(f) to ensure that the major use of any land within the zone is for commercial or office development rather than for retail development.
C. THE STATUTORY PROVISIONS RELEVANT TO THE ADJUDICATION ON THE SUBSTANTIVE ISSUE
31 The principal statutory provision is cl 6 of Schedule 7 to the LG Act 1993. (Schedule 7 contains savings and transitional provisions consequent upon the repeal of the Local Government Act 1919 and its replacement by the LG Act 1993 which commenced on 1 July 1993 which is the date of the "relevant commencement" for the purposes of cl 6 of Schedule 7 to that Act).
32 Clause 6 is in the following terms:
Classification of existing public land
(1) This clause applies to all public land within a council's area as at the commencement of Part 2 of Chapter 6 (the relevant commencement ).
(2) On the relevant commencement, the following land that is vested in or under the control of a council is taken to have been classified as community land:
(a) land comprising a public reserve,
(b) land subject to a trust for a public purpose,
(c) land dedicated as a condition of a development consent under section 94 of the Environmental Planning and Assessment Act 1979 ,
(d) land reserved, zoned or otherwise designated for use under an environmental planning instrument as open space,
(e) land controlled by a council that is vested in the corporation constituted by section 8 (1) of the Environmental Planning and Assessment Act 1979 .
(3) Within 1 year after the relevant commencement, a council may, by resolution, classify, as community land or operational land, any public land that is vested in it or under its control and that is not classified by subclause (2).
(4) A resolution under subclause (3) to classify public land that is not owned by the council must not be made without the consent of the owner.
(5) On the making of a resolution under subclause (3) that classifies public land as operational land, the land is discharged from any trusts, estates, interests, dedications, conditions, restrictions and covenants affecting the land or any part of the land, subject to the terms of the resolution, but is not discharged from:
(a) any reservations that except land out of a Crown grant relating to the land, and
(b) reservations of minerals (within the meaning of the Crown Lands Act 1989 ).
(6) The classification of public land by resolution under subclause (3) may be changed only by a local environmental plan or, in the case of land that has been classified as operational land, by a resolution under section 33.
(7) Any public land that may be classified by resolution under subclause (3) and that is not classified within 1 year after the relevant commencement is taken to have been classified as community land.
(8) The provisions of this clause are in addition to, and do not limit the operation of, the other provisions of this Act with respect to the classification of land.
33 The present case concerns cl 6(2)(b) as did the case decided by the High Court of Australia in Bathurst City Council v PWC Properties Pty Ltd (1998) 100 LGERA 383, which is the principal authority relied upon in the competing submissions made in the present case.
34 In applying cl 6(2)(b), it is also necessary, conformably to the High Court's judgment, to consider a number of relevant provisions of the 1919 Act.
35 These include in particular ss 518 and 526 that were extensively considered in the High Court's judgment which relevantly provided (both at the date in 1956 when the Council acquired the subject land and at the commencement date of the 1993 Act) as follows:
518 (1) Subject to the provisions of this Act the council may sell or exchange any land or building or other real or personal property vested in or belonging to the council or under its care, control, and management.
(2) Unless otherwise expressly provided, nothing in this Division shall be deemed -
(a) [repealed]
(b) to authorise the sale or exchange or any public reserve, public place, or cemetery, or any land subject to a trust.
526 The council may -
(a) accept and hold any real or personal property conveyed, assigned, devised, or bequeathed to it for any charitable or public purpose;
(b) act in the administration of such property for the purposes and according to the trusts for which the same may have been conveyed, devised, assigned, or bequeathed.
36 In addition to Sections 518 and 526 I would also refer to two other provisions of the 1919 Act, namely s 532 as in force when the Council acquired the subject land in 1956 and s 270Q which was inserted into the 1919 Act by the Local Government (Amendment) Act 1965 (Act No 27) as a provision of a new Division 13B to Part IX which Division was headed "Free parking areas".
37 Section 532 relevantly provided as follows:
(1) The council may acquire land within or outside the area for any purpose of this Act by lease, purchase, appropriation, or resumption in accordance with this Part.
(2) In addition to the powers conferred by subsection (1) the council may so acquire -
(a) any lands of which those proposed to be acquired for any purpose of this Act form part;
(b) any lands adjoining or in the vicinity of any land proposed to be acquired for any purpose of this Act;
(c) any lands which the council considers in the public interest should be made available for the purpose for which such land is reserved or zoned by any environmental planning instrument which are otherwise required to give effect to any provision included in any such instrument.
38 Section 270Q provided as follows:
The council may on any land acquired by or vested in or under the care, control and management of the council, other than a public road or a public reserve or land held by the council on trust for any purpose, provide areas for the accommodation of vehicles without payment of a fee or charge.
D. THE ADJUDICATION ON THE SUBSTANTIVE ISSUE
39 As earlier noted, the competing arguments have chiefly relied upon the judgment of the High Court in PWC Properties for its exposition of the meaning of the expression appearing in cl 6(2)(b) of Schedule 7 to the LG Act "land subject to a trust for a public purpose".
40 The Council's argument has emphasised the very different factual circumstances between that case and the present case.
41 In particular, the Council has emphasised that its acquisition of the subject land in 1956 was by way of purchase for full valuable consideration in stark contrast to the relevant acquisition in PWC Properties which was conveyed for a specified public purpose and for a nominal consideration. The judgment of the High Court had described the acquisition in the following terms in two separate passages appearing at 397:
…….where the property in question is land conveyed to a (public) authority for other than commercial value and consequent upon the exercise of powers to implement planning policy
…………
Here, the nominated lots, as part of the car parking site, were conveyed to and held by the council "for" a public purpose, namely the achievement, or at least the advancement, of the town planning purpose which led to the imposition by the council of the conditions upon the granting of the development consent on 21 December 1979. That town planning purpose was the acquisition of land for a public car park to accommodate the increased demand for parking which would be created by the surrounding commercial development, including what became the Payless Plaza Shopping Centre.
42 In my judgment, the facts of the two cases are crucially different and in such circumstances, it would not at all be surprising if the application of the meaning of the relevant statutory phrase that was established of the High Court's judgment were to produce entirely different results in the two cases.
43 But to return to the High Court's judicial exposition of the statutory phrase, "land subject to a trust for a public purpose" it is important to note the following passages from the judgment which encapsulate the interpretation that was adopted by the Court.
44 Firstly, there is the following passage at 396:
The determinative consideration is that the term "trust" in the expression "land subject to a trust for a public purpose" in cl 6(2)(b) of Sch 7 of the Act is not to be understood wholly in its technical sense.
45 Next, there is the following passage at 397:
Clause 6(2)(b) is concerned with land which, on the commencement of the Act, is to be taken to be classified as community land because it then was vested in or under the control of a council and was "subject to a trust for a public purpose". The phrase "for a public purpose" as it appears in such a statute is "a wide phrase" and should not be "read narrowly". In relation to the obligations imposed upon local government authorities with respect to land vested in them, the phrase has had a lengthy history. This involves the use of "trust" in a sense broader than a trust of a public nature which qualified as a charitable trust within the spirit and intendment of the Elizabethan statute.
46 Having so concluded as to the meaning of the statutory phrase in cl 6(2)(b) of Schedule 7, to the LG Act, the High Court's judgment proceeds to give a detailed consideration of ss 518 and 526 of the LG Act (including a survey of relevant legislative antecedents) before the judgment culminates in the following conclusion expressed at 401:
The term trust in cl 6(2)(b) of Sch 7 is apt to include those governmental responsibilities which, whilst not imposing a trust obligation as understood in private law, may fairly be described as a statutory trust which bound the land and controlled what otherwise would have been the freedom of disposition enjoyed by the registered proprietor of an estate in fee simple. The trust was "not a trust for persons but for statutory purposes". It would be no answer to the existence of such a constraint that there was lacking a beneficial owner of the nominated lots with standing in a court of equity to enforce observance by the council of the dedication of the nominated lots to the provision of parking spaces. It had been within the competence of the Attorney-General to seek to restrain action incompatible with the due exercise of the powers of the council or the due discharge of its duties .
47 In my respectful opinion, the key to the right understanding and application to the present case of this passage lies in the existence of the relevant "trust" obligation "which bound the land and controlled what otherwise would have been the freedom of disposition enjoyed by the registered proprietor of an estate in fee simple".
48 In PWC Properties, the creation (and hence the existence) of the relevant "trust" obligation was effected by the manner in which the land had been conveyed to the Council namely for nominal consideration and for the town planning purpose that had been recognised by the imposition of the relevant conditions on the grant of development consent.
49 That manner of acquisition of the land by the Council was entirely conformable to the operation of 1919 Act, s 526 as expounded by Roper CJ in Equity in Attorney-General v Parramatta Council (1949) 49 SR (NSW) 283 at 290/291, in respect of which exposition the High Court's judgment refers with apparent approval in two separate passages at 398 and 402 respectively.
50 In my judgment, it is the absence of any foundation for the creation and existence of any relevant "trust" obligation binding upon the subject land that vitally distinguishes the present case from the PWC Properties case.
51 In the present case, the only foundation for the creation and existence of such a "trust" obligation binding upon the subject land that is established by the Applicant's case is the long and deliberate use of the subject land for public carparking purposes, and the Council's recognition of the utility (from a town planning perspective) of that use.
52 But in my judgment, these facts do not provide the requisite foundation for the creation and existence of a relevant trust obligation binding the subject land.
53 Having regard to the circumstances in which the Council acquired the subject land (by purchase for full valuable consideration) no relevant trust obligation was created upon acquisition, even if (as appears to be the case) the Council purchased the subject land with an intention to use it for public carparking purposes (as it had previously been used when the Council was lessee of the land). It follows that if, following acquisition, the subject land were to become impressed with a relevant trust obligation, that could only occur by a declaration of trust by the Council, as the beneficial owner of the subject land. Neither the pleadings nor the documentary evidence in the present case establish any relevant intention on the part of the Council to create a trust in respect of its beneficial ownership of the subject land.
54 Although the creation of an express trust does not require formal words (save for the requirements of writing and signature under s 23C(1)(b) of the Conveyancing Act 1919) once the relevant intention (to create a trust) is clear (Brisbane City Council v Attorney General (Qld) (1978) 40 LGERA 314 at 317) there is no evidence in the present case that the Council formed or declared the relevant intention to create a relevant "trust". The fact that the Council for many years used the subject land as a public carpark falls very far short of the existence of an intention on its part to create a statutory trust. Likewise, the fact that in so using the subject land, the Council recognised the importance of that use in town planning terms, falls very far short of the existence of an intention on the Council's part to create a statutory trust. Accordingly, there is no evidence of any intention on the part of the Council to create an express trust. Nor is there any foundation for the creation of a trust by operation of law.
55 Indeed, once it is appreciated that the Applicant's case for the existence of a trust wholly depends upon the public carparking use made of the subject land over a long period of time, the reliance upon that fact may be depreciated or disqualified by the operation of s 270Q of the 1919 Act authorising a council to provide free parking areas on Council's lands "other than a public road or a public reserve or land held by a council on trust for any purpose" (my emphasis).
56 However, for the reasons that I have given, the Applicant's case based upon the long and deliberate use for public carparking of the subject land does not establish the requisite foundation for the creation or existence of a relevant "trust" obligation binding the subject land.
57 Although the Applicant's argument has been formulated by reference to various statements contained in the reasons for the High Court's judgment in PWC Properties, upon closer analysis it is found to be lacking in the essential attribute for the creation of a "trust" obligation that is foundational to the High Court's exposition of the statutory phrase.
58 Whereas that exposition certainly establishes the notion that the statutory phrase "a trust for a public purpose" is a more flexible and less technical concept than is a charitable trust, it does not abrogate the requirement that there must be created a "trust" obligation binding upon the land. The Applicant's case has failed to establish any requisite foundation for the creation and existence of such an obligation binding upon the subject land. It follows that the Applicant has not established that the subject land was, at the commencement of the LG Act 1993 relevantly "land subject to a trust for a public purpose" within the meaning of cl 6(2)(b) of Schedule 7 of the LG Act..
59 In view of these conclusions, it is not necessary for me to consider the Council's additional argument based upon the decision of the Court of Appeal in PWC Properties (see Bathurst City Council v PWC Properties Pty Ltd (1997) 93 LGERA 391) holding other relevant lands (besides the two lots which are the subject of the decision of the High Court) not to be land held on trust for a public purpose - see the judgment of Sheller JA at 397 and following under the heading "The other 20 lots" - other than to note that my decision is consistent with the reasoning supporting the Court of Appeal's decision in respect of those other lands. (That aspect of the judgment of the Court of Appeal was not the subject of the appeal to the High Court).
60 It follows from my conclusion that the Applicant has not established that the subject land was relevantly "land subject to a trust for a public purpose" that its legal attack upon the validity of the Council's resolution passed on 14 June 1994 classifying the subject land as "operational land" is without any foundation and must be held to fail. It follows that the Applicant has not established any entitlement to any of the three declarations it has claimed in the proceedings (noting that its claims to the second and third declarations were entirely dependent upon it obtaining the first declaration).
61 My conclusion on the substantive issue means that it is not necessary for me to consider the Council's discretionary defence based upon the facts that not only has the Council's 1994 resolution stood unchallenged for these past 11 years but also the Council has subsequently dealt with the subject land conformably to its status as "operational land" under the LG Act (including the sale of part of it to State Rail in 1996 and the lease of part of the remainder of the subject land to the Roads and Traffic Authority for a term from 2002 to 2005 which was cut short by the compulsory acquisition of the subject land in May 2004). Without finding it necessary to adjudicate upon the discretionary defence case raised by the Council, I would merely wish to observe that the "defence" is self-evidently strong, particularly given the nature and scope of the present proceedings.
E. CONCLUSIONS AND ORDERS
62 For all of the foregoing reasons, the Applicant has failed to substantiate any of its claims to declaratory relief and accordingly I order that the class 4 application be dismissed with costs. The exhibits may be returned.