THE SPECIAL LEASE - FACTUAL BACKGROUND
54 The history of the Special Lease is more complicated and extensive. The following factual background is primarily taken by agreement from the written submissions of the Palyku Applicant and the State and the administrative records produced by the State which became Exhibit "B".
55 Prior to its grant, the area covered by the Special Lease was the subject of Pastoral Leases 394/1045, 394/1084, 394/1085, 394/1086, 394/1087, 394/1147 and 394/1264, together forming Riverdale Station.
56 In or about 1953, the Northern Development and Mining Company Pty Ltd (Northern Mining) entered into an agreement with the lessee of Riverdale Station, Mr James Allsopp, to purchase the pastoral leases comprising that Station for £10,000. Northern Mining was a co-operative venture which was formed at about the time of the Pilbara Aboriginal pastoral workers' strike of the 1940s.
57 Relying on several articles published in a number of historical journals, the Palyku Applicant provided the following summary of the events surrounding that strike:
When the Pilbara Strike began in 1946, there was no award wage for Aboriginal workers. Instead, Aboriginal workers were paid only subsistence wages that kept them dependent on their employers. This led to one of the most significant Aboriginal workers' strike [sic] in Australian history. A European Australian named Don McLeod, who gained the respect and trust of the Aboriginal workers assisted them in coordinating and organising support for the strikers. In 1949, a cooperative of Aboriginal people led by Mr McLeod formed the first Aboriginal-owned mining company in Australia, titled [Northern Mining]. With Mr McLeod as managing director, the company flourished with 700 members between 1951 and 1953.
(Footnotes omitted)
58 Partly using monies received from the sale of minerals mined by Aboriginal persons, Northern Mining paid £6,000 of the £10,000 purchase price of Riverdale Station. That sum was paid in instalments. However, before the full purchase price was paid, Northern Mining fell into debt and entered liquidation in 1954. Under the terms of the agreement with Northern Mining, Mr Allsopp repossessed Riverdale Station and subsequently offered it to the Department of Native Welfare for the balance of the purchase price, plus interest.
59 The circumstances in which the Allsopps made that offer were detailed in a memorandum dated 8 March 1955 which the Commissioner of Native Affairs in Western Australia sent to the Minister for Native Welfare in Western Australia. The relevant parts of that memorandum are as follows:
Mrs. Allsopp called to see me this morning, as arranged by your Secretary, Mr. Marshall, when the matter of Riverdale Station was discussed.
As an outcome of our discussion, recent events and my personal knowledge of the matter the following facts emerge, in that order : -
1. The Allsopps disposed by sale under agreement of Riverdale Station in 1953.
The parties to the agreement (copy attached) were James Hunter Allsopp, vender, and Rodney O'Shannassy, purchaser.
The purchaser purchased the property as trustee "for a company about to be formed" (page 6 clause 6 (a) of Agreement). It is presumed the "company" referred to was the Northern Mining and Development Company of which Mr. D.W. McLeod was managing director and Mr. O'Shannassy secretary. This company is now in liquidation and Mr. O'Shannassy is the liquidator. No native has ever been a shareholder or officer-bearer of the Company. The purchase price was £10,000 of which £6,000 has been paid in instalments. It seems certain that much, if not all, of the money paid was the proceeds of the sale of minerals obtained by natives working in the Pilbara district in direct or indirect association with D.W. McLeod.
2. Mr McLeod has now left the Pilbara district and this department has taken over certain responsibilities in respect to the natives referred to in the preceding paragraph, viz. supplying rations to children residing at Yandeyarra station (another Northern Mining & Development property in the Pilbara district) and the marketing etc., of minerals being obtained by the natives. As a result it has been necessary to transfer the district office from Carnarvon to Port Hedland and to engage suitable clerical assistance to the district officer to cope with the additional work connected with the marketing of natives' produce, purchase of food and clothing, etc. Rationing of children costs approximately £90 per month.
3. Tenders are being called by the liquidator for the sale of Riverdale Station. I am reliably informed that it may be purchased for the equivalent of the balance owing to the Allsopps (£4,000, plus interest). The liquidator is anxious to sell and the Allsopps to have the matter finalised.
I am firmly convinced that the natives formerly known as the "McLeod Group" have a strong moral claim to ownership of the Station. A number of them are still living on the property which they are managing satisfactorily and, according to Mrs. Allsopp, maintaining in reasonably good order.
If the station is sold to an outside interest, or the Allsopps re-possess (as they are entitled but reluctant to do), the natives referred to will lose all they have put into it.
At the moment natives are incapable of paying the balance owing, or of doing more than keeping themselves in food and clothing. But if this department is permitted to take over completely the management of their affairs - and the natives have expressed their desire that it do so - I am confident it can put them on their feet again and provide satisfactorily for their future needs without their becoming a burden on the State. I have already made the arrangements outlined in paragraph 2 above. The next step required is -
(a) The acquisition by this department of Riverdale Station on behalf of the natives concerned under Section 6A of the Native Welfare Act, 1954, as soon as possible after the Act is proclaimed.
(b) The appointment of a suitable manager and welfare assistant.
(c) The establishment of a hostel for the children of the mining group, utilising the existing homestead and/or station buildings for the purpose so that the children can attend the Nullagine Government School.
The natives concerned could repay the loan advance made by the department for the purpose of the station on terms to be arranged, but until the loan was paid off and the natives could satisfactorily manage their own affairs on the Station, this department would be in absolute control of the property.
4. Your approval for the drawing up of tentative plans and an agreement, etc. along the lines suggested is requested, please. It would also be most advantageous if I could be authorised to submit a tender to the liquidator as soon as possible.
(Emphasis in original)
60 A series of handwritten notations appeared at the end of that memorandum. In chronological order, they were:
(a) on 21 March 1955, from the Minister for Native Welfare to the Premier noting "I concur in above proposals and would appreciate a discussion with you if you deem it necessary. The [Commissioner of Native Affairs] is anxious for early advice";
(b) on 28 March 1955, by the Premier "Approved"; and
(c) on 29 March 1955, by the Minister for Native Welfare to the Commissioner of Native Affairs "For your information".
61 As a consequence of the process described above, on 17 May 1955, the pastoral leases comprising Riverdale Station were purchased by, and transferred to, the Minister for Native Welfare pursuant to s 6A of the Native Welfare Act 1905 (WA). Neither the original pastoral leases nor the transfer documentation are included in Exhibit B. There is, however, a letter from the Commissioner of Native Welfare dated 9 May 1956 to the Deputy Commissioner of Taxation stating that "[t]he Commissioner of Native Welfare wishes to advise that the Riverdale Station at Nullagine was purchased by the Honourable Minister for Native Welfare under section 6A of the Native Welfare Act on the 17th May, 1955".
62 Shortly after the purchase (on 20 May 1955), a Proclamation was published in the Government Gazette to the effect that the leases comprising "Riverdale Native Station" (together with some mining tenements and freehold blocks within Nullagine) were declared to be a "Native Institution" within the meaning of s 2 of the Native Administration Act 1905 (WA). That Proclamation also stated that, under the nominated section of the Native Administration Act 1905, "Native Institution" was defined to mean and include "any mission, reformatory, orphanage, school, home, station, reserve, or other institutions for the benefit, protection or care of the native inhabitants of the State".
63 However, it appears from the available records that, by 4 July 1956, a little over 12 months later, the Commissioner of Native Welfare had decided on a "readjustment of plans". That readjustment was described in a letter the Commissioner sent on that date to the District Officer, Department of Native Welfare in which he said, among other things:
In view of the fact that my anticipations - or, rather, hopes - in respect to the development of this property, and to the ability of Mr. Stuart [the Manager employed by the Department] to counter the influence of D.W. McLeod with the natives of that district have not materialised, a readjustment of plans is now necessary.
Dealing firstly with RIVERDALE: I am interested in this property primarily as a welfare centre. At the same time every effort must be taken to recoup the department for its expenditure on Riverdale to date, and in the future. Consequently existing facilities must be used to best advantage, e.g., the cattle should be utilised for continuing with the butchering business, which, without European supervision, natives apparently were capable of maintaining up till the time the property was acquired by this department. A vegetable garden should provide another small source of income. There may be other avenues.
Its development as a welfare centre must be continued, however slowly. Spectacular results are, I know, impossible under existing circumstances but we must not be discouraged or deterred by this fact. A start must be made as soon as is practicable to develop the hostel by having proper hygiene and sanitation facilities installed, and so on.
It is apparent from this letter that the original plans to prevent the Aboriginal persons concerned losing "all they put into" the property and/or to make them self-sufficient as expressed in the 8 March 1955 memorandum above (see at [59]) had been set aside in favour of developing the property as a welfare centre for the Aboriginal inhabitants of the area.
64 This change of plans was confirmed in a letter dated 26 July 1956 which the Commissioner sent to the Under Secretary for Lands, advising that, although Riverdale Station had been purchased by the Minister for Native Welfare with the intention that the station was to "be run by natives in that area for their own gain", the Department of Native Welfare had been "unable to find natives interested to carry on this property" as originally intended. Accordingly, the Commissioner advised that "it is our intention to forfeit the leases".
65 The Commissioner's plans to forfeit the leases were next raised in a letter he wrote to the Under Secretary for Lands on 11 February 1957 advising that it was the preference of the Department of Native Welfare that the pastoral leases comprising Riverdale Station be cancelled and the area be set aside as a "Native Reserve", with the facilities on the proposed reserve to be "handed over to a Mission to be run as an institution for the training and benefit of natives in the Nullagine area".
66 To that end, on 22 March 1957 a notice was published in the Government Gazette that the pastoral leases comprising Riverdale Station were forfeited and cancelled pursuant to s 23 of the Land Act 1933.
67 However, the proposal to use the leases as a reserve for the benefit of "natives in the Nullagine area" was waylaid. That occurred on 26 March 1957 when the Under Secretary for Mines wrote to the Under Secretary for Lands and objected to the proposal to create that Reserve because the area of the former Riverdale pastoral leases was considered to be "a potential gold area".
68 In the end result, a compromise agreement was struck between the Departments of Native Welfare, Mines, and Lands on 15 April 1957, which was then approved by the Western Australian Cabinet on 1 May 1957, to the effect that "the best solution to this problem would be for the Lands Department to make available to the Department of Native Welfare a Special Lease, under Section 116 of the Land Act [1933], of the same land as was comprised in the original 'Riverdale' Pastoral Leases, at a nominal rental".
69 Following on from this compromise, on 4 September 1957, the Lieutenant Governor approved the granting of a lease on the terms described above for a term of 21 years for the "use of Natives". This approval was evidenced by the Executive Council Minute Paper bearing that date which was signed by the Minister for Lands and stated, in part:
I recommend His Excellency the Lieutenant Governor in Council be advised to approve, under Section 116 of the "Land Act, 1933-1956", of a lease of the area shown coloured blue on the lithograph at page 138 of Lands and Surveys file 6468/27 being granted to the Minister of Native Welfare for the use of Natives for a term of twenty-one years at a rental of Five Pounds (£5. 0. 0.) per annum.
The bottom of that Minute Paper contained the following notation:
Approved by His Excellency in Council and entered on the Minutes of the Executive Council accordingly.
70 Thereafter, a series of notices was published in the Government Gazette (on 6, 13, 20 and 27 September 1957) giving notice of the intention to grant that lease "for the use of Natives".
71 In the meantime, by letter dated 11 September 1957 to the Commissioner of Native Welfare, the Under Secretary for Lands advised that, as approval had been obtained from the Governor for a special lease to be granted, in order for that lease to be issued and registered certain forms had to be completed and returned, together with the first half yearly rental.
72 In response, by letter dated 30 September 1957 to the Under Secretary for Lands, the Commissioner of Native Welfare provided an application in the form of the Twentieth Schedule of the Land Act 1933 for the grant of the Special Lease on the terms described above. That application was noted as having been received by the Department of Lands on 3 October 1957.
73 In due course, by letter dated 7 November 1957, the Under Secretary for Lands informed the Minister for Native Welfare that the Special Lease had been granted for the purpose of the "use of Natives" on the terms described above and that that lease would "be issued in due course".
74 Approximately 19 months then elapsed. At that point, according to an internal memorandum of an officer of the Department of Native Welfare dated 16 June 1959, on or about that date, that Department discovered that a lease document for the Special Lease had not been automatically issued by the Department of Lands. The memorandum went on to note that "[t]he Lands Dept. is now arranging for a Special Lease to be prepared and forwarded to this office. There will probably be a months delay".
75 Despite the expectation of prompt action, drafting instructions for the Special Lease were not created by an officer of the Department of Lands until 13 October 1959. Those instructions indicated that the relevant date for the issue of the lease should be 1 October 1957. That date appears on the lease document that was eventually issued.
76 Finally, on 19 October 1959, Crown Lease Instrument 744/1959 (the Special Lease) was issued to the Minster for Native Welfare and registered pursuant to s 81C of the Transfer of Land Act 1893 (WA). By letter of the same date, the Under Secretary for Lands informed the Commissioner of Native Welfare that the Special Lease "has been prepared and forwarded to the Land Titles Office for issue, and may be obtained on application made by the lessee or his authorised agent".
77 Among other things, the Special Lease recorded in its recital clauses that:
… And whereas The Honourable John Joseph Brady Member of the Legislative Assembly in the State of Western Australia the Minister for Native Welfare of the Department of Native Welfare 176 Wellington Street, Perth, in the said State, has made application for a lease of the land hereinafter described for the special purpose of the use of Natives
And whereas the said Governor in Council has approved the granting of the said lease; …
(Emphasis in original)
78 The body of the Lease document also recorded that the Crown did:
… by these Presents demise and lease to the said Lessee the natural surface and so much of the land as is below the natural surface to a depth of forty feet of ALL THAT piece or parcel of land … TO HAVE AND TO HOLD the premises hereby demise [sic] subject to the powers, reservations, and conditions herein and in the said Act contained, and with all the rights, powers, and privileges conferred by such of the said Act as are applicable hereto, unto the said Lessee, for the term of 21 years, to be computed from the first day of October, 1957, for the special purposes aforesaid …
79 Consistent with the provisions of the Land Act 1933, the lease document also contained a number of reservations and conditions, including a power of resumption and a power to take timber, stones and other materials, both of which were stated to be without any right to compensation, as follows:
… Provided, nevertheless, that it shall at all times 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 lands 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, 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 and gems hereinafter reserved, and such land so resumed to hold to Us, our Heirs and Successors, as of Our or Their former estate, without making to the said Lessee, or any person claiming under him, any compensation in respect thereof; so, nevertheless, that the lands so to be resumed shall not exceed one-twentieth part in the whole of the lands aforesaid, and that no such resumption be made of any part of the said lands upon which any buildings may have have [sic] been erected, or which may be enclosed and 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 said Act have been made without compensation: 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 cut and take away any such indigenous timber, and 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 Lessee, or any person claiming under him any compensation in respect thereof …
(Emphasis added)
80 Approximately a year later, on 14 September 1960, the Nullagine Road Board wrote to the Under Secretary for Lands and asked to have the Special Lease reviewed to "see if some development can be done on it, or that it be opened to the public for general selection". The Under Secretary evidently forwarded that letter to the Deputy Commissioner of Native Welfare who responded to the Under Secretary on 27 September 1960 that the land was being held for "natives who, it seems certain, in the reasonably near future will require land for their economic needs. At present no other land is available for their needs". In a further comment to the Under Secretary made on 18 October 1960, the Commissioner of Native Welfare said that the "natives whose money was used in its original purchase are still interested and hopeful of using and developing the land in the not too distant future. I have at all times promised them the full co-operation of the Department when the time arises; it is a promise which I intend to keep to the letter". The Commissioner concluded his comments by stating that he would "strongly oppose any attempt to make the leases available to the public for general selection". In the end result, the Under Secretary for Lands wrote to both the Nullagine Road Board and the Commissioner in November 1960 advising that "it is not intended to make any change in the ownership of the land concerned".
81 Similar sentiments appear in correspondence between the Commissioner of Native Welfare and Mr Stevens of the Riverdale Native Hostel in April 1961 and the Aborigine Mission Board, Victoria in January 1964 and in internal memoranda within and between various Government departments and agencies throughout the 1960s, including in August 1964, in May 1965, in February, September and October 1966 and in March and May 1968. The constant refrain throughout that period was that the Department of Native Welfare had bought the property and held it "in trust for the natives of the area" because it was considered they had "every moral, if not legal, right to the property".
82 To complete the history of the Special Lease, on 13 February 1970, a Proclamation was published in the Government Gazette that the Governor had cancelled the existing proclamations of a number of missions and other establishments, including the Riverdale Hostel as a "Native Institution" under s 4 of the Native Welfare Act 1963 (WA).
83 On 8 May 1975, following a request made by the Commissioner for Aboriginal Planning in June 1974, the Special Lease was transferred from the Minister for Native Welfare to the Western Australia Aboriginal Lands Trust, care of the Aboriginal Affairs Planning Authority of Western Australia.
84 The Special Lease expired on 30 September 1978. It was therefore no longer in force when the Palyku #1 claim was filed on 21 April 1999. The area comprising the Special Lease is presently again subject to a pastoral lease.