Ms WALKER - 2011-11-23
Security of tenure through land leasing is important to the progress of A Working Future and the development of our growth towns and smaller communities. Can you please provide an update on land leasing arrangements on Aboriginal land?
ANSWER
Madam Speaker, I thank the member for Nhulunbuy for her important question. It is something our government has been very conscious of over the last couple of years as we look at growing our regions across the Northern Territory, recognising that almost 50% of the Northern Territory land mass is Aboriginal land.
The Northern Territory government has made the decision to make lease payments for parcels of Aboriginal land where sole possession by our government is required based on the unimproved value of the land through either upfront or annual payment options. This is a positive outcome. We have been negotiating with the land councils and with the Commonwealth Executive Director of Township Leasing over the last couple of years. Rent will be negotiated around a percentage of independently assessed value of the land and in line with principles recommended by the Australian Valuation Office. While the rent payments will initially be in the order of $3m per year, and could potentially rise to around $5m per year when all parcels are surveyed and leased, the resolution of this issue allows vital, remote infrastructure projects worth hundreds of millions of dollars to proceed.
We have heard the argument that our investment in community infrastructure should negate the need for lease payments. We also understand that reaching an agreement on this important matter requires compromise. The precedent for lease payments on government infrastructure was set when the former Commonwealth Indigenous Affairs minister, Mal Brough, endorsed the terms of the first township lease at Nguiu in 2007.
This important agreement will help establish independent valuations of leasehold property on Aboriginal land, helping to develop a rental market and certainty for further investment, including private investment. We will be encouraging land councils and traditional owners to direct lease payments towards commercial developments and projects of broad community benefit within their towns. We see great opportunities emerging as a result of this agreement.
It is the way the Anindilyakwa Land Council on Groote Eylandt has directed royalties that has also given us great encouragement about what we can see for the future for the people of the Northern Territory. For example, on Groote Eylandt, it will cost $20m to seal Umbakumba Road. The Anindilyakwa people have been very involved in the investment in that road, contributing their amount with the Northern Territory government, the federal government, and the mining company, GEMCO. These are really good examples of the future we face for all people in the Northern Territory.
ANSWER
Madam Speaker, I thank the member for Nhulunbuy for her important question. It is something our government has been very conscious of over the last couple of years as we look at growing our regions across the Northern Territory, recognising that almost 50% of the Northern Territory land mass is Aboriginal land.
The Northern Territory government has made the decision to make lease payments for parcels of Aboriginal land where sole possession by our government is required based on the unimproved value of the land through either upfront or annual payment options. This is a positive outcome. We have been negotiating with the land councils and with the Commonwealth Executive Director of Township Leasing over the last couple of years. Rent will be negotiated around a percentage of independently assessed value of the land and in line with principles recommended by the Australian Valuation Office. While the rent payments will initially be in the order of $3m per year, and could potentially rise to around $5m per year when all parcels are surveyed and leased, the resolution of this issue allows vital, remote infrastructure projects worth hundreds of millions of dollars to proceed.
We have heard the argument that our investment in community infrastructure should negate the need for lease payments. We also understand that reaching an agreement on this important matter requires compromise. The precedent for lease payments on government infrastructure was set when the former Commonwealth Indigenous Affairs minister, Mal Brough, endorsed the terms of the first township lease at Nguiu in 2007.
This important agreement will help establish independent valuations of leasehold property on Aboriginal land, helping to develop a rental market and certainty for further investment, including private investment. We will be encouraging land councils and traditional owners to direct lease payments towards commercial developments and projects of broad community benefit within their towns. We see great opportunities emerging as a result of this agreement.
It is the way the Anindilyakwa Land Council on Groote Eylandt has directed royalties that has also given us great encouragement about what we can see for the future for the people of the Northern Territory. For example, on Groote Eylandt, it will cost $20m to seal Umbakumba Road. The Anindilyakwa people have been very involved in the investment in that road, contributing their amount with the Northern Territory government, the federal government, and the mining company, GEMCO. These are really good examples of the future we face for all people in the Northern Territory.
Last updated: 09 Aug 2016