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AGRICULTURAL TENANCIES BILL 1990
NEW SOUTH WALES
EXPLANATORY NOTE
(This Explanatory Note relates to this Bill as introduced into Parliament)
The object of this Bill is to provide a new code for regulating the respective rights
of agricultural landowners and their sharefarmers and other tenants. At present
these rights are regulated by the Agricultural Holdings Act 1941 which will he
repealed by the proposed Act.
The Bill re-enacts, in simpler language, the more important principles of the 1941
Act and extends those principles in certain respects.
The enactment in 1984 of the Commercial Arbitration Act provided a system for
the resolution of disputes by conciliation and arbitration. The system applies in cases
where an Act or private agreement specifies that disputes are to be settled by
arbitration. The Bill applies this system to disputes between agricultural landowners
and their tenants.
PART 1 -- PRELIMINARY
Clause 1 specifies the short title of the proposed Act.
Clause 2 provides for the commencement of the proposed Act on a proclaimed
day or days.
Clause 3 states the principal objects of the proposed Act.
Clause 4 defines "agricultural purposes", "farm", "improvement", "owner",
"tenancy" and other terms used in the proposed Act.
Agricultural Tenancies 1990
PART 2 - COMPENSATION FOR IMPROVEMENTS ETC.
Division 1 - Compensation to tenants
Clause 5 defines "compensation" for the purposes of the proposed Division and
states the time at which compensation is payable to tenants. In deciding on a fair
amount of compensation, regard may be had to the means of the landowner and the
tenant as well as the expected return on the improvement and other relevant matters.
Clause 6 provides that if a tenant, with the agreement of the landowner, carries
out an improvement on the farm, the tenant is entitled to be paid compensation for
the improvement. The compensation can be an agreed amount but, in default of
agreement, it is to be an amount representing the value of the improvement.
Clause 7 addresses the case of an improvement carried out by a tenant without
agreement with the landowner. In such a case, the tenant is generally entitled to be
paid compensation based on the value of the improvement if the improvement falls
into a category specified in Schedule 1 to the proposed Act or in the regulations, or
if the improvement is first determined by arbitration to be a suitable and desirable
one.
Clause 8 provides a tenant with a right to compensation for a general
improvement to the farm that is due to the tenant's superior farm management.
Clause 9 provides a tenant with a right to compensation for grain, hay and other
useful products left on the farm at the conclusion of a tenancy.
Division 2 - Compensation to owners
Clause 10 defines "compensation" for the purposes of the proposed Division and
states the time and manner of payment of compensation to an owner.
Clause 11 provides for the payment of compensation by a tenant to an owner in
respect of an improvement carried out by the owner with the consent of the tenant.
Clause 12 provides for compensation payable by a tenant to the owner for an
improvement carried out by the owner without the tenant's consent. The owner is
entitled to be paid in respect of the increased value of the farm to the tenant, if the
improvement is first determined by arbitration to be a suitable and desirable one.
Clause 13 provides an owner with a right to compensation by
a tenant when the
tenant allows the farm to deteriorate.
PART 3 - RIGHTS OF OWNERS AND TENANTS
Clause 14 provides for the disposition of tenants' fixtures at the
conclusion of
their tenancies. The owner has the right to buy a tenant's fixture at a fair price. If
the owner does not want it, the tenant is entitled to take it away.
Clause 15 allows the owner or an agent of the owner to
come on to the farm to
inspect it. Reasonable notice must be given to the tenant.
Clause 16 provides for a record to be made of the condition of the farm and its
buildings, fences and other features and of any improvements. The record must, at
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Clause 17 imposes a duty on both the owner and the tenant to keep proper
accounts. On reasonable notice, each party may inspect the records of the other.
Clause 18 provides that the owner and tenant are each entitled to insist that any
agreement creating the tenancy should be reduced to writing.
Clause 19 specifies the notice that either party must give the other in order to
terminate a tenancy. The required notice may be varied by agreement between the
owner and the tenant.
PART 4 - ARBITRATION
Clause 20 requires the parties to resort to arbitration to settle disputes arising
from anything contained in the proposed Act and enables the referral to arbitration
of disputes arising out of an agreement creating the tenancy. In cases where
arbitration may be resorted to, but is not compulsory, proceedings to resolve a
dispute may be taken before arbitrators or Before the courts (but not before both in
respect of the same matter).
Clause 21 provides for the appointment of arbitrators. An arbitration for the
purposes of the proposed Act is generally to be conducted by a committee of 3
persons (one of whom must be legally qualified) selected in accordance with the
regulations. Provision is also made for the resolution of disputes in urgent cases by
a single arbitrator (who must be legally qualified).
Clause 22 provides that an application for arbitration must be made, in
accordance with the regulations, within 3 months after the tenant quits the farm. The
parties, however, can extend the time limit and so can the Supreme Court.
Clause 23 applies the relevant provisions of the Commercial Arbitration Act 1984
to an arbitration for the purposes of the proposed Act.
Clause 24 allows arbitrators to enforce specified rights under the proposed Act
by an order for compensation in the nature of damages.
Clause 29 allows arbitrators to make ancillary declarations and orders.
Clause 26 provides that, where a farm is in the hands of a trustee, any amount
awarded by arbitration to the tenant is a charge on the farm until the tenant is paid.
PART 5 - GENERAL
Clause 27 prevents
persons from
contracting out of the proposed Act.
Clause 28 provides for the means by which a document may be appropriately
served for the purposes of the proposed Act.
Clause 29 enables the making of regulations under the proposed Act.
Clause 30 provides for the repeal of the Agricultural Holdings Act 1941 and
regulations in force under that Act. The clause also gives effect to a Schedule of
savings and transitional provisions.
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Agricultural Tenancies 1990
Schedule 1 specifics improvements to a farm which, if made by the tenant. allow
the tenant (in accordance with proposed section 7) a right to compensation without
the necessity of determining by arbitration their suitability and desirability.
Schedule 2 enacts appropriate savings and transitional provisions. Rights, powers
and duties under the Agricultural Holdings Act 1941 are preserved in respect of
tenancies created under that Act or created pursuant to an option granted under that
Act.
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