The procedure introduced by the Act includes the establishment of the Tribunal and a system of mediation and negotiation that offers an alternative to adversarial litigation. The role of the Tribunal is to facilitate the presentation of cases for determination and, in particular, to provide a mediation service by which parties may be assisted in effecting a resolution of their differences.
For example, once an application has been given to the Registrar pursuant to sub-s.61(2) of the Act, the applicant is to be notified by a Government party if a "permissible future act" is proposed to be carried out by that party (s.26, s.29) and negotiation with the applicant must take place (s.31). (See: Northern Territory v. Lane, p.11.) After an application has been accepted by the Tribunal s.72 of the Act requires a mediation conference to be convened to help resolve the matter raised in the application.
It must be assumed that if important questions of fact, or law, raised by an application were to be treated as threshold issues to be determined at the time the application is given to the Registrar, a quasi-judicial, and probably adversarial, proceeding would be imposed before access to mediation became available. That result would not meet the purpose of the Act or, in particular, the procedure intended to be applied in s.63. Furthermore, as the "appeal" in this matter demonstrates, litigation upon the determination of threshold issues would be likely to follow involving the passage of time and the incurring of substantial cost.
In my opinion, as demonstrated in the content and complexity of the arguments addressed to the Court on the hearing of this "appeal", the application was not one to which settled law applied foreclosing further argument and obliging the President to direct the Registrar to refuse to accept the application.
The President delivered full reasons, now reported as Re Waanyi People's Native Title Application (1995) 129 A.L.R. 118, in which he held that he was bound by the judgments in Mabo [No.2] to conclude that the native title sought to be determined in the application had been extinguished by the "grant" of a pastoral lease under the Pastoral Leases Act 1869 ("the 1883 lease"). The material before the President did not establish that an instrument of pastoral lease for the 1883 lease had been issued. An Executive Council Minute recorded that a recommendation for a right of lease had been approved on 27 September 1882 and entries in the Register of Runs maintained under the 1869 Act recorded that a pastoral lease for a term of 21 years commenced on 1 July 1883. The President stated that it was accepted on all sides that the relevant instrument of pastoral lease would have contained a reservation in the same form as that set out in the instrument of pastoral lease issued for the adjacent pastoral holding known as the Lillydale Run. The term of that lease commenced on 1 July 1879. The lease was not issued until April 1900. If the pastoral lease had issued with such a reservation the President would have been satisfied, at least to that point, that a "prima facie" claim can be made out by the applicants. The President accepted that if such a reservation was included in the lease as issued, the lease would have been a valid lease under the 1869 Act.
I agree with Hill J. that the proper inference to be drawn in the circumstances was that the 1883 lease did issue with such a reservation, or, alternatively, that it was an open question of fact to be assumed in the applicants' favour at that early stage of examination of the application.
I would add, however, that upon the President being satisfied, as he was, that there was ample evidence of a standard form of reservation being included in leases issued at the time of the "grant" of the "1883 lease" and the parties accepting that the President should assume in favour of the applicants that the "1883 lease" would have contained such a reservation, the President should have been satisfied that an approved lessee's right to hold Crown land pending the issue of a lease was a right under the 1869 Act that could give no greater benefit than the lease to be granted and issued under the 1869 Act being a lease that would include a reservation in the standard form. At that point, whatever equitable interest, or right of occupation protected by statute, was held by the approved lessee neither circumstance involved an act by the Crown intended to extinguish, or capable of extinguishing, existing native title.
It is apparent that when the proposed or approved lessee occupied the pastoral holding the Crown was not prepared to issue a lease under the 1869 Act which did not include the standard reservation and that the approved lessee was prepared to accept a lease so qualified. The approved lessee could not call upon the Crown to issue a lease which excluded that reservation. The grant and issue of a lease and the fixing of the terms of the lease were part of the exercise of statutory powers and discretions rather than the performance of a contract made between the approved lessee and the Crown. If, however, it could be said that the Crown and the approved lessee were parties to an agreement to grant and issue a pastoral lease it was an express term of that contract, to be inferred from the facts, that the lease as issued would include the standard reservation. No question arises as to whether such a term is to be implied into the contract to give it business efficacy. (See: Thompson & Morgan (United Kingdom) Ltd. v. Erica Vale Australia Pty. Ltd. (1995) 31 I.P.R. 335 per Lockhart, Gummow and Hill JJ. at 343-345.)
Under the 1869 Act it may be said that until a pastoral lease was granted under the Great Seal and made a matter of record no legal interest would be vested by the Crown to give effect to any pending intention the Crown may have to extinguish native title by vesting such an interest. (See: E. Campbell, "Crown Land Grants: Form and Validity" (1967) 40 A.L.J. 35 at 38.) The pastoral tenant may have had an enforceable right to retain and recover possession of the pastoral holding but could not claim against the Crown that a legal estate had been vested. (cf. s.53 - 1869 Act.)
The President, therefore, should have been satisfied that the ability of the applicants to make out a "prima facie" claim was unaffected by the 1883 lease. The President should have been satisfied that as the reservation was, or would be, part of the pastoral lease as granted, or issued, it was not a "super added contractual obligation" that had the effect of "carving...something out of the demised estate". According to the material before the President there was, or would be, no demise unless it was a demise subject to that reservation.
Although the foregoing conclusion of the President led to the failure of the applicants to satisfy the President in the terms required by para.63(3)(b) of the Act, the President's further conclusion that the grant of a pastoral lease ("the 1904 lease") under the Land Act 1902 (Qld.) ("the 1902 Act") extinguished native title would have had the same result. It is necessary, therefore, to examine the President's conclusion on the effect of the 1904 lease.
By s.2 of the 1902 Act that Act is to be read and construed with, and as an amendment of, the Land Act 1897 ("the 1897 Act"). Pursuant to s.12 of the 1897 Act the Governor-in-Council was empowered to "demise for a term of years any Crown lands, within the Colony of Queensland". Such a lease was to be made subject to such reservations or conditions as were authorized by the 1897 Act and was to be in the prescribed form and "being so made" was valid and effectual to vest in the person therein named, subject to the provisions of the 1897 Act, the land described in the lease "for such estate or interest as shall be set forth in the instrument". [emphasis added]
Part III of the 1902 Act provided for the reclassification of the Crown lands subject to pastoral leases by the surrender of those leases and the grant of new leases to pastoral tenants who elected to take advantage of the provisions of the 1902 Act. By sub-s.6(1) of the 1902 Act at any time before 1 January 1904 a pastoral tenant could make application for the classification of the tenant's holding. By s.8 of the 1902 Act, if within six months after the publication of the classification of the holding a pastoral tenant elected to take advantage of the Act upon surrendering the existing pastoral lease the tenant became "entitled to receive" a lease from the Crown under the 1902 Act. Pursuant to sub-s.8(2) and Schedule II of the Act a notice of election by the tenant in the statutory form also operated as a notice of surrender of the pastoral lease. In the terms of that notice it was stated that the surrender was to take effect from the commencement of the term of the new lease. Sub-section 8(6) of the 1902 Act provided that a lease "shall only be granted after the payment of all rent payable under the surrendered pastoral lease". [emphasis added] It may be said to be apparent from the foregoing that the entitlement to receive a lease did not take effect as a grant of lease.
Sub-section 6(2) of the Act provided that if after a lessee had applied to have the pastoral holding classified under the 1902 Act a pastoral lease may expire before a new lease was "duly issued", the pastoral lease was to be deemed to be a subsisting pastoral lease beyond the date of expiration. If, therefore, after publication of the classification of the lessee's pastoral holding the lessee under a "deemed subsisting lease" gave notice of election under sub-s.8(1) of the 1902 Act to have the 1902 Act applied to the lessee's holding, the notice would operate as a "surrender" of the deemed "subsisting pastoral lease".
The combined effect of ss.8 and 6 of the 1902 Act would appear to be that the surrender of a pastoral lease contained in the notice of election to take advantage of the 1902 Act would be irrevocable (sub-s.8(2)) and would operate retrospectively from the date of grant, or issue, of a lease under the 1902 Act. The surrendered pastoral lease, whether current, or expired but deemed to be "subsisting", would continue to operate until such time as the instrument of lease under the 1902 Act was duly issued at which point the surrender took effect retrospectively. The provision in s.18 of the 1902 Act permitting the Crown to make "resumptions" from "surrendered" pastoral holdings tends to support that construction. The analogy at law would be that the vesting of an estate in reversion would not occur upon expiration, or surrender, of a pastoral holding that was subject to Pt.III of the 1902 Act.
In the present case on 18 December 1903 the pastoral tenant applied for the pastoral holding to be classified under the 1902 Act. The applicants submit that, as found by the President, the 1883 lease did not issue and, therefore, the 1902 Act had no application to that pastoral holding in that the party in possession was not a "pastoral tenant" as defined in the 1902 Act. For the purpose of dealing with the effect of the 1904 lease it will be assumed that the 1902 Act applied to the pastoral holding. The 1883 lease was due to expire, or would have expired if issued, on 30 June 1904. On 27 June 1904 the tenant applied under the Pastoral Leases Extension Act 1890 to obtain an extension of the term of the lease. On 14 July 1904 it was recorded in an Executive Minute that the term of the lease had been extended for a period of five years from 1 July 1904. Without considering whether such an application for extension was available to the lessee under that Act, it may be said that the approval operated as a statutory extension of the term and not as the grant of a new lease. The lease continued, therefore, whether as an extended lease, or as a deemed "subsisting pastoral lease", in the same terms, including the reservation protecting the interests of indigenous people. On 28 July 1904 the tenant gave notice of election to take advantage of the 1902 Act and of the surrender of the pastoral lease. As noted above, pursuant to ss.6 and 8 of the 1902 Act the pastoral lease as extended, or as a "deemed subsisting lease", continued, notwithstanding the surrender, until a new lease was "duly issued" under the 1902 Act.
It follows from the foregoing that until the Crown demised a pastoral holding under the 1897 and 1902 Acts, a party "entitled to receive" such a lease could call for the grant and issue of such a lease and, meanwhile, could support possession of the pastoral holding by relying upon a statutory entitlement to receive such a lease. But the question in issue in the present case is not whether a pastoral tenant had a right to possession of a pastoral holding pursuant to the terms of a statute (cf. O'Keefe v. Williams (1910) 11 C.L.R. 171) but whether the Crown intended to extinguish native title by vesting in that person a legal interest in the land, such vesting of an interest intended by the Crown to be inconsistent with the exercise and continuation of native title. The right under the statute, or in equity, to retain possession of the pastoral holding and to call for the issue of a lease did not depend upon the vesting of a legal interest in the land. It is plainly arguable that such a vesting of interest did not take place until a demise for a term of years was made in the terms provided by s.12 of the 1897 Act, namely, in the prescribed form of the statutory instrument. The issue of the instrument of lease did not occur until 14 November 1907.
The provision in the 1897 Act of the manner of vesting the leasehold interest overcame the need for the grant by the Crown to be under the Great Seal and to be a matter of record. In so far as the habendum of the lease operated as a grant it may be said that it was prospective only and that the retrospective date for the commencement of the term set out in the habendum marked the duration of the term and not the date of the grant of a legal interest to the tenant. (See: Shaw v. Kay [1847] 1 Ex. 412; Jervis v. Tomkinson 1 H. & N. 195 per Pollock C.N. at 207; Cotton v. Becollda Investments Ltd. [1950] 1 K.B. 216 per Jenkins L.J. at 226; Perpetual Trustee Co. Ltd. v. Morley [1968] 70 S.R. (N.S.W.) 161; Perpetual
Trustee Co. Ltd. v. Morley (1969) 121 C.L.R. 659; Queensland Television Ltd. v. Federal Commissioner of Taxation (1969) 119 C.L.R. 167; Roberts v. Church Commissioners for England [1972] 1 Q.B. 278; Bradshaw v. Pawley [1980] 1 W.L.R. 10 per Megarry V-C at 14-15.)
The respondents submitted that the words of s.8 of the 1902 Act suggested that a new lease "took effect" as soon as the conditions referred to in that section were satisfied. Therefore, it was said, if execution of a lease was essential under the 1897 Act "for the commencement of a term", s.8 of the 1902 Act was inconsistent with that requirement and the 1897 Act was amended accordingly.
There are no words of grant in s.8 to show that an interest in land was vested by operation of that section. The argument that s.8 sets the time at which a term of lease commences, if correct, does not sustain a latent submission that the section is to be construed as a statutory vesting of a legal estate. The terms of s.8 are consistent with, and go no further than, the position at law referred to above, as to the computation of the term of a lease. The words "shall be entitled to receive a lease from the Crown" are not words of complexity and should be given their ordinary meaning.
The express provisions of s.12 of the 1897 Act would require very clear words of amendment in the 1902 Act to alter
the requirement in s.12 that a lease in prescribed statutory form be executed before a legal interest was vested in a lessee. Such words are not contained in s.8 of the 1902 Act.
By reason of the foregoing it is plainly arguable that by 6 June 1907 the whole of the area the subject of the application to the Tribunal had been excised from the area in respect of which the pastoral tenant had an entitlement to receive a lease under the 1902 Act and that the vesting of the interest which occurred upon execution and issue of the instrument of lease on 14 November 1907 did not vest an interest capable of extinguishing native title over an area that was then a proclaimed reserve excised from the pastoral holding.
Additional arguments may be raised against any extinguishing effect in the 1904 lease. In addition to s.12 of the 1897 Act, s.12 of the 1902 Act provided that every pastoral lease granted under the 1902 Act was to be subject to certain conditions, in particular a condition reserving in favour of the Crown the unrestricted right to proclaim reserves and to resume without compensation, except for improvements, any land required for the purpose of such reserves. The lease was also subject to such reservations in favour of the Crown as were necessary and proper to give effect to any Act or Regulation for the time being in force.
Each of those reservations was a significant derogation from the right to possess Crown land contained in a demise by the Crown for a term of years. Pursuant to s.190 of the 1897 Act one of the purposes for which the Governor-in-Council may reserve Crown land was for the use or benefit of Aboriginal inhabitants of the colony. Pursuant to s.227 of the 1897 Act the Crown may issue a licence for any Crown land, including a pastoral lease, to cut and remove timber, and to dig and remove stone, gravel and other material and the holder of such a licence was entitled to depasture on the pastoral lease animals used for the purpose of the licence, in such numbers, for such time, and for such agistment fee as the Regulations may prescribe. Section 229 of the 1897 Act stated that a pastoral lessee did not have the power to restrict a person so authorized, from cutting or removing timber, or material, for building or other purposes, or for searching for a metal or mineral within the pastoral holding. Pursuant to s.230 any person driving stock was entitled to pass through a pastoral lease and depasture stock in any part of the land within half a mile of the road used for droving. Section 231 stated that the pastoral lessee could not ringbark trees without permission, or cut down trees other than for the purposes of the pastoral holding. Similarly, under s.234 only a person authorized for that purpose by a licence from the Crown could dig or remove stone, gravel and like material on, or from, the pastoral holding.
Such statutory provisions imposed limitations upon the possessory interest granted by a pastoral lease and, it may be argued, spoke fairly forcefully of the absence of an intention on the part of the Crown to extinguish any form of native title which burdened the Crown title at the time the pastoral lease was granted. If a pastoral lessee was obliged to yield to woodcutters, miners and drovers and to accede to excision from the land demised, without compensation except for improvements, such part of the demise as was required by the Crown for the purpose of a reserve, there would appear to be considerable weight in the argument that the Crown did not intend by granting a pastoral lease to extinguish any native title that operated upon the ostensibly limitless areas of unenclosed and unsettled land included within such pastoral leases. The vastness of the area of unenclosed land in the instant case is exemplified by the area "surrendered" in 1907 for the purpose of a reserve. That portion was 278 sq. miles. The area of the pastoral holding which remained was 1,664 sq. miles. A sq. mile contains 640 acres.
Part of the purpose of the 1897 and 1902 Acts was to enable the Crown to recover control of some of the areas subject to pastoral leases and, where suitable, make that land available to selectors under other forms of tenure (1897 Act - Pts.III, IV; 1902 Act - Pts.III, IV). Except for that process of resumption it was the intent of the Crown that no part of a pastoral lease was available for selection and alienation. Indeed, by s.151 of the 1897 Act a pastoral tenant was prohibited from applying for a Grazing Farm (s.145 - up to 640 acres), or a Homestead (s.142 - up to 160 acres), within 15 miles of that pastoral lease.
The form of lease prescribed pursuant to s.12 of the 1897 Act was as set out in Form 3 of The Land Regulations 1903 made pursuant to s.261 of the 1897 Act and amended under s.23 of the 1902 Act. Section 23 of the 1902 Act provided that the Regulations made under the 1897 Act amended under the 1902 Act were applicable to a pastoral holding under Pt.III of the 1902 Act.
The form of the lease issued on 14 November 1907 was not as prescribed in Form 3 of The Land Regulations 1903 in its entirety but the habendum which read as follows was essentially in the same terms as the prescribed form:
"WE DO HEREBY, for Us, Our Heirs and Successors, DEMISE AND LEASE unto the said Bank of New South Wales their successors, and assigns (hereinafter called "the said Lessees") ALL THAT Piece or Parcel of Land situate in the District of Burke known as Lawn Hill Holding and more particularly described in the Schedule endorsed on these Presents: TO HOLD the same unto the said Lessees, for pastoral purposes only, for and during the term of Forty-two years, to be computed from the First day of July, 1904, subject to the said rights, powers, privileges, terms, conditions, provisions, exceptions, restrictions, and provisoes in the said Act and the Regulations thereunder now or hereafter to be made, and in these Presents respectively contained:" [emphasis added]