(a) The WLA as in force on 31 August 1953
182 As noted, the Lease was granted on 16 March 1955 and was expressed to take effect from 31 August 1953. The parties appeared to accept that the material date for determining the effect of the WLA was the date the lease took effect. While it is arguable that the date of the grant is the material date, the legislation was not relevantly amended between August 1953 and March 1955. Accordingly, this summary refers to the WLA as at 31 August 1953.
183 The WLA repealed the Crown Lands Act 1884 (NSW) in its application to specified Crown land holdings in the Western Division, unless exempted under the WLA itself (s 2).
184 The administration of the WLA was vested in a Western Lands Commissioner ("the Commissioner") appointed by the Governor: s 4.
185 The Minister was empowered to direct any local land board to deal with any matter, question or inquiry arising under the WLA (s 10) and to require the board to make a report (s 10A). The Minister could refer any question of lapse, voidance or forfeiture to the local land board for due investigation and decision in open court (s 10B).
186 The Minister, the Commissioner, or other person authorised, was empowered at any time to enter upon any Crown lands within the Western Division for the purpose of giving effect to the provisions of the WLA or the Crown Lands Acts (s 12).
187 Section 18 dealt with terms and conditions of leases, and aspects of forfeiture, relevantly as follows:
"18. All leases issued … under the provisions of this Act … shall contain the covenants, reservations, and exemptions set out in Schedule A hereto, or such of the same as the Minister may deem applicable … and no lease shall convey any authority to carry on mining operations thereon. Every such lease shall contain a provision to the satisfaction of the Minister for the destruction of rabbits, and any lease shall, in the discretion of the Minister, after report from the Commissioner, be liable to forfeiture for breach of any of the covenants therein contained or annexed by law thereto:
Whenever in pursuance of the provisions of this Act any holding or any right, title or interest to or in any land, becomes liable to be forfeited, such forfeiture may be declared by the Minister by notification in the Gazette.
…
No forfeiture, cancellation or lapsing shall operate to extinguish any debt to the Crown.
The Minister may, in the recommendation of the Commissioner, waive or reverse, whether provisionally or otherwise, and on such conditions as he may think fit, any such forfeiture, cancellation, or lapsing. Any such reversal shall be notified in the Gazette."
188 Schedule A, substantially regulating the use of the land along the lines of the conditions and provisions of the Lease, was as follows:
"Schedule A
COVENANTS, reservations, and exceptions referred to in section eighteen:-
(a) To pay rent annually in advance. To pay any moneys owing to the Crown under the provisions of the Crown Lands Acts.
(b) To take, within a specified time, such steps and measures to destroy rabbits, dogs, and other vermin as the Commissioner shall from time to time direct, and to keep the lease free of vermin during the currency of the lessee to the satisfaction of the Commissioner.
(c) To destroy such noxious weeds as the Commissioner may from time to time direct.
(d) Except for the purpose of building, fencing, or for firewood, not to destroy, or permit the destruction of any timber on the lease without the written consent of the Commissioner.
(e) Not to obstruct or interfere with any reserves, roads, or tracks, or the use thereof by any person.
(f) To foster and cultivate such edible shrubs and plants, and take such steps in this respect as the Minister may from time to time direct.
(g) To furnish such returns or statements as the Commissioner may from time to time require in connection with any lease or license, or freeholds or conditional purchases in the Western Division, or worked in conjunction with any lease or license in the Western Division.
(h) To furnish such returns or statements as the Commissioner may from time to time require in connection with any sheep or large stock, cost of improvements, working expenses, or any other matter relative to any holding in the Western Division, or to any of the matters herein mentioned in connection with any property worked in conjunction with any lease or license in the Western Division.
(i) To permit the Commissioner and all persons authorised … to enter and view the whole or any part of the lease or buildings or other improvements thereon.
(j) To keep in reasonable repair all improvements on the lease.
(k) Reservations in favour of the Crown of all minerals, metals, gems, precious stones, coal, and mineral oils, together with all rights necessary for ingress, egress, search, prosecution, and removal and all incidental rights and powers.
(l) The unrestricted right to proclaim travelling stock, camping or other reserves. The unrestricted right to withdraw any land for the purposes of roads or travelling stock, camping or other reserve.
(m) The unrestricted right for the Minister, the Commissioner, or any persons duly authorised in that behalf to enter upon and examine such land and the improvements thereon.
(n) The right, if the rent or license fee be not paid on the due date, to impose a penalty not exceeding ten per cent per annum on the amount unpaid.
(o) A proviso that if rent shall be in arrear for more than six months after due date, or if there has been a breach or non-performance of any of the lessee's covenants or conditions the Minister may cancel the lease.
(p) Provisions for resumption of lands for mining purposes, townships, or any public purpose under the provisions of the Crown Lands Acts; and for compensation for resumption.
(q) Reservations in favour of the Crown necessary or proper for giving effect to any Act or regulation for the time being in force."
189 All leases were to "be subject to a condition that the boundaries of the lands leased shall be fenced within such period and with such class of fencing as may be determined by the Commissioner not being a rabbit-proof fence …" (s 18A). However, a proviso empowered the Commissioner to exempt, vary or modify this condition.
190 By section 18D:-
"(i) No lease other than a special lease for that purpose shall confer any right to remove material from the leased land or to prevent the entry and removal of material by authorised persons.
(ii) A lessee may take from land under lease to him and not comprised within a timber or forest reserve such timber and other material for building and other purposes on the land or on any contiguous land held in the same interest as may reasonably be required by him.
(iii) No lessee shall prevent any … authorised [persons] from cutting or removing timber or material or from searching for any mineral within the land under lease.
(iv) A lessee shall, if the Minister so directs, prevent the use by stock of any part of the land for such periods as the Minister considers necessary to permit of natural reseeding and regeneration of vegetation; and, for this purpose, the lessee shall erect within the time appointed by the Minister such fencing as the Minister may consider necessary.
(v) A lessee shall not overstock or permit or allow to be overstocked the said land, and the decision of the Commissioner as to what constitutes overstocking shall be final, and the lessee shall comply with any directions of the Commissioner to prevent or discontinue overstocking.
(vi) A lessee shall use iron or steel posts (with wooden strainers) for the erection or repair of all fencing on the land, except that, in special cases, the Commissioner may permit the use of other posts."
191 Section 18E (inserted in 1932) provides for the extension of a subsisting lease to a lease in perpetuity upon application by the holder.
192 Section 18F (inserted into the WLA in 1934) made residence a condition of any lease applied for after the commencement of the Western Lands (Amendment) Act 1934:-
"18F. (1) A condition of residence for a term of five years shall attach to every [such] lease … in respect of land set apart for disposal by way of lease generally and shall be performed by the lessee or some other person approved by the Commissioner.
Residence shall commence within six months after the commencement of the lease:
Provided that-
(i) the local land board may suspend the condition of residence for such periods and upon such conditions as it may determine; or
(ii) the lessee or such other person may with the permission of the local land board perform such condition by residing anywhere within a reasonable working distance of the lease.
(2)(a) A provision in any instrument of lease or a condition attaching to any [such] lease …to the effect that the lessee shall occupy the land within the lease during the whole of the term of the lease by the continuous and bona fide residence of himself or some other person approved by the Commissioners of the Western Land Board of New South Wales in writing shall cease to have effect upon the issue by the local land board of a certificate that continuous residence for a period of five years has been performed upon the lease by or on behalf of the lessee or his predecessors in title.
(b) …."
193 Section 18G dealt with the transfer, conveyance, assignment or mortgage of leases applied for after the 1934 amendments. Except as otherwise provided in the WLA, no transfer, conveyance, assignment, mortgage or other dealing (except a discharge of mortgage) was to be effected unless the consent of the Minister had first been obtained (s 18G(1)). Without limiting the generality of the Minister's discretion, the Minister was to:
"… have regard to the desirability of preventing undue increases in the price of land and its use for speculative or uneconomic purposes, taking into account the circumstances of the particular case and all other relevant considerations including in particular, the following matters:-
(i) the amount of the purchase money, rent or other consideration to be paid and the extent to which it exceeds the fair market value of the lease or the rent or other consideration appropriate to that fair market value;
(ii) the terms of the transaction, and the terms of any other transaction in any way related thereto …." (s 18G(1A)(a)).
194 The Minister was also given the power to refuse consent where the amount of purchase money, rent or other consideration appeared (to the Minister) to exceed by 10 per cent or more the fair market value of the lease or the rent (s 18G(1A)(c)). Any party to the transaction could appeal from a refusal of consent to the local land board (s 18G(1A)(d)).
195 No transfer could be effected unless the owner of the improvements had certified that such owner had received the value of the improvements (s 18G(2)). No transfer in contravention of this provision was valid for any purpose (s 18G(4)).
196 Any lease applied for after the 1934 amendments was liable to forfeiture if the holder sublet the lease or any part thereof, or granted any grazing rights over the lease or any part thereof without having first obtained the written consent of the Minister. If any stock not owned by the holder was found depasturing on the lease or any part thereof without the Minister's consent, it was to be prima facie evidence of a breach of the subsection (s 18G(4A)).
197 Where a lease applied for after the 1934 amendments was mortgaged, and the mortgagee entered into possession of the lease under the mortgage, the mortgagee could hold the lease for a period of three years after the date of entry into possession, or for such further period as the Minister, after report by the Commissioner, permitted. The mortgagee could not foreclose the mortgage or transfer the lease, except by way of discharge or mortgage, without the consent of the Minister. If, within the period of three years, the mortgagee did not foreclose the mortgage or transfer the lease, the lease was liable to be forfeited (s 18H(1)).
Any covenant, condition, purpose or provision of a lease could, on the recommendation of the local land board and with the consent of the lessee, be varied, modified or revoked or added to by the Minister to such extent and on such terms as the Minister deemed desirable (s 18J).
198 The rent of any lease in perpetuity applied for after 30 June 1943 in respect of land set apart for grazing was to be determined by the local land board. The rent so determined was to be payable for a period of ten years commencing from the date of granting the lease. For each separate period of ten years thereafter, the rent payable was to be the rent as redetermined by the local land board (s 19B(a1)). In determining or redetermining the rent of any lease of land held for grazing, the board was to have regard to the productive capacity of the land under fair average seasons, prices and conditions (s 19B(3)). The rent was to be paid annually in advance (s 19B(4)).
199 Section 23, as previously mentioned, the source of the authority to grant the Lease, conferred upon the Minister the power to grant leases as follows:
"23(1)It shall be lawful for the Minister to grant leases of Crown Lands -
(a) as leases in perpetuity; or
(b) …
Any lease so granted shall except as otherwise provided in this Act be subject to the general provisions of this Act.
(2) Except as otherwise provided in this Act, the Minister shall not grant a lease of any Crown lands unless such have been set apart for disposal by notification in pursuance of section twenty-four of this Act.
(3) The Minister shall not grant a lease in perpetuity to an applicant who holds under any tenure (other than annual lease, preferential occupation license, occupation license or permissive occupancy then having not more than one year to run) an area of land which when added to the land applied for would substantially exceed a home maintenance area.
For the purpose of this subsection lands held by the spouse of the applicant shall be deemed to be lands held by the applicant…."
200 (By a new definition added in 1949, a "home maintenance area" was defined to mean:
"an area which when used for the purpose for which it is reasonably fitted, would be sufficient for the maintenance in average seasons and circumstances of an average family." (s 3))
201 Section 24 gave the Minister the power to declare that any Crown lands be set apart for disposal as follows:
"24(1)The Minister, after such inquiry and report as may be deemed expedient, may declare by notification in the Gazette that the Crown lands comprised within any area to be described in the notification shall be set apart for disposal by way of-
(a) lease generally; or
(b) lease exclusively to holders of land under any tenure situated in the Central Division within a reasonable working distance of such lands; or
(c) lease exclusively to holders of land under any tenure situated in the Western Division within a reasonable working distance of such lands; or
(d) lease exclusively to both classes of holders of land as aforesaid.
(2) The Minister shall specify in any such notification that the land is set apart for the purpose of grazing or grazing and agriculture combined or mixed farming, or for any similar purpose or purposes."
202 Section 25(1) provided that a person not subject to any relevant disqualification could apply for a lease of land set apart under the WLA for disposal by way of lease. The local land board was to deal with all applications and to make a recommendation to the Minister (s 25(3)). (See generally Ex parte McDougall; Re Tully [1945] 45 SR(NSW) 188 (FC); Ex parte Hopkins; Re Cronin [1957] SR(NSW) 554 (FC).)
203 Section 28A of the WLA empowered the Minister, on the report of the Commissioner, to lease Crown lands for any purpose declared to be a "special purpose".
204 Upon the expiration, forfeiture, surrender or other determination of any lease, all improvements, except as otherwise provided in the WLA, were to become the property of the Crown (s 29(1)). The Minister, after report by the Commissioner, could conditionally or unconditionally assure or grant tenant right in any improvements (s 29(2)). Tenant right was to accrue upon the determination of the lease (s 30(1)).
205 The Governor was also given power to make regulations for the general purpose of carrying the WLA into effect (s 36).
206 Section 44(1) gave the Governor the power to withdraw land from lease in certain circumstances as follows:
"44(1)The Governor may withdraw the whole or any part of the land comprised in any lease under this Act in any case in which in his opinion such land is required for the purpose of settlement, and in connection with such withdrawal shall acquire any freehold portions owned by the lessee and situated within and used in conjunction with such lease or part …."
207 The lessee was thereupon entitled to compensation (for complete or partial withdrawal) of the market value of the interest held in the leased land based entirely upon its market value for pastoral or grazing purposes (s 44(1)).