political system" one does "not expect to find
either government legislating for the other"
and (at 602) discussed authority
indicating a similar approach in Canada and the United States. See also Hogg,
Liability of the Crown, 2nd ed (1989) at 239-241.
[69] Jacobsen v Rogers [1995] HCA 6; (1995) 182 CLR
572 at 593-594.
[70] [1997] HCA 36; (1997) 190 CLR 410 at 427.
[71] State Authorities Superannuation
Board v Commissioner of State Taxation (WA) [1996] HCA 32; (1996) 189 CLR 253 at
282-283.
[72] Section 4 of the Interpretation
Act 1918 (WA), which was in force when the Mining Act was enacted and the
grants of the Melbourne Locations and the Special Lease were made, stated that,
unless the contrary intention
appeared:
"'His Majesty' or 'Her Majesty,' 'the King' or 'the Queen,' or 'the Crown,'
means His Majesty the King, or Her Majesty the Queen,
Sovereign for the time
being of the United Kingdom of Great Britain and Ireland, and the British
Dominions beyond the Seas, and includes
the predecessors and the heirs and
successors of such King or Queen".
This definition reflects the distinction drawn between the Crown as monarch
and the Crown as executive. In Australia, such a definition
was more apt to
identify the sovereign for the time being by a particular style and title
rather than any particular body politic
within the federal system or the
executive government thereof. The royal style and title used in s 4 was
supplanted by that adopted under the Royal Style and Titles Act 1953
(Cth), which in turn was replaced by that adopted under the Royal Style and
Titles Act 1973 (Cth). In any event, the definition in s 4 is of no
assistance for the issues in this case.
[73] R v Registrar of Titles (Vict); Ex
parte The Commonwealth [1915] HCA 59; (1915) 20 CLR 379 at 391, 397, 405-406; Essendon
Corporation v Criterion Theatres Ltd [1947] HCA 15; (1947) 74 CLR 1 at 26-27.
[74] 53 & 54 Vict c 26.
[75] Nicholas v Western Australia
[1972] WAR 168 at 172. See also Williams v Attorney-General for New South
Wales [1913] HCA 33; (1913) 16 CLR 404 at 424-428, 449-456, 464-465; The State of South
Australia v The State of Victoria [1914] UKPCHCA 1; (1914) 18 CLR 115 at 121-122; The
Commonwealth v New South Wales [1923] HCA 34; (1923) 33 CLR 1 at 38-39; Essendon
Corporation v Criterion Theatres Ltd [1947] HCA 15; (1947) 74 CLR 1 at 26; New South
Wales v The Commonwealth [1975] HCA 58; (1975) 135 CLR 337 at 439; Wik Peoples v
Queensland [1996] HCA 40; (1996) 187 CLR 1 at 108-110, 139-143, 188-189, 227-229.
[76] [1947] HCA 15; (1947) 74 CLR 1 at 26; cf Jacobsen v
Rogers [1995] HCA 6; (1995) 182 CLR 572 at 590-591.
[77] The words "in the manner ... made
thereunder" were deleted and there were substituted the words "in accordance
with the provisions
of this Act" by s 3 of the Land Act Amendment
Act 1977 (WA) which came into force on 20 March 1978.
[78] Bank of NSW v The Commonwealth
[1948] HCA 7; (1948) 76 CLR 1 at 363; State Authorities Superannuation Board v
Commissioner of State Taxation (WA) [1996] HCA 32; (1996) 189 CLR 253 at 282-283.
[79] [1913] HCA 33; (1913) 16 CLR 404.
[80] [1913] HCA 33; (1913) 16 CLR 404 at 423-428.
[81] [1913] HCA 33; (1913) 16 CLR 404 at 440-456.
[82] [1913] HCA 33; (1913) 16 CLR 404 at 461-465.
[83] Melbourne Corporation v The
Commonwealth [1947] HCA 26; (1947) 74 CLR 31 at 61, 74, 99; Queensland Electricity
Commission v The Commonwealth [1985] HCA 56; (1985) 159 CLR 192 at 214-217; State
Authorities Superannuation Board v Commissioner of State Taxation (WA)
[1996] HCA 32; (1996) 189 CLR 253 at 288; Re Residential Tenancies Tribunal (NSW); Ex parte
Defence Housing Authority [1997] HCA 36; (1997) 190 CLR 410 at 507-508.
[84] Worthing v Rowell and Muston Pty
Ltd [1970] HCA 19; (1970) 123 CLR 89 at 125.
[85] See the remarks by Gaudron and
McHugh JJ in Castlemaine Tooheys Ltd v South Australia [1990] HCA 1; (1990) 169
CLR 436 at 478.
[86] The Commonwealth eschewed any submission
that the area of the Special Lease was a Commonwealth place; cf Bevelon
Investments Pty Ltd v Melbourne City Council [1976] HCA 49; (1976) 135 CLR 530; Allders
International Pty Ltd v Commissioner of State Revenue (Vict) [1996] HCA 58; (1996) 186 CLR
630 at 660, 675.
[87] Section 52(i) states that, subject
to the Constitution, the Parliament has exclusive power to legislate with
respect to "all places acquired by the Commonwealth for public purposes".
[88] Kangaroo Point East Association Inc v
Balkin [1995] 2 Qd R 135 at 140; (1993) 119 ALR 305 at 309.
[89] Rose, "The Commonwealth Places
(Application of Laws) Act 1970", (1971) 4 Federal Law Review 263 at
269.
[90] [1986] HCA 51; (1986) 161 CLR 254 at 267.
[91] Gibbs CJ, Mason, Wilson, Deane and
Dawson JJ; Brennan J dissented.
[92] (1985) 3 NSWLR 565, especially at
582-583 per Kirby P, 604 per McHugh JA. The decision of the Court of
Appeal was confirmed
on other grounds: [1987] HCA 13; (1987) 162 CLR 317.
[93] [1986] HCA 51; (1986) 161 CLR 254 at 263.
[94] [1986] HCA 51; (1986) 161 CLR 254 at 264.
[95] Emphasis added. See Finn, "Claims
Against the Government Legislation" in Finn (ed), Essays on Law and
Government, Volume 2, The Citizen and the State in the Courts, (1996)
25 at 40-43, 45-47.
[96] See [1986] HCA 51; (1986) 161 CLR 254 at 264-265.
[97] China Ocean Shipping Co v South
Australia [1979] HCA 57; (1979) 145 CLR 172 at 223-224; Re Residential Tenancies
Tribunal (NSW); Ex parte Defence Housing Authority [1997] HCA 36; (1997) 190 CLR 410 at
448, 460-461, 474-475, 511.
[98] [1994] HCA 20; (1994) 181 CLR 583 at 602-603.
[99] Victoria v The Commonwealth
("The Kakariki") [1937] HCA 82; (1937) 58 CLR 618 at 630.
[100] [1937] HCA 82; (1937) 58 CLR 618 at 631.
[101] [1982] HCA 77; (1982) 152 CLR 211 at 221.
Gibbs CJ (at 217) made the same point. See also the statement to like
effect by Mason ACJ,
Wilson and Dawson JJ in Flaherty v Girgis
[1987] HCA 17; (1987) 162 CLR 574 at 588.
[102] [1961] HCA 32; (1961) 106 CLR 268 at 283.
[103] Australian Broadcasting Commission
v Industrial Court (SA) [1977] HCA 51; (1977) 138 CLR 399 at 407.
[104] [1965] HCA 3; (1965) 113 CLR 54 at 121, 144,
168.
[105] [1986] HCA 42; (1986) 161 CLR 47 at 58-59.
[106] See Nelungaloo Pty Ltd v The
Commonwealth [1947] HCA 58; (1948) 75 CLR 495 at 562, 566; Bank of NSW v The
Commonwealth [1948] HCA 7; (1948) 76 CLR 1 at 300, 355.
[107] Bank of NSW v The Commonwealth
[1948] HCA 7; (1948) 76 CLR 1 at 349; Newcrest Mining (WA) Ltd v The Commonwealth
[1997] HCA 38; (1997) 190 CLR 513 at 530, 633-634.
[108] Minister of State for the Army v
Dalziel [1944] HCA 4; (1944) 68 CLR 261 at 286.
[109] [1944] HCA 4; (1944) 68 CLR 261.
[110] See the judgment of Starke J:
[1944] HCA 4; (1944) 68 CLR 261 at 289.
[111] s 51(xxxi).
[112] s 13.
[113] Wardens Court (Perth), 23 June 1996
per Warden P G Malone SM (In the matter of an application for exploration
licence 70/1425
and objection 63H/934). Although in terms confined to the
application of Mineral Sand Mining & Development Pty Ltd, the reasoning
was
equally applicable to the application of Enmic Pty Ltd and has been so
treated.
[114] On 6 November 1996.
[115] By order of Gummow J (in chambers):
The Commonwealth of Australia v The State of Western Australia,
Transcript of Proceedings, High Court of Australia, 25 May 1998 at 29-30.
[116] s 124.
[117] Bond v The Commonwealth of
Australia [1903] HCA 2; (1903) 1 CLR 13; South Australia v The Commonwealth
[1962] HCA 10; (1962) 108 CLR 130 at 142; Levy v Victoria [1997] HCA 31; (1997) 189 CLR 579 at
649.
[118] s 69. This section has since been
repealed: Statute Law (Miscellaneous Provisions) Act (No 1) 1983
(Cth), Sched 1.
[119] reg 49(1).
[120] Declarations of 5 July 1985 and 17
October 1994. See Commonwealth of Australia Gazette, S 289,
25 July 1985 at 6; Commonwealth of Australia Gazette,
GN 46, 23 November 1994 at 2995.
[121] [1986] HCA 51; (1986) 161 CLR 254 at 267.
[122] cf Australian Postal Commission v
Dao (1985) 3 NSWLR 565 at 582-583, 604.
[123] Commonwealth of Australia v
State of Western Australia [1999] HCA 5 at [153] per Gummow J.
[124] Commonwealth of Australia v
State of Western Australia [1999] HCA 5 at [259] per Hayne J.
[125] Either pursuant to the Defence Force
Regulations or the Lands Acquisition Act 1955 (Cth) or the Lands
Acquisition Act 1989 (Cth).
[126] s 109.
[127] Mining Act, s 59(6).
[128] Mining Act, s 59(5)(c).
[129] Each of the interests in land were
acquired by the Commonwealth pursuant to s 7 of the Lands Acquisition
Act 1955.
[130] Constitution, s 51(vi).
[131] Victoria v The Commonwealth
[1937] HCA 82; (1937) 58 CLR 618 at 630 per Dixon J.
[132] Constitution, s 109.
[133] The Commonwealth of
Australia v The State of Western Australia, Transcript of Proceedings,
High Court of Australia, 26 May 1998 at 33.
[134] Australian Broadcasting
Commission v Industrial Court (SA) [1977] HCA 51; (1977) 138 CLR 399 at 406.
[135] Viskauskas v Niland
[1983] HCA 15; (1983) 153 CLR 280 at 291.
[136] [1926] HCA 6; (1926) 37 CLR 466 at 478. See also
at 489-490 per Isaacs J.
[137] Stock Motor Ploughs Ltd v Forsyth
[1932] HCA 40; (1932) 48 CLR 128 at 136 per Dixon J. See also Victoria v The
Commonwealth [1937] HCA 82; (1937) 58 CLR 618 at 630; Blackley v Devondale Cream
(Vic) Pty Ltd [1968] HCA 2; (1968) 117 CLR 253 at 258-259; Australian Broadcasting
Commission v Industrial Court (SA) [1977] HCA 51; (1977) 138 CLR 399 at 406; Metal
Trades Industry Association v Amalgamated Metal Workers' and Shipwrights'
Union [1983] HCA 28; (1983) 152 CLR 632 at 642-643; Dao v Australian Postal
Commission [1987] HCA 13; [1987] HCA 13; (1987) 162 CLR 317 at 335, 338-339.
[138] [1986] HCA 24; (1986) 160 CLR 330 at 339.
[139] Mining Act, s 66(a).
[140] Mining Act, s 66(b).
[141] Mining Act, s 66(d).
[142] See, for example, Mining Act,
ss 62, 63, 68.
[143] Mining Act, ss 106,
115, 157.
[144] Mining Act, Pt IV, Div
5.
[145] Mining Regulations (WA), reg 42B.
[146] Mining Act, ss 67,
75(7).
[147] Re Warden French; Ex parte
Serpentine (1994) 11 WAR 315 at 326.
[148] Mining Act, s 111A.
[149] Mining Act, ss 71,
85.
[150] Mining Act, Pt IV,
Div 4.
[151] Mining Act, s 87(1).
[152] Defence Force Regulations, reg 49.
[153] Defence Force Regulations, regs 53,
54.
[154] reg 52.
[155] reg 53(1). See also reg 53(2) in
relation to vehicles, vessels or aircraft and reg 53(3) in relation to
conditions on which
permission may be given.
[156] reg 54.
[157] regs 49(4) and 53(2A).
[158] Mining Act, s 113.
[159] reg 49.
[160] Amended Statement of Claim, par 8.
[161] By the Lands Acquisition Act
1955, s 53(2), the federal Minister is empowered to grant easements and
other rights, powers and privileges over or in connection
with land vested in
the Commonwealth. Pursuant to that power, authority was envisaged to permit
the State to grant licences for
exploration for minerals in certain
circumstances but under control of the federal Minister. Western Australia
declined to invoke
these powers preferring to rely on its asserted
entitlements.
[162] See Land Act 1933 (WA), s 3(1)
"Crown Lands".
[163] s 7.
[164] Commonwealth of Australia v
State of Western Australia [1999] HCA 5 at [146] per Gummow J.
[165] Newcrest Mining (WA) Ltd v The
Commonwealth [1997] HCA 38; (1997) 190 CLR 513 at 639.
[166] Constitution, s 51(xxxi). Emphasis
added.
[167] The Commonwealth v New South
Wales [1923] HCA 34; (1923) 33 CLR 1 at 20-21; Minister of State for the Army v
Dalziel [1944] HCA 4; (1944) 68 CLR 261 at 285.
[168] Bank of NSW v The
Commonwealth [1948] HCA 7; (1948) 76 CLR 1 at 349.
[169] [1944] HCA 4; (1944) 68 CLR 261.
[170] [1944] HCA 4; (1944) 68 CLR 261 at 271.
[171] Per Rich, Starke, McTiernan and
Williams JJ; Latham CJ dissenting.
[172] Per Rich, McTiernan and
Williams JJ; Latham CJ and Starke J dissenting.
[173] [1944] HCA 4; (1944) 68 CLR 261 at 290.
[174] Lands Acquisition Act 1955,
Pt II, Divs 1, 3; Lands Acquisition Act 1989, ss 16(b),
41.
[175] Mutual Pools & Staff Pty Ltd v
The Commonwealth [1994] HCA 9; (1994) 179 CLR 155 at 185.
[176] Bank of NSW v The
Commonwealth [1948] HCA 7; (1948) 76 CLR 1 at 349; Newcrest Mining (WA) Ltd v
The Commonwealth [1997] HCA 38; (1997) 190 CLR 513 at 595, 633; The
Commonwealth v WMC Resources Ltd [1998] HCA 8; (1998) 72 ALJR 280 at 333; [1998] HCA 8; 152 ALR
1 at 75.
[177] Bank of NSW v The Commonwealth
[1948] HCA 7; (1948) 76 CLR 1 at 349; Newcrest Mining (WA) Ltd v The Commonwealth
[1997] HCA 38; (1997) 190 CLR 513 at 633-635.
[178] Mutual Pools & Staff Pty Ltd v
The Commonwealth [1994] HCA 9; (1994) 179 CLR 155 at 185.
[179] Georgiadis v Australian and
Overseas Telecommunications Corporation [1994] HCA 6; (1994) 179 CLR 297 at 304-305;
Newcrest Mining (WA) Ltd v The Commonwealth [1997] HCA 38; (1997) 190 CLR 513 at
634.
[180] Mutual Pools & Staff Pty Ltd v
The Commonwealth [1994] HCA 9; (1994) 179 CLR 155 at 223.
[181] Newcrest Mining (WA) Ltd v The
Commonwealth [1997] HCA 38; (1997) 190 CLR 513.
[182] As was held to be the case in The
Commonwealth v WMC Resources Ltd [1998] HCA 8; (1998) 72 ALJR 280; 152 ALR 1.
[183] Constitution, s 51(vi).
[184] Mutual Pools & Staff Pty Ltd v
The Commonwealth [1994] HCA 9; (1994) 179 CLR 155 at 185; Newcrest Mining (WA) Ltd v
The Commonwealth [1997] HCA 38; (1997) 190 CLR 513 at 634; The Commonwealth v WMC
Resources Ltd [1998] HCA 8; (1998) 72 ALJR 280 at 297; [1998] HCA 8; 152 ALR 1 at 25-26.
[185] cf Newcrest Mining (WA) Ltd v
The Commonwealth [1997] HCA 38; (1997) 190 CLR 513 at 530.
[186] reg 57(2)(a).
[187] reg 57(3).
[188] reg 57A(4). The Secretary may
delegate the functions to an officer in the Defence Force or an officer in the
Australian Public
Service. See reg 57B.
[189] reg 57A(6).
[190] reg 57A(8).
[191] See s 45.
[192] cf Petroleum (Australia-Indonesia
Zone of Cooperation) (Consequential Provisions) Act 1990 (Cth),
s 24.
[193] s 22(1)(a).
[194] s 46(1)(a).
[195] reg 57(1)(b).
[196] Grace Brothers Pty Ltd v The
Commonwealth [1946] HCA 11; (1946) 72 CLR 269 at 290.
[197] Grace Brothers Pty Ltd v The
Commonwealth [1946] HCA 11; (1946) 72 CLR 269 at 291, 294-295. Ultimately, it is for the
courts to determine whether "just terms" have or have not been provided
invalidating the subject law: Bank of NSW v The Commonwealth
[1948] HCA 7; (1948) 76 CLR 1 at 300; Australian Communist Party v The
Commonwealth [1951] HCA 5; (1951) 83 CLR 1 at 262.
[198] As was done in Petroleum
(Australia-Indonesia Zone of Cooperation) (Consequential Provisions) Act
1990 (Cth), s 24(1). See The Commonwealth v WMC Resources Ltd
[1998] HCA 8; (1998) 72 ALJR 280 at 327; [1998] HCA 8; 152 ALR 1 at 67.
[199] See Lands Acquisition Act
1989, s 55(1) ("The amount of compensation ... [as] will justly
compensate the person for the acquisition").
[200] Bank of NSW v The
Commonwealth [1948] HCA 7; (1948) 76 CLR 1 at 300.
[201] Andrews v Howell [1941] HCA 20; (1941)
65 CLR 255 at 264, 270, 282; Bank of NSW v The Commonwealth [1948] HCA 7; (1948) 76
CLR 1 at 216.
[202] Lands Acquisition Act 1989,
Pt VII.
[203] Minister of State for the Army v
Dalziel [1944] HCA 4; (1944) 68 CLR 261 at 291; Grace Brothers Pty Ltd v The
Commonwealth [1946] HCA 11; (1946) 72 CLR 269 at 279-280; McClintock v The
Commonwealth [1947] HCA 39; (1947) 75 CLR 1 at 24.
[204] See Lane's Commentary on
The Australian Constitution, 2nd ed (1997) at 327.
[205] Universal Declaration of Human
Rights, Art 17. See Newcrest Mining (WA) Ltd v The Commonwealth
[1997] HCA 38; (1997) 190 CLR 513 at 657-661 ("Interpretative principle").
[206] s 55(2)(c).
[207] reg 57(1)(b).
[208] reg 57(1)(c).
[209] reg 57(1)(d).
[210] cf Lands Acquisition Act 1955,
s 28; Lands Acquisition Act 1989, s 82.
[211] Lands Acquisition Act 1989,
ss 71, 81.
[212] The Commonwealth v
Tasmania (The Tasmanian Dam Case) [1983] HCA 21; (1983) 158 CLR 1 at 291.
[213] Andrews v Howell [1941] HCA 20; (1941)
65 CLR 255 at 284; Australian Apple and Pear Marketing Board v
Tonking (1942) 66 CLR 77 at 87, 99; Johnston Fear & Kingham &
The Offset Printing Co Pty Ltd v The Commonwealth [1943] HCA 18; (1943) 67 CLR 314 at
324, 327; Bank of NSW v The Commonwealth [1948] HCA 7; (1948) 76 CLR 1 at 218,
300, 350-351.
[214] Huddart, Parker & Co
Proprietary Ltd v Moorehead [1909] HCA 36; (1909) 8 CLR 330 at 357; Shell Co of
Australia Ltd v Federal Commissioner of Taxation [1930] UKPCHCA 1; (1930) 44 CLR 530 at
542-543; [1931] AC 275 at 295-296; Nelungaloo Pty Ltd v The
Commonwealth [1947] HCA 58; (1948) 75 CLR 495 at 566.
[215] Bank of NSW v The
Commonwealth [1948] HCA 7; (1948) 76 CLR 1 at 276, 323, 368.
[216] Section 7(4) provided at the relevant
times:
"The Governor is authorized to agree with the Governor General of the
Commonwealth or other appropriate authority of the Commonwealth
for the sale or
lease of any Crown lands to the Commonwealth and to execute any instruments or
assurance for granting, conveying
or leasing the land to the Commonwealth."[217]
Section 8(1) provided:
"Where an agreement is entered into by the Commonwealth with a State for
the acquisition of Crown land, an instrument or assurance
executed by the
Governor of that State for the purpose of carrying out the agreement is, by
force of this Act and notwithstanding
anything in the law of the State, valid
and effectual to vest the land in the Commonwealth according to the tenor of
the instrument
or assurance."
The Lands Acquisition Act 1955 was repealed by the Lands Acquisition
(Repeal and Consequential Provisions) Act 1989 (Cth) at the commencement on
9 June 1989 of the Lands Acquisition Act 1989 (Cth).[218]
ss 56B - 70.
[219] s 59(4).
[220] s 59(5).
[221] Pt III, Div 1, ss 18-22.
[222] Pt III, Div 2, ss 23-26A.
[223] Pt III, Div 3, ss 27-39.
[224] s 23(a).
[225] The leases excluded are pastoral
leases, leases for grazing or timber purposes, and leases for the use and
benefit of the Aboriginal
inhabitants.
[226] "[A]ny of the purposes for which land
may be reserved pursuant to section 29 of the Land Act 1933, and any
purpose declared by the Governor pursuant to that Act, by notification in the
Government Gazette to be a public purpose within the meaning of that
Act."
[227] [1990] HCA 24; (1990) 171 CLR 1.
[228] [1990] HCA 24; (1990) 171 CLR 1 at 14 per
Mason CJ, Deane, Dawson, Toohey, Gaudron and McHugh JJ.
[229] cf Bropho v Western Australia
[1990] HCA 24; (1990) 171 CLR 1 at 24 per Mason CJ, Deane, Dawson, Toohey, Gaudron
and McHugh JJ.
[230] Re Residential Tenancies Tribunal
of New South Wales; Ex parte Defence Housing Authority [1997] HCA 36; (1997) 190 CLR 410
at 440 per Dawson, Toohey and Gaudron JJ. See also Melbourne
Corporation v The Commonwealth [1947] HCA 26; (1947) 74 CLR 31 at 83 per Dixon J.
[231] Queensland Electricity Commission
v The Commonwealth [1985] HCA 56; (1985) 159 CLR 192 at 217 per Mason J; Re
Residential Tenancies Tribunal [1997] HCA 36; (1997) 190 CLR 410 at 440 per Dawson, Toohey
and Gaudron JJ.
[232] Re Residential Tenancies Tribunal
[1997] HCA 36; (1997) 190 CLR 410 at 440 per Dawson, Toohey and Gaudron JJ.
[233] The Commonwealth v Bogle
[1953] HCA 10; (1953) 89 CLR 229 at 259 per Fullagar J; cf The Commonwealth v
Cigamatic Pty Ltd (In liq) [1962] HCA 40; (1962) 108 CLR 372.
[234] [1997] HCA 36; (1997) 190 CLR 410 at 438 per Dawson,
Toohey and Gaudron JJ.
[235] [1953] HCA 10; (1953) 89 CLR 229 at 259.
[236] Re Residential Tenancies Tribunal
[1997] HCA 36; (1997) 190 CLR 410 at 438-439 per Dawson, Toohey and Gaudron JJ.
[237] [1995] HCA 6; (1995) 182 CLR 572 at 585 per
Mason CJ, Deane, Dawson, Toohey and Gaudron JJ.
[238] See Bradken Consolidated Ltd v
Broken Hill Pty Co Ltd [1979] HCA 15; (1979) 145 CLR 107 at 135-136 per Mason and
Jacobs JJ.
[239] [1990] HCA 24; (1990) 171 CLR 1 at 22-23 per
Mason CJ, Deane, Dawson, Toohey, Gaudron and McHugh JJ.
[240] Definition of "Crown land",
s 8(1).
[241] See definition of "public purpose" in
s 8.
[242] [1947] HCA 26; (1947) 74 CLR 31.
[243] cf Melbourne Corporation v The
Commonwealth [1947] HCA 26; (1947) 74 CLR 31 at 61 per Latham CJ, 74 per
Starke J, 99 per Williams J; Re Residential Tenancies Tribunal
[1997] HCA 36; (1997) 190 CLR 410 at 507 per Kirby J.
[244] The management of which was vested in
the Western Australian legislature by the Western Australia Constitution Act
1890 (Imp).
[245] South Australia v The Commonwealth
[1962] HCA 10; (1962) 108 CLR 130 at 140 per Dixon CJ; Maguire v Simpson
[1977] HCA 63; (1977) 139 CLR 362; The Commonwealth v Evans Deakin Industries Ltd
[1986] HCA 51; (1986) 161 CLR 254 at 262 per Gibbs CJ, Mason, Wilson, Deane and
Dawson JJ.
[246] Hume Steel Ltd v Attorney-General
(Vict) [1927] HCA 24; (1927) 39 CLR 455 at 463 per Isaacs J, 465 per Higgins J;
Earl of Lonsdale v Attorney-Geneal [1982] 1 WLR 887 at 901 per
Slade J; [1982] 3 All ER 579 at 590-591.
[247] [1953] AC 217 at 227-228.
[248] [1944] HCA 4; (1944) 68 CLR 261 at 290.
[249] cf Leake, Uses and Profits of
Land, (1888) at 196-199.
[250] cf Pollock and Wright, Possession
in the Common Law, (1888) at 22-23.
[251] [1944] HCA 4; (1944) 68 CLR 261 at 295.
[252] Bank of NSW v The Commonwealth
("the Bank Nationalisation Case") [1948] HCA 7; (1948) 76 CLR 1 at 349 per Dixon
J.
[253] The Commonwealth v Tasmania (The
Tasmanian Dam Case) [1983] HCA 21; (1983) 158 CLR 1.
[254] The Tasmanian Dam Case [1983] HCA 21; (1983)
158 CLR 1 at 145. In Pennsylvania Coal Co v Mahon [1922] USSC 193; 260 US 393 (1922),
the Supreme Court of the United States ruled that making it commercially
impracticable to mine certain coal has
very nearly the same effect for
constitutional purposes as appropriating or destroying it: at 414 per Holmes J
delivering the opinion
of the Court. But the Court said such matters were
discretionary; they were matters of degree.
[255] The Tasmanian Dam Case [1983] HCA 21; (1983)
158 CLR 1 at 181-182.
[256] The Tasmanian Dam Case [1983] HCA 21; (1983)
158 CLR 1 at 246-248.
[257] Bank Nationalisation Case
[1948] HCA 7; (1948) 76 CLR 1 at 349.
[258] [1944] HCA 4; (1944) 68 CLR 261.
[259] Assignability may not be a definitive
test of property. See Commissioner of Stamp Duties (NSW) v Yeend [1929] HCA 39; (1929)
43 CLR 235 at 245 per Isaacs J.
[260] See Bradbrook and Neave, Easements
and Restrictive Covenants in Australia, (1981) par 1315 and following;
Butt, Land Law, 3rd ed (1996) at pars 1713-1726. See also Forestview
Nominees Pty Ltd v Perpetual Trustees WA Ltd [1998] HCA 15; (1998) 72 ALJR 621; 152 ALR
149.
[261] [1983] HCA 21; (1983) 158 CLR 1 at 283.
[262] [1983] HCA 21; (1983) 158 CLR 1 at 287. See also
Gummow J in Newcrest Mining (WA) Ltd v The Commonwealth [1997] HCA 38; (1997) 190 CLR
513 at 595, 602, 634-635.
[263] See Attorney-General (Cth) v
Schmidt [1961] HCA 21; (1961) 105 CLR 361 at 372 per Dixon CJ.
[264] Hamilton, "Some Aspects of the
Acquisition Power of the Commonwealth", (1973) 5 Federal Law Review 265
at 291.
[265] [1944] HCA 4; (1944) 68 CLR 261.
[266] [1946] HCA 11; (1946) 72 CLR 269 at 290.
[267] Bank Nationalisation Case
[1948] HCA 7; (1948) 76 CLR 1 at 301 per Starke J; cf The Tasmanian Dam Case [1983] HCA 21; (1983)
158 CLR 1 at 291 per Deane J.
[268] The Regulations provide a right to
apply to the Administrative Appeals Tribunal for a review of decisions
regarding compensation:
r 57A(10). Appeal from decisions of the AAT to the
Federal Court is available, but is limited to questions of law:
Administrative Appeals Tribunal Act 1975 (Cth) s 44.
[269] The defence power does not of course
confer any greater right to acquire upon the Commonwealth on other than just
terms than any
other power: See Newcrest Mining (WA) Ltd v The Commonwealth
[1997] HCA 38; (1997) 190 CLR 513 at 594 per Gummow J.
[270] See for example Albany v The
Commonwealth (1976) 12 ALR 201. Section 62 of the Lands Acquisition Act
1955 (Cth) conferred jurisdiction upon the High Court and the courts of the
States and Territories to deal with matters arising under
the Act. Section 19
provided that land owners could, in the absence of agreement, take action
against the Commonwealth in a court
of competent jurisdiction, which included
the High Court. Provision was made for removal of actions into the High Court
where the
amount claimed exceeded the jurisdiction of the lower courts (s
28(9)) and where proceedings had been instituted in the High Court
and another
court (s 28(10)). The Lands Acquisition Act was amended by the
Jurisdiction of Courts (Miscellaneous Amendments) Act 1979 (Cth). The
amendments removed the relevant references to the High Court. Section 44 of the
Judiciary Act, enacted in 1976, gave the High Court power to remit "any
matter" to the Federal Court or to a Supreme Court. This replaced s 45. The
change ensured the Court, of its own motion, could remit a matter. The
original jurisdiction of the High Court in compensation matters, in
consequence, has effectively ceased to be exercised.
[271] [1979] AC 426 at 435, 437.
[272] See the discussion and summary of the
cases in Jacobs, The Law of Resumption and Compensation in Australia
(1998) at pars 33.8 to 33.13.
[273] Yates Property v Darling Harbour
Authority (1991) 24 NSWLR 156 at 159.
[274] cf Leichhardt Municipal Council v
Seatainer Terminals Pty Ltd (1981) 48 LGRA 409 at 434.
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