Crown Land Management (Section 78B Leases) Amendment Bill

Introduction and First Reading

Received from the House of Assembly and read a first time.

Second Reading

The Hon. J.M.A. LENSINK (Minister for Human Services) (18:57): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation and explanation of clauses inserted in Hansard without my reading them.

Leave granted.

In moving that this Bill be read a second time, I would like to acknowledge that this issue has been a long standing one for many families across the State. I am pleased to introduce a Bill to amend the Crown Land Management Act 2009 to allow these families a chance to secure the future over their shack leases.

The Bill impacts holders of life tenure shack leases on Crown land. Under the current Crown Land Management Act these leaseholders have no ability to seek better tenure over their shack sites. Families have had little incentive to maintain or upgrade their shack sites as, under the current law, once the lease expires, the shack will be removed.

Shacks are a long standing tradition in this State. This Bill will create an opportunity for shack lessees and their families to upgrade their sites to contemporary standards to gain longer tenure. This will provide economic benefit to regional communities by securing the holiday population in these regions. The coastline and riverine environments will also gain benefit from investment by shack lessees in upgrading their sites to contemporary environmental standards. The amendments in this Bill provide a positive incentive for shack lessees to upgrade their site to a higher standard. Something that lessees are only hesitant to do under the current law as they are aware that their lease term will expire.

In April 2018, one of the acts of this government was to announce a moratorium on the automatic demolition of shacks upon the death of the last person named on the lease. We have also placed all pending revaluations of shack sites on hold until a new policy framework was developed and implemented to provide certainty of tenure and valuations going forward.

Since this time, we have reviewed the regulatory and policy landscape for shacks on Crown land and in national parks. The review confirmed that amendments are required to the Crown Land Management Act 2009, and the park management plans for national parks; as these management plans do not currently envisage the retention of shacks. Importantly, the development of the policy for the assessment of shacks on Crown land and in National Parks has been developed in tandem, to ensure that a consistent approach will be taken in assessing all shacks on all public land.

The government released a discussion paper entitled Retaining shacks for vibrant holiday communities, along with the draft Amendment Bill, for public consultation from 14 June to 26 July 2019. In addition to the release of these documents, the government invited stakeholders to complete an online survey in relation to the policy, the Preliminary Discussion Paper and the Amendment Bill. In conjunction with this process, the government held information sessions across the State to engage with shack lessees and local government about the content of the discussion paper and proposed legislative amendments. The sessions were attended by over 115 shack lessees and over 250 survey responses were received from the community and stakeholders.

There has also been targeted consultation with relevant regulatory authorities, boards and bodies, as well as Traditional Owners. I would like to thank all those who provided comments and feedback to help shape the management of this issue.

The review of the regulatory environment as well as the consultation process has been used to inform the contemporary requirements and standards that would need to be met to retain a shack. These standards will need to be met by lessees and authorised by a combination of local government and relevant regulatory agencies.

This Amendment Bill will remove the legal barrier in the Crown Land Management Act 2009 which currently prevents a shack lessee from applying for longer tenure. A shack lessee may apply to purchase the land, and if they can meet the freeholding requirements—including the relevant contemporary standards—they may be eligible to purchase the land for the market value.

Lessees may also apply for a longer, term tenure lease. If they can meet contemporary standards, they may be issued with a fixed term lease. Alternatively, the lessee may nominate another person to whom the fixed term lease will be issued. A market rent will apply to these leases.

An application will be determined by the Minister and a critical consideration will be demonstration by the shack lessee that they can meet contemporary safety, amenity and environmental standards. This is crucial, as the Bill does not undermine the strict transparency, triple bottom line and ecologically sustainable land management objects and principles in the Crown Land Management Act 2009 that apply to all decisions of Crown land allocation.

The Amendment Bill also addresses an unrelated but ongoing issue by creating a provision which will allow for the Minister to remove and recover the associated costs of removal, or to require removal of, unauthorised fixtures from Crown land.

These amendments will ensure that shacks lessees are afforded the opportunity to retain their shack so that many South Australian families can continue to visit the regions during their holidays.

The reforms will also ensure that shack communities will remain an integral part of the regional economy, supporting local South Australian businesses and the tourism sector.

I commend the Bill to members.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

3—Amendment provisions

These clauses are formal.

Part 2—Amendment of Crown Land Management Act 2009

4—Amendment of section 3—Interpretation

This clause inserts a definition of section 78B lease to mean a lease granted under section 78B of the repealed Crown Lands Act 1929 that has been continued as a lease under the current Act in accordance with Schedule 1 clause 13 .

5—Amendment of section 24—Minister may dispose of Crown land to which Division applies

This clause amends section 24 to empower the Minister to dispose of Crown land following the surrender of a section 78B lease of the land. The disposal may be by way of transfer or grant of the fee simple in the land.

6—Amendment of section 25—Disposal by transfer or grant of fee simple

This clause amends section 25 so that the disposal of Crown land following surrender of a section 78B lease of the land is not required to be by public auction, public tender or some other open competitive process determined by the Minister.

7—Amendment of section 37A—Consent process for surrender of certain leases

This clause amends section 37A to require the Minister's consent to the surrender of a section 78B lease if the lessee seeks to surrender it on condition that the land is disposed of by transfer or grant of the fee simple to the lessee or a person nominated by the lessee, or on condition that a new lease of the land is granted to the lessee or a person nominated by the lessee.

8—Insertion of section 74A

This clause inserts a new section.

74A—Removal and disposal of unauthorised fixtures on Crown land

Proposed section 74A empowers the Minister to cause any building, structure or other fixture erected on Crown land without lawful authority or excuse to be removed and disposed of in such manner as the Minister thinks fit. Any costs incurred in doing so may be recovered by the Minister as a debt from the person who erected the fixture. If the unauthorised fixture is on Crown land under the care, control and management of a Crown agency or person other than the Minister, the Minister may only act with the consent of the agency or person. For the purposes of this section, it will be presumed, in the absence of evidence to the contrary, that an unauthorised fixture on Crown land was erected by the person in occupation of the land at the time it was erected.

9—Amendment of Schedule 1—Transitional provisions

This clause repeals a transitional provision that prevents a section 78B lease of Crown land being surrendered on the condition that an interest in the land be granted to the lessee or any other person.

Debate adjourned on motion of Hon. I.K. Hunter.