Case Study On Customary Land in PNG
Case Study On Customary Land in PNG
Case studies on
customary land
and development
in the Pacific
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Volume two
Contents
Preface v
Introduction vii
Dispute resolution
9 Mediating land conflict in East Timor 175
Daniel Fitzpatrick
10 Resolving land disputes in Samoa 199
Jennifer Corrin
11 Settling customary land disputes in Papua New Guinea 223
Norm Oliver, Jim Fingleton
iv MAKING LAND WORK » VOLUME TWO CASE STUDIES
Preface
Making land work, produced as part of AusAID’s Pacific Land Program, has two volumes.
Volume one, Reconciling customary land and development in the Pacific, is an overview
of the main issues that Pacific island countries, Papua New Guinea and East Timor—
referred to broadly as the Pacific region—are likely to face if they choose to reform
their land policies and institutions to promote social and economic development. This
volume, Volume two, Case studies on customary land and development in the Pacific, is a
collection of 16 studies that look at problems and innovative practices in land tenure and
administration across the Pacific region.
AusAID recognises that land policy reform is something that must be driven by Pacific
governments and communities, not by donors. For this reason, Making land work does not
seek to advocate any particular policy options or models. Nor does it necessarily reflect
AusAID or Australian government policy. Rather, it has been published as an information
resource for countries undertaking land policy reform. It draws lessons from international
experience, canvasses broad principles and approaches, and seeks to stimulate ideas on
policy options.
Making land work reflects the input of some 80 experts and practitioners in land and
development from the Pacific region, including Australia and New Zealand. A steering
group of senior representatives from government, regional organisations and civil society
in the region provided broad guidance and advice for both volumes.
The annex to this volume details the process and participants in preparing the case
studies. These studies were drafted by land experts and practitioners following a topic
selection and appraisal process. All but two are based on in-country research and
consultations by authors. Early drafts were reviewed by panels of officials, experts and
practitioners from the Pacific region and Australia, then revised by authors and finalised
for publication by AusAID’s editorial team. This volume contains the edited versions of
these second drafts produced for AusAID by the authors.1
Land policy reform in the Pacific is a complex and sensitive issue. There is a wide variety
of views and perspectives held by experts and practitioners—sometimes conflicting, yet
sometimes equally valid. It is neither possible nor desirable to attempt to reconcile all of
the differing perspectives or conflicting views. While there may be disagreement by some
over the content of Making land work, AusAID hopes this will encourage ongoing dialogue
and debate on this important issue across the region.
If Making land work contains inaccuracies or errors of fact or omission—despite the best
efforts of those involved—AusAID accepts full responsibility.
1 One case study, ‘The Native Land Trust Board of Fiji and development within communal tenure’, is not included in this volume as a
result of delays in agreeing to its final text. It will be published on AusAID’s website and in any reprint.
Introduction vii
Introduction
Other political and community leaders in the region are also talking of the need to make
their most basic asset, land, work better for national development. They recognise that
secure land tenure and effective land administration are fundamental prerequisites for
improved living standards, better public services, increased investment, protection of
vulnerable groups (such as customary owners and women) and reduced social tensions.
The issue for Pacific islanders is how to make greater use of land without giving up the
customary laws and practices that form the fabric of their culture and societies—practices
that for countless generations have regulated the use and management of land and
ensured food security. In the past, especially during the colonial period, land policy reform
in most Pacific countries meant permanently taking land away from customary ownership
and imposing western forms of tenure.
The two volumes that comprise Making land work are about increasing the contribution
land can make to communities and the economy without removing it from customary
ownership. The aim of the 16 case studies in this volume is to improve understanding
across the Pacific of how other countries in the region, including Australia and New
Zealand, have dealt with land administration and customary tenure issues while
promoting economic and social development.
The case studies are not designed as policy prescriptions to be transplanted from one
country to another. They seek to provide ideas and inspiration to Pacific governments,
officials, landholders and the private sector on how options might be developed for their
own countries.
viii MAKING LAND WORK » VOLUME TWO CASE STUDIES
The first theme, ‘Reconciling customary ownership and development’, covers a broad
range of issues, which are canvassed in eight case studies. They reveal the constraints and
opportunities presented when development plans require access to land in customary
ownership. They demonstrate the importance of retaining customary systems while
linking them to the legal, economic and business development systems that are emerging
as Pacific societies and economies are increasingly integrated with the wider international
community.
The second theme, ‘Dispute resolution’, features in three studies that review experiences
in East Timor, Samoa and Papua New Guinea. Disputes involving land are common in the
region and are very often at the heart of serious conflict. These case studies describe some
of the innovative ways in which disputes can be managed and conflict averted. They also
demonstrate the limitations of the dispute resolution processes described.
There are two studies that address the third theme, ‘Land for public purposes’. They
analyse issues around securing land for public use in Papua New Guinea and Vanuatu, and
in Samoa. As societies and economies develop, there is increasing need for land for public
infrastructure and services such as roads, ports, schools, hospitals, sanitation, water supply
and power generation. These studies outline the successes and problems that three
countries have experienced.
The fourth theme, ‘Policy reform and administration’ is covered by three very different
studies of aspects of land policy reform and administration. Land administration that
is well planned and resourced is essential if the goals of land policy reform are to be
achieved. These studies reveal the importance of ongoing political commitment to
reforming land administration, to providing sufficient resources for administering land
systems, and to building and maintaining the right skills base.
Introduction ix
Case Study 2, ‘Village land trusts in Vanuatu: “one common basket” ’, recounts Vanuatu’s
experience with using land trusts as legally recognised bodies to make decisions on
behalf of customary landowners. The study briefly outlines the histories of two trusts
and analyses their successes and problems.
Case Study 3, ‘Recording land rights and boundaries in Auluta Basin, Solomon Islands’,
describes a consultative process to identify the owners of an area of land in Solomon
Islands suitable for growing oil palm. The study analyses the way in which the landowning
groups, who are keen to reap the potential benefits of the oil palm development,
increasingly accepted the need for recording the details of land ownership and
boundaries, and the successes and challenges of the process.
Case Study 4, ‘Land registration among the Tolai people: waiting 50 years for titles’,
provides an account of efforts to register land in East New Britain Province in Papua New
Guinea based on Tolai territorial and social units and on input from traditional leaders.
It analyses the reasons why the processes used were accepted and their potential for
releasing land for productive development.
Case Study 5, ‘Informal land systems within urban settlements in Honiara and
Port Moresby’, describes the challenges of urban growth. It analyses how informal
arrangements that have developed between settlers and landowners might be
regularised for the benefit of both.
Case Study 6, ‘The role of the Central Land Council in Aboriginal land dealings’, outlines
how the Central Land Council in the Northern Territory of Australia is used by traditional
landowners to conduct land dealings. It analyses the reasons for the success of this
intermediary body and discusses its relevance for a Pacific context.
Case Study 7, ‘Maori landownership and land management in New Zealand’, analyses the
impact of Maori land registration in individualised parcels and recent efforts to revert to
collective ownership through incorporations and trusts.
Dispute resolution
Case Study 9, ‘Mediating land conflict in East Timor’, describes a mediation model for land
conflict. Examples of how it has worked are provided and its possible applicability in other
contexts is analysed.
Case Study 10, ‘Resolving land disputes in Samoa’, outlines how Samoa has built on the
customary system for resolving land disputes by formally recognising the role of village
councils and establishing the Land and Titles Court. It analyses the benefits and problems
of the current system.
Case Study 11, ‘Settling customary land disputes in Papua New Guinea’, describes and
analyses the efforts in 1973 to create a legislative basis for land dispute resolution that
was significantly influenced by Melanesian custom and its subsequent failure to operate
effectively due largely to inadequate resources.
Case Study 13, ‘Accessing land for public purposes in Samoa’, outlines the procedures used
in Samoa to acquire land for public use. It emphasises the importance of adequately
consulting landowners and of disseminating information.
Introduction xi
Case Study 16, ‘Training and educating land professionals: the value of institutional
partnerships’, draws on experience with an Australian-funded project in Laos that built
capacity to train land administration professionals. The experience is analysed and
conclusions are drawn for meeting training needs in the Pacific region.
Reconciling customary
ownership and development
Case Studies
1 Incorporated land groups in Papua New Guinea 3
2 Village land trusts in Vanuatu: ‘one common basket’ 21
3 Recording land rights and boundaries in Auluta Basin, Solomon Islands 47
4 Land registration among the Tolai people: waiting 50 years for titles 65
5 Informal land systems within urban settlements in Honiara and Port Moresby 85
6 The role of the Central Land Council in Aboriginal land dealings 107
7 Maori landownership and land management in New Zealand 129
8 Absentee landowners in the Cook Islands: consequences of change to tradition 153
3
Reconciling customary
ownership and development
1
Incorporated land groups
in Papua New Guinea
A snapshot
Incorporated land groups in Papua New Guinea
The important lessons from Papua New Guinea’s experience are that
incorporated land groups:
» can be an effective way for customary groups to
engage in the formal economy and legal system
» can help to unlock the productive potential of land but need
to be supported by mechanisms to help land groups identify
and protect land in order to avoid conflict and disputes
» are a convenient mechanism for receiving royalty and
compensation payments but they need to have access to
reliable and impartial advice to ensure that benefits are directed
towards the economic and social development of the group
» provide the flexibility and authority for community
members to choose how to distribute income
» require the support and regulation of government to
ensure that they are effectively formed and managed
» require mechanisms to educate and inform people
on their functions and capabilities.
1 Incorporated land groups in Papua New Guinea 5
Contents
» Introduction 6
» Lessons 14
Establish processes and support for group representation of customary landowners 14
Promote the contribution incorporations can make to land development 15
Encourage social and economic activities among members of incorporated groups 15
Acknowledge the flexibility within incorporated groups for distributing income 15
Promote good corporate governance through information, education and legal support 16
Ensure there is effective government regulation and support 16
» Appendix: Contacts 17
Meetings 17
Teleconference and email 18
» Bibliography 19
6 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Introduction
People have occupied the land of Papua New Guinea for tens of thousands of years.
Over that time they have organised themselves into groups who manage land and govern
themselves by what is known as ‘custom’ or ‘traditional practices’. The principles arising
from custom are not written down but maintained through memory and by retelling
happenings. Because there are no written records, the rules of how land is allocated,
shared and used are passed from generation to generation by retelling. Similarly, histories
are maintained by repetitive public orations of the origins of the group and marriages,
births, deaths and the occupation of land. Most peoples in the Pacific region and the lands
they hold continue to be governed by custom.
The modern world, however, is encroaching on the isolated peoples of the region,
and customary groups are increasingly finding the need to interact with modern
formal economies and legal systems. This meeting of traditional and modern worlds
often comes about because of the need for land for some type of economic or social
development—a school, health clinic, hotel or mine, or agriculture or forestry. In most
cases customary landowners like to benefit from such developments, but they also like to
benefit as a group, family, clan or tribe. At the same time they like to protect and preserve
their customary interests and rights.
These wishes raise many issues and questions. How does a group that lives by custom
negotiate and forge agreements with other parties such as government agencies or
companies that operate in a formal economy and formal legal system? How are the rights
of the customary group protected when it enters into such agreements? And, how can the
rights of the other party to the agreement be protected?
Different countries have sought different ways to answer these questions. One of the
most common ways is ‘incorporation’ of the customary landowner group so that it is
formally recognised as a legal body by the legal system. The incorporated land group
becomes the representative of the tribe in the formal legal system and is able to enter
into agreements and make decisions on behalf of the customary group.
As a legal vehicle, an incorporated land group can serve the customary group in a
number of ways:
» protect the group’s rights and interests
» explore opportunities for developing land or other assets that belong to the group
» negotiate on behalf of the customary group in business, development or legal matters
» assist the group in managing the use of land
» receive payments such as rents and royalties on behalf of the group
» distribute and/or invest rents, royalties or other income on behalf of the group
» raise finance so that the customary group can invest in its own land.
1 Incorporated land groups in Papua New Guinea 7
Incorporation raises many questions for customary groups, who have their own decision-
making systems and traditions. Can these be preserved within a legal creation like an
incorporated land group? Who represents or speaks on behalf of the group? Who makes
the decisions in the incorporated land group and what is the process by which they are
made? How are the benefits of a tourism development or a mine, for example, distributed
fairly to all members of the group?
Papua New Guinea has laws under which customary groups can be incorporated so that
they can use their land in the formal economy while protecting their customary interests.
But its experience shows that, even if good laws can deal with the complexities of
customary landownership and land tenure, problems can still arise.
The Commission of Inquiry believed a system that enabled the legal recognition of
customary land tenure must be built on traditional custom. It recommended a law be
passed that would allow customary groups to register as a legal body if they wished.
Both the Business Groups Incorporation Act and the Land Groups Incorporation Act were
passed in 1974. However, another piece of legislation that should have accompanied these
Acts was not presented to Parliament. This legislation would have allowed customary
groups to register their land.
The process for incorporating customary groups, as described by Fingleton (2007, pp. 27–8),
begins with preparing the group’s constitution, which must set out:
» the name of the group
» the qualifications for (and any disqualifications from) membership of the group
» the title, composition and manner of appointment of the committee or other
controlling body of the group
» the way in which the group acts and the way its actions are recorded
» the name of the custom under which the group acts
» the details of the group’s dispute settlement authority
» any limitations or conditions on the powers given to the group under the Act
» any rules applicable to how the group’s affairs are conducted.
8 MAKING LAND WORK » VOLUME TWO CASE STUDIES
A group submits its constitution to the Registrar of Incorporated Land, who is supposed
to publicise the application and check the group’s suitability for incorporation. After any
comments or objections received have been considered, the registrar can issue a certificate
of recognition. This means the group is legally incorporated, gaining legal status as a
corporation with perpetual succession. Perpetual succession means that the corporate
body continues to exist after the death of any of its members and the sale of its assets.
Once legally incorporated the group can sue and be sued, enter into contracts and do
other things a corporation can do.
The main immediate application of the Land Groups Incorporation Act was to allow
customary groups to hold title to and manage land that had been alienated during
colonial times and then returned to them under the Plantation Redistribution Scheme.
However, this title cannot be used as security for commercial borrowing. If the
incorporated land group wishes to create an asset that can be used as collateral to raise
money from commercial financial institutions to invest in the land, it must follow the
procedures known as ‘lease and lease back’, whereby the group gives the land to the state
(alienation) and then leases it back from the state. The lease becomes a tradeable asset
that can be used by the group or sold to any other entity, and is thus valuable collateral.
Having title to the land, the incorporated land group can also issue leases to other groups
or individuals to use the land. If commercial financial institutions deem these leases to be
secure, they can be used as collateral.
The Forestry Act 1991 requires landowning groups to be incorporated under the Land
Groups Incorporation Act in areas where logging companies have gained the rights to log
the forests. A Forest Management Agreement gives ownership of the trees, but not the
land, to the National Forest Service, which is responsible for negotiating with the logging
companies. Kalinoe (2003) describes this as ‘the backdoor’ method of gaining access to the
land on which forests grow. The National Forest Service is responsible for paying royalties
and compensation to the incorporated land groups. The land group leaders are then
responsible for distributing payments to group members.
1 Incorporated land groups in Papua New Guinea 9
Experience shows that once the representatives of the incorporated land group have
signed the Forest Management Agreement, the National Forest Service has very little
more to do with the incorporated land groups. No assistance is provided to the groups
to learn how to involve themselves in business opportunities offered by the timber
industry and the Forestry Act prevents landowners from negotiating directly with logging
companies. The National Forest Service says it lacks the funds to help land groups with
their financial management and business opportunities. Most logging companies have
not become involved in the social and economic welfare of the people on whose land they
are cutting down trees.
In 2001 a World Bank review of 32 proposed logging projects found that over 90 per cent
of landowners were not aware of the implications of belonging to an incorporated land
group. Even fewer were aware of the possible economic opportunities provided by their
incorporation into a land group or the responsibilities of the group’s leaders.
General issues
When petroleum exploration companies enter customary land they must compensate
customary landowners for any damage to the land. If an exploitable resource such as oil
or gold is discovered, landowners should benefit from possibly large amounts of money
paid as royalties or rents, negotiated by the government. Distributing compensation and
royalty payments to landowners creates a problem for the resource companies and the
government because they need to know whose land is involved and who the landowners
are. Knowing who the real owners are is important because many people claim they
qualify as a landowner when resource rents, royalties and compensation are to be paid.
Land groups were identified by constructing detailed genealogies. From these a census
of living members was extracted for each clan, whether they were resident in the village
or elsewhere. Chevron engaged former government officers (kiaps), both expatriate and
national, to undertake this work. For Petroleum Development Licence 2, census data for
each of the 84 villages were entered, clan by clan, in the Village Book used by the former
colonial government for village censuses. Village Books enable individuals to be recorded
as members of nuclear families, extended families and landholding groups.
Two cultural and language groups, Fasu and Foi, are affected by the Kutubu oilfield. The
Fasu occupies 92 per cent of the land under development and that land contains all of
the oil. The Foi owns the balance, which has no oil. Fasu leaders chose to share royalty and
equity benefits equally across the various Fasu incorporated land groups in the Kutubu
oilfield, regardless of their population size and land area. This remarkable decision was
taken after exhaustive discussions in the longhouses led by the senior Fasu landowner
leader assisted by an expatriate lawyer, who was the manager of the landowner company.
Unfortunately, the negotiations on sharing pipeline benefits among Foi groups were
not as successful.
From Chevron’s point of view the system worked well. In the Kutubu oilfield, 2788
payments were made between 1989 and 1995 to incorporated land groups to compensate
for the impact on their land of petroleum activities, including road and pipeline
construction. Only 90 transactions were held up temporarily because of land disputes
between group members. These disputes were resolved using the Land Disputes
Settlement Act (Power & Hagen 1996).
1 Incorporated land groups in Papua New Guinea 11
The model constitution for incorporated land groups was expanded to include clauses to
address management. This was done to give greater protection to members of customary
groups by providing a common law remedy for theft, which was not automatically
available under the Land Groups Incorporation Act. In practice, because of their lack of
access to police services and courts, land group members were not able to use these
clauses, though many later had the need.
At Kutubu the customary landowners did not have a genuine desire to be incorporated.
They were incorporated because the Kutubu gas and oil project required customary
groups and land to be identified so that compensation and royalties could be paid. The
landowners had little opportunity to develop the skills needed to manage an incorporated
land group. There was almost no government support in the area, which prior to the gas
and oil discovery had been isolated, poor, undeveloped and serviced mainly by Christian
missions. And there are no intermediary organisations in Papua New Guinea like the
Central Land Council in Australia to provide the support indigenous people need to form
and manage themselves as a corporate body (see Case Study 6, ‘The role of the Central
Land Council in Aboriginal land dealings’).
For the Fasu and Foi, the incorporation of their land groups was only about collecting
revenues from the oil and gas project—not about, for example, working to improve
other development or income-generating opportunities for the group. Weiner
(2007, pp. 120–1) argues:
Having worked with the Foi, both before and since the advent of the oil project, there
seems no doubt in either my mind or theirs: the incorporated land group is perceived solely
as a petroleum benefit-receiving body, and all of the uses to which it has been put by the
Foi (and other people within the petroleum project area) have been exclusively related to
this function.
Inevitably, because the incorporated land groups are used as vehicles for only receiving
income rather than generating income and social development, issues relating to
‘rent seeking’ and conflict have emerged. Rent seeking is a term used by economists
to describe the behaviour of a group, individual or organisation who seeks to make
money by manipulating the economic and/or legal environment, often at the expense of
other people who also have entitlements, rather than make a profit through trade and
production of wealth.
In the mid-to-late 1990s the Foi began exploring ways to gain a greater share of the
compensation revenues and they applied to incorporate more land groups in an
attempt to make their numbers equal to the number of Fasu land groups. Even the Fasu
incorporated land groups began to break up. In 1998 alone, 13 new groups were formed,
all of them subgroups of already incorporated groups (Weiner 2000). Many of the new
incorporations were not investigated by the overworked and under-resourced Registrar of
Incorporated Land but instead were ‘rubber-stamped’. The number of Fasu incorporated
groups has increased from 59 to about 83.
12 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Another important reason for forming subgroups was to bypass instances of poor
management of the original incorporated land group, and the limited opportunity
for incorporated land group members to go to the police or the courts in the event of
dishonest land group management. Government services were very weak and the foreign
joint venture companies at Kutubu were extremely reluctant to get involved in local and
regional politics, even arguing that legislation in the United States of America prevented
them from doing so.
This case demonstrates that, when exposed to genuine business opportunities and
assisted by capable business and legal advice (supplied in this case by New Britain Oil
Palm Limited), some landowners respond constructively and resolve their differences
for a common economic benefit. Several factors stand out as contributing to success.
The leaders of landowning groups:
» took strong leadership roles
» applied customary principles of land management
» looked after other groups with lesser economic rights and interests
» exercised their own customary powers (with no assistance from the government)
to exclude groups that had no rights in the land concerned.
1 Incorporated land groups in Papua New Guinea 13
In one case, after New Britain Oil Palm Limited evaluated the land as suitable for oil palm
development, it reactivated a disused landowner company that had been established
when two coconut plantations were returned to the former landowners. Customary
land that had been logged and was located between the plantations was included
to form a single block of land suited to oil palm development.
Five years of protracted dealing with the Lands Department, and extensive negotiation
and bargaining among the 31 local customary groups involved, resulted in the
incorporation of six land groups. Each customary landowning group identified a
representative member to make up the management committee of the reactivated
company. The incorporated land groups became shareholders in the company.
West New Britain has other examples of how the Land Groups Incorporation Act was
used to allow customary groups to bring land into economic production. In one example,
an incorporated land group was formed from nine clans that held an agricultural lease
over a former plantation, which was then subleased to New Britain Oil Palm Limited.
Another block, which had been alienated under the land tenure conversion legislation in
the 1970s to pursue various development options that had failed, was also leased to the
company. The income from this land is being used for community development by seven
participating customary groups. In another example, four customary groups incorporated
and leased back their land to themselves under the Land Act. All income from this project
goes to community development, which includes an annual budget of K60 000 to pay
school and university fees for all member children.
In these examples, the landowners have had one main aim: to convince New Britain Oil
Palm Limited that they would be reliable business partners. Landowners employed custom
to deal with group membership and land rights and learned the fundamentals of business
management and the need to bargain and compromise among themselves to meet this
goal. The outcome is that New Britain Oil Palm Limited is investing tens of million of kina
to develop the land, including roads, buildings, houses and vehicles. Tax credits are received
for the public parts of this infrastructure expenditure.
In 2006 the government began extensively reforming land policy, which has included a
review of the Land Groups Incorporation Act. This is the first time land laws have been
reviewed since the Department of Petroleum and Energy review in 1998–99. The current
initiative is very significant as it is well resourced and well supported at the community,
bureaucratic and political levels.
While the Land Groups Incorporation Act may be improved by amendments, as the
petroleum and energy review found, problems extend beyond the law. They also relate
to the inability of customary groups to obtain group title in customary land and the lack
of support available to incorporated land groups and members of these groups from
government or elsewhere. Importantly, the current process of reform has given priority
to improving land administration.
Lessons
lesson
The incorporation of landowning groups is an important tool available to
1 customary groups to enable them to use their land in the formal economy while
retaining their group ownership and identity.
lesson
Legislation and procedures that allow a customary group to identify its land
2 and hold group title in the land are an important way to support land group
incorporation and to minimise fragmentation of landowning groups.
Processes to incorporate a landowning group need to be combined with processes for the
group to clearly identify and protect its assets (land). This will prevent the fragmentation
of landowning groups and the incorporation of new smaller groups designed only to
capture valuable land for the benefit of their fewer members.
1 Incorporated land groups in Papua New Guinea 15
lesson Incorporated land groups can be an effective vehicle for unlocking the
3 productive potential of customary land.
The incorporation of land groups can enable the development of substantial agricultural
operations, such as the oil palm plantations in West New Britain. Landowners can use
incorporation to extract substantial benefits in terms of income, employment, and
social and infrastructure services from land.
lesson
Incorporated land groups can be an effective way for customary groups to work
4 with industry and resource companies whose activities require royalties and
compensation to be paid to the landowners.
When incorporated land groups are set up only to receive compensation and
royalty payments the potential for group disintegration and conflict is acute.
lesson
Incorporated land groups in this situation may be able to avoid these problems
In the forestry and mining sectors, landowners affected by the activities of those sectors
are entitled to compensation and royalty payments. These payments can be facilitated
through incorporation of the landowning groups. However, if groups are incorporated
only for the purpose of receiving payments they face a strong incentive to engage in
non-productive rent-seeking behaviour, as demonstrated at Kutubu. Such behaviour
may be avoided if the members of the incorporated group can engage in productive
wealth-creating activity or social development, as in West New Britain.
lesson An incorporated land group provides flexibility for the customary landowners
6 to choose how to use or distribute the group’s income.
lesson For incorporated land groups to be effective they require the support of an
7 accessible legal system.
lesson
The effectiveness of incorporated land groups can be improved if members are
8 able to access information and education about their roles and responsibilities
as members of a corporate body.
There are instances of poor governance in the management of incorporated land groups.
This may be due to dishonest practices of management or to poor education and
information. Where there are illegitimate practices, people are often unable to get legal
help, especially in remote areas. Illiteracy and low education levels also mean that group
members often are poorly informed of the functions and activities of the incorporated
land groups. Moreover, they are commonly isolated or ignorant about their rights and
obligations under the law.
lesson
The state has a key role in ensuring that sufficient and long-term resources are
The state may be able to provide the support incorporated land groups need
lesson through an intermediary institution like the Central Land Council in Australia.
10 Such an institution may be able to secure its own funding, especially in relation
to land that is able to generate a reliable and long-term source of revenue.
Appendix: Contacts
Meetings
» Graham Pople, Madison Enterprises (PNG) Ltd,
operators of Mt Kare Gold Prospect, Port Moresby
» Laurie Bragge, Oilsearch, Port Moresby
» Ian RS Marru, DPE Support Officer, Landowner Coordinator and Liaison, Port Moresby
» Brian Aldrich, Managing Director, AKT and Associates, Port Moresby
» Joe Badi, Manager, Acquisitions Branch, Forest Planning Division,
National Forest Service, Port Moresby
» Josepha Kiris, Chief Land Titles Commissioner, Port Moresby
» Oswald Tolopa, Director Planning Division,
Department of Lands and Physical Planning, Port Moresby
» John Kawak, Lands Officer, Oilsearch, Moro
» John Ipidari, Business Development Officer, Oilsearch, Moro
» Ronalad Sihinue, Community Affairs Coordinator, Oilsearch, Moro
» Philip Kanora, Coordinator, Murik Lakes Resettlement Project
» Melchior Mangino, Field Assistant, Mamber Village,
Angoram District, East Sepik Province
» New Britain Palm Oil Limited
– Jamie Graham, General Manager
– Ashley Barnes, Coordinator Mini-Estates
– Himson Waninara, Company Secretary
– Lillian Holland, Lands Officer
– Frank Lewis, Manager, Smallholder Project, Oil Palm Industry Corporation
» West New Britain Oil Palm Development Committee
(West New Britain Provincial Government)
– Sam Gakan, Acting Administrator, Kimbe
– Gawago Enabo, Administrator, Talasea District
– Ben Morden, Lands
– Kasen Dumot, Lands
– Leo Brown, Agriculture
– John Kaniovisi, Agriculture
18 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Bibliography
Barber, K & Rumley, H 2003, Gunanurang: (Kununurra) Big River—Aboriginal cultural values
of the Ord River and wetlands, a study and report prepared for the Water and Rivers
Commission (WA), viewed August 2007, <http://portal.water.wa.gov.au/portal/page/
portal/WaterManagement/Groundwater/Ord/>.
Bolton, GC 1981, ‘Black and white after 1897’, in CT Stannage (ed.), A new history of Western
Australia, University of Western Australia Press, Perth.
Buchanan, G 1933, Packhorse and waterhole—with the first overlanders to the Kimberleys,
Angus & Robertson, Sydney.
Case, N 1999, ‘Tide of history or tsunami? The Members of the Yorta Yorta Aboriginal
Community v The State of Victoria & Ors (1998)’, Indigenous Law Bulletin, viewed
August 2007 <http://www.austlii.edu.au/au/journals/ILB/1999/9.html>.
Durack, PM 1933, ‘Pioneering the East Kimberley’, Early Days (Journal of the Historical
Society of WA) vol. 2, pp. 2–28.
Filer, C 2007, ‘Local custom and the art of land group boundary maintenance in Papua New
Guinea’, in JF Weiner & K Glasin (eds), Customary land tenure and registration in Australia
and Papua New Guinea: anthropological perspectives, Asia-Pacific Environment Monograph 3,
Resource Management in Asia-Pacific Project, Australian National University, Canberra,
pp. 135–74.
Fingleton, J 2007, ‘A legal regime for issuing group titles to customary land: lessons from
the East Sepik’, in JF Weiner & K Glasin (eds), Customary land tenure and registration in
Australia and Papua New Guinea: anthropological perspectives, Asia-Pacific Environment
Monograph 3, Resource Management in Asia-Pacific Project, Australian National University,
Canberra, pp. 15–38.
Government of Papua New Guinea 1973, Report of the Commission of Inquiry into Land Matters,
Port Moresby.
——1983, Report of the Task Force on Customary Land Issues, Port Moresby.
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communities, Issue Analysis no. 54, Centre for Independent Studies, Sydney.
Kalinoe, LK 2003, ‘Incorporated land groups in Papua New Guinea’, Melanesian Law Journal,
viewed August 2007, <http://www.paclii.org/journals/MLJ/2003/4.html>.
Lynch, CJ 1969, ‘Legal aspects of economic organization in the customary context in
Papua New Guinea and related matters’, Legislative Draftsman’s Office, Port Moresby.
National Research Institute 2007, The National Land Development Taskforce report,
NRI Monograph 39, National Research Institute, Port Moresby.
Peterson, N 1981, Aboriginal land rights: a handbook, Australian Institute of Aboriginal
Studies, Canberra.
20 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Power, AP (ed.) 2000a, Land group incorporation: village guide and legal guide,
Anutech/AusAID, Canberra (an edited version of two earlier manuals).
——2000b, Land group incorporation: a management system, Train-the-trainer manual
produced for the AusAID-funded Human Resource Development of the National Forest
Authority, Anutech/AusAID, Canberra.
——2003, ‘Creation of Melanesian property rights: building bridges between custom and
commerce’, colloquium on peri-urban customary land issues in Papua New Guinea,
Melanesian Land Studies Centre, University of Technology, Lae, 27–29 August 2003
(Internet publication by UniTech).
——& Hagen, PC 1996, ‘The escalation of landowner benefits in the Kutubu Petroleum
Development Project’, in PG Buchanan (ed.), Petroleum exploration, development and
production in Papua New Guinea: proceedings of the third PNG Petroleum Convention,
Port Moresby, 9–11 September.
Stanner, WEH 1965, ‘Aboriginal Territorial Organisation: estate, range, domain and regime’,
Oceania, vol. 36, no. 1.
Strelein, L 2002, ‘Western Australia v Ward on behalf of Miriuwung Gajerrong High Court of
Australia, 8th August 2002 summary of judgement’, Land, rights, laws: issues of native title,
vol. 2, no. 17.
Sullivan, P 1996, All free man now: culture, community and politics in the Kimberley region,
Aboriginal Studies Press, Canberra.
Weiner, JD 2000, ‘Audit of Foi incorporated land groups: results and analysis’, Chevron report
to Minister of Petroleum and Energy.
Weiner, JF 2007, ‘The Foi incorporated land group: group definition and collective action in the
Kutubu Oil Project Area, Papua New Guinea’, in JF Weiner & K Glasin (eds), Customary land
tenure and registration in Australia and Papua New Guinea: anthropological perspectives,
Asia-Pacific Environment Monograph 3, Resource Management in Asia-Pacific Project,
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Willis, P 1980, ‘Patrons and riders: conflicting roles and hidden objectives in an Aboriginal
development programme’, MA thesis, Australian National University, Canberra.
21
Reconciling customary
ownership and development
2
Village land trusts in Vanuatu:
‘one common basket’
A snapshot
Village land trusts in Vanuatu: ‘one common basket’
The experiences of the village land trusts provide some important lessons.
» Land trusts can be an effective vehicle for representing
group ownership in the formal economy.
» The incorporation of land trusts requires a regulatory
regime to ensure accountability and transparency.
» Governments can play a supportive role when
land trusts are being set up.
» Land trusts can have the flexibility to incorporate
traditional decision-making structures.
» Business and investment activities are best kept separate
from the land management activities of land trusts.
» Land trusts would benefit from an intermediary advisory body.
2 Village land trusts in Vanuatu: ‘one common basket’ 23
Contents
» The setting 24
» Cultural context 28
» Lessons 41
Consider land trusts a vehicle for managing customary land 41
Ensure land trusts have a robust regulatory regime 41
Acknowledge the skills and support required to set up trusts 41
Emphasise community benefits in land trusts 42
Promote the compatibility of trusts with tradition 42
Define the scope of trusts 43
Establish supporting mechanisms for trusts 43
» Appendix: Interviews 44
» References 45
24 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The setting
The area of Vanuatu covered by this case study lies on the outskirts of the capital Port Vila,
and focuses on the peri-urban villages of Ifira and Mele (Maps 1 and 2). In recent years
Vanuatu has built on its reputation as a Pacific holiday destination, becoming the focus of
a land boom fuelled by investors from Australia and New Zealand. The great majority of
this activity has been on the main island of Efate, where Port Vila is located. It is estimated
that, since independence in 1980, 55 per cent of all land on the island—and more than
80 per cent of coastal land—has been converted by customary owners to long-term
leases. This amounts to an extraordinary loss of control over the nation’s land. Vanuatu’s
status as a tax haven is crucial in attracting investment (Rawlings 2007).
Ifira is an island of half a square kilometre, located at the entrance to the harbour of
Port Vila, with a population of 983 at the time of the most recent national population
census (1999). Large areas of the traditional lands of Ifira villagers were alienated
during the colonial era. Although much of their land is now lost to the town of Port Vila,
villagers still have important landholdings behind the wharf area, across the harbour’s
entrance at Malapoa and beyond to the airport. Perhaps the jewel of their landholdings
is Iririki Island, just offshore and adjacent to the town’s commercial centre. Reflecting
their central location, Ifira villagers have long provided senior politicians, civil servants
and businessmen.
Mele village moved to the mainland adjacent to its previous offshore island location in
1950 (Naupa 2005). With a population in 1999 of 1851, it is Vanuatu’s largest village, lying
10 kilometres around Mele Bay from Port Vila. Its traditional lands stretch from a boundary
with Ifira lands near the airport westwards around Mele Bay to Devils Point and Tukutuku,
where they abut the mainland landholdings of the Lelepa Island villagers. The people of
Mele village have been no less prominent in the nation’s affairs than Ifira villagers, and
they provided the first president after independence.
2 Village land trusts in Vanuatu: ‘one common basket’ 25
Measures were taken to return some land, but an Anglo–French Condominium with
conflicting goals and agendas could not address the grievances. So these serious land
problems were left to the incoming independent government to resolve. After a long
struggle in which the central issue was returning alienated lands to their customary
owners, the Constitution adopted at independence declared: ‘All land in the Republic of
Vanuatu belongs to the indigenous custom owners and their descendants’ (Article 73).1
The only exception to this declaration was that the government could own land acquired
in the public interest (Article 80). Under this power, much of the land within the town
boundary of Port Vila became public land.
Whereas the land management system before independence could be called ‘laissez-
faire’, for quite different reasons the system introduced at independence ended up being
much the same. It was designed to deal with the pressing need to change the land
tenure system from one dominated by outsiders to one giving priority to the needs of
the nation’s citizens. All alienated lands were returned immediately to customary owners.
The Land Reform Act passed in 1980 enabled customary owners to negotiate leases for up
to 75 years with the previous owners of their land. But this could be done directly without
first determining customary ownership. Once registered under the Land Leases Act,
no challenge to ownership can overturn a lease.
Matters such as identifying customary owners, while not ignored by the incoming
government, could not be given priority. Even the vital question ‘what are custom
owners—individuals or groups?’ was left to be answered later by a national land
law called for by the Constitution (Article 76). This law was also intended to address
Vanuatu’s need for a comprehensive land administration system. Almost 30 years
after independence a national land law is still not in place.
1 In fact, Article 71 in the original version of the Constitution. A renumbering was carried out after independence.
28 MAKING LAND WORK » VOLUME TWO CASE STUDIES
In the absence of such a law, the nation’s land affairs are being conducted with major
gaps and weaknesses in land policies and laws and in the administrative system to
implement them. Possibly the biggest gap is in how the customary group can be involved
effectively in making decisions on customary lands. Into this gap, the ni-Vanuatu leaders
introduced the concept of village land trusts. Such trusts have played a significant role in
the land affairs of Mele and Ifira villages over the past three decades. The trusts combine
traditional and modern institutions and are designed to meet modern needs without
displacing the traditional values and practices underpinning village communities.
As such the experiences of these village land trusts can make a valuable contribution
to developing ways to manage lands in the Pacific islands.
Cultural context
The widespread alienation of customary lands through foreign ownership before
independence and the widespread allocation of long-term leases in the decades since
took place at Mele and Ifira against a background of cultural change. Anna Naupa
(2005) concluded:
As cultural change blurs the boundaries between the traditional and the modern,
indigenous reference to kastom [social structures, values and practices perceived as
traditional] in contemporary Vanuatu is rather vague. Ni-Vanuatu remain aware of kastom
ideals but can manipulate interpretations to suit changing needs … The ambiguous nature
of kastom therefore allows communities to address the changing social (and natural)
environments, while always rooted in basic cultural values.
In the study area of South Efate, the naflak kinship system2 plays a central role—now
as in the past—in distributing chiefly titles and rights to land. Naflak are clan identities
organised according to matrilineal descent. Before the interior and coastal settlements
were amalgamated during the colonial era into the major villages surviving today,
evidence suggests that individual settlements were identified primarily with a single
landowning naflak. Naflak names reflect natural species, such as octopus or coconut.
As a general rule the names of marine species identify communities with origins along
the coast, while the names of terrestrial species identify communities with links to the
interior of mainland Efate.
Naflak identities are inherited maternally—a brother and sister share the same naflak as
their mother but not that of their father. A group of people sharing a naflak identity and
traditionally residing together are referred to as a nakainanga (a matriclan descended
from a common female ancestor). In contemporary Efate society, naflak is often referred
to as ‘family’ and contrasts with ‘bloodline’ or those related by patrilineal forms of descent.
2 Called the namatarao kinship system on North Efate and offshore Nguna.
2 Village land trusts in Vanuatu: ‘one common basket’ 29
It is not surprising therefore that under these many different influences there is confusion
about what is customary, and how far kastom can form the basis for modern land tenure
and land use. However, the official position is clear. Article 74 of the Constitution declares:
‘The rules of custom shall form the basis of ownership and use of land in the Republic
of Vanuatu’.
In addition Chapter 5 of the Constitution provides for the National Council of Chiefs
(Malvatumauri) with a ‘general competence to discuss all matters relating to custom and
tradition’. Chiefs are officially recognised as having authority in a hierarchy—from village
chiefs to area, island, provincial and national councils of chiefs. In 2006 the National
Council of Chiefs Act was passed, providing an administrative structure for the National
Council of Chiefs and identifying its role in registering island and urban councils of chiefs.
Under the Customary Land Tribunals Act 2001 chiefs are the main authorities for settling
land disputes, but their future role in developing the nation is unclear. Both the national
executive and judiciary seem to have reservations about what their role should be
(Lunnay et al. 2007).
These uncertainties about custom, and the role of customary groups and chiefs in the
land matters of contemporary Vanuatu, present major problems for rational, fair and
sustainable land management. Vanuatu has a comprehensive set of laws that deal with
negotiating land leases, registering leases and other interests, settling land disputes,
planning and protecting the environment3, but it does not have a law for identifying
customary owners of land. Yet it is these people who own all land except public land and
are entitled to negotiate leases that can tie up a community’s lands for generations.
3 However, the laws are often not enforced (see Lunnay et al. 2007, pp. 18–21).
30 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The level of dissatisfaction with current arrangements can be gauged by the popular
support for the National Land Summit held in September 2006 and the wide range
of reforms called for in its 20 resolutions. For decisions involving customary lands, the
interests of groups (village, kinship group, family) need to be balanced with the interests
of individuals. And to meet the nation’s future land needs, the traditional and the modern
need to be balanced.
Using the trust concept to reflect the relationship between chiefs of customary groups
and the members of those groups assumes that the role of trustees under western
law corresponds to the role of chiefs under customary land tenures. There are, however,
fundamental differences between the two roles, an obvious one being that a chief is also
a member of his customary group. This gives rise to unavoidable conflicts between a
chief’s personal interests and his duties as a trustee.
Yet the appeal of trusts remains and, provided that safeguards are in place to reduce
the risk of conflict, they can fulfil a useful purpose in managing customary lands.
One safeguard is to have a statutory body act as trustee for customary landowners, as
the Native Land Trust Board does in Fiji. An alternative safeguard is to have a group of
people, even a corporation, act as trustee for the landowners. Another safeguard is to
allow the trustee to act on behalf of customary landowners only after a process leading
to informed consent and in accordance with directions given by the landowners.
In Australia in the Northern Territory, for example, three main bodies are involved in holding
and managing Aboriginal land titles—the traditional Aboriginal owners, Aboriginal land
trusts and Aboriginal land councils. The land trusts hold title to the lands, but can exercise
their powers over the lands only in accordance with directions given to them by the land
councils, which must first get the informed consent of the traditional owners.
2 Village land trusts in Vanuatu: ‘one common basket’ 31
Another device used to press land claims was the land committee (called ‘land council’ in
some places). The Fila Island Land Committee was established in 1973 to raise Fila (Ifira)
land claims with the Anglo–French Condominium, and the Mele Land Committee was
formed to do the same some years later. In the late 1970s the Vanua'aku Party encouraged
villages to set up land committees to press their claims for returning alienated lands and
identifying the original customary owners.
accept and execute the office of trustee, and to take, receive, hold and deal with all property
… that may be granted, conveyed, transferred or given to the Company upon any trust or
trusts for the benefit of the people of Fila Island.
These people were further specified as ‘the members from time to time of the Blakniu,
Blakuita, Blakmalu and Blaknui clans’.5
4 It seems that the company was also licensed as a ‘trust company’ under the Trust Companies Regulation (Cap. 10) (George Vasaris,
pers. comm., 2007). As defined in that law, a ‘trust company’ means any company carrying on trust business, and ‘trust business’
includes the business of acting as trustee (s. 2).
5 These are said to be the totems of the four naflaks (blak in Ifira), which originally settled Ifira Island, although the naflak identities
were presumably inherited originally from in-marrying Efate mothers.
32 MAKING LAND WORK » VOLUME TWO CASE STUDIES
After Ifira Trustees Limited was incorporated, a declaration was signed by the chief of Ifira
village and nine other villagers, whereby ‘the Ifira Island Community acting through the
Chief and his Council and the Land Committee of Ifira Island’ vested certain lands in Ifira
Trustees Limited to be held ‘beneficially for all the members of our community’. The lands
handed over to Ifira Trustees Limited were listed by location and title number and
included Iririki Island, Tagabe, Malapoa Estate, De Gailland Residential Estate, and Malapoa
Peninsula. It is notable that the trust was set up at the village level, which is a settlement
unit made up of traditional landowning groups.
IN MAKING THIS DECLARATION we state our awareness of Articles 71, 72 & 73 of the
Constitution of the Republic of Vanuatu and say that there is no inconsistency between
our DECLARATION and the said articles because –
1. the said Lands belong beneficially to the respective indigenous custom owners
and their descendants;
2. we have applied our own rules of custom in deciding the basis of ownership and
use of the said Lands;
3. we have adopted and therefore recognise the concept of a trust as being
‘a recognised system of land tenure’ for the purposes of our custom in
regard to Article 73 of the Constitution.6
Whether this ‘vesting’ of customary land in the trust would survive a legal challenge
by the customary owners is debatable.
Like Ifira, Mele village is not a single traditional landowning group but a number of
landowning groups. As with the Ifira trust, those involved in setting up Mele Trustees
Limited emphasised its importance in managing alienated lands on behalf of the
community, rather than splitting them up among their respective customary owners.7
According to one person interviewed as part of the case study: ‘Nobody knew exactly
where their lands were, so Mele land trust took care of the lands’.
Much of Mele village lands had been alienated during the colonial era.8 So there was a
very large area for which management arrangements had to be set up quickly. Naupa
(2005, p. 7) estimated that about 30 per cent of all Mele lands was involved. However,
inquiries have not brought to light a document similar to the declaration at Ifira, aimed
at vesting the lands in the trust to administer on behalf of all Mele villagers.
Iririki Island became the original cash cow for the trust. Its title was held from early
times by the Presbyterian Church and during the 1970s the Fila Island Land Committee
negotiated the return of the island to the customary owners. In 1976 the church assembly
finally agreed the whole island would be returned, but on the proviso that it be held by
a trust. According to information provided by Kalpokor Kalsakau, the land committee
decided it would be held by the Ifira land trust, partly to meet the church’s demands and
partly to avoid arguments over the identity of the customary owners.
In 1983 a protracted land dispute was settled with a payment of US$1 million by Iririki
Resort, the lessee of part of Iririki Island, in return for a lease over the balance of the island.
With this as capital, and with a steady flow of rents from its other properties, the trust
built up its assets. By 1991 it had ten subsidiary companies with interests in stevedoring,
shipping, waterfront development and many other businesses.9 The total value of its
assets in that year was Vt281.5 million (US$2.5 million). Its trading account showed that
Vt219.6 million (US$2.0 million) was made in 1990 from premiums on transferring leases,
while the profit on rental property was Vt20.3 million (US$0.2 million).
7 The trust’s first administrator, Meto Nganga, its first secretary, Simeon Poilapa, and its adviser, Ati George Sokamanu, were all
interviewed as part of this case study.
8 Chris Ballard extracted details from the Joint Court decision on Title 122, dated 1933, which shows 14 sales by one Mele chief between
1886 and 1902, amounting to well over 2000 hectares.
9 This information is taken from the public files of the Financial Services Commission, being the report and financial statements for Ifira
Island Trust for the year ended 31 May 1991.
34 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Ifira islanders interviewed for this case study emphasised the importance of the trust in
maintaining community solidarity. As one interviewee put it: ‘Everybody eats from the
one common basket’. Indeed, a striking feature of the trust’s operations is the services
it provides to the Ifira community, young and old. These include a pension scheme
for all islanders aged over 50 years, tertiary scholarships, village administration, the
supply of water and electricity across the island, support for schools and community
organisations (for sport, women, churches and people with disabilities), interest-free
loans for school fees, the cost of medical evacuations and an annual Christmas voucher
of Vt10 000 (US$900) for all islanders aged over 18 years. Island leaders say that, if
the emphasis had been on identifying only the customary owners of the leased lands,
it would have ‘divided the community’. ‘The trust holds us together’.10
The basis of the trust’s wealth is its revenue from leases. By December 2001 Ifira Trustees
Limited had granted the leases detailed in Table 1. While the total area (24.4 hectares)
is not great, the land involved is on the edge of Port Vila and highly valuable.
Table 1 » Land leased by the Ifira and Mele land trusts as at December 2001
Until a lease for 60 hectares of land at Malapoa Point was granted the trust had
encountered no major conflicts, although there had been minor internal conflicts. In 2005
litigation over that lease began, which pitted Ifira Trustees Limited against the Kalsakau
family. The central issue in the case revolved around the statutory power of the Minister
of Lands to grant a lease over disputed land. The Acting Minister had granted the lease to
Ifira Trustees Limited, but the Supreme Court set aside the grant in a decision approved
by the Court of Appeal. A key consideration in the Court of Appeal’s judgement (October
2006) was that both the Acting Minister of Lands and the Director of Lands at the time
were prominent Ifira islanders, with personal interests in the matters they were supposed
to be dealing with independently. Of greater importance for the discussion in this case
study is that the Kalsakau family was asserting its right to lease the land as their own
customary land.
10 The quotations in this paragraph are from interviews with Michel Kalworai and four members of the trust’s board of directors.
2 Village land trusts in Vanuatu: ‘one common basket’ 35
At an early stage the Mele land trust began accumulating assets. Without the initial
capital base Ifira received from its court settlement, the Mele trust had to borrow to
invest. In 1982 it raised capital to buy a 49 per cent share in the Hideaway Island Resort by
placing a charge of Vt7 million (US$70 000) on its shares, as security for repayment of the
debt. Its lease income in 1983 was almost Vt2.5 million (US$25 000), but in 1984 it received
close to Vt16 million (US$160 000) from logging operations on Mele land. In 1985 the trust
purchased a 33 per cent share of Vate Timber Co. Ltd. for Vt7.7 million (US$75 000). By 1989
its financial returns showed total assets of Vt18.4 million (US$165 000) from its business
of collecting lease incomes. By 1992, however, after a change of directors and accountants,
the assets had been reduced to Vt4.8 million (US$43 000).11 This major change in the
trust’s fortunes reflected the changes in its decision making (discussed next).
In its early years the trust provided some services to the village community, including
electricity, water and road improvements, and it supported various community
organisations. Money was also distributed. However, these benefits dried up when the
trust ran into financial difficulties. As the trust’s difficulties increased, it relied more and
more on granting new leases to generate income. By December 2001 the Mele land trust
had granted the leases detailed in Table 1.
Whereas only 51 leases (mostly agricultural) were granted between 1980 and 1990,
another 147 (mostly residential and commercial) were granted between 1993 and 1996.12
Many of these leases have been converted into coastal subdivisions, denying Mele
villagers access to their beaches and marine resources, with minimal return for the village.
Indeed, Mele villagers are planning to move the village once again, to an inland location.
The loss of many of the trust’s assets between 1992 and 1996 severely eroded its revenue
base. The current board unsuccessfully invested in a couple of ventures to diversify the
revenue base—a rubbish collection service, which had to be sold to meet the costs of an
adverse Supreme Court judgement in a land dispute, and a community fishing venture,
which failed in the face of strong competition. The trust is now exploring the feasibility of
developing a housing subdivision of between 40 and 50 plots in the hills above the village.
11 Information in this paragraph is taken from the public files of the Financial Services Commission, being the annual financial statements and
directors reports.
12 Data from the Vanuatu Archives, deposited by Sue Farran in 2003.
36 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The Land Council served as the cultural watchdog for Mele Trustees, which operated in a
modern leasehold land tenure system. At its inception it was a policy of the Trust that its
Board members received advice from three bodies in the village: the Chief and his Council
in the Nakamal, the Land Council, and Buule, a committee of elders dedicated to tracing
genealogies to ensure rightful claims to land (Fig. 1). The Council ensured that the Trust
respected the traditions of people it represented in that individual clans were involved in
decision-making through family representatives. The Council and the Trust together served
to regulate development on Mele land to benefit villagers (eg through employment), and
did their best to ensure that no land disputes would arise later.
Chief Council/Nakamal
This careful blending of the traditional and the modern bodies for making decisions
about land management worked well for a decade. Naupa (2005, p. 9) described what
happened next:
The traditional transparent nakamal discussions were replaced with boardroom meetings
with select representatives, removing knowledge of trust activities from the village. While
women had been able to listen in on nakamal discussions, they were not represented on
the newly formed committee of shareholders.
38 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The trust’s administrator at the time, Meto Nganga, mentioned another factor
contributing to the trust’s difficulties. As the customary owners of particular lands came
to be identified, they began agitating to remove their lands from the management of the
trust. The concept of ‘one common basket’, where everyone benefited from the village
lands, began to collapse.
The original board of directors, with its chiefly representation, was replaced by a board
elected by a new membership of 31 shareholders, each representing one of the original
Mele ‘families’.13 And, as already mentioned, the trust changed its accountants14, began
to lose money, sold assets to cover debt and granted many leases to maintain a flow
of income. During the 1990s there was further turmoil and directors were frequently
replaced. It is estimated that, probably in response, somewhere between 75 and
80 per cent of the land formerly under the trust’s management has been withdrawn and
is now held and managed separately by four of Mele’s 31 customary landowning families.
The last report on the Financial Services Commission files is for 2001. Letters to the
local newspapers complain about the absence of recent financial reports, and query
how the trust’s funds are being managed. On the other hand, there seems to be
general satisfaction with the many benefits that the trust brings to Ifira village. Its
attractive appearance and general wellbeing can be attributed in part at least to the
trust’s activities. During the case study there was no apparent opposition to the trust’s
continued existence.
13 This figure differs from the 29 ‘families’ mentioned previously. One family seems to have divided and, on some accounts,
the village chief was included as a member.
14 A member of the new accountancy firm became chairman of the trust’s board of directors.
2 Village land trusts in Vanuatu: ‘one common basket’ 39
With the Mele land trust too there is the suggestion that two separate entities exist or
at least that there are two separate accounts, one public and one private. The apparent
lack of transparency was given as one reason for the distrust that motivated the takeover
by the young university graduates in 1991. Yet annual general meetings were held and
reports tabled as required by law, and the directors ‘tried to make it understandable’ to
the villagers.15 Recently there has been concern that financial statements have not been
lodged as required by law for the past three years.
The basic income of both trusts is the rents and premiums made from leasing the lands
they manage on behalf of the customary owners. Both trusts have invested some of
this income in businesses on those lands. Mele’s funding of its share in Hideaway Island
Resort showed how a legal entity can facilitate access to credit. The Ifira land trust has
an impressive array of subsidiary companies contributing to the village, its stevedoring
business being a valuable provider of employment. Directors of both trusts have been paid
fees and other entitlements, adding to their individual wealth. The Mele directors received
fees of Vt249 000 (US$2400) in 1985. The remuneration for Ifira’s directors in 1990 was
Vt9 414 000 (US$84 000).
What has been critical to the success of the trusts has been their ability to satisfy their
village constituencies. Ifira land trust continues to provide a wide range of benefits and
village services, and continues to enjoy popular support. Mele land trust, on the other
hand, has provided declining levels of service and its popularity has correspondingly
15 Information in this paragraph was provided by the original administrator of the trust, Meto Nganga.
40 MAKING LAND WORK » VOLUME TWO CASE STUDIES
declined. In both cases their transparency in decision making and their accountability
have been less than ‘best practice’, and regulatory oversight has been minimal.
Problems may follow.
Each trust enabled village resources—land and people—to be melded for the greater
benefit of all. The traditional village leadership (chiefs, naflak and family heads) and the
new generation of educated younger members formed the decision-making nucleus,
but their ‘family’ and ‘bloodline’16 connections to the villagers allowed village views to
penetrate the land management issues dealt with by the trust.
However, the contrasting experience of the two trusts highlights the critical importance
of balancing the different elements of the village community and meeting the needs and
expectations of these elements. In both villages the land trusts incorporated traditional
and modern features in their decision making. Ironically, it was in Mele, where this
was done most systematically, that traditional inputs proved most vulnerable. When
the educated younger members of the village felt their interests were not being met,
they altered the trust’s structure along more democratic lines. However, the result was
disastrous. By contrast, in Ifira the wide range of benefits provided from the trust’s
incomes is seen as being responsible for its continuing support within the village.
The ongoing performance and sustainability of the trusts largely depends on them
satisfactorily answering one crucial question: how do they hold their authority and
manage the customary owners’ land? The loss of authority is an ongoing threat to the
land trusts. Ifira attempted to answer this question by declaring that the trust was, in the
words of the Constitution, a ‘recognised system of land tenure’ under Ifira custom and
that the lands were vested in the trust. It seems that the Mele land trust made no such
declaration. Therefore in recent years, when some dissatisfied villagers decided to remove
their customary lands from the Mele trust, it could do nothing to prevent it. A similar
threat now overhangs the Ifira trust.
In spite of these problems land trusts are a good option for facilitating land development
while maintaining a landowner role in decision making. A testament to the value of
the land trusts is revealed by the position of villages that did not adopt land trusts.
The other main urban villages adjoining Port Vila, Pango and Erakor, have been targeted
by developers and steadily their remaining customary lands have been leased to the
developers. Such leasing is spreading throughout Efate and was a major grievance
expressed at the National Land Summit in 2006 (see Case Study 14, ‘The paths to land
policy reform in Papua New Guinea and Vanuatu’). The landholdings of the Lelepa Island
villagers are also rapidly being converted to leasehold. Ironically it had a land trust like
Ifira’s and Mele’s, but it was disbanded soon after independence. Its land committee
continued until 2005, when it too was dissolved by the local paramount chief. Land
disputes have increased dramatically since then.17
16 As mentioned previously, in modern Efate usage ‘family’ often refers to matrilineal kin and ‘bloodline’ to patrilineal kin.
17 Information provided by Peter Taurakoto, Vanuatu’s Ombudsman and a Lelepa villager.
2 Village land trusts in Vanuatu: ‘one common basket’ 41
Lessons
lesson Land trusts can be an effective way for managing the link between community
1 land and the formal economy.
Customary owners have difficulties managing their land when participating in the formal
economy. The Ifira and Mele communities attempted to resolve this situation by setting up
land trusts. Their pioneers recognised the need for a legal entity for formal land dealings.
lesson For land trusts to be effective they must be supported by a robust regulatory
2 regime to ensure transparency and accountability.
When set up as a company, land trusts are subject to all the normal requirements
for transparency and accountability (such as annual general meetings and reporting).
However, there is evidence in Vanuatu that the statutory requirements for meetings
and financial reports are not followed or enforced. A lack of transparency and
accountability may have contributed to the difficulties of the Mele trust.
lesson
Setting up trusts requires skills that are not always available in a community,
The Ifira and Mele land trusts were set up by senior members of the community who
had good education. Through their education they learned about the nature of trusts,
their capability and their applicability to customary land. They were able to draw lessons
from the experience of the Native Land Trust Board in Fiji.
42 MAKING LAND WORK » VOLUME TWO CASE STUDIES
lesson Land trusts can be set up so that the emphasis is to benefit the community
4 rather than individuals.
lesson Setting up land trusts with an emphasis on community benefits could improve
5 their acceptance and their sustainability.
Probably the greatest contribution of the Ifira and Mele land trusts has been to village
incomes and services. The trusts were set up to manage community lands for the benefit
of their respective communities. The social ‘contract’ made when the trusts were set up
was that they were a ‘common basket’ from which the whole community could ‘eat’. Such
applications and the distributions of income are likely to have reinforced the acceptance
of Ifira Trust Limited in particular.
lesson It is important to combine the traditional with the modern, and groups
7 with individuals.
A notable feature of the Ifira and Mele land trusts is how they have reinforced, rather
than undermined, traditional authorities and the village structure. Only when these
were replaced did the Mele trust start to stumble. Corporate structures for owning and
managing customary land work best when they combine the traditional and the modern
institutions, and embrace the group and individual levels of the local community. However,
traditionalism may run counter to full-blown democracy, and there has been a notable
lack of women as executives of both trusts. The Mele land trust had one female director
on its initial board.
2 Village land trusts in Vanuatu: ‘one common basket’ 43
lesson Land management and business operations are best kept separate when setting
8 up a trust so as to ‘quarantine’ land tenure from the risks of business failure.
lesson
By exposing land management to risks associated with other investments, the
9 community may lease more land than is desirable in order to cover business
losses.
The Mele and Ifira land trusts expanded into a range of business activities. Land
management and business development are two different operations, which require
different kinds of structures and regulation. Importantly business developments bring
associated risk to a trust’s land management activities. Mele village’s lands were put at
risk when business ventures failed.
lesson An effective system for linking customary land to the formal economy might see
10 land trusts being complemented by other mechanisms, such as advisory bodies.
The trust has proved to be a useful legal mechanism for ‘signing off’ on land dealings for
the people of Ifira and Mele. But there also needs to be mechanisms for effective public
awareness, consultation, advice and informed decision making within the affected local
community. Generally this is outside the domain of trusts. In Ifira and Mele, separate
chiefs’ councils were set up to take on some of these responsibilities.
44 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Appendix: Interviews
About Ifira
» Kalpokor Kalsakau
» Steven Kalsakau, Executive Director, Ifira Trustees Limited, and Member of Parliament for
Efate Rural
» Tapangkai Basia (‘Olfala Sope’), village leader
» Tari Kalterekie, Manager, Ifira Land Management
» Kalbovi Mangawai, Executive Director, Ifira Trustees Limited, and two other directors
» Michel Kalworai, Secretary General, Shefa Provincial Government
About Mele
» Ati George Sokomanu, former President of the Republic of Vanuatu and first Adviser to
Mele Trustees Limited
» Meto Nganga, first Administrator of Mele Trustees Limited
» Simeon Poilapa, first Secretary of Mele Trustees Limited
» Frank Latu, Director, Mele Trustees Limited
» Sale Chilia, Director, Mele Trustees Limited
Generally
» Peter Taurakoto, Ombudsman
» Emil Mael, Physical Planner, Shefa Provincial Government
2 Village land trusts in Vanuatu: ‘one common basket’ 45
References
Farran, Sue 2002, ‘Myth or reality: case study of land tenure in Efate, Vanuatu’, paper for FAO/
USP/RICS Foundation Symposium on South Pacific Land Tenure Conflict, Suva, Fiji, April.
Fingleton, JS 1998, Legal recognition of indigenous groups, Paper #1 in FAO Legal Papers
Online series, viewed 30 April 2007, <http://www.fao.org/Legal/default.htm>.
Lunnay, Chris, Fingleton, Jim, Mangawai, Michael, Nalyal, Edward and Simo, Joel 2007,
‘Vanuatu—review of national land legislation, policy and land administration’,
report prepared for AusAID, March.
Naupa, Anna 2005, ‘Rooted in the land: evolving culture, land tenure and identity in Vanuatu’,
paper presented at Pacific Islands Workshop, Australian National University, Canberra,
31 January – 4 February.
Rawlings, Gregory 2007, ‘Tax havens, expats and sea-changing property developers:
current patterns of land use in Vanuatu’, paper presented to State, Society and Governance
in Melanesia Seminar, Australian National University, Canberra, 28 February.
Van Trease, Howard 1987, The politics of land in Vanuatu: from colony to independence,
Institute of Pacific Studies, University of the South Pacific, Suva.
47
Reconciling customary
ownership and development
3
Recording land rights and boundaries
in Auluta Basin, Solomon Islands
A snapshot
Recording land rights and boundaries in Auluta Basin, Solomon Islands
Contents
» Recent progress 59
» Lessons 60
Promote the economic opportunities arising from registering customary land 60
Consult widely with stakeholders 60
Develop a functional framework 60
Ensure administrative and financial support 61
Seek donor support 61
Promote mediation and reconciliation 61
Adopt culturally appropriate processes 62
» References 63
50 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Since Malaitans had made up about 80 per cent of the workforce of the Guadalcanal-
based oil palm company the Ministry of Agriculture proposed that customary land in
Auluta Basin be made available for an oil palm development. Such a development would
provide employment opportunities and Auluta Basin, which is at the eastern end of the
provincial island of Malaita (north-east of Guadalcanal where the Solomon Islands capital
of Honiara is located), had been identified by agricultural specialists in the early 1970s as
an area potentially suitable for oil palm production.
The Ministry of Agriculture appointed a taskforce to explore ways to access the land
needed to develop an oil palm plantation and in 2002 submitted a proposal to the
(then) Department of Lands and Survey to register most of the customary land in the
Auluta Basin for the development. Because feuding and litigation over land matters were
endemic throughout Malaita and a potential threat to any land registration system, a
decision was reached to trial processes for recognising, acknowledging and subsequently
recording the customary custodians, their systems of land tenure and the boundaries of
their lands.
The Secretary of the Tribal Lands Unit within the Department of Lands and Survey
(Alec Rukia)—the only staff member—became coordinator of the trial and started
work on it towards the end of 2003 (Rukia 2005).
All land registration to date has occurred under the Land and Titles Act 1969
(last amended 1988), which has proved cumbersome for registering customary land
(Sullivan 2007). Although the Land and Titles Act recognised the need to define customary
land boundaries and group ownership, the colonial administration’s recording of those
boundaries was sporadic and undertaken only for land required for national development.
Since colonial times, suggestions had been floated for improving the legislation for
recording customary land boundaries to protect the rights of custodial tribes. But little
had been done before George Scott became the Secretary to the newly created Tribal
Lands Unit in 1990. He worked with a local lawyer, Andrew Nori, to develop a bill that
became the Customary Land Records Act of 1992. That Act has remained without enabling
regulations, and has not been implemented.
The Customary Land Records Act follows the traditional Solomon Islands custom of basing
custodianship on lineage or genealogy. For any proposed recording under the Act there are
three preconditions.
To address the issues arising from the customary land tenure system, an entirely new
approach to recording customary land was conceived by the Secretary of the Tribal Lands
Unit. The processes were intended to evolve, and it was not clear which piece of legislation
would be used as the vehicle to record customary tenure. Based on the assumption
that either the regulations of the Land and Titles Act, or the statutory requirements of
the Customary Land Records Act, or both, would need to be met for registration to be
completed, a system was outlined by Rukia, as shown in Figure 1, and trialled with the
customary custodians in Auluta Basin.
The coordinator considered four principle elements identified at the outset of the project
would ensure that the legislative requirements for recording and registering customary
land in Solomon Islands could be met:
1 recording genealogies
2 surveying boundaries specific to each group within the
broader land area of interest to the Ministry of Agriculture
3 ratifying recordings and surveys through a series of group meetings
4 developing administrative processes appropriate for managing the data.
Rukia (2005) noted that the new land recording system should allow people time to
identify the rightful owners of tribal lands and to be educated on the dangers and
benefits of development and on the phases involved in recording customary land.
He noted that time and education were often lacking in existing practices.
Rukia envisaged that the pilot recording system would involve three phases over one year:
» Awareness—6 months
» Land recording—2 weeks
» Land surveying—4 months.
3 Recording land rights and boundaries in Auluta Basin, Solomon Islands 53
Identification and
Centres identified must be announced through
2 announcement of
media and written notices.
recording centres
Source: Alec Rukia, Tribal Lands Unit, Department of Lands and Surveys, Honiara, 2005.
54 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Phase 1—Awareness
The awareness phase started with a weekly program on the local short-wave radio
stations from mid-2003. Towards the end of 2003 and the beginning of 2004, awareness
workshops were held in various centres in Auluta Basin. The first two workshops were
held in Nafinua village and Alisisiu village with the assistance of AusAID through the
Community Peace and Reconciliation Fund.
SIISLAP provided support to the Secretary of the Tribal Lands Unit to continue his
radio programs and to run further awareness workshops. Two workshop centres were
established, along with eight recording centres. These centres were also established to
serve as meeting places for local people, the recording team, taskforce members, and
surrounding tribes. The awareness workshops were open to members of tribal groups
close to the centres.
Part of the objective of the workshops was to inform participants of the requirements for
developing land, the processes for registering customary land under the current land laws,
and the new land recording system about to be introduced. Participants received training
in how to record the required data for the new system. Specifically they were trained to
draw up a family tree and to fill in the boundary agreement forms, and the functions and
role of a Tribal Land Trust Board were explained. The landowners were expected to produce
a very detailed and properly completed form to be presented during the recording phase
(Kofana 2005).
Phase 2—Recording
The tribal groups presented the boundary agreement forms, family and tribal tree records
and names of the tribal land authority body at the recording centre closest to them
(Kofana 2005). The recording team travelled to each of the eight centres to collect the
data and record it in the official government book.
3 Recording land rights and boundaries in Auluta Basin, Solomon Islands 55
At each centre representatives of the tribal groups presented their data in the presence
of neighbouring tribes and government officials. The participation of tribal members
who had settled in urban centres was welcomed by those who remained on the land.
After each presentation, neighbours were accorded the opportunity to disagree with the
data presented. When no one objected, the information was collected and declared a true
record. A small signing ceremony between heads of the tribal groups and the Secretary of
the Tribal Lands Unit was held.
When there were disagreements between neighbours on the information presented, the
Secretary to the Tribal Lands Unit acted as a mediator on the ‘point of concern’. The phrase
‘point of concern’ was used rather than the word ‘dispute’ to ensure parties resolved
their disagreements at the meetings rather than through the court system, which was
associated with disputes. The disagreeing parties presented their points of concern in
front of all present, and the recording teams took note of the concerns and attempted
to resolve the disagreements.
During the recording phase, nearly 90 per cent of all disagreements were resolved at the
first step (Table 1). No disputes required referral to the House of Chiefs. This contributed
to the local acceptance of the recording system.
Tribal land Signed boundary Oral tradition and on-site agreement 88%
boundary agreement forms of two landowning groups
a Observations made by the researcher (Kofana) during presentation ceremonies in the Auluta Basin pilot project in 2005.
56 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Phase 3—Surveying
Surveying commenced in 2005 but was slower than initially anticipated. Once the
boundaries were identified and agreed, they were marked with paint (at least 3 metres
above the ground). The formal recording of agreed tribal boundaries (spear line) remains
to be completed using a global positioning system (GPS). The survey will use a GPS to
plot the corners of the land boundaries, while aerial photographs will be used to plot the
rivers, valleys and sites of cultural significance (tambu sites). Once that is completed, the
government is expected to have at its disposal all of the information needed to register
the land and acquire it.
Recording implies a process of documenting the social, political and geographic ties
behind land tenure, or at least the outcome of those relations. Once registration takes
place, the validity of that land tenure does not rely on the ties continuing. For many
custodians of customary land, registration signifies a ‘freezing’ of social relations, whereas
recording tends to imply that the ties that have been recorded will continue with some
degree of sustainability. Registration therefore carries a suggestion of the alienation of
customary title. As can be expected, this does not sit well with customary groups.
The Auluta Basin pilot project was an attempt to identify social relations and customary
tenure, gain group and provincial recognition of those ties, and record the information
without knowing whether the recordings would lead to formal registration. Although the
Ministry of Agriculture wanted formal land registration, the Tribal Lands Unit was more
focused on defining a workable recording system.
Since there was no legal protection covering the recording process, the coordinator
envisaged that, as soon as the records were completed, the government could invoke
the acquisition section of the Land and Titles Act and appoint an acquisition officer
to acquire the recorded land in Auluta Basin. The records would then become formalised
and protected under the Land and Titles Act, and a formal registered title could be issued
for each separately ‘owned’ parcel of land.
3 Recording land rights and boundaries in Auluta Basin, Solomon Islands 57
The objective was to convert the customary land into registered perpetual estates. In
Solomon Islands law, a perpetual estate has many of the characteristics of freehold land,
including being able to be leased. By converting the land to perpetual estates, the oil palm
venture could proceed to negotiating secure rights of access to land.
But to facilitate the conversion of customary land to perpetual estates, the land had first
to become the property of the government and then be transferred back to the traditional
owners. The Auluta Basin tribal landowners were made aware of this legal constraint and
discussed their concern about ‘losing’ their land with government representatives. Most
owners pointed out that the transfer of customary land to perpetual estates had been the
sticking point in past acquisition attempts (Kofana 2005). They believed they could lose
their land. For land to proceed to registration the owners needed to trust the government
to return their titles to them immediately.
The single-handed effort of the project’s coordinator was remarkable. But when he left
the Department of Lands and Survey the Auluta Basin project dwindled, with less than
all expectations met. The project was able to proceed, only because of the financial and
logistical support provided when SIISLAP adopted it as a pilot for identifying a customary
land recording system.
With hindsight it would have been more effective for the ministries of Agriculture and Lands
to have signed off on a complete management plan for the recording project that contained
appropriate milestones and checks and balances. But that was not possible because it was
a pilot that depended on processes evolving before they could be defined clearly.
There had been no comprehensive approach developed to finalise the recording process,
mainly because of community unwillingness to commit to formal (government-controlled)
recording at the project’s outset. So although useful initial engagements had been made,
by late 2005 there was little sign that the planning and administrative procedures needed
for a recording process were in place. Rather the coordinator expected them to develop as
the community gained confidence.
58 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Also there was no firm process for taking advantage of land tenure recordings once
completed. The Auluta community remained unwilling to use the legislatively defined
national system of land title registration. There was effectively nowhere for the recordings
to go once created.
The customary land recording project was always going to be contentious, so its
sustainability was doubtful at the outset. In effect, the pilot project worked with a
constant question mark hanging over it, which undoubtedly made progress difficult.
However, it is clear from hindsight that SIISLAP and the Ministry of Agriculture did not
manage their stakeholder relations as well as they could have, notwithstanding the
difficult circumstances. There was little consistent effort put into developing stakeholder
forums and groups that might have fostered a better understanding of the aims and
implications of recording.
Given the difficulty of developing an administrative process through a pilot project the
Ministry of Agriculture was probably not realistic in expecting the land acquisition process
would be completed within a year. Although the ministry faced a time constraint, local
communities did not want to be hurried through the process, and the coordinator was
content to allow their demands to control the rate of progress. It is therefore not possible
to regard the pilot project as an actual recording process but as the beginnings of a
recording process.
The recording process was in its initial phases and groups had only begun to articulate
their land tenure in preparation for recording when a genealogy software package was
tested in this traditional context in late 2005. The software proved inadequate, and its use
was not continued. In effect, what had been recorded by that time was a set of flawed
genealogies. At a series of meetings groups and individuals had an opportunity to review
these genealogies and to stake their claims in a transparent and open manner.
Another difficulty for the Auluta Basin pilot project was the continuing political tensions
and incidents of serious unrest and instability. These had a serious impact and influence
on the project and its managing institutions.
3 Recording land rights and boundaries in Auluta Basin, Solomon Islands 59
Recent progress
A lack of administrative commitment to complete the recording almost halted the pilot
project. The lack of coordination from Honiara to engage a surveyor when the recording
was in progress, coupled with a new government and associated administrative changes,
delayed the project throughout 2006, during which time local landowners lost confidence
in the process. The delay lasted until the current Acting Commissioner of Lands took
office (A Pinita, Commissioner of Lands, Department of Lands and Housing, Honiara, 2007,
pers. comm.). Instructions were then given to appoint an officer to acquire the Auluta
Basin land records.
Four acquisition officers were appointed and sent to collect the data. Reports reaching
the Commissioner of Lands revealed that from the 24 tribal landowning groups that
participated in the recording project 19 holdings were ready for registration and
acquisition (G Kofana 2007, pers. comm., September). The Auluta communities had
confidence in the records, and their quality reduced the work expected of an acquisition
officer by half.
The three months notice of acquisition served over the 19 tribal landholdings had lapsed
for most of those areas by September 2007 without any objections from neighbours.
That lack of dispute is unprecedented in the history of Solomon Islands. The other five
tribal landholdings were not ready for acquisition because of disagreements between the
neighbours. However, the Ministry of Lands, Housing and Survey has since been advised
that the disagreeing parties have resolved their problems and were now seeking to be
part of the development.
This latest development has put into perspective the purpose of recording. It has also
identified the place and role of recording in the acquisition of customary land in the
context of Solomon Islands and has dispelled initial fears about registration. Recording
has slowly gained people’s respect and is understood to be the prerequisite of registration.
Auluta Basin landowners realise that no recording means no registration and so no oil
palm plantation.
The recording project has brought a new hope, with the oil palm development becoming
more likely as progress is made. Moreover, the project is contributing to greater stability
for the rural population of Auluta Basin. It has brought together members of tribes who
have been absent from past decision making.
60 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Lessons
lesson
Customary landowners will be motivated to record or register their lands if
At the core of the progress so far in recording and registering customary land are the
incentives for landowners to make their land available for the oil palm development.
This development is seen as providing significant employment and income-earning
opportunities. The people of Auluta Basin have gained their appreciation of the economic
opportunities that the development could provide through their experiences working on
an oil palm plantation in Guadalcanal.
The pilot project was very successful at building trust and transparency among villagers.
The project held a range of village meetings that were characterised by good will and a
lack of conflict over land and group boundaries. The consultation process offered villagers
a means of forging a relationship with western styles of land tenure. In part, the success
was a result of the excellent people skills of the Secretary of the Tribal Lands Unit.
lesson Pilot projects can be useful for developing systems for recording and registering
4 land and for developing legislation.
lesson Before adopting programs to record or register customary land, there should be a
5 functional system and legislative framework for recording and registering land.
The legal framework in Solomon Islands for recording and registering customary land
is unclear. For this reason, it was unclear on what legislative basis the Auluta Basin
project would proceed. That situation led to uncertainties at the outset. The pilot project
explored these legislative constraints and found ways to work within the existing
framework. In addition, the pilot project has helped to identify areas where legislative
improvements can be made.
3 Recording land rights and boundaries in Auluta Basin, Solomon Islands 61
lesson A system for recording customary land needs strong administrative support,
5 with good planning and adequate funding.
The ministries associated with the Auluta Basin project had insufficient capacity and
resources to successfully complete the project. As a result the project lacked well-
developed strategic planning and management capacity. SIISLAP stepped in to help
address these shortfalls.
lesson Most disputes over land can be effectively resolved through a process
8 of mediation and reconciliation rather than through the courts.
The recording project allowed tribal landowners to resolve their own problems, which
proved to be a success. The reconciliation processes ensured the views of all who had an
interest in a parcel of tribal land were heard and noted. This provided an opportunity for
family or tribal feuds to be resolved. Most disagreements were resolved with reconciliation
ceremonies. The Tribal Lands Unit ensured that disagreements were settled before the
records were accepted.
62 MAKING LAND WORK » VOLUME TWO CASE STUDIES
lesson Where the existing culture is based on group ownership, the appropriate basis
10 for recording and registering customary land is at the group level.
The Secretary of the Tribal Lands Unit understood the local cultural practices and
language, which helped to ensure that the recording processes were culturally
appropriate. Consistent with tradition, groups were identified by their tribal landholdings.
3 Recording land rights and boundaries in Auluta Basin, Solomon Islands 63
References
Kofana, G 2005, ‘Customary land recording report 2005’, Solomon Islands
Institutional Strengthening Project, URS for AusAID, Honiara.
Rukia, A 2005, ‘Customary land awareness: Alisisiu Land Workshop report’,
Ministry of Agriculture and Lands, Honiara.
Sullivan, M 2007, Recognition of customary land in the Solomon Islands: status, issues
and options, Resource Management in Asia-Pacific working paper 66, Research
School of Pacific and Asian Studies, Australian National University, Canberra,
<http://rspas.anu.edu.au/papers/rmap/Wpapers/rmap_wp66.pdf>.
65
Reconciling customary
ownership and development
4
Land registration among the Tolai people:
waiting 50 years for titles
A snapshot
Land registration among the Tolai people: waiting 50 years for titles
Papua New Guinea has a long experience of registering land titles but
attempts to extend the benefits of registration—secure titles, which can
underpin development—to the great majority of Papua New Guinea’s land
area under customary tenures have failed. Ten years ago the East New Britain
Provincial Government began its own Customary Land Registration Program.
The evidence shows that a registration system based on Tolai territorial and
social units and on input from traditional leaders in the determination of
land rights would be highly acceptable—politically, socially and culturally.
Contents
» The setting 68
» Lessons 81
Adequately resource the land registration process 81
Provide sufficient time and an enabling environment 81
Promote the benefits of recording customary land 82
» References 84
68 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The setting
The Tolai people, with a population of more than 200 000, are one of the largest ethnic
groups in Melanesia. Their traditional territory is an area in excess of 1100 square
kilometres in East New Britain Province. It covers the rich volcanic hills and plains of
the north-east Gazelle Peninsula and the adjacent Duke of York and Watom islands.
The population in rural East New Britain Province is growing at the very high rate
of 4.2 per cent a year. For many years there has been migration to the area, ‘with
people from many parts of Papua New Guinea seeking better access to services,
more productive environments and wage employment opportunities provided by the
towns and plantations’ (Hanson et al. 2001, p. 259). It is one of the wealthiest areas
of Papua New Guinea.
European settlement in the Tolai area began in 1875, but the early missionaries and traders
were soon outnumbered by plantation owners. It is estimated that by the early 1900s
some 40 per cent of Tolai land had been alienated. A century of colonial rule followed
European settlement—by Germany until the First World War and then by Australia. The
area was a vast Japanese military garrison during the Second World War, but Australian
administration resumed after the war, and continued until Papua New Guinea’s
independence in 1975.
Tolai were quickly recognised for their readiness to innovate, and many new measures
(for example, cooperatives, local government, land settlement schemes, savings and
loans societies, cocoa production, and women’s clubs) were first trialled among Tolai.
When moves began in the 1950s to extend the benefits of registering titles to customary
land—land still subject to custom—once again the Tolai people were selected for its
introduction. But more than 50 years later, there is yet to be any registration of Tolai land.
4 Land registration among the Tolai people: waiting 50 years for titles 69
For Tolai, their identity is not just a matter of their distinctiveness as an ethnic group;
it also covers kinship and land (see, for example, Fingleton 1985). As a matrilineal society,
Tolai are members of their mother’s lineage. The Tolai population is divided into two
moieties—Marmar and Pikalaba. This is basically a division of people for marriage
purposes. A Marmar person must marry a Pikalaba, and a Pikalaba must marry a Marmar.
The two moieties are dispersed across the Tolai territory, and no Tolai villager is in any
doubt as to who in the local community belongs to his or her moiety, and who belongs
to the other. This moiety division is critical to Tolai social organisation and is an underlying
factor in all matters affecting access to land.
The central corporate unit in Tolai society is the vunatarai—the group of people who
trace their matrilineal descent from a single female ancestor. An individual acquires
membership of a vunatarai from his or her mother, and from this comes their place in
Tolai society and their main avenue for accessing land. Tolai may gain access to land by
other well-established customary ways, but their most secure tenure is to the land of
their own vunatarai. Members of a vunatarai acknowledge a common leader and identify
themselves by reference to the place of their original settlement, where ancestors are
buried and where the members of the vunatarai meet for ceremonial activities. If the
vunatarai is regarded as a clan, Tolai also recognise the subdivision of larger clans into
subclans and even separate lineages.
Tolai territorial units centre round the concept of the ‘inhabited place’. The largest
residential unit is the district around that place, usually the territory of a number of
villages that have been traditionally associated. These are divided into subdistricts around
individual villages. The smallest territorial unit is a piece of land—which may vary in size
from a few square metres in heavily settled areas to more than a hundred hectares in
kunai grasslands or areas under primary bush. Each such land unit is named (usually by
reference to some natural feature or event that occurred there), and its boundary features
are known by the adult members of the community.
70 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The most crucial factor affecting the security of a Tolai’s tenure of a piece of land is the
intensity with which that person is identified with it. Identification derives from a history
of connection with the land—both in a personal capacity and as a member of a kinship
group. An individual’s local identity pervades the Tolai culture. In summary, there are
three basic categories of village resident:
1 those most closely identified with a village are the members of the vunatarai
for which the village subdistrict is their original place of settlement
2 members of the vunatarai for which a neighbouring subdistrict is their original
place of settlement and is within the broad district of their current village—their
identities being at a lower order than the identities of people in the first category
3 village residents whose original place of settlement is in another district—
considered not to be true members of the village.
Back when most people married local residents and they did not move far, there would
have been a high degree of correspondence between village residence and village
membership. But today many village residents are not members, and many village
members reside outside the locality with which they are identified. This is largely a
consequence of greatly increased mobility and the modern emphasis on the nuclear
family. Children are growing up on their father’s land, remote from their own (that is, their
mother’s) land. These changes, together with the needs of an ever-growing population, are
putting pressure on the Tolai system of customary land tenure. The alienation of relatively
large areas of village land during the colonial period contributes to this situation.
The Torrens system of title was designed to facilitate conveyancing, the transfer
of the legal title in land from one person to another. Thus:
Registration of title is a process whereby the State maintains a register of parcels of land
showing all the relevant particulars affecting their ownership, and guarantees these
particulars to be complete and correct. The Register is the final authority. Transactions are
effected by making an entry in the Register—and only by this means. A simple procedure
with simple forms exists for this purpose and so dealing in land becomes easy, quick,
cheap and certain. (Simpson 1969, p. 4)
4 Land registration among the Tolai people: waiting 50 years for titles 71
Land titles registration was introduced in Papua New Guinea to provide a service to the
European settlers by facilitating dealings in land, but it also secured alienated land against
claims by the former customary owners.
The Native Land Registration Ordinance was replaced by the Lands Registration
(Communally Owned Land) Ordinance, as part of major land law reform that took place
in 1963–64. The Land Titles Commission was established with exclusive jurisdiction
to systematically adjudicate and register titles in customary land. Under this process
the ownership of all land in a declared adjudication area would be investigated by
demarcation committees, systematically determined, and then registered either as
communally owned land or individually owned land.
Inspired by the Simpson report the colonial administration set up a working party
on land registration, a technical team visited Kenya to study the land registration
system there, experienced anthropologists and legal academics were consulted,
and a package of laws was drafted. The proposed laws were designed to provide:
» a new system for determining ownership of customary land
so as to register it in the names of groups or individuals
» a system for controlling transactions in all registered land
» a single Register of Titles and a modified Land Titles Commission.
On the eve of independence, however, the introduction of such sweeping reform was
controversial, and in the face of strong Papua New Guinean opposition the draft laws
were withdrawn.
Instead, in 1973 the new self-governing administration set up the Commission of Inquiry
into Land Matters (CILM). CILM consisted of 10 Papua New Guinean commissioners,
assisted by a small support staff of expatriate advisers. Its report made comprehensive
recommendations for reforming land policies, laws and administration. With respect to
customary land registration, CILM’s view was that land policy should be an evolution
from a customary base, not a sweeping agrarian revolution. It made the following
recommendations.
» New legislation for customary land registration should be introduced, but it should
be used sparingly and only where there was a clear demand from the landowners
concerned and a real need to replace customary tenures.
» The previous emphasis on individual titles to customary land was not appropriate
and ‘the basic pattern’ should be to register group titles and provide for the group
to grant registrable occupation rights to group members or leases to non-members.
» There should be restrictions on dealings in registered customary land.
While some aspects of the CILM report were adopted and implemented, the
recommendations relating to customary land registration were not followed through.
But the CILM report did have an impact on the existing systems for registering
customary land that had encouraged the individualisation of customary tenures.
CILM had recommended against individualisation, so the processing of tenure
conversions was discontinued from 1975 (although measures to convert land from
customary tenure to individual registered title were revived in 1987).
4 Land registration among the Tolai people: waiting 50 years for titles 73
In 1989 the large, five-year Land Mobilisation Project funded by the Word Bank was
commenced, along with an AusAID-funded supporting project to strengthen land
administration and develop a land information system. The World Bank project included
a component to help formulate the policy framework for registering customary land
at the provincial level, to assist provinces to draft customary land registration laws and
to develop the necessary administrative procedures and structures to implement the
legislation. The project concluded, however, without achieving its objectives.
In 1995 the World Bank attempted to attach a condition to its loan to Papua New Guinea
under the Economic Recovery Program that required the legislation for customary
land registration be completed and implemented in East Sepik and East New Britain
provinces. When this became known, a wave of misinformation swept across the country
and resulted in student protests, public meetings and riots. The World Bank loan to the
government was seemingly confused with loans by commercial banks to individuals—
which are commonly secured by a mortgage—and rumours spread that, upon default in
repayments, the World Bank would take over the people’s customary land.1 Although the
Department of Lands engaged a private legal firm to draft the legislation, the attempt to
legislate for customary land registration again failed.
After the trouble in 1995 outside agencies lost interest in promoting customary land
registration in Papua New Guinea, but the Department of Lands pressed on. In June
2001, it was announced that the national government was proposing to introduce draft
legislation. There were considerable tensions around this time, caused by government
attempts to privatise particular agencies and downsize others. The World Bank had also
revived its demands for ‘land mobilisation’. Students and unions protested against the
government’s reform program, rioting ensued, and four people were killed.
1 During fieldwork in April 2007 for this case study, Tolai villagers mentioned these rumours.
74 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Latest events
Despite the extraordinary sensitivity about land reform, the subject is too important
for it to be ignored by governments. In early 2005 the then new Minister for Lands,
Dr Puka Temu, revived the subject of land policy reform. After a nationwide process of
consultation, the Land Development Programme was established to implement reforms
under three broad themes (National Research Institute 2007; see also Case Study 14,
‘The paths to land policy reform in Papua New Guinea and Vanuatu’). The mobilisation
of customary land for development purposes was one of these themes.
Rather than customary land registration per se, the registration of incorporated land
groups features as the main vehicle for mobilising customary land (see Case Study 1,
‘Incorporated land groups in Papua New Guinea’).
1973 Commission of Inquiry into Land Matters Policy approval given but legislation
(CILM) recommendations on customary never drafted.
land registration
1983 Task Force on Customary Land Issues Proposals opposed by World Bank.
2001 World Bank revival of the Land Riots and four deaths—no further action.
Mobilisation Project proposals
A former District Officer, Sydney Smith, was appointed Native Land Commissioner
at Kokopo in 1956. Aware of the legislation’s Fijian precedents, he corresponded with
the Fijian Native Lands Commission and adopted its practice of using the indigenous
territorial and social units for purposes of recording landownership (Fingleton 1985).
On the advice of Tolai leaders, he first identified the boundaries of the districts and
subdistricts that they recognised. Starting east of Kokopo, he then systematically recorded
the names of the ‘communities or matrilineages’ that owned parcels of unalienated land
right across to the coast of St Georges Channel.
By 1960 the ownership of some 6750 hectares had been recorded in this manner. There
were decisions on 47 land parcels, ranging in area from 2 to 578 hectares. The landholdings
of groups within each parcel (as many as 26 groups) were not differentiated. Despite the
lack of registrations, this work was highly valued by Tolai, and the records that remain from
this period are being used as the basis for the provincial government’s current Customary
Land Registration Program.
By the middle of 1966, all customary land in the Tolai area had been divided into
95 adjudication areas, the first step towards registration in the Register of Communally
Owned Land. Demarcation committees of local Tolai leaders had been appointed for
each adjudication area. The next step was for claims to be made, which the demarcation
committees would then investigate. After the period allowed for claims had passed (three
months from declaration of the adjudication area), the committee was required to start
preparing a demarcation plan, showing the boundaries of all customary land that was the
subject of claims.
Information on each land parcel was kept on index cards, and the minutes of the meetings
held by the demarcation committees were recorded, detailing the business conducted.
As agreement was progressively reached on the location of the boundary, wooden stakes
placed on the boundary of parcels were replaced by the cement markers of the Land Titles
Commission. Any disputes were noted on the parcel card, and the matter was left to be
resolved by the Land Titles Commission.
As the stakes were replaced by cements markers, commission staff carried out low-level
surveys. The demarcation plan was progressively updated, until it was ready for an inquiry
by the Land Titles Commission. Any disputes were then heard and determined, and the
findings over the whole adjudication area were finally set out in an adjudication record.
After any appeals were resolved, the Land Titles Commission certified the adjudication
record and demarcation plan and forwarded them for registration.
The commission’s demarcation and adjudication process took over and expanded the
main elements of the Native Land Commission’s previous practice in the Tolai area. Both
systems based demarcation and adjudication on Tolai territorial and social units and
traditional leadership. Tolai valued these processes highly, not only for recording existing
landownership but also for documenting the basis of the tenure of each land parcel.
The local identity of owners, associations between groups, and kinship and marriage
relationships between individuals are crucial to Tolai land tenure, because land interests
not only derive from these factors but also depend on them and are influenced by
changes in them over time.
The considerable amount of work involved saw only one adjudication record completed,
before the operation of the law was suspended in 1970. The record was for the Rakunat
Adjudication Area, outside Rabaul in East New Britain. Demarcation had been completed
in a number of other adjudication areas in readiness for adjudication, and was close to
completion in some others.
Research conducted at Rakunat in the early 1980s (Fingleton 1985) found that:
» the boundaries of land parcels were generally known and accepted
» very few parcels (less than 10 per cent) were disputed
» most of the parcels (almost 70 per cent) were recorded under group
ownership in the name of the vunatarai (matrilineal group)
4 Land registration among the Tolai people: waiting 50 years for titles 77
The research also revealed that transactions in land between groups and individuals
were not new, but had occurred at Rakunat since its first settlement. Every transaction
depended on a pre-existing relationship between the parties or a longstanding
association between vunatarai. The consistent pattern emerging from transactions
was the redistribution of land from comparatively ‘land rich’ vunatarai to members of
‘land poor’ groups.
Drafting instructions were prepared and a working party was set up to draft the national
‘framework’ law for customary land registration and a model provincial law. But after
reforms were introduced in 1995 that reduced the powers of provincial governments, this
approach was abandoned. Soon after, the East New Britain Provincial Government began
its own Customary Land Registration Program.
The Administrator of East New Britain Province had been delegated many of the national
minister’s powers under the 1996 Land Act, and a Lands Division was set up in the province
to assist in exercising those powers. Much of its work concerns the administration of
state-owned lands, but it has a small Customary Land Section responsible for collecting
data, settling disputes and monitoring land dealings. The section is currently staffed by
78 MAKING LAND WORK » VOLUME TWO CASE STUDIES
the Provincial Customary Lands Officer, the Provincial Land Court Officer, land mediators
and a collector of land data. It operates on an annual allocation from provincial funds,
which in 2007 was K100 000.
There is general support for the Customary Land Registration Program—from the
Provincial Executive Council and the Administrator to community governments and
district administrators, as well as local members of the national parliament. In 2003
provincial funds were used to send six people to Fiji on a study tour in recognition of the
Fijian precedents for the Native Land Commission. Their report concluded that basing
land registration on the local social structure in East New Britain was the right approach,
but also recommended that a large-scale public awareness campaign take priority over
implementing new legislation.
The Customary Land Registration Program is a conscious attempt to ‘revive’ the system
of data collection used by the Native Land Commission and the Land Titles Commission
during the 1950s and 1960s. Land disputes were hindering development, and the
provincial government believed that the records of demarcation committees would
establish the ‘history of landownership’ and preserve the knowledge of clan elders
collected and recorded in the 1950s and 1960s, which was being lost as they aged
and died. The Provincial Executive Council adopted a policy of accepting demarcation
committee decisions as ‘binding’ in the event of later disputes.
The Customary Land Section’s main activities are to collect and update vunatarai
genealogies and, using the demarcation committee records, establish village boundaries
and then clan boundaries on the ground. The work at village level is preceded by a public
awareness campaign, and it is intended that the clan landholdings will be surveyed and
eventually registered.
Progress so far
The Customary Land Section is small, with a small budget and responsibility for mediating
land disputes and dealing with other customary land issues as well as for its land
registration tasks. So it is not surprising that it has not made much progress on land
registration. Also, the officer responsible for supervising the section has many other duties
as head of the Lands Division in the East New Britain provincial administration.
Over the past few years work under the Customary Land Registration Program has
consisted mainly of collecting the records from the 1950s and 1960s that can be located,
reviewing them and entering them in a computer database. Unfortunately many of
the early records were lost in the volcanic eruption in 1994, which damaged the Rabaul
Court House. And, recently, the office of the Customary Land Section was burgled and the
computer storing the entered records was stolen.
4 Land registration among the Tolai people: waiting 50 years for titles 79
The main focus so far has been on Raluana and Bitapaka community governments, two of
the four local-level governments in the Kokopo District. In Raluana the public awareness
program has been conducted in most villages, and staff from the Customary Land Section
is carrying out fieldwork to locate parcel boundaries based on the demarcation committee
records. In Bitapaka there are major gaps in the demarcation committee records held by
the section, but the community government is very keen to proceed and has started its
own public awareness campaign.
There are additional problems for the program to overcome. The early records being
used to establish the database are seriously deficient. They consist mainly of minutes of
meetings, scraps of Native Land Commission decisions and deteriorating genealogies,
which the section’s staff try to make sense of. There are no Native Land Commission
decision books, demarcation plans or even parcel cards. The minutes of meetings held are
only work-in-progress documents. Many genealogies are missing.
Many of the missing records are likely to be held in the archives of the Land Titles
Commission in Port Moresby.2 But even if these can be located and copied, there is little
point in sending them to East New Britain until appropriate facilities and systems are in
place to store documents in a safe and accessible way.
The provincial government is well aware of the necessity for good communication, and
it is emphasising the importance of ensuring the public is fully aware of the effects
of registering customary land. Informed consent is critical to the success of any land
registration measure. Public awareness campaigns need to be properly designed and
conducted, but current efforts are haphazard.
Training in procedures and work practices is also lacking. The provincial government
understands this, but so far training has been ‘on the job’. Goals, guidelines and procedural
steps need to be established and the necessary forms and possibly a manual of laws and
procedures prepared. These can then be used as the basis for recruiting and training staff.
2 Checks made during this case study were inconclusive. The Land Titles Commission had recently moved, and much of its material was
still in boxes.
80 MAKING LAND WORK » VOLUME TWO CASE STUDIES
A basic policy question must be answered in any measure to register customary land: is
it intended only to record the existing status quo or is it intended to change the nature
of landownership and distribution? If the latter, what sort of change is intended? In some
cases land ‘rationalisation’ has been the goal, with consolidated landholdings taking
the place of many scattered parcels. In more ambitious reforms, land ‘individualisation’
has been the goal, with the landholdings of groups being divided among their current
members. The history of land registration in developing countries shows that the
more ambitious the reform, the less its chance of success and the more its chance of
undesirable consequences.
There are two main aspects of a land registration system—what is called ‘first
registration’, and then registration of ‘subsequent dealings’. The first registration of land
titles establishes the legal status of the land at the time of registration. But if the ongoing
benefits of ‘indefeasibility’—the guarantee that the particulars in the register are always
complete and correct—are to be available, all subsequent dealings in the land must also
be registered. This is where so many registers in the developing world have fallen down.
If subsequent dealings (transfers, transmissions on death, etc.) are not recorded the
register falls out of date and cannot be relied on.
In the Tolai area of East New Britain the measure that has enjoyed the greatest support
is the systematic recording of the existing ownership of groups under custom of existing
land parcels. This measure was based on a Fijian precedent dating from the early 1900s,
but the Fijian system contains a mechanism for dealings in land after ownership is
determined, which has not been adopted in East New Britain.
Without a mechanism for recording subsequent dealings, the system in East New Britain
does not provide the flexibility necessary for adapting customary land tenures to modern
circumstances and modern demands on land, including the ability to use land to raise
finance. What is lacking therefore is not just the long-awaited law for registering group
titles, but the equally important law for dealings in such titled customary lands.
4 Land registration among the Tolai people: waiting 50 years for titles 81
Lessons
lesson Substantial and sustained funding is required to set up and maintain a register
1 for customary land.
lesson There is limited value in pursuing a registration process if funding for setting it
2 up and maintaining it are inadequate.
lesson Any program that aims to systematically register customary land must accept
3 and incorporate an extended timeframe for completing the program.
lesson
In view of the time needed, the success of a program for systematically
The initiatives in the 1950s and 1960s to undertake a systematic process of customary
land registration of Tolai lands demonstrated two things.
» The task for accumulating the information needed for registration is considerable.
» The time needed for preparing for registration can be measured in years or even
decades. Ultimately the pace of these initiatives could not keep up with the pace
of change in national land policy.
82 MAKING LAND WORK » VOLUME TWO CASE STUDIES
lesson Communities may find the recording of genealogies, social structures and land
5 boundaries to be desirable and beneficial.
Despite attempting to systematically register land titles for more than 50 years, no
title among the Tolai people has been registered. But a great deal of work was done in
preparation for registering group titles in customary lands and this work was highly
valued by the Tolai people. It became the basis for the provincial government’s present
Customary Land Registration Program. The main reason for its popularity relates to the
recording of Tolai territorial and social units, which are fundamental to Tolai identity and
their relationships with land.
4 Land registration among the Tolai people: waiting 50 years for titles 83
Field visit
A site inspection of land demarcation activities and a meeting were held at the
Kunakunai and Ravat wards of the Raluana Community Government, attended by
Horim Ladi, ToPuipui, the Provincial Land Court Officer, land mediators and other officers
from the Customary Land Section, the President of the Raluana Community Government,
the Raluana Coordinator, two councillors (Kunakunai and Ravat) and about 30 villagers
(including one woman and six young men).
84 MAKING LAND WORK » VOLUME TWO CASE STUDIES
References
Fingleton, JS 1980, ‘Land, law and development: a case study of tenure conversion
in Papua New Guinea’, Master of Laws thesis, University of Papua New Guinea.
——1985, ‘Changing land tenure in Melanesia: the Tolai experience’, PhD thesis,
Australian National University, Canberra.
Hanson, LW, Allen, BJ, Bourke, RM & McCarthy, TJ 2001, Papua New Guinea rural
development handbook, Australian National University, Canberra.
National Research Institute 2007, The National Land Development Taskforce report,
NRI Monograph 39, National Research Institute, Port Moresby.
Simpson, S Rowton 1969, Land law and registration, Cambridge University Press, Cambridge.
85
Reconciling customary
ownership and development
5
Informal land systems
within urban settlements in
Honiara and Port Moresby
A snapshot
Informal land systems within urban settlements
in Honiara and Port Moresby
Contents
» THE Setting 88
» Lessons 102
Accept informal urban settlement as a permanent feature 102
Acknowledge that settlers are not deterred by a lack of secure tenure 102
Account for the consequences of inadequate urban land with secure tenure 102
Acknowledge what sustains informal arrangements 103
Recognise the limitations of informal arrangements and the challenges of change 103
Acknowledge the potential role of the private sector and civil society 104
» References 105
88 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The setting
Informal urban settlements are a feature of the urban centres of Papua New Guinea,
and in Honiara, Port Vila, Suva and Tarawa. They are also appearing rapidly in other
urban centres in the Pacific region. Some 80 per cent of the populations of Papua New
Guinea, Solomon Islands and Vanuatu, and nearly half of the Fiji population live in rural
districts where access to public services and employment opportunities remains poor.
Consequently the drift from rural to urban areas has been increasing and is likely to
continue to grow.
Of the 50 000 people in Honiara in 2006, for example, 17 000 were believed to have
settled informally on government land and the informal population as a whole was
estimated to be growing at an annual rate of 26 per cent (URS Australia 2006). In Port
Moresby the 2000 census revealed that 53 000 people lived in informal settlements.
This number is likely to have grown significantly since then. Suva, with a population in
2006 of around 200 000, is estimated to have an informal settlement population of
90 000. In Fiji 12 per cent of the total population of some 960 000 are believed to be
living on land to which they have no legal title or customary rights (Chand 2007).
For the purposes of this case study, informal settlements are groups of households in
localities and in conditions that contravene the laws and regulations of the state. More
specifically, the breaches include those relating to the physical planning and building
requirements of urban authorities and other state agencies. These settlements are
characterised by haphazard housing, poor access to most basic amenities such as
reticulated water, sewerage services and electricity, and at least some substandard
(temporary) housing.
People who migrate to urban areas face considerable incentives to locate in informal
settlements. For example, such settlements often have unregulated access to water
and electricity, and land prices are considerably lower than in formal settlements.2
Informal urban settlements with the poorest households are often located on marginal
land, including riverbanks, steep gullies and mangrove swamps, and/or on land
with disputed ownership.3 The implicit value of such land relative to its immediate
surroundings is low and so the perceived risk of eviction by the landowner(s) is low.
Settlements in such locations, however, are at a greater risk of being affected by natural
disasters (for example, flooding).
There are several complex statutory requirements for establishing a formal settlement
in major urban areas such as Port Vila, Honiara, Port Moresby and Suva (Chung & Hill
2002).4 Not surprisingly, the private sector has not taken up the challenge of making
land available for housing for low-income households. The costs of registering land and
building in compliance with statutory requirements for residential housing is well beyond
the capacities of the average citizen. Most regulations pertaining to residential housing
predate independence, making them a legacy of colonisation. The high standards for
hygiene, sanitation and easements that apply to building public infrastructure are cases
in point. This does not add up to a case for formalising informal arrangements but it is a
case for lowering the costs of regulations. Formal arrangements are generally considered
superior to informal arrangements since they give the holder the power to enforce their
rights (Deininger et al. 2003). But weak states and poor governance, a characteristic of the
Pacific, mute this advantage. Therefore there is a case for them legalising arrangements
that already exist and are socially acceptable.
1 Note that Melanesia has atolls as well and the inhabitants of these atolls face the same risks.
2 The services are not free, but are either paid for by the political patrons of the settlements as is the case in Port Moresby or accessed
illegally as is the case for water and electricity in Honiara.
3 There is evidence of informal settlements in Port Moresby and Suva, for instance, on prime land and occupied by a relatively high
income group. Some have gone as far as investing in residential units for rental, especially in Suva.
4 In Vanuatu, as an example, no leases for housing can be issued until the plots have been ‘adequately’ serviced. This means that all of
the following statutory instruments that apply to residential settlements must be complied with: Municipalities Act 1980, Land Leases
Act 1983, Physical Planning Act 1986, Decentralization Act 1994, Public Health Act 1994, Customary Land Tribunal Act 2001 and several
others still in the pipeline.
90 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Accessing land for housing in urban fringes has been particularly problematic. Most
alienated land in these areas has been developed or is already settled. As a result new
settlements have spilled onto land held under customary title. The new settlers have
often worked with the customary owners to access their land for housing. This approach
has been somewhat successful, as evidenced by the level of investment in permanent
and semi-permanent fixed assets such as housing, home businesses and fruit trees.
Importantly, there have already been sales of real estate on land without secure title.
However, there are cases of customary landowners objecting to basic services being
provided to settlers on their land for fear this will erode their rights to the land. As a result,
Honiara, Port Moresby and Suva have suburbs with quality housing and services on land
to which the homeowners hold title coexisting with overcrowded, ramshackle informal
settlements.
How informal arrangements have evolved to date is context-specific but the motivation
for each arrangement is the same—to meet the demands of the settlers for greater
security to their fixed investments while protecting the rights of the landowners.
Tenure security in the informal settlements on customary land in Port Moresby has
been cemented over time through investments in physical and social infrastructure.
This approach is being experimented with on alienated land in Honiara by converting
temporary occupation licences (TOLs) into fixed-term estates (FTEs) with leases of 50 years.
However, the governments of Papua New Guinea and Solomon Islands are making every
effort to take back control of urban growth and reclaim land and income lost as a result
of informal settlements.
5 Informal land systems within urban settlements in Honiara and Port Moresby 91
Informal urban settlements are a relatively recent phenomenon. In 1945, Port Moresby had
six villages but no informal settlements. The 1980 national census revealed 34 informal
settlements with a total population of 11 270. In contrast, the 2000 census recorded
55 informal settlements with a total population of 53 390. The data reveal that on average
a new informal settlement was established each year over the 20 years to 2000 and
the settlement population grew at an annual rate of 7.8 per cent—twice the population
growth rate of Port Moresby overall—in this period.
5 Much of the evidence in support of the claims made in this section is drawn from a recent detailed household survey undertaken by
the authors in their investigation on how urban land is used for housing in Port Moresby (Chand & Yala 2006). The authors surveyed a
random selection of both settlements and households with the objective of drawing inferences for the whole population. The authors
are aware of attempts by non-government organisations to improve housing in informal settlements and villages outside of the
urban boundary, and planned initiatives of the National Capital District Commission to formalise settlements.
92 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Census data show that new arrivals in Port Moresby are moving into informal settlements.
There is also anecdotal evidence to suggest that some of the earlier settlers are moving
from formal housing into the settlements to access ‘free’ utilities and cheaper land.
At the above-mentioned rate, the informal settlement population in Port Moresby will
double every nine years while the population of Port Moresby as a whole will take twice
as long to double.
The land in the National Capital District is held under two forms of control—state and
customary. All state land is formally administrated by the Land Act 1996 and related
laws. The National Capital District Commission is responsible for physical planning
while the National Land Board and the Department of Lands and Physical Planning are
responsible for allocating and administering, respectively, all state land. Customary land
is administered through customary law. Even though customary law is unwritten and
culture-specific, its application is sanctioned by the Underlying Law Act 2000 and the
Constitution.
The customary law that applies to land held under customary control within the National
Capital District is that practiced by the Motu, Koita and Koiarai people. This land is passed
down through a patrilineal (male) inheritance system. It should be noted, however, that
customary land formally converted to freehold through the Land Tenure Conversion
Act 1963 lost its customary status, and the statutory laws pertaining to alienated land
apply to its use.
General characteristics
Settlements in the National Capital District have emerged on land with three distinct
ownership types—state, customary and disputed. A randomly selected sample survey
of 441 households in 12 informal settlements of Port Moresby conducted in 2006
(Chand & Yala 2006) revealed interesting insights on life in settlements and how
settlers acquired tenure security for the land settled on (Tables 1 and 2).
5 Informal land systems within urban settlements in Honiara and Port Moresby 93
The settlers pointed out, moreover, that the colonial administration had settled them
and thus had responsibility for their rights to the land settled on. Many adults living
in the older settlements—Koki, for example—claim this to be their home even though
their parents came from the surrounding Central, Gulf and Western provinces.
The Motu–Koitabuans, however, refute such claims.
Number of
Year first Population Number of households
Settlement name Landowner settled (2000 census) households interviewed
Household
Male Age of heads Household Household
headed household with no Persons per Dependants monthly heads self-
households head education household per household income employed
Settlement % years % no. no. kina %
name (average) (average) (average) (average)
Koki 89 40 9 17 6 1 739 33
Saraga 91 39 11 9 3 537 31
9-mile 93 42 11 9 3 658 64
Erima 81 43 31 10 3 830 61
Gorden
Ridge 73 42 24 8 3 735 35
8-mile 93 39 13 8 3 545 54
Hohola 95 41 11 11 5 1 183 68
Savaka
Bundi 73 38 7 9 3 392 33
Popondetta 86 38 14 10 4 548 53
Vadavada 92 41 31 7 3 489 31
An interesting finding from the survey is that households from particular provinces
tended to settle in groups to provide security for each other and their property.
This form of group insurance can, however, ignite conflicts over issues brought from
their tribal home or region and from competition for land and other resources within
the Port Moresby setting.
Transactions on land
Between 11 and 71 per cent of households had acquired their land from the owner—
the Department of Lands in the case of state land, and customary owners (or claimants
of being such) for land under customary title. There were anomalies, however. In two
settlements on state land, the settlers claimed to being settled by former politicians and
thus drew their claim to the land through political patronage. These settlers were active in
the National Capital District Commission and national politics so as to maintain political
support as an instrument for tenure security.
There was evidence that houses were sold and purchased despite the lack of clear legal
titles to the dwellings and without the consent and/or knowledge of the landowners.
These exchanges took place on all forms of property—from the most developed to vacant
land over which claims remained to be formally established. A number of settlers reported
buying their plots, often with improvements, from others. The price paid for land varied
considerably between settlements and there was no clear, discernible difference in the
price paid for land between the three land tenure types. Similarly, there was no distinct
difference in the level of investments made by informal settlers, whether the land was
state-owned, customary-owned or had disputed ownership.
There were considerable differences in how settlers availed themselves of land held under
customary title for housing. They ranged from land invasion—where a pioneer identified
an empty piece of land, built on it and then surrounded the development with members
of their clan and tribe—to explicit arrangements with customary landowners to access
their land.
The settlers substantiate their claim to the land they occupy in several ways. The most
sophisticated included producing statutory declarations with the Commissioner
of Oaths; others kept receipts for all payments made. One particular community—
the Oro Development Community—has finessed arrangements whereby a formal
intermediary collects rents, stores records and deals with disputes between settlers
and customary landowners. This may be a model for regularising settlements that
is worthy of further consideration.
Landowners have expressed fear of losing their land to settlers, particularly when
outnumbered by people from the tribe or district of origin of the settlers. In one case,
landowners simply refused to accept payments from settlers, fearing such payments
would legitimise the claims of the settlers to the land settled on.
Settlers reported that most customary landowners refused to provide formal titles to
the land settled on. Based on interview responses it is estimated that the proportion of
households without formal title to the blocks of land on which their homes were built
ranged from 55 per cent in Erima to 100 per cent in Gorobe and Saraga.6
The tendency for settlers to coalesce according to family, clan, tribe, province, profession
and so forth could be as much a cause as a consequence of a weak state unable to enforce
property rights within settlements. Because police attend to only the most serious of
crimes, settlers provide their own security. The net result is that settlers provide security
for only themselves and outsiders have problems reaching settlers or their settlements.
There is evidence that customary claimants have encroached on the rights of the state
over alienated land. While the state claims ownership rights over Gorden Ridge, Koki and
Saraga, settlers have reported making payments to customary landowners for land settled
on. This is a clear case where state ownership of land has regressed to those who claim
customary rights.
6 Settlers consistently failed to provide evidence of any title, especially on state land, when asked for it.
5 Informal land systems within urban settlements in Honiara and Port Moresby 97
The encroachment may benefit the settlers and the customary claimants, but it comes
at a cost to the state. Settlers revealed a perception of greater tenure security through
arrangements with customary landowners than through existing arrangements with
the state. They reasoned that:
» they had greater trust in the traditional arrangements for accessing land for housing
» they had the capacity to counteract landowner claims should the need arise
» the state had the means to evict them by force should it wish to do so.
The city of Honiara is built on alienated land, which is surrounded mostly by land
held under customary ownership. Most of the informal settlements are on state land.
Some 25 per cent of Honiara’s population resides on state land. The majority still has
no legal right to do so and has no tenure security to the land on which they live and
have food gardens.
Since the 1970s Honiara has had a formal system to enable settlers to acquire public
land for housing. The temporary occupation licences, issued by the Commissioner of
Lands with annual rental payments to the (then) Department of Lands, have provided
the formal channels through which public land has been accessed for housing.
This system has had three significant drawbacks.
» It has been anything but temporary, and the settlements have increased in both
housing and population density, and expanded outward since the first licences
were issued.
» Dwellings have been constructed without systematic provision of access corridors
and services. The Honiara City Council has not collaborated on planning with the
national lands agency, so the TOL areas have been poorly planned.
» Compliance with TOLs, particularly in keeping the licences valid, was poor from
the outset, but fell sharply after the civil unrest began in the late 1990s.
7 The discussion on Honiara settlements is based on URS Australia (2006) report and information collected from a field visit to Honiara
by Satish Chand from 20 to 24 June 2007. Gilmore Pio provided invaluable research assistance for the fieldwork.
98 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Post-conflict settlements have continued to be haphazard and have spilled out from
allocated TOL land onto customary land, a trend expected to continue for the foreseeable
future. While the planning and administration of all land in Solomon Islands is the
responsibility of the Ministry of Lands, Housing and Survey, enforcing responsibilities for
areas beyond the city boundary falls on the provincial government. The Minister of Land
for the Guadalcanal Province and his Permanent Secretary confirmed they had limited
powers over land dealings within the province.
Honiara’s population has been growing at an annual average of 6 per cent, nearly twice
the national rate of 3.5 per cent. The growth rate of the settlement population in the three
years after the arrival of RAMSI, however, was recorded at 26 per cent. A recent survey of
3103 households revealed growth rates in individual zones, each comprising approximately
50 households, of anywhere between 8 and 103 per cent (URS Australia 2006).
It remains to be seen whether the high rate of settlement growth will continue. Reasons
for a possible tapering of growth rates include a slowdown in the return migration
from Malaita and the hinterlands of Guadalcanal. However, the lack of employment
opportunities in the rest of the country and the fact that some 85 per cent of the
population still lives in rural areas and the outer islands suggest that the potential for
migration to urban areas remains significant. The pattern of growth in informal urban
settlements in Melanesia provides reason to believe that the settlement population of
Honiara will continue to expand by around 6 per cent a year.
As part of broader public sector reform, the Ministry of Lands, Housing and Survey is
considering ways to raise compliance with TOLs in an attempt to recover rental arrears.
However, both the ministry and the settlers recognise that evicting settlers in large
numbers is not practical. Amicable and acceptable solutions are the only options
to consider.
A pilot project was undertaken within the broader land administration project funded
by AusAID from 2000 to 2007 (see Case Study 15, ‘Strengthening land administration in
Solomon Islands’). It advocated a participatory approach to inform, educate and involve
informal settlers in the reform process, and supported a government program to convert
TOLs into fixed-term estates, which have an initial lease of 50 years. About 350 FTEs have
been offered to informal settlers with or without TOLs, who had settled in the pilot areas,
and this process is being continued by the ministry. The pilot project assisted settlers
with establishing roads and footpaths throughout their settlement areas, but addressed
only a small proportion of the total area of informal settlement in Honiara. This is a bold
initiative and one likely to result in lessons that can possibly be adapted to other Pacific
island countries.
Settlement areas with reasonable access to basic infrastructure such as roads, electricity
and water have grown the most rapidly. However, while these services have raised
the implicit value of property they have also created congestion. These areas are also
fertile ground for informal arrangements to provide long-term access to land and
sometimes illegal access to electricity and water. These are also the areas where many
of the arrangements seen to have developed in Port Moresby are at a nascent stage
of development.
Housing densities have increased through infill while new settlements have appeared on
what in 2003 was vacant land. The absence of government control has meant that some
households have claimed land adjoining their premises. In several cases, claimants have
lied about having FTEs over the sites to stop others from laying claim to vacant land.
There is also some evidence of land invasion. In a few cases, extended families are building
premises close to each other on vacant land and blocking off access to others. This
resonates with the problems of agglomeration witnessed in a more mature form in Port
Moresby. The risks of such expansion are overcrowding, the spread of disease due to a
lack of waste disposal facilities, increasing crime between families (tribes) and increased
susceptibility to natural disasters.
FTE land that is close to the city is being developed for quality housing to take advantage
of the rapidly rising rental market following the arrival of expatriates. Some of this land is
held by the Honiara City Council. It is also being settled informally as the council is unable
to prevent the chaotic nature of development on its property.
The rapid growth of the settlement population presents a formidable challenge to the
Ministry of Lands, Housing and Survey on how to accommodate developments within the
formal system. Some problems the ministry faces could be of its own making, however.
It has been slow to enforce compliance with existing TOLs and has provided verbal
permission to people wishing to settle in some areas of the city. A widely held perception
that there is corruption in allocating land and issuing TOLs and FTEs has not helped to rein
in a settlement process that has been largely out of control since 1999.
Current strategies being canvassed to resolve these issues require an elaborate, efficient
and honest administration. A pilot has been proposed whereby a newly established Land
Development Planning Group would take responsibility for coordinating the development
of subdivisions across government agencies while supporting the regularisation of
existing settlements.
102 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Lessons
lesson
A failure to acknowledge the reality of urban growth is one factor that has
Urban settlers are a permanent feature of the Pacific landscape, a fact that needs to be
accepted by the wider population. While settlers are sometimes seen as a problem, they
provide much of the hard labour needed in the cities in which they live and supply most
of the garden produce consumed by urban residents. There are both powerful push and
pull factors responsible for the swelling urban settlements, including tribal conflicts and
income-earning opportunities, which are unlikely to disappear in the foreseeable future.
lesson
Urban areas will grow despite a lack of secure land tenure. Informal
Most urban growth is occurring on land with limited value, with disputed title, and/or
where the land is held under customary title. The high costs of regulating formal
housing, the lax enforcement of the regulations, and the access to unregulated and often
subsidised services such as water and electricity are plausible factors responsible for the
growth of informal settlements.
lesson
The lack of access to urban land with secure tenure has resulted in negative
The consequences of a lack of land with security of tenure for urban housing include:
» the high cost of housing in the formal settlements
» the poor access to basic services in informal settlements
» the higher levels of poverty and overcrowding in informal settlements
» the higher levels of dispute and conflict over land and resources
» the loss of public revenue from unregulated access to utilities such as water
and electricity in the informal settlements.
5 Informal land systems within urban settlements in Honiara and Port Moresby 103
In the absence of secure urban land tenure, settlers and landowners (state and customary)
have developed arrangements to meet their needs for greater security and certainty.
These have provided a sufficient level of tenure to permit people to construct homes
on land to which they have no legal title. However, the arrangements that have evolved
differ markedly for land held by the state and land held under customary title, as well
as across settlements. Actions taken by settlers have varied from:
» invading land and physically defending their occupation
» seeking and maintaining political patronage in return for settlement on state land
» making payments to landowners and retaining all evidence of the payments
for the land settled on.
lesson There needs to be a transition from the informal arrangements into the
5 formal planning, land administration and dispute resolution systems.
The arrangements that settlers and landowners (state and customary) have developed
to provide greater tenure certainty are sometimes at each other’s expense and often
with little consideration of the effect these arrangements have on the wider community.
Informal land arrangements in Port Moresby and Honiara are not sophisticated and
are unlikely to evolve naturally to the point whereby they can mitigate the negative
consequences of informal urban settlement, such as the lack of access to utilities,
overcrowding, poverty and crime.
Addressing the need for utilities would be easier in Honiara than in Port Moresby since
the bulk of land settled on in Honiara is owned by the state while the newer settlements
in Port Moresby are on land held under customary title.
104 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Acknowledge the potential role of the private sector and civil society
lesson The limited capacity of the public sector calls for greater participation by the
7 private sector and civil society in making land available for formal housing.
lesson
Any sustainable strategy to increase the tenure security of settlers would have
None of the Pacific island nations have the luxury of time to address the growing
problems of informal settlements or have the administrative capacity to enforce
compliance with existing legislation pertaining to urban settlements.
Lowering the costs of compliance and providing some targeted subsidies or funding
to encourage the private sector/civil society to become involved in providing landowners
and settlers with some land administration and dispute resolution services, as is
already happening to a limited degree, is one way to increase access to urban land
with secure tenure.
The private sector and landowners could be invited to fill the market void for tenure
security within the urban fringes for urban housing. A strategy that fulfils the demands
of settlers and landowners simultaneously can be both good for business and good
for development.
5 Informal land systems within urban settlements in Honiara and Port Moresby 105
References
Chand, Satish 2007, ‘50/50 by 2020: poverty and redistributive politics in post-independence
Fiji’, Pacific Economic Bulletin, vol. 22, no. 2, pp. 22–35.
——& Yala, Charles 2006, ‘Improving access to land within the settlements of Port Moresby’,
IDEC Working Papers 07/04, Crawford School of Economics and Government, Australian
National University, Canberra, viewed September 2007, <www.crawford.anu.edu.au/
degrees/idec/working_papers/IDEC07-04.pdf>.
Chung, M & Hill, D 2002, Urban informal settlements in Vanuatu: challenge for equitable
development, report prepared for the Pacific Islands Forum Secretariat and UN Economic
and Social Commission for Asia and the Pacific, Pacific Operations Centre.
Deininger, K, Feder, G, Gordillo de Anda, G & Munro-Faure, P 2003, ‘Land policy to facilitate
growth and poverty reduction’, Land Reform, 2003/3, special edn, pp. 5–18, viewed
September 2007, <www.fao.org/docrep/006/y5026e/y5026e03.htm>.
Philibert, J 1988, ‘Women’s work: a case study of proletarianization of periurban villages in
Vanuatu’, Oceania, vol. 58, no. 3, pp. 161–71.
URS Australia 2006, ‘Solomon Islands Institutional Strengthening of Land Administration
Project (SIISLAP II): tenure conversion of temporary occupation licenses—milestone # 8’,
report prepared for AusAID, URS Australia Pty Ltd, Canberra, 4 August.
107
Reconciling customary
ownership and development
6
The role of the Central Land Council
in Aboriginal land dealings
Mick Dodson » Director, National Centre for Indigenous Studies and Professor of Law,
College of Law, Australian National University, Canberra
David Allen » Specialist Legal Consultant, Indigenous and Human Rights
Tim Goodwin » Research Assistant, National Centre for Indigenous Studies,
College of Law, Australian National University, Canberra
108 MAKING LAND WORK » VOLUME TWO CASE STUDIES
A snapshot
The role of the Central Land Council in Aboriginal land dealings
Key lessons from this case study are that the institutional
framework of the Central Land Council:
» is an effective and workable model for enabling an
intermediary body to assist customary landowners
to engage in land dealings within the formal economy
» can provide valuable benefits to the social, cultural
and economic wellbeing of communities
» enables landowners to retain control over how
to allocate revenue received
» is well placed to facilitate initiatives for
community development
» would need to be scaled down in its size and scope
of services for most Pacific island contexts.
6 The role of the Central Land Council in Aboriginal land dealings 109
Contents
» Tanami Desert Gold Mines and Warlpiri Education and Training Trust 118
» Lessons 126
Establish an institutional framework that leaves land control
and ownership with the traditional landowners 126
Ensure the legislation and resources adequately support a land council arrangement 126
Consider the value of services an intermediary body can provide 127
Leave responsibility for managing and distributing returns with the landowners 127
Mandate that revenues are used for community development 127
» References 128
110 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The traditional owners hold an almost absolute right to prevent unwanted development
on their land. The Australian Government’s right to override the wishes of the traditional
owners regarding mining projects where the national interest requires it has never
been exercised.
The primary decision to lease Aboriginal land for development is made by the traditional
owners of the particular land under consideration. They must decide ‘as a group’, but the
final decision may be made in accord with Aboriginal tradition or some other method
determined by the owners. All decisions must be made on the basis of informed consent.
To assist traditional owners exercise their rights to claim and manage Aboriginal land,
and to broadly advance the interests of Aboriginal people, Aboriginal land councils were
established under the Act. The primary responsibilities of land councils include:
» ascertaining and expressing the wishes of Aboriginal people living in the area
of the land council as to the management of Aboriginal land in that area
» protecting the interests of traditional owners of, and other Aboriginal people
interested in, Aboriginal land in the area
» consulting with the traditional owners of, and other Aboriginal people interested
in, Aboriginal land in the area regarding any proposed use of that land
» assisting Aboriginal people within the area of the land council to carry out
commercial activities (including developing resources, providing tourist facilities
and engaging in agricultural activities)
» assisting in protecting sacred sites
» assisting Aboriginal people to make traditional land claims.
Land councils do not make primary decisions about the use of Aboriginal land; they
provide information and professional advice to the traditional landowners. If the
traditional owners are willing to lease land for development, the land council will act
on their instructions in negotiating an agreement with the third party proposing the
development. The agreement will specify the terms and conditions for granting a lease
over the traditional owner’s land to enable the development to proceed.
112 MAKING LAND WORK » VOLUME TWO CASE STUDIES
A lease entitles a person to enter Aboriginal land and use the leased land. It is an
offence to enter Aboriginal land without a legal entitlement to do so. Land councils have
developed under the Act a permit system for people without a right of entry.
Royalty allocations
When a mining lease is granted over Aboriginal land, the mining company pays
royalties on the value of the minerals extracted from the land to the Northern Territory
Government and/or the Australian Government. The Australian Government then pays
an amount of money equivalent to these royalties from consolidated revenue into the
Aboriginal Benefits Account. This money is called ‘mining royalty equivalents’.
2 Aboriginal Land Rights (Northern Territory) Act 1976 (Cwth), s. 19A. Recently the Act was amended to allow a 99-year lease to be granted
to an entity approved by the federal Minister for Families, Housing, Community Services and Indigenous Affairs or the Northern
Territory Chief Minister. While the traditional owners must consent to this grant, the approved entity has a right to sublease the land
without the need for further consent (ss. 3AA, 3AAA, 19A(13)–(14)).
6 The role of the Central Land Council in Aboriginal land dealings 113
Originally the distribution formula under the Act was 30 per cent to traditional owners
and other Aboriginal people living in areas affected by mining, 30 per cent to community
grants and 40 per cent to land councils. These percentages represent a policy decision
to create some equity between traditional owners and other Aboriginal people in the
Northern Territory. It dampens ‘windfall’ gains by traditional owners and potentially
disruptive economic imbalances. To some degree, it also dampens the financial incentive
for traditional owners to give consent to mining developments.
This change has taken away any structural incentive for land councils to advocate mining
(or other potentially high-profit development) by removing the direct link between land
council funding and royalty payments. But this incentive was always small because, if
traditional owners found that the land council constantly gave pro-mining advice, the
trust built between the two groups would break down. This trust is central to efficient
land negotiations and appreciated by mining companies, which understand its breakdown
would create a barrier to future mining developments.
The funds from the Aboriginal Benefits Account that are paid for the benefit of traditional
owners and other Aboriginal people living in areas affected by mining are directed to land
councils, where they are passed on to royalty-receiving associations. These associations
also receive any negotiated royalties paid to the traditional owners by mining companies
under the terms and conditions of a mining exploration licence. These payments are for
the exclusive benefit of traditional owners and are additional to the royalties paid to the
Northern Territory Government and/or the Australian Government.
The royalty-receiving associations typically invest a proportion of the funds and distribute
the remainder to various subcommittees, which allocate the funds to community projects
or individuals. Traditional owners’ receipts from non-mining leases are dealt with in a
similar way.
114 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The Central Land Council (CLC) represents Aboriginal people in the arid southern half of
the Northern Territory. Its area of responsibility covers almost 775 000 square kilometres
of remote, rugged and often inaccessible country. The major economic activities are cattle
breeding on large pastoral properties, tourism and mining. There are 18 000 Aboriginal
people from 15 different Aboriginal language groups in the Central Australia region.
These language groups are often sorted into three major language families—Arandic,
Ngarrkic and Western Desert.
The 90 regional delegates elect the chair of the council, deputy chair and members of the
Aboriginal Benefits Account Advisory Committee. The Australian Electoral Commission
assists in conducting the election. The role of the Aboriginal Benefits Account Advisory
Committee is to advise the federal Minister for Families, Housing, Community Services
and Indigenous Affairs regarding payments to the Aboriginal Benefits Account. The 10
members of each regional delegation also elect one of their members to the Executive
Committee of the council.
The full council meets three times a year and is the supreme policymaking forum of the
CLC. The Executive Committee meets approximately monthly and holds extensive powers
delegated by the council, making it the most active high-level forum. The day-to-day running
of the CLC is managed by the Director, in consultation with the Executive Committee.
The Director oversees about 120 staff engaged to carry out the CLC’s responsibilities.
6 The role of the Central Land Council in Aboriginal land dealings 115
C e ntral L and Co u n c il
executive
Includes Chair, Deputy Chair and 9 regional members
Director
Regional Offices:
Mining Anthropology Corporate Services
Lajamanu
Alparra Exploration Traditional Financial
Papunya ownership management
Applications idendification
Yuendumu
Human resources
Tennant Creek Mining agreements Land claims
Anmatyere Registry & library
Work area
Mutijulu Information
clearances
Alice Springs technology
Atitjere
Kalkanngi AAMC – Royalty
Land Management
Associations
Environmental Economic
management development
projects
Rural enterprise
Land assessment
The CLC has a number of important sections that help to provide policy and legal advice
to traditional owners about land dealings. These include:
» Legal Section, which provides advice to traditional owners on granting leases and
mining interests (exploration licences, mineral claims, mineral leases, etc.) and on
their terms and conditions
» Mining Section, which deals with exploration and mining applications, liaises with
mining companies and assists traditional owners in drafting mining agreements
» Anthropology Section, which assists in identifying traditional owners and assists
traditional owners in protecting sacred sites
» Land Management Section, which assists traditional owners in identifying, creating
and managing opportunities for sustainable economic development on their land
» Community Development Unit, which specifically assists traditional owners to create
and manage community development projects for the benefit of Aboriginal people
and communities
» Aboriginal Associations Management Centre, which provides administrative
support to royalty-receiving associations, which hold mining royalties for the benefit
of affected areas.
A mining company wishing to explore for minerals on Aboriginal land within the CLC area
must first apply to the Northern Territory Minister for Mines for an exploration licence
under the Mining Act. The minister cannot grant a licence until the CLC has given its
consent, acting on the instructions of the traditional owners of the affected land.
The process of negotiating for consent is initiated when a mining company submits
a written application for a licence to the CLC. The application must provide detailed
information, including an outline of the proposed exploration program, period of activity,
techniques to be used, and the general effect on the land, including any potential
environmental and social impacts. The application must also include estimates of the
cost of exploration, the geological potential of the area and proposed payments for
exploration activities.
6 The role of the Central Land Council in Aboriginal land dealings 117
When the CLC accepts the application an initial 12-month negotiation period commences.
With mutual consent this may be extended by 12 or 24 months. Within this period the CLC
must either grant or refuse to grant the exploration licence following consultations with
the traditional owners.
The CLC is required to convene meetings with the traditional owners and to consult with
other Aboriginal groups affected by the potential grant. The purpose of these meetings
is to consider the exploration proposals and the terms and conditions of any agreement.
The applicant is entitled to present its exploration proposals at the first of these meetings
and to attend the first meeting where the terms and conditions of an agreement are
discussed. Many meetings may be required, and the applicant’s attendance at subsequent
meetings depends on the consent of the traditional owners. The CLC notifies the applicant
of the scheduled meetings and associated costs, which are born by the applicant.
In practice these meetings are generally held ‘on country’ and their number depends on
the nature of the proposed activity. The Anthropology Section of the CLC plays a vital
role in identifying traditional owners to ensure that all appropriate people are consulted.
Meetings and discussions are conducted in accord with Aboriginal culture and may
involve separate consultations with men, women and people with primary responsibility
for various significant sites within the affected area.
The CLC bears the responsibility of ensuring that the traditional owners understand
the nature of the agreement before they either accept or refuse consent to the licence.
A meeting of the CLC delegates (or its Executive Committee) must be satisfied that the
traditional owners understand the nature and purpose of the terms and conditions of
the licence, that the terms and conditions are reasonable and that the traditional owners
have agreed with the applicant to the terms and conditions.
The traditional owners may instruct the land council to not grant an exploration licence
on some or all of an Aboriginal land trust area that is the subject of an application, which
would effectively veto proposed mining on their land. In this event a five-year moratorium
on negotiation commences, unless after two years the traditional owners decide to
recommence negotiations in certain circumstances.
If consent is granted and ratified by the land council, it notifies the Northern Territory
Minister for Mines. Before an exploration licence is granted under the Mining Act,
the minister must also consent in writing to the grant and a formal deed of agreement
must be signed by the applicant and the CLC.
118 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The various mining agreements in the Tanami Desert were renegotiated and consolidated
in 2003. The new consolidated agreement with Newmont Tanami Pty Ltd is for the life of
the mines, with provision for further periodic renegotiations.
Mining operations are on a ‘fly in – fly out’ basis to minimise social disruption. The training
given to mine employees contributes to their knowledge and understanding of the need
to prevent damage to sites of cultural heritage and significance and helps to ensure
cross-cultural awareness. To meet the environmental protection provisions, which reflect
the wishes of the traditional owners, operations adhere to best practice initiatives in the
mining industry. Among other things, they include minimal disturbance of the ground, no
interference with natural water systems, the retention of natural vegetation as well as the
rehabilitation of land, prevention of harm to wildlife, and monitoring and reporting on the
natural environment and any impacts.
As part of the process of negotiating the consolidated agreement for the mines, the
Warlpiri Education and Training Trust (WETT) was established and Newmont agreed to
a significant increase in direct royalty payments, which are paid via the CLC directly to
an Aboriginal corporation whose membership is restricted to the traditional owners.
Newmont was satisfied that an increase in the royalty payments to the level requested
was justified provided that the increase was directed to WETT and subject to the specific
requirements identified in its trust deed. This created a synergy with the wishes of
the traditional owners expressed at a Warlpiri Triangle Workshop, where a number of
community members, particularly women, wanted to use royalty monies for educational
purposes. The structure of WETT arose directly from these ideas, which were endorsed by
traditional owners.
Kurra3 is the Warlpiri royalty-receiving association for two of the mines. It does not receive
royalty-equivalent payments from the federal government, only the negotiated royalty
payments from Newmont. It invests 50 per cent of all income and, after administrative
costs, applies the balance on the instructions of its members. Kurra is also trustee for
WETT, which receives 20 per cent of the negotiated income and the full increase in direct
royalties under the consolidated mining agreement. Annual payments to WETT exceed $1.2
million, although they vary and depend entirely on production and price. These payments
are expected to continue for 5–20 years, depending on the life of the mines.
The CLC is working with the Warlpiri community to develop longer term projects.
Community consultations resulted in priority support for the development of an
antenatal and early childhood centre, a youth and media project, a Warlpiri learning
community, and a support program for secondary school students. Training support for
the delivery of kidney dialysis is also being considered. These projects are now being
developed with Warlpiri communities, the Advisory Committee and government agencies.
The CLC intends to coordinate WETT projects and blend funds with existing government
programs and services.
Analysis of issues
A fog of ideology shrouds much of the past analysis and debate over the Act’s provisions
and the extent of its transaction costs (Altman 1993; Industry Commission 1991; McKenna
1995, pp. 304, 307; Reeves 1988; Tasman Institute 1993). An ideological or political
reluctance to accept that Aboriginal people should be given greater rights to control
access to their land has characterised some positions. Advocates on both sides have
been suspected of protecting vested interests. In large part the debate is becoming
increasingly anachronistic.
During the last fifteen years [before 2005] the legal, policy and institutional environment
within which decisions on mineral development take place in Australia has changed
significantly. Particularly important … have been the High Court’s recognition of native
title in Mabo and the consequent enactment of the Commonwealth Native Title Act 1993,
and the development of ‘corporate social responsibility’ policies. The latter have led major
mining companies to negotiate with Aboriginal traditional owners even in the absence of
legal requirements to do so. There is now a broad policy consensus in Australia that mineral
development should proceed with the agreement of, rather than over the opposition of,
Aboriginal traditional owners. (O’Fairchealleaigh 2006, p. 1)
This positive shift in attitude is fully supported by discussions with Newmont personnel
during this case study. A senior lawyer, experienced in negotiating with the CLC under
the Act, described the legislation as:
4 It has been argued that transaction costs are not operative disincentives to the formation of agreements (McKenna 1995, p. 305).
6 The role of the Central Land Council in Aboriginal land dealings 121
This situation was contrasted with dealings with traditional owners outside the Act where
things are less clear: ‘it’s difficult to know who you are dealing with; there are overlapping
and competing claims’ by traditional owners who are ‘less well resourced’.
The overriding quality of the Act is its clarity of procedure. Another Newmont employee,
who has many years of experience in negotiating exploration and mining agreements on
Aboriginal land, identified the Act as providing ‘certainty’. Negotiating the parameters of
the mining agreement at the exploration stage ‘to broadly map out the concepts’ enabled
the move from exploration to mining to occur ‘reasonably seamlessly; its basic terms are
predetermined’. It is ‘easier than on land anywhere else. It is their [CLC’s] responsibility to
identify the traditional owners—to go out and see who the players are. I wouldn’t like to
contemplate a situation without the Land Council’.
Some frustration was expressed about the bureaucratic process of obtaining individual
permits for the flow of Newmont mining staff into and out of the mine sites. But a
satisfactory system has been worked out with the CLC. It was thought that ‘in other
places where Indigenous people’ are involved ‘an approach similar to the Act should
be considered’.
The renegotiation described earlier illustrates how good social outcomes can come from
the negotiation process. The potential to use negotiated royalty payments by Newmont
in a constructive, sustainable way through WETT was an important factor in the CLC’s
negotiations to increase the level of these payments.
The CLC has created a strong link between land use revenues and innovative community
development projects managed by Warlpiri traditional owners. WETT has become a
vehicle to deliver tangible benefits in areas as diverse as community health, education,
training and communications. Agreements are increasingly being used as more precise
instruments for supporting the broad aim of building sustainable economic and social
benefits. The CLC acts as an intermediary between its constituents and other stakeholders,
to consult, coordinate negotiations, provide professional advice and draw in external funds
to support community projects.
The Indigenous Pastoral Program also demonstrates the CLC’s intermediary role. The CLC
was instrumental in establishing the program with the aim of linking grazing licences to
economic development on Aboriginal land. In negotiating agreements for grazing licences,
the CLC often ensures that, as well as rent and monitoring rights, provision is made for local
Aboriginal people to receive employment and training. The structures built on the land
are often owned by the traditional landowners at the end of the lease, which provides the
basis for a viable pastoral enterprise controlled and operated by traditional owners.
Applications for grazing licences are prioritised by the Indigenous Pastoral Program
Steering Committee. A consultant, employed as part of the program, appraises the land,
determines the viability of the applications and recommends options for traditional
owners and pastoralists. The CLC arranges consultations between traditional owners,
the applicant pastoralists and the consultant. The consultant has also trained Aboriginal
people in corporate governance.
Gender
The CLC consists predominately of men. The representation of women is gradually
increasing, but remains in the order of 5 per cent. Women are better represented on
the Executive Committee, with two women and eight men, currently elected.
Such formal representation does not adequately identify the active role Aboriginal
women play in governance. In relation to land use agreements the Executive Committee’s
role is confined to ensuring that the traditional owners have given informed consent.
In determining that consent, women play a key role. The CLC convenes separate meetings
with the custodians of women’s sites on the land under consideration. While it is
frequently said that ‘Men speak for country’, women’s voices are heard and respected in
matters that pertain to them specifically and that concern general terms and conditions
of agreements.
6 The role of the Central Land Council in Aboriginal land dealings 123
Women have been particularly active and effective in promoting more sustainable social
and economic development financed by land use agreements. It was women in Warlpiri
Triangle Meetings who spoke strongly about using royalties for education, acting as a
catalyst to WETT. The WETT Aboriginal Sub-Committee comprises seven women and one
man. The head of the Community Development Unit notes the consistent and effective
role of Aboriginal women in the CLC area in broadening the perspective of the potential
benefits that can be derived from Aboriginal land.
In negotiating land use agreements the CLC enters a potentially litigious area, particularly
in the mining field. But this has very rarely been the case because of the transparent
processes used. Newmont representatives noted that CLC appeared to have a very trusting
relationship with traditional owners and acted as a ‘fair broker’, consistent with the
protection of Aboriginal interests.
For the constituents of the CLC, accountability issues are more centred on transparency in
controlling specific projects, using funds and identifying outcomes. This is illustrated by
the Uluru Rent Money Project, funded by a significant increase in revenues for the lease of
the Uluru-Kata Tjuta National Park negotiated by the CLC. Previous revenues had not left a
substantial legacy for Anangu traditional owners. In 2005, the first year of the project, the
council nominated three Anangu communities to benefit. The CLC ran a series of day-long
community meetings and smaller discussion groups to identify community needs and
priorities.
In 2006 broader consultations were held with the traditional owners. This marked the
transition of effective ownership of the project from the council to Anangu. Central to
the project is community involvement. At every stage—from identification of community
needs to project development and implementation—Anangu are in control and direct
how their funds are used. The traditional owners make specific decisions about project
targets and have developed principles for the governance of the project (Box 1). The
principles centre on identifying real needs, equity, transparency in how funds are used,
good planning, consistency of purpose and lasting outcomes for their children.
The results of a survey to get Anangu views on the project indicate strong support for it
(Box 2). To date rent money has been used to build a radio tower for a remote community,
fund community members to receive dialysis in Alice Springs, and build a maintenance
124 MAKING LAND WORK » VOLUME TWO CASE STUDIES
workshop to develop skills and increase employment opportunities. The CLC has used
the project to attract additional government funds to build a new community store
and to obtain a grant (matching the input of rent money) to repair a church.
In 2007 the Community Development Unit of the CLC surveyed Anangu traditional owners about
their views on the progress of the Uluru Rent Money Project. Some of their responses follow.
» It’s a good project; we can help each other. This is a better way with the money. Government
can see we are doing good things with the money. This will keep the money safe and
government will help more with projects.
» I really like the project. CLC care, checking up on how things are going, making sure things
are happening and people are using the money for what they said they would.
» Anangu need to be in charge of projects, say what we want and then see the projects
through. Get direct involvement from Anangu, not from outside; that way you get
outcomes from the money that’s around.
» It’s a good project and some people are getting things they want but, for people who are
not getting something from this project, some people are sad.
» In this project we get the money, decide how to use it ourselves and government can see
we are using it.
» This project is really good. It’s giving Aboriginal people help. But this project can’t do
everything. Government’s got to put in too.
6 The role of the Central Land Council in Aboriginal land dealings 125
Disputes
As previously noted, the Aboriginal Land Rights (Northern Territory) Act is federal
legislation, and the Federal Court of Australia is the ultimate arbiter in any dispute
arising out of a decision made under the legislation. Rarely have proceedings been
instituted in the Federal Court between traditional owners, the Central Land Council
and/or other parties.
In general, disputes are rare. Most disputes between traditional owners are dealt
with through cultural processes and dialogue. Often CLC staff are not present when
these disputes are resolved. Under the Act the CLC is bound to follow the instructions
of traditional owners regarding land dealings. This limits the possibility of disputes
between the CLC and traditional owners.
However, in the Pacific context the challenge is to scale down the CLC’s structure while
retaining its effectiveness. Beyond providing a stable corpus of legal expertise, the CLC’s
core functions of identifying the relevant traditional owners and confirming they have
given informed consent to grant licences or leases over their land should be preserved
in any adaptation. These functions not only protect the interests of the owners but
also provide security for third parties. The CLC effectively serves as a corporate shield.
It enables landowners to meet with third parties directly and to conduct their inside-
business privately. It enables third parties to rely on the agreement and interest
granted without any need to inquire into background processes.
Importantly for the Pacific, countries will need legislation that prescribes clear
representative structures and procedures, together with pathways for negotiating land
or marine use agreements and for distributing revenues. Such legislation maximises
transparency and provides independent judicial review as an ultimate means of
accountability.
126 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Lessons
lesson
It is feasible to have an institutional framework where decision-making powers
1 and control over land are retained by the traditional owners and an intermediary
body is used to facilitate their engagement with the formal economy.
A key characteristic of the CLC is that it is an advisory body and does not mix its advisory
role with decision-making powers. The CLC does not have authority to act on behalf of
landowners in negotiating agreements. Instead, all decisions are made by landowners. The
CLC’s primary role is to facilitate negotiations, provide advice for the benefit of landowners,
and ensure that all landowners are fully informed on the nature of the negotiations.
Traditional owners are able to retain their cultural decision-making processes, including
making decisions as a group.
lesson
To duplicate a land council arrangement in the Pacific, the potential revenues
2 from developing the land would need to be taken into account when developing
its design and scope of services.
For funding, the CLC depends directly on mining royalties of about $15 million a year. This
arrangement is supported by the mineral prospectivity of the CLC area. In the absence of
such prospectivity in the Pacific, an organisation the size of the CLC would not be feasible.
Similarly, the highly detailed and prescriptive Aboriginal Land Rights (Northern Territory)
Act is designed to facilitate land use agreements for mineral exploration and extraction.
While the level of CLC funding may seem large, the majority of stakeholders accept that
a well-resourced organisation is necessary for the success of land negotiations with the
minerals sector.
6 The role of the Central Land Council in Aboriginal land dealings 127
lesson
An intermediary body can provide valuable services for landowners wishing
4 to engage with the formal economy, with benefits for their social, cultural and
economic wellbeing.
The CLC provides landowners with a range of valuable services. These include facilitating
the negotiation of agreements, recording and identifying traditional owners, and
providing professional advice and assistance in managing land for the social, cultural and
economic benefit of the Indigenous communities. The services provided by the CLC have
delivered good outcomes, with developments contributing to the economic and social
welfare of communities, while protecting traditional and cultural interests.
lesson
By insulating the intermediary body from the proceeds of land use, landowners
Importantly the CLC has not been granted the authority or power to decide how
to distribute funds that accrue to landowners. Instead, proceeds are passed on to
royalty-receiving associations, and these are under the control of the landowners.
Typically some of the proceeds are reinvested, with the balance distributed to
community projects or individuals.
lesson The intermediary body is well placed to provide additional services for
6 community development.
The CLC was never provided with a statutory function to pursue community development
as a specific objective, but a specialist unit was created within the CLC to coordinate
consultations with Aboriginal communities on community development needs. This
has been beneficial. However, there are concerns that the community development
objectives fall outside the CLC’s mandate. In the Pacific context, it might be preferable
to have a statutory provision to promote the use of revenues for sustainable community
development. Ultimate control over community development projects and the use of
funds for such purposes should remain with the traditional owners.
128 MAKING LAND WORK » VOLUME TWO CASE STUDIES
References
Altman, Jon 1993, ‘Economic dimensions of the High Court’s Mabo judgement’,
Australian Economic Review, vol. 103 (3rd quarter).
Industry Commission 1991, Mining and mineral processing in Australia, vol. 3,
Issues in detail, AGPS, Canberra.
McKenna, Siobhan 1995, ‘Negotiating mining agreements under the Native Title Act 1993’,
Agenda, vol. 2, no. 3, pp. 301–12.
Minister for Families, Community Services and Indigenous Affairs 2006, ‘Permit system
for Indigenous communities’, Press release, 12 September.
Northern Territory Department of Mines and Energy 1984, ‘Delays to mineral
exploration resulting from the Aboriginal Land Rights Act’, Darwin.
O’Fairchealleaigh, Ciaran 2006, ‘Aborigines, mining companies and the state in
contemporary Australia: a new political economy or “business as usual?” ’,
Australian Journal of Political Science, vol. 41, no. 1, pp. 1–22.
Oxfam Community Aid 1999, Inquiry into the Reeves report on the Aboriginal Land Rights
(Northern Territory) Act 1976: submission to the House of Representatives Standing
Committee on Aboriginal and Torres Strait Islander Affairs, viewed June 2007
<http://www.oxfam.org.au/campaigns/submissions/reevesreportlandrights.pdf>.
Reeves, John 1988, Building on land rights for the next generation: report of the review
of the Aboriginal Land Rights (Northern Territory) Act 1976, Aboriginal and Torres Strait
Islander Commission, Canberra.
Tasman Institute 1993, The importance of property rights in the economy: issues
raised by Aboriginal land rights and the Mabo decision, Melbourne, August.
129
Reconciling customary
ownership and development
7
Maori landownership and
land management in New Zealand
A snapshot
Maori landownership and land management in New Zealand
In the late 1800s and early 1900s Maori people lost control of substantial
tracts of land. At the same time customary land was systematically
‘individualised’ and registered using mechanisms designed to break down
group ownership. This process led to considerable problems and its legacy
remains. In more recent times efforts have focused on finding effective ways
to overcome problems such as absentee ownership and title fragmentation
by reverting to collective ownership using incorporations or trusts as
vehicles. Institutions that support Maori land have given much attention
to improving how these incorporations and trusts function.
Contents
» Lessons 148
Acknowledge the effects of land registration 148
Support landownership structures 148
Improve land information 149
Increase access to credit 149
» References 150
132 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The Maori population is young compared with the total population of New Zealand. Its
median age is 22.7 years while the total population’s is 33 years. Children less than 15 years
old make up 22 per cent of the total population but 35 per cent of the Maori population.
In comparison with New Zealand’s non-Maori population, Maori in general are more
likely to leave school with lower qualifications and be unemployed or employed in low-
skilled work. They also are less likely to own their own home and have a greater chance of
suffering from physical and mental health disorders (Durie 2005; Te Puni Kokiri 1998).
Proportion of Share of
Total land Maori land total land Maori land
As New Zealand citizens Maori have the right to purchase and own ‘general land’
(land available on the open land market) while holding interests in their ancestral
lands (Maori land). This creates two parallel land tenure systems. Maori land is almost
exclusively owned by the descendents of the original owners, handed down through
successive generations to the current owners.
Figure 1 » Distribution of Maori land in New Zealand by Maori Land Court District
Today, Maori land is usually of poorer quality than general land in New Zealand, largely
because the most fertile and best suited land for agricultural production was sold or
confiscated from its Maori owners in the 1800s or early 1900s. Large areas of Maori
land are better suited to forestry or conservation. Maori land is also more likely to be
‘landlocked’—an estimated 30 per cent. Owners of such land are unable to access the
land and have no option but to lease it to neighbours who have access. There is also
a significant area of Maori land in fragile natural environments such as wetlands and
coastal areas or bordering lakes and rivers. This land is likely to have less productive
potential and has greater restrictions imposed on its use by regional or district
government authorities (Harmsworth 2003).
Prior to the introduction of a system of deed title and registration in 1862, Maori land
was owned collectively by the tribe (iwi), clan (hapu) and extended family (whanau).
These tribal structures still exist. The largest communal unit in Maori society is the tribe,
a political grouping that comprises several clans, each recognising descent from an
eponymous ancestor(s). A clan shares social, political and geographic ties and operates
as a cohesive unit within the tribe. A clan is made up of several extended families.
Land was held by the kinship group and the rights of the individual to a share of the
community’s resources were recognised by the allocation of access or occupation rights
to those resources. Individual rights to land were established by descent. Within each clan,
individuals were selected and trained as priests (tohunga—tohu means ‘a sign’ or ‘to see’),
who acted as the intermediaries between the world of light (te ao marama) and ‘beyond
in the world of darkness’ (te tua-uri). Priests also acted as the community’s knowledge
repository and one of their skills was to recite the genealogical descent of any individual
under their charge back in time to earth mother. Even today there are priests with
this ability.
Although descent gave individuals the right of access or entry to land, the right of use
depended on residence, participation in the community and observance of its rules and
standards. This condition was necessary because most individuals had genealogical links
with more than one clan or tribe. The right to use the land required sustained effort over
generations of occupation. Those that did not contribute to the community and live by its
rules were liable to be plundered and their possessions claimed by the tribe.
This is why clans are not defined by land boundaries but by genealogical allegiances.
It is also why land boundaries were fluid under the traditional system rather than fixed
and exclusive. Rights to use land and resources were governed by relationships rather
than physical demarcation lines. These relationships defined access points to a particular
resource or resources, which could be shared with groups both near and far. Therefore
maintaining the rights to use land and resources relied on maintaining good relationships
with others rather than on creating defensible or exclusive boundaries.
Every natural feature of land bore names that spanned centuries of occupation. The ability
to recite the place names, traditional food-gathering places, battle sites, burial sites, the
genealogical descent from the original founders, and accounts of internal disputes of
ownership were all important in determining the rights of the owners. This knowledge
was passed down through the generations as proof of ownership. A consequence of
the precise knowledge of land boundaries coupled with an equally exact recall of the
occupiers’ genealogies was the relative ease with which Maori land was codified and
registered during the 19th century.
Because of the reluctance of Maori to make land available for sale, the Crown brought in
the New Zealand Settlements Act 1863, under which land was confiscated by declaring a
district and all land within it Crown land (Box 1).
The New Zealand Settlements Act passed in 1863 facilitated the confiscation of 526 000
hectares of Maori land in Taranaki (West Coast of New Zealand’s North Island). However,
three years before this legislation, military intervention facilitated the sale to the Crown of
600 000 hectares of land in nearby Waitara even though the sale was vetoed by the tribe’s
chief, Wiremu Kingi. This land sale triggered what was to be known as the ‘Maori land wars’,
which resulted in widespread land confiscations, particularly from owners deemed to be
‘rebellious’ to the Crown. In 1884 the Crown returned 103 000 hectares as Native Reserves
(which in 1892 passed to the West Coast Settlement Reserves). These reserves remained in
government control until 1976, by which time their total area had diminished to its current
area of around 22 000 hectares.
Other mechanisms used by the Land Court to convert native title to the English system
included section 23 of the Native Lands Act and the ’10 owner rule’ that allowed a
certificate of title to be issued to no more than 10 owners. This enabled government land
purchase officers and other agents of the Land Court to speed up the land codification
process. The consequences of assigning title to a small subset of owners resulted in
ownership disputes that continue today.
Although it was possible for a certificate of title to be issued to an entire tribe, there was
a proviso that the block must exceed 2000 hectares. To prevent group ownership, large
areas of tribal land were often divided into several allotments and each lot awarded to
no more than 10 people (often from different clans or tribes). Although this procedure
admitted more people to the title, it effectively fragmented title to tribal land, a process
accelerated by a clause in the Act that deemed all living children of the owners were
entitled to succeed equally to Maori land (not just the first born, as under Maori
customary rights). After only a few generations, large areas of Maori land had been divided
into small unusable portions.
There are currently 26 480 certificates of titles, with an average size of 59 hectares
(but ranging from 88 square metres to 522 hectares) and an average number of owner-
interests of 73 per title (but ranging from 1 to 425). Owners can have multiple interests in
more than one block of land. This has resulted in owner-interests numbering more than
two million and increasing by 185 000 a year with successions (Maori Land Court 2006).
The term ‘individualised Maori land’ stems from the owners having an individual interest
in the land (e.g. a shareholding) that is registered against the land’s titles. Maori land is
often referred to as ‘multiple-owned’ because of the multiple owners that have registered
individual interests in the land.
The systematic process of confiscation and individualisation led to the current situation
where the remaining land held under group or collective ownership constitutes a very
small proportion of New Zealand’s total land area. The large numbers of owners registered
against the land titles have produced a difficult situation that requires expensive and
cumbersome management structures to administer the owners’ interests.
Individualisation of title has created the need for organisational structures that
minimise the problems of fragmented title and absentee ownership. The individual
interest that Maori hold in land conflicts with the indigenous relationship with land.
Maori social structures were traditionally viewed as the foundations for development.
Wealth acquisition, therefore, was acceptable only if the community benefited through
cooperative enterprise.
As a result many Maori land structures uphold collective values as a guiding philosophy
for culturally centred sustainable economic development. Maintaining cultural identity
and traditional values is important in building owner support for development initiatives.
138 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Maori land is governed by the Te Ture Whenua Maori Act 1993. This legislation has
three land tenure categories:
1 Maori freehold land—with few exceptions, land that has not been out of
Maori ownership (accounts for about 98 per cent of all Maori land)
2 Maori customary land—land that is held under traditional or customary ownership
systems and that has not been registered with a certificate of title and no individual
names are registered against the title
3 Maori general land—land that had passed out of Maori ownership when a minimum
of five owners choose to reclassify it under the administration of the legislation and
the Maori Land Court.
The correct term for the majority of Maori land is ‘Maori freehold’ land. This distinguishes
it from customary land and Maori general land, which account for less than 2 per cent of
the total area.
Under the Te Ture Whenua Maori Act, Maori incorporations and trusts control around
64 per cent of Maori land. There are 129 Maori incorporations and over 20 000 trusts
(see Table 2). The rights to this Maori land are dictated by shares in incorporations
and beneficial interests in trusts. They vary, depending on the sizes of their ancestors’
landholdings in the original area of land.
The transfer (sale or gift) of Maori land is restricted to other Maori with affiliations to the
titleholder unless 75 per cent of registered owners and the Maori Land Court approve the
transfer. Because of these restrictions, most rights of access and use are granted using
leases. Few common characteristics apply to leases of Maori land and, as McPhail (Boast
et al. 2004) has pointed out, terms and conditions formulated by negotiation between
lessee and owners vary, depending on circumstances and whether a lease is rural, urban,
commercial or residential.
Maori incorporations
Most Maori incorporations were established prior to the 1960s, the first in 1910. The
owners amalgamated (incorporated) individual titles of Maori land into groups under
a single administration and management structure (Box 2) and then elected a group of
representatives—a committee of management—to be responsible for developing and
managing the incorporated lands.
These days landowners rarely choose to incorporate their lands, but they are still able to
do so by making an order to the Maori Land Court. If the court is satisfied that the owners
agreed to the order by passing a resolution at a meeting, or if the court is satisfied that
the owners of not less than 15 per cent of the aggregate shares in each block of land
consent to the order, incorporation can take place. Upon incorporation, the landowners
become shareholders and their shareholding is based on their share in the value of land
or assets of the incorporation.
The committee of management can have no fewer than three and no more than seven
members. Depending on the constitution of the incorporation, elections may be by
shares (or poll vote weighted by the size of ownership shares), or one vote per person.
If the constitution allows, the committee of management may also appoint members—
although this practice is not common. The elections are often controversial as family
representation is sometimes more important than the governance skills of an individual.
Parininihi ki Waitotara Incorporation (PKW) was formed in 1976 to administer the 22 000
hectares of land remaining in the West Coast Settlement Reserves after the government
relinquished control. The area consisted of around 300 West Coast leases, the majority to
non-indigenous farmers. As the leases expire PKW has first right of refusal and to date the
incorporation has acquired 32 leases, most functioning dairy farms. In recent years these
farms have been amalgamated into more scale-efficient production units with significant
capital to refurbish dairy sheds and staff houses. The incorporation has around 20 dairy
farms operating under 50:50 sharemilking contracts that are managed by PKW Farms Ltd.,
responsible for the incorporation’s NZ$50 million farming interest in Taranaki.
Trusts
The trust is the most common ownership structure used by Maori landowners to
administer their land interests. The Te Ture Whenua Maori Act has five categories
of trust and these are subject to the general law of trusts. Each trust requires:
» land vested in the trust to be trust property
» a trustee to have control of the property
» beneficiaries.
The most common category of trust is the Whanau trust; more than 15 000 have been
set up (Table 2). Its main use is to maintain family interests in land by halting further
succession and fragmentation of title. Each trust is established with family and extended
family members, who are the beneficiaries of the trust. Under the Act a Whanau trust’s
purpose is to promote the social, cultural and economic welfare of the descendents of
original owners named in the trust order.
The category of trust that administers the largest area of Maori land is the Ahuwhenua
trust (which translated means ‘fruits of the land’). Under an Ahuwhenua trust the land,
along with any encumbrances the title carries, is vested in trustees. Many commercial
provisions available to incorporations are now available to Ahuwhenua trusts; so there is
little to differentiate the commercial activities of the two structures. For example, both
structures can establish a subsidiary limited liability company to gain greater commercial
freedom and credibility.
In recent years the court has been striving to find practical solutions that will advance
landowner interests. This is crucial when landowners feel isolated from the decision-
making process and are unable to voice their opinion or influence activities.
The court has also been more proactive in facilitating the better use of Maori land by
improving the quality of information available to landowners. This work includes the
Maori Freehold Land Registration Project, which aims to register all outstanding Maori
freehold land titles. Currently, less than 60 per cent of Maori land titles are registered.
Registration will enable Maori landowners to obtain a provisional or fully registered title.
A provisional title enables landowners to use their land as collateral, which increases
development options.
The court has also established Maori Land Online (Ministry of Justice 2005). This gives
users access to up-to-date information about blocks of land or incorporations and trusts,
including ownership structure, titles, names of trustees or committees of management,
and lists of shareholders.
Under Maori land legislation, all beneficiaries of incorporations and trusts must be treated
equally. This means that Maori with shares in incorporations and beneficial interests in
trusts, regardless of residence, have the same voting rights at annual or special owner
meetings. This creates tensions, as resident landowners see themselves as entitled to
have more say.
A related issue is the rights of minor shareholders relative to major shareholders. Under
the one-vote-per-person decision-making procedure commonly used by Maori trusts and
incorporations, high numbers of minority shareholders tend to out-vote small numbers
of majority shareholders (Maori Land Tenure Review Group 2006). An inherent bias in
governance is therefore created towards the small (or minority) interests. The effect is
a conservative, risk-averse attitude toward development proposals.
Under the poll vote system the interests of minority shareholders (incorporations) or
beneficial owners (trusts) bear little weight compared with the interests of a small
number of major shareholders or beneficial owners. Many larger incorporations and
trusts have applied to the Maori Land Court to alter their constitutions and trust orders
so that major decisions requiring owner approval are supported by the wishes of major
shareholders.
The challenge for trustees and committee members is to balance sociocultural, economic
and environmental objectives. The cultural values of the landowning community usually
influence decisions significantly because land is a source of identity and the centre of
cultural pride. But land also plays an important role in economic advancement, particularly
as a source of capital. Economic objectives are therefore juggled alongside cultural values.
This incorporation is one of the largest in New Zealand and makes a major contribution to
the local community (Aotea Maori Land Court District). One reason for the restructure was
recognition that 97 companies listed on the New Zealand stock exchange were smaller
than Atihau-Whanganui Incorporation. Put another way, the incorporation is larger than
60 per cent of listed companies (Atihau-Whanganui Incorporation 2006; Committee of
Management, Atihau-Whanganui Incorporation 2007, pers. comm., 30 March; Ministry
of Maori Development & Federation of Maori Authorities 2004, pp. 56–9).
Atihau-Whanganui Incorporation was formed in 1970 and is located in the Aotea Maori
Land Court District. It has a total land area of 40 800 hectares. As of 2007 it controls around
20 000 hectares (the remainder being in leases) and has around 40 employees.
The incorporation’s aim is to resume all leased land when the leases expire. The incorporation
has approximately 6500 shareholders and its core business activity is sheep and beef
farming. It also has around 2000 hectares in commercial forestry.
In 1995 the incorporation produced its first strategic plan and in 2003 it restructured
and created three subcommittees—farming, forestry and finance (including general
administration). In 2006 the incorporation received a $3 million regional development grant
to buy out the lease of a dairy farm and pay for improvements. In the same year it employed
a chief executive officer, who started in May 2007. This officer is a shareholder and has
extensive commercial experience in New Zealand and internationally. A key function of the
chief executive officer is to develop investment strategies to consolidate the current farming
business and investigate alternative investments to diversify the incorporation’s activities.
Alternative legal structures such as limited liability companies are being used more
by Maori trusts and incorporations to separate landownership from business activity
(Box 4). In recent years the Maori Land Court has actively promoted this type of
company structure.
Waerenga East and West Incorporation was the first incorporation in the Te Arawa region
(Tairawhiti Maori Land Court District). It has a land area of 554 hectares and approximately
800 owners. In 1996 the decision was made to form a dairy production joint venture with
a neighbouring incorporation—Pukahukiwi Kaokaoroa Incorporation—with a land area
of 214 hectares. As a result, in 1996 Waerenga-Pukahukiwi (Wae-Kiwi) Ltd was formed as a
dairy company milking around 1500 cows a year.
While land titles remained with the incorporations, the company’s assets included grazing
leases, part ownership of the dairy herd and ownership of the milking shed. A board of
directors was formed with representatives from both incorporations and an independent
director was appointed. A sharemilker was employed to produce milk for Wae-Kiwi. The
joint venture was an innovative way to raise capital on securable assets (overcoming the
constraints of using Maori land as collateral) and increase the assets and cash flow of both
incorporations. Just as importantly the joint venture expressed an important Maori value—
tribal connections (whanaungatanga)—because it led to the building of relationships with
the landowners of the neighbouring block.
Whangara B5 Incorporation is in the Tairawhiti Maori Land Court District and controls
2960 hectares in sheep and beef production. Its neighbour, Pakarae Incorporation, has just over
2000 hectares. In 2006 a partnership was formed between the two incorporations to form a
limited liability company—Pakarae-Whangara B5 Partnership. As in the Waerenga–Pukahukiwi
case a board was formed with provision to appoint independent directors. This was a key factor
in gaining support for the partnership from shareholders of both organisations. Te Puni Kokiri
covered part of the costs of forming the partnership and has promoted the structure of the
new company and the process of forming the partnership within the region.
Access to credit has improved. However, changes to legislation and greater political
will are still required to achieve, for example:
» better information and education among owners and land managers about
the availability of finance and the requirements of financial institutions
» more facilitation services to help shape proposals
» clear definitions of the powers of trusts and incorporations to provide security for debt
» greater financial cooperation from third parties, such as other Maori authorities, who
could assist in co-funding or in developing business cases and lending proposals.
Some Maori incorporations have demonstrated how venture capital can be raised
by establishing a limited liability company and management regime that meets the
requirements of financial institutions (Box 4). They have also shown how a commercial
venture can succeed when decisions are made on a sound commercial basis as well as
traditional cultural values.
146 MAKING LAND WORK » VOLUME TWO CASE STUDIES
In recent years there have been instances where larger Maori incorporations and trusts
have lent development funds to a smaller structure or become an equity partner. The
‘big brother funder’ approach is based on the rationale that Maori may be better able
to detect default risks than ‘mainstream’ financial institutions. Also the cultural stigma
resulting from defaulting on payments to a Maori lender (loss of mana) may have greater
disciplinary influence than would a purely commercial debt (New Zealand Institute of
Economic Research 2003, p. 88).
The Office of the Maori Trust is integral to the institutional framework available to help
Maori manage and derive benefit from their lands (Maori Trustee 2005; 2007, pers.
comm., 18 May). The office currently administers 135 400 hectares valued at approximately
NZ$180 million (Sanderson & Goodchild 2003). In recent years it has initiated projects
to improve access to and use of Maori land by owners. This has included facilitating the
process of obtaining landowner approval to establish a joint venture kiwifruit orchard in
Te Kaha (Office of the Minister of Maori Affairs 2006, p. 7) and arranging legal access to
Maori land in Kawhia and Pukeatua (Maori Trustee 2005, p. 10).
148 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Lessons
lesson
Programs of registration that are not well accepted or inaccurately represent
2 true ownership may lead to problems that continue for decades and even
centuries.
Maori land registration saw the transfer of the majority of customary land into
deeds of title during the registration period in the 1800s and early 1900s, resulting in
widespread land loss and alienation. The individualisation of Maori title has caused
major problems for landowners and administrators. It has produced fragmented titles,
absentee owners and conflicts between major and minor shareholders. It has also resulted
in registration records becoming obsolete as people fail to update them. There are now
two million owners recorded across 26 500 titles. Individual title and ownership of tribal
lands is unacceptable to many Maori, who have explored ways to revert to ‘group’ or
‘collective’ ownership.
lesson
Training programs or advisory services are needed for managers of
Maori landownership structures have evolved, with incorporations and trusts becoming the
vehicles for reversion to group ownership. Improvements have been made so that they are
being used effectively as mechanisms for group ownership. But these structures have had
limitations, a major one being their managers’ lack of skills to adequately govern, manage
and administer the structures.
7 Maori landownership and land management in New Zealand 149
lesson Weaknesses in the quality of land information have adversely affected policy
5 development and had a negative impact on investors.
For many Maori, quality land information has been difficult and expensive to obtain.
For the past two decades commentators have highlighted the importance of accurate
and reliable land information for investment and policy development. Recognising this,
the New Zealand Government—through agencies such as Te Puni Kokiri and the Maori
Land Court—has invested heavily in recent years to improve the accuracy of information
on Maori land that is available to the general public and landowners. Even so, there is
still debate about the actual area of Maori land. Harmsworth (2003) puts it at 800 000
hectares or 60 per cent of the current estimate of the Maori Land Court.
References
Atihau-Whanganui Incorporation 2006, Annual General Meeting 2006, Atihau-Whanganui
Inc., Whanganui.
Boast, R, Erueti, A, McPhail, D & Smith, NF 2004, Maori land law, 2nd edn, LexisNexis,
Wellington.
Durie, M 2005, Nga tai matatu: tides of Maori endurance, Oxford University Press, Melbourne.
Harmsworth, G 2003, Maori perspectives on Kyoto policy: interim results—reducing
greenhouse gas emissions from the terrestrial biosphere (C09X0212), research report
no. LC0203/084, Landcare Research, Palmerston North.
Kawharu, IH 1977, Maori land tenure: studies of a changing institution, Oxford University
Press, London.
Kingi, TT 2005, ‘Where are all the Maori farmers?’, Journal of the New Zealand Institute
of Primary Industry Management Incorporated, vol. 8, no. 2, pp. 14–16.
——2006,’Indigenous agricultural commodity producers: case studies from New
Zealand, Canada and Fiji’, proceedings of the International Indigenous Business and
Entrepreneurship Conference ‘Fostering Indigenous Entrepreneurship’, Albuquerque, New
Mexico, 19–22 June, viewed August 2007, <http://iibec.mgt.unm.edu/proceedings.asp>.
McHugh, P 1993, ‘A role for the Maori Land Courts in the resolution of Waitangi claims?’,
Journal of New Zealand Law, June, pp. 229–32.
Maori Land Court 2006, ‘Introduction to the Maori Land Court’, document presented
to the Hui Taumata Land Tenure Review Group, Wellington.
Maori Land Tenure Review Group 2006, Maori land tenure review 2006, Hui Taumata
Action Taskforce, Wellington.
Maori Trustee 2005, Report of the Maori Trustee, viewed 1 May 2007,
<http://www.tpk.govt.nz/about/structure/mto/annual_rep.asp>.
Ministry of Maori Development & Federation of Maori Authorities 2004, He Mahi,
He Ritenga He Whakatinana i te Turua Po, Te Puni Kokiri, Wellington.
Ministry of Justice 2005, ‘Update on the Maori Freehold Land Registration Project’,
Te Pouwhenua (Te Kooti Whenua Maori, Wellington), issue 31, December, pp. 3–6, viewed
August 2007, <http://www.justice.govt.nz/maorilandcourt/pdf/Te-pouwhenua-31.pdf>.
New Zealand Institute of Economic Research 2003, Maori economic development: te ohanga
whanaketanga Maori, New Zealand Institute of Economic Research, Wellington.
Office of the Minister of Maori Affairs 2006, Maori land development: the way forward,
Wellington.
Sanderson, K & Goodchild, M 2003, Review of the Maori commercial asset base—2001:
report to Te Puni Kokiri, no. 4031, BERL, Wellington.
7 Maori landownership and land management in New Zealand 151
Statistics New Zealand 2007a, Census 2006: QuickStats about Maori, viewed 30 April
2007, <http://www.stats.govt.nz/census/2006-census-data/quickstats-about-Maori
/2006-census-quickstats-about-Maori -revised.htm>.
——2007b, Top 20 most requested statistics, viewed 30 April 2007,
<http://www.stats.govt.nz/top-20-stats.htm>.
Te Puni Kokiri 1996, Maori Land Information Database, Ministry of Maori Development,
Wellington.
——1998, Maori towards 2000, Whakapakari: Tatauranga Taupori no. 1, Ministry of Maori
Development, Wellington, viewed 30 April 2007, <http://www.tpk.govt.nz/Maori /
population/2000trend.pdf>.
White, P 1997, ‘How do Maori landowners judge whether the management of Maori
incorporations is successful?’, research report, Massey University, Palmerston North.
153
Reconciling customary
ownership and development
8
Absentee landowners in the Cook Islands:
consequences of change to tradition
A snapshot
Absentee landowners in the Cook Islands:
consequences of change to tradition
About 90 per cent of Cook Islanders do not live in the Cook Islands.
Yet many of these people retain rights over land even though some
of these absentee landowners were born overseas and have never
set foot in the Cook Islands. This is due to changes to customary
practice, under which rights to land were largely contingent
upon the person being resident on the land and a participant in
the community. The change occurred when customary land was
converted and registered as native freehold and when a legal ruling
gave all children the right to inherit equally. This has also resulted
in other difficulties associated with both fragmented ownership
of land and substantial cross-ownership.
Contents
» Introduction 156
» Customary systems for handling the land rights of absentee owners 159
» The impact of the expatriate rental market and the Unit Titles Act 165
» Lessons 168
Periodically review and adapt land tenure laws 168
Legislate effectively for absentee landowners 168
Avoid fragmented title to customary land 168
Establish procedures to address land fragmentation, absentee ownership and development 169
Address land issues facing people moving to commercial centres 169
» Bibliography 170
156 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Introduction
Cook Islanders are confronting a problem common to many countries in the Pacific—
their land tenure arrangements are not evolving quickly enough to meet the rapidly
changing nature of their societies.
The tenure systems of the Cook Islands and most other Pacific island countries evolved
to meet the needs of societies in which:
» population numbers were relatively stable
» people depended on land for most subsistence
» most people spent most of their lives in one location
» land was not monetised or traded.
The social and economic context in which these tenure systems operate has changed
radically, but few systems have adapted to adequately provide for the current or future
needs of the people. This is particularly so in the smaller nations and territories, including
the Federated States of Micronesia, French Polynesia, the Marshall Islands, Palau, Niue,
Samoa, Tonga and Tuvalu, where people migrate to take advantage of opportunities abroad.
The Cook Islands provides a classic example of social and economic conditions changing
faster than its tenure systems. There are an estimated 130 000 Cook Islanders, the vast
majority of whom retain traditional rights to their customary lands. The problem is that
about 90 per cent live or reside in other countries. Of those who continue to live in the
island group, many do not live on islands where they have inherited rights.
Of those who live outside the country but retain rights to ancestral land in it:
» 65 000 live in New Zealand, most migrating since 1945
» 40 000 live in Australia, most migrating during or after the 1980s
» 9000 live in Tahiti, most being ancestors of people who migrated
in the late 1800s, the early 1900s or the 1940s
» others are scattered, mostly in Europe, Asia and the Americas.
The rights of these absentee landholders are causing social and economic problems
for the Cook Islanders who live in their country. The problems are exacerbated by the
fragmentation of title, under which hundreds of people have rights to blocks of land no
bigger than an average house block.
From some of these problems can be drawn lessons for other Pacific island countries
facing similar issues. The main focus of this case study is Rarotonga, the largest island
in the Cook Islands. It has an area of 67 square kilometres, 28 per cent of the island
group’s total land mass, and generates probably well over 90 per cent of the country’s
formal economic output. The main industries—tourism, international finance and
government—are based there.
8 Absentee landowners in the Cook Islands: consequences of change to tradition 157
In 1823 the first mission arrived in the Cook Islands. In 1892 a centralised government
formed under a British protectorate. The events that led to major changes in land systems
began in 1901 when Britain handed the administration of the Cook Islands to New
Zealand; it attached several conditions, two of which are relevant to this study.
1 There would be no sale of land because Britain was dissatisfied with the New Zealand
Government’s handling of Maori land. This is why all Cook Islanders, including those
living abroad, have land rights.
2 All Cook Islanders must automatically become New Zealand citizens. This is why
so many Cook Islanders live in New Zealand, where incomes are higher and where
modern facilities are available. In 1906 an agreement between Australia and New
Zealand to allow citizens to move freely between the two countries meant Cook
Islanders could live in Australia, where incomes are higher than in New Zealand.
In 1902 New Zealand set up a Land Court for the islands. The court’s responsibilities were to:
» resolve land disputes and record who owned land
» reduce chiefly powers over land
» increase the commercial productivity of the land available to Cook Islanders
» identify land surplus to indigenous needs to lease to Europeans to generate income.
The last responsibility reflected the New Zealand Government’s belief that the native
population was dying out—in 1830 there were 7000 Rarotongans; in 1900 only 1600—and
its expectation that Europeans would farm tropical produce for export to New Zealand.
The authorities adopted a policy of leasing land to Europeans while leaving ownership
in the hands of Cook Islanders. Native land in the Cook Islands cannot be bought or
sold, except to the government for public purposes. This is the case whether the land is
registered as native freehold title or is land managed under customary practices.
158 MAKING LAND WORK » VOLUME TWO CASE STUDIES
In 1957 the Land Court, sitting as an Appellate Court, made a ruling that would
significantly affect land tenure in the Cook Islands. It ruled that all children inherit equally
in all registered native lands of all ancestors. In effect this meant that every person would
inherit an equal share in all the lands of both parents, all four grandparents, all eight
great-grandparents and so on. The court, conducted by visiting judges who knew neither
the language nor the culture, based its decision on ‘the principle of Maori custom that all
children inherit equally’ (Appellate Court Minute Book 3, p. 10) when no such custom ever
existed in the Cook Islands. The ruling, which became binding on all Land Court decisions
thereafter, legally destroyed custom on registered native lands and resulted in ever-
increasing fragmentation of ownership. Many now accept this error as ‘custom’.
The growth in population and the decline in the area of available land have also had an
impact on land tenure. In 1902, when the Land Court was established, the population
of the Cook Islands was almost half of the current resident population of about 15 000.
While the population continues to grow the area of accessible land is shrinking as result
of infrastructure developments such as roads, airports, ports and other public facilities,
as well as commercial developments. With 90 000 tourists arriving each year, mostly in
Rarotonga, tourism places major demands on available land and infrastructure.
The other major issue has been the mobility of the population, both between islands and
internationally. In the early 1900s the only way to arrive or leave the Cook Islands was by
ship, and sailings were few. Today, because Cook Islanders have more transport options
and free entry to Australia and New Zealand, and visa-free entry to Europe, the United
States and much of Asia, they are the most mobile of the Pacific islanders—as evidenced
by the 90 per cent living and residing in other countries.
As a result of all these influences, there is now no consensus on what constitutes custom
and how Cook Islanders should deal with land tenure issues confronting them, particularly
the combined impact of absentee landowners and fragmented land rights.
The Cook Islands Act of 1915 states that Cook Islands custom shall apply in relation to land.
Although the Act remains, the term ‘custom’ is still undefined. This is probably just as well
because it varies between islands and over time. High chiefs (House of Ariki 1970, 1977) and
other chiefs (Koutu Nui 1991) have attempted to define custom, but a common definition
has never been adopted by the government or the Land Court.
8 Absentee landowners in the Cook Islands: consequences of change to tradition 159
Other factors that were traditionally taken into account in handling the rights of absentee
landowners included occupation, adoption, seniority, place of residence, effort invested in
the land and whether appropriate community obligations had been met. These ways of
handling land tenure have all been eroded (though not totally) in recent decades.
160 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Almost all valuable land in the Cook Islands is registered as native freehold title, including
most of Rarotonga. On some islands, where land has not been surveyed or registered, land
management and ownership largely follow customary practices.
The fragmentation of native titles has opened the way for the powerful, the
knowledgeable and the rich to acquire disproportionate areas of land through occupation
rights, leases or other means to the disadvantage of relatives. No government since
independence in 1965 has successfully addressed the issue of fragmented titles brought
about by Appellate Court judgement in 1957.
The right to occupy land is also influenced by absentee landowners. The allocation
of formally recognised occupation rights (discussed later) requires the approval of
50 per cent of landowners ‘normally resident’ in the Cook Islands. However, written
proxy votes usually count, including those from non-residents.
8 Absentee landowners in the Cook Islands: consequences of change to tradition 161
The second block contained 14 house sites, averaging 0.2 of a hectare each. In its original
determination, the Land Court recorded 68 owners for the 14 sections—on average,
fewer than five owners a site. By 2005 these 14 house sites had 636 registered owners
or an average of 45 each, but the registers were not up to date and staff still had many
successions to deceased owners to record, some dating back several years. Moreover, some
registered owners had died but successors had not claimed their rights before the Land
Court. Today, if registers were up to date and if all those entitled to succeed had made
their claims, there might be 70 or more owners for each house site. Indeed, following the
Appellate Court ruling that all descendants succeed equally, each house site would also
have hundreds of extra latent owners who will emerge as time passes.
In practice, co-owners of any section have to evolve an internal system to allocate use,
as most sections have only one or a few sites suitable for houses. This requires family
meetings, which are sometimes prolonged (even over years) and difficult because of the
large numbers involved and the number of family members living in other countries.
Disputes or fear of disputes over title or allocation are common. In addition, rental income
is paid in tiny shares to all owners, many of whom might live overseas. Therefore, the
resident Cook Islanders, who have more of the power to grant leases, have a reduced
incentive to do so.
These circumstances result in land being underused, with perhaps thousands of plots
of land unused. Investors seeking to gain secure access to land must work against
these barriers.
Cook Islanders cannot legally inherit land rights until their parents die, but parents or
family can allot land through occupation rights, partition orders, vesting orders or leases
at any time. This is regularly done for housing, the most common land use. Nevertheless,
because the ownership of land is very fragmented, many young people face difficulties
acquiring suitably sized allotments—even in families with adequate land area.
162 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The law does allow co-owners to consolidate their interests. One owner can give up his
or her rights in one or more plots in exchange for rights in other plots. But this is seldom
done as it is complex and cumbersome with high legal costs and has to be done every
generation. There is provision for absent co-owners who do not intend to return to give or
sell their rights to co-owners who live in the Cook Islands. (In New Zealand Maori land law,
this is compulsory for highly fragmented lands.) This can be done by using vesting orders,
and it is legal for a co-owner to accept money in return for vesting his or her rights to
another Cook Islander.
The Land Facilitation of Dealings Act allows co-owners to use a trust to hold and manage
a plot of land for the benefit of all owners, but this is rarely done. Administrative costs,
politicisation of small plots, and expensive audits may make this option feasible only
where there are large investments involved, such as hotels, supermarkets and ports.
As already noted, a common way absentee owners maintain an interest in land is through
occupation rights. Occupation rights allow co-owners to give a plot (usually 0.25 acre
or 1000 square metres) to one of their number for growing commercial tree crops, for
building a home to live in, or for operating a small business. Many who are planning to
emigrate try to get an occupation right before leaving so they have a plot to return to,
even though few come back to live. Although occupation rights can be granted to any
Cook Islander they are overwhelmingly granted to close relatives who usually co-own the
land. There is no legal bar to paying for an occupation right, although no cases of doing
so were uncovered during the research for this study.
Occupation rights are perpetual and can be inherited, subject to continued occupation.
In law, if the holder has not built or otherwise developed land after seven years, the
original owners can claim it back. This does not happen often, however, which is why
so many people who live abroad hold rights to land for long periods.
8 Absentee landowners in the Cook Islands: consequences of change to tradition 163
Survey work undertaken for this case study found that, of 87 occupation rights in two
districts (Ruatonga and Arerenga), 53 were held by Cook Islanders living in other countries
and, of 47 leases, 32 were held by people overseas. The extent of absentee owners
using occupation rights can differ significantly, however, from island to island. Leasing
and the granting of occupation rights generally occurred later in the district of Tikioki
than in other regions, and family leaders were stricter about granting leases or rights
to absent landowners. In Tikioki, of 108 occupation rights, only 20 were held by people
living outside the village or in other countries. Of the 51 leases in Tikioki, only four were
held by landowners living outside their village, but they were still in the Cook Islands.
Although landowning families can legally reclaim lands subject to occupation rights
if the holders do not use the lands, many are too embarrassed to do so. Some holders
of occupation rights allow relatives to plant on their land until they return, to dissuade
others from trying to acquire it. Most want to retain the right to return or to pass their
rights to their descendants. This reduces the amount of land available for development
by those outside the family, but that is not considered a problem by most Cook Islanders
because land is more highly valued as a source of identity and confidence. The loss of land
by indigenous people in Australia, Fiji, Hawaii, New Caledonia, New Zealand and Tahiti is
constantly referred to as a reason why Cook Islanders should retain land rights.
This case study found that many Cook Islanders felt that long-term absentees who hold
land rights pose an enormous problem because it causes constant acrimonious and
expensive family disputes over succession. Those who felt it was not a problem seemed to
have well-organised extended families, with leaders who allocate land only to residents or
absentees they believe will return to use the land. Some did not have an issue with people
holding a lease or occupation rights emigrating as long as they arranged for relatives
living in the Cook Islands to care for the land until they return. This group opposes legal
restrictions on the rights of absentees, believing land tenure is the responsibility of the
extended family.
164 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Others are content that lands are tied up in legal or family issues, or held by Cook Islanders
living elsewhere. They believe this keeps land from being leased to non-citizens who often
have higher incomes and can bid up the prices of leases, making it more difficult for Cook
Islanders to take out leases.
Some families feel that having the co-owners living in other countries is not a problem,
provided they accept the customary view that land decisions lie with those at home and
that if they return they will be allocated a house site only if there is sufficient land. This
view probably prevails more in most outer islands where population is declining and
economic growth is limited. But this is also the view held by many who live in Rarotonga,
where competition and prices for land are high. This has led to a number preferring to
legally constrain the rights of absentee landowners.
As part of this study, 139 Cook Islanders residing in Auckland, New Zealand, were
interviewed at church and community gatherings and individually. Of those interviewed,
95 felt their land rights should never be affected by how long they stayed away. Only
14 of the 139 felt that those who are settled in other countries should be prevented from
holding land rights. Seventy-two expected to return to live in the Cook Islands, 41 did not,
and 26 were unsure. However, in the 1950s almost everyone who left intended to save
money and return, although very few did so. This is true of migrants in many parts of the
world. There are migrants who do not intend to return to live in Cooks Islands but who
intend to retain land there for the family. This group rents out their land until a family
member chooses to move there. Of those who have lived in New Zealand for more than
20 years, only 20 per cent said they may return to the Cook Islands to live or retire.
Of the 139 interviewed, 110 wanted to give, lease or sell their rights to relatives in the Cook
Islands who will use the land. Even so, 47 per cent of these people wanted this to be a
conditional, temporary arrangement. This view was more prevalent among those who had
been absent 20 years or more. Nevertheless, almost all wanted to retain their basic rights
as a family heritage, as security for mortgages, or for tourist accommodation.
8 Absentee landowners in the Cook Islands: consequences of change to tradition 165
Another factor increasing the monetary value of land is the Unit Titles Act 2006, which
allows subdivision of house sites, hotels, apartments or office blocks. Almost all lessees
of the resulting buildings are foreign nationals, and this is likely to lead to more of the
most valuable residential land of Rarotonga and Aitutaki being leased to non-resident
non-citizens. While some non-resident landowners and some big landowning families
prefer this because it benefits lessors, resident Cook Islanders often resent the way this
forces up rental and lease prices, and diminishes their chances of finding affordable
accommodation. It also results in more foreign ownership of property in the Cook Islands.
A generation ago outer islanders coming to Rarotonga who needed land could obtain it by
lease, occupation right, or permission from landowners. Now few can afford land. For this
case study, valuers estimated the average cost of the 60-year lease of a 1000 square metre
house site to be between NZ$45 000 and NZ$75 000. The basic wage in the Cook Islands is
about NZ$10 000 a year. To help address this problem some house sites are being reduced
to 500–800 square metres, which does not provide much room for a home garden. The
valuers also estimated that a house site with a good view would command between
NZ$65 000 and NZ$100 000 and a beach site NZ$250 000.
Acquiring leases is difficult, time consuming and expensive. Businesses can afford to
engage lawyers and consultants to locate and lease land and pay higher rates for it.
Most Cook Islanders could not afford to do this on their own. In Rarotonga, unless land
is inherited it can only be leased for a maximum of 60 years. This means that Cook
Islanders who do not have blood rights to land in Rarotonga, or who have rights that are
too fragmented for practical use, find it difficult and expensive to access land, either for
farming or for residential purposes. Difficulties in accessing land in Rarotonga, where
jobs and other opportunities are more plentiful than elsewhere in the Cook Islands,
have resulted in more outer islanders migrating than Rarotongans.
166 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Once the Land Court approves a lease (almost always for the maximum of 60 years),
it is considered secure. The banks—Bank of the Cook Islands (government-owned)
and ANZ and Westpac (privately owned)—lend readily for financially viable purposes.
Housing is the most common reason for lending, followed by small commercial
developments and current consumption.
Loans to residents who build or intend to build but who then migrate and default on
repayments have been a significant problem at times, especially when the Cook Islands’
economy collapsed in 1995–96 and more than half of government staff were laid off.
Mortgagee sales took place, often to expatriate residents, but no numbers are available
on these sales. Usually the banks try to get a relative to take over the property and
the mortgage.
In Samoa the matai (the person delegated chiefly authority) administers land for the
extended family. If a person emigrates the matai has the authority under custom to
reallocate the land for farming (but not necessarily for housing) within the family.
However, as emigration and the resident population continue to increase, and as pressures
on land in Samoa build due to the demands for greater infrastructure and economic
development, the problems related to absentee landowners will mount.
In Tonga, land is individualised on perpetual leases. When the government cancelled the
leases of absentee landholders who took out foreign nationality this was challenged in
court. Even though the Constitution states that only Tongans can hold land the court
ruled that ‘Tongan’ is designated by ethnicity not citizenship.
Kiribati has a traditional rule that anyone absent for seven years or more can be treated
as ‘lost at sea’ and their land reallocated to close relatives. But this has fallen into abeyance
in many islands.
8 Absentee landowners in the Cook Islands: consequences of change to tradition 167
Niue’s tenure system is similar to that of the Cook Islands. In 1973 its government
introduced legislation to cancel the land rights of anyone who had been absent for more
than 20 years. However, Niue people depended heavily on remittances from relatives
abroad. Absent relatives eventually sent a large delegation to Niue to protest and the
government’s proposal was dropped. However, today Niueans no longer depend on
remittances and Premier Young Vivian announced recently that the country was again
exploring ways to limit the rights of long-term absentees and of those born overseas.
The Premier said he would prefer to work this out through mediation than through
long-term court action.
Lessons
When the Land Court was established in 1902, almost all Cook Islanders lived in their
country. When the Appellate Court ruled in 1957 that all children shall inherit equally, most
lived in the Cook Islands. Today, about 90 per cent of Cook Islanders live in other countries
and this is unlikely to change. Yet the land tenure system has not evolved to accommodate
these rapidly changing circumstances.
Traditional land practices had a number of methods for dealing with absentee
landowners, with favour given to resident landowners. Giving favour to resident
landowners promotes better decisions about land use, because residents often have a
greater interest in managing the land in a sustainable manner than do emigrants. As
customary authority erodes and increasingly land becomes part of the formal economy,
the power of absentee landowners needs to be controlled through formal legislation.
Although the Land Facilitation of Dealings Act has mechanisms to control the power
of absentee landowners, these rules have not been effective.
168 MAKING LAND WORK » VOLUME TWO CASE STUDIES
lesson Great care needs to go into designing a registration system for customary land
3 to ensure that it does not lead to fragmentation across generations.
lesson
Fragmented land titles are a risk associated with registering landownership at
4 the individual level when the customary system manages ownership decisions
at the group level.
lesson
Without effective procedures to transfer land between co-owners, especially if
If there is a shortage of land in urban areas and a potential for skilled labour
lesson to emigrate, the state needs to design mechanisms to provide access to low-
7 cost land, especially for residential purposes, for people wanting to move to the
commercial centres.
In the Pacific, accessing land in commercial centres comes at considerable cost. In the
Cook Islands people migrating to Rarotonga face difficulties accessing land for residential,
business or farming purposes. Elsewhere in the Pacific, the difficult urban land market
has resulted in informal settlements nearby; in the Cook Islands the result has been more
people emigrating from the outer islands, mainly to New Zealand.
170 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Bibliography
Baltaxe, James 1975, ‘The transformation of the Rangatira: a case of the European
reinterpretation of Rarotongan social organization’, PhD thesis, University of Illinois,
Champaign.
Browne, Tina Pupuke 1994, ‘Traditional rights and customary usage in the Cook Islands’,
in Ron Crocombe & Malama Meleisea (eds), Land issues in the Pacific, Centre for
Pacific Studies, University of Canterbury, Christchurch.
Crocombe, Ron 1969, Land tenure in the Cook Islands, Oxford University Press, Melbourne.
——1976, A discussion paper relative to the current Land Policy Review in the Cook Islands,
Premier’s Office, Rarotonga.
——1987, ‘The Cook Islands: fragmentation & emigration’, Land tenure in the Pacific,
University of the South Pacific, Suva.
——1988, ‘Land courts’, Pacific courts & legal systems, University of the South Pacific, Suva.
——2005, ‘Some basic elements of the tenure situation in the East Ngatipa Tapere in
October 2005’, University of the South Pacific, Rarotonga.
——2007, ‘Land tenure in a test tube: the case of Palmerston Atoll’, in A collection of stories
of Palmerston Atoll, Rarotonga, pp. 157–92.
David, Rima 1984, ‘The Cook Islands: occupation rights’, in Ben Acquaye & Ron Crocombe (eds),
Land tenure & rural productivity in the Pacific islands, University of the South Pacific, Suva.
Jacob, Teariki 1983, ‘The Cook Islands: public use without acquisition’, in Peter Larmour,
Ron Crocombe & Anna Taungenga (eds), Land, people & government: public lands policy
in the South Pacific, University of the South Pacific, Suva.
James, Margaret 1986, ‘Cook Islands: approaching equality’, Land rights of Pacific women,
University of the South Pacific, Suva.
Hanson, Alan 2007, ‘The land belongs to everyone: the unstable dynamic of unrestricted
cognatic descent in Rapa, French Polynesia’, Journal of the Polynesian Society, vol. 116, no. 1,
pp. 59–72.
House of Ariki (High Chiefs) 1970, Maori customs approved by the House of Ariki, Rarotonga.
——1977, Second recommendation of the House of Ariki on ancient customs to the Legislative
Assembly, Rarotonga.
——1977, Recommendation of the House of Ariki on the Koutu Nui paper 1977, Rarotonga.
Koutu Nui (House of Chiefs other than Ariki) 1991, A report by the Koutu Nui on lands &
traditional titles of the indigenous people of the Cook Islands, Rarotonga.
Mataio, Tere 1984, ‘Cook Islands: a perspective on land & productivity’, in Ben Acquaye & Ron
Crocombe (eds), Land tenure & rural productivity in the Pacific islands, University of the
South Pacific, Suva.
8 Absentee landowners in the Cook Islands: consequences of change to tradition 171
Matenga, Jeane 2006, A choice of four worlds (a set of four television documentaries on Cook
Islander migration, with some mention of land as a factor), Mana Productions, Rarotonga.
Parliament of the Cook Islands 2005, Report of the Special Select Committee established
by Parliament to review the Unit Titles Bill, Rarotonga.
Smith, Eliot, Mataio, Tere, Short, Cecilia & Tangaroa, Nikau 1996, Report of the Commission
of Enquiry into Land, Ministry of Justice & Lands, Rarotonga.
South Pacific Commission & Economic and Social Commission for Asia and the Pacific 1983,
Population of the Cook Islands, Noumea.
Vini, Nihi 1987, ‘Outer islanders on Rarotonga’, in Leonard Mason & Pat Hereniko (eds),
In search of a home, University of the South Pacific, Suva.
Dispute resolution
Case Studies
9 Mediating land conflict in East Timor 175
10 Resolving land disputes in Samoa 199
11 Settling customary land disputes in Papua New Guinea 223
175
Dispute resolution
9
Mediating land conflict in East Timor
The contribution of Susana Barnes, Research Associate, and Rebecca Monson, PhD candidate, at the
Australian National University, to the writing of this case study is gratefully acknowledged.
176 MAKING LAND WORK » VOLUME TWO CASE STUDIES
A snapshot
Mediating land conflict in East Timor
Contents
» Introduction 178
» Lessons 195
Give mediation a bridging role in resolving land disputes 195
Embed conflict mediation in land administration 195
Take advantage of no-violence agreements 195
Support mediation with effective legislation and administration 196
Use and train the right mediators 196
Institutionalise women’s roles in mediation 196
Maintain political support 196
» Bibliography 197
178 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Introduction
Pacific countries are affected by widespread disputes over customary land. In some
instances, land remains subject to customary claims because it was alienated or leased
without the involvement of traditional landowners or with the involvement of others who
claimed ownership at that time. In others, land is claimed by different ethno-linguistic
groups that have intertwined due to migration, displacement or economic development.
Because the disputes involve land—the most fundamental socioeconomic resource—they
are resistant to winner–loser models of formal legal adjudication. Where they involve
different groups, they are also resistant to local arbitration through the traditional
mechanisms that operate within groups.
In East Timor the issues underlying customary land conflict are extreme in degree
but often similar in nature to land conflicts in the Pacific. In 2000 the UN Transitional
Administration introduced a mediation model to resolve conflicts involving customary
land in East Timor. The model is now managed by East Timor’s Land and Property
Directorate (the Direcção Nacional de Terras e Propiedades) and implemented on a
decentralised basis by district officers of the directorate.
Despite difficult circumstances and limited resources, mediation by the directorate has
been successful in managing a number of potentially violent disputes. Of the 972 disputes
brought to the Land and Property Directorate between December 2000 and January 2006,
314 were resolved through mediation. This contrasts sharply with the poor record of East
Timor’s court system in resolving or managing land-related conflicts.
Although mediation and village-level dispute resolution is not new in the Pacific region,
mediation in East Timor is innovative and potentially useful in at least two respects.
» It involves interim no-violence agreements that may be sealed by ritual and
witnessed by traditional, government and church representatives.
» Mediation is embedded in land administration, not judicial administration.
This enables remedies not available in the courts to be used, including the sale,
lease, sharing or swapping of land, as mechanisms for resolving conflicts.
This case study reviews the mediation procedures involved in four cases of conflict in
Maliana and assesses the successes and limitations of those procedures in reducing and
resolving conflict. It also explores whether East Timor’s mediation model could be used in
a Pacific context, recognising that any type of policy or policy model requires adaptation if
it is to be adopted in another country.
9 Mediating land conflict in East Timor 179
The setting
East Timor has a land area of approximately 14 600 square kilometres. With 44 per cent of
the land mass at an incline of greater than 40 per cent, large areas of East Timor are not
cultivated. The bulk of agricultural activity is subsistence farming of corn, rice, root crops,
vegetables and fruit, although there has been some production of coffee, tobacco, cloves,
cocoa, vanilla and areca nuts. East Timor has not been self-sufficient in staple foods for
35 years, largely as a result of conflict and population displacement.
The endemic nature of land conflict in East Timor stems largely from its history of
colonisation, invasion and occupation. The first Portuguese governor of East Timor was
appointed in 1701. After almost two and a half centuries of Portuguese rule, during
World War II the Japanese invaded and occupied East Timor from 1942 to 1945. Following
the end of the war the country returned to Portuguese rule. In 1960 the UN General
Assembly nominated East Timor as a candidate for decolonisation and self-determination.
In 1974 the Portuguese administration in East Timor was reorganised, and local political
parties were allowed to be formed. This led to the establishment of two main parties:
Fretilin (Frente Revolucionara de Timor Leste) and UDT (Uniao Democratica Timorense).
On 28 November 1975 Fretilin issued a declaration of independence for East Timor. In
response, UDT issued a statement, on behalf of a group calling itself the Anti-Communist
Movement, asking for intervention by the Indonesian Government and integration of East
Timor into Indonesia. On 7 December 1975 Indonesia’s armed forces invaded East Timor
and Fretilin was driven underground as the party of resistance.
By the end of 1976 approximately 80 per cent of East Timor remained outside the control
of Indonesia’s forces. This led the Indonesian army to resettle villagers from the hinterland
into coastal ‘strategic camps’. By December 1978 Indonesian military statistics showed
that 372 921 people—as much as half of the population—were refugees in these camps.
Further military operations during the harvesting and planting seasons led to widespread
famine in the early 1980s. As a result of both invasion and subsequent famine, it is
estimated that between 160 000 and 200 000 East Timorese died between 1975 and 1981.
In early 1999, after years of intense international pressure, Indonesia agreed to allow
the East Timorese people to vote for independence. At the time of the UN-organised
independence vote in August 1999, Indonesian statistics estimated the population of
East Timor to be almost 900 000. As a result of the pro-Indonesian militia violence,
about 450 000 people were internally displaced within East Timor itself, and a further
300 000 fled or were forcibly transported across the border to West Timor.
180 MAKING LAND WORK » VOLUME TWO CASE STUDIES
There was an understandable rush to occupy habitable houses when displaced people
returned to seek shelter. This phenomenon of ad hoc occupation has also been a feature
of historical cycles of displacement in East Timor, most notably in the 1940s (Japan) and
the 1970s (Indonesia). The recent violence in East Timor also owes much to ad hoc housing
occupations as longstanding Dili residents (Westerners) have acted—in the shadow of
political and military instability—to expel ‘Easterners’ who occupied Dili houses during
the chaos of displacement and return in 1999 and 2000. These recent acts of violence
illustrate the way in which land and housing claims intertwine with assertions of local
identity, political affiliation and alleged Indonesian collaboration to produce periodic
outbreaks of civil conflict.
On 25 October 1999 the United Nations Security Council established the United Nations
Transitional Administration in East Timor (UNTAET). UNTAET did not establish a land
claims commission, or indeed any effective regulation of privately held land in East Timor.
In September 2000 it rejected a draft regulation that envisaged systematically registering
uncontested titles, beginning in Dili, while referring disputed claims to a proposed land
claims commission. As a result of this decision, the UNTAET Land and Property Directorate
(by then under the East Timor Transitional Administration) was authorised only to file and
record property claims, and was not to continue preparations for a land claims commission,
a systematic titles registration project, or indeed any form of normal land registry function.
Its major task remained supervising systems for mediating land conflicts and allocating
public and abandoned properties through temporary lease rights.
Some progress has been made on land regulation since the departure of UNTAET
and the election of an East Timorese Government. The new Constitution guarantees
rights to housing, private property and protection against expropriation without due
process and compensation. There are now also regulations governing the definition
and nature of state land, and the grant of leases over state and private land. However,
the key issue of ownership—who owns land, where and under what title—is yet to be
resolved. A law on land ownership restitution, with plans for a land claims commission,
was expected in 2006 but has been delayed by political and social instability. The lack
of legal certainty relating to land ownership in East Timor has undermined attempts to
adjudicate land conflicts, and placed the primary burden for conflict management on
local systems of mediation.
9 Mediating land conflict in East Timor 181
Mediation procedure
In 2000 UNTAET granted the Land and Property Directorate authority to mediate land
disputes. East Timorese mediators received intensive training in 2001 and 2005 but there
are no mechanisms for ongoing or recurrent mediation training. The mediators are staff
members of the Land and Property Directorate. They are paid a relatively small sum
in addition to their standard salary to undertake mediations and to cover their costs.
When they are not mediating, they perform their standard land administration duties.
The mediation activities are funded from the general budget of the Land and Property
Directorate. The directorate is a self-funding agency as a result of revenues from leases
over public land.
Both Law 1/2003 on landownership and a draft law on mediation maintain the authority
of the Land and Property Directorate to mediate land disputes. The following procedures
apply under the draft mediation law and current directorate guidelines.
1 An individual claimant or a group of complainants goes to the national Land and
Property Directorate or the district Land and Property Directorate office and requests
mediation. A dispute may also be referred to the directorate by a village head
(chefe de suko) if the parties have agreed to submit the case to the directorate.
2 The other parties to the dispute are informed of the claim. Mediation will proceed only
when all the parties to the dispute voluntarily accept the mediation, and where there
has been no previous legal or administrative resolution to a dispute regarding the
same land. Mediation will not occur if the land that is the subject of the dispute is the
property of the state, if one of the parties is an officer of government, or if the subject
matter of the dispute is considered a crime.
182 MAKING LAND WORK » VOLUME TWO CASE STUDIES
3 The parties to the dispute agree to a Land and Property Directorate mediator
or panel of mediators.
4 A directorate mediator visits the disputed land and gathers information about
the history of ownership from local informants such as the village head,
neighbours and other informed and credible witnesses.
5 The directorate mediator invites the claimant and the current occupant to separate
meetings to hear each side of the dispute. Evidence presented during mediation may
include public and private documents, witnesses and physical proof such as borders,
trees, buildings and plantations.
6 The directorate mediator may then meet with the claimant and the current
occupant together to attempt to find a solution that is acceptable to both parties.
This may occur on up to three occasions. The draft law also allows for a further
stage—mediation by a Mediation Panel of Appeal.
7 During the meetings the directorate mediator may facilitate interim agreements
relating to land use and commitments not to engage in violence pending resolution
of the conflict. The mediator will also suggest a variety of ways in which the dispute
may be resolved, including selling, leasing, dividing or swapping the land.
8 The matter will be resolved if a solution is found that is agreeable to both parties.
If the parties fail to reach agreement after three joint meetings, the dispute is
referred to the courts.
9 If a settlement is reached, a report is produced and signed by the parties to the
dispute and the directorate mediator or the panel of mediators. The settlement
is registered with the Land and Property Directorate.
10 A reconciliation ceremony may occur if the parties resolve to do so and meet
their responsibilities and costs incurred in doing so.
The draft mediation law acknowledges that traditional forms of mediation are practised,
and provides for these to continue unregulated by the draft law, provided they are not
contrary to the formal law or fundamental human rights. It also provides for the Land
and Property Directorate’s mediation process to use customary norms and processes,
provided they are not contrary to law. There are no provisions relating to the involvement
of women and there are no formal mechanisms for the directorate to monitor adherence
to mediation agreements.
9 Mediating land conflict in East Timor 183
East Timorese prefer to resolve disputes at the local (customary) level. Local mechanisms
for resolving disputes are regarded as cheaper, faster, fairer, more accessible, easier to
understand, subject to less corruption, and more likely to promote reconciliation than the
courts. There is also evidence that disputants who take land disputes directly to the courts
have penalties imposed on them or their community. This may reduce the load on the
courts, but also places pressure on disputants to use local forums that one or more parties
may wish to avoid (Timor-Leste Land Law Program 2004, pp. 48, 49, 52).
Number of disputes brought to the Land and Property Directorate and the
a
manner in which they were resolved or are being resolved for each district
Total
District Resolved Tribunal In process number
Oecussi 34 3 27 64
Aileu 22 2 16 40
Ainaro – – – –
Bobonaro 9 3 10 22
Baucau – – – –
Covalima 2 1 19 22
Ermera 12 3 3 18
Liquica 68 23 45 136
Lautem 14 4 11 29
Manatuto 1 3 3 7
Manufahi 6 – 7 13
Viqueque 8 – 49 57
a These figures (copied from a Land and Property Directorate document) correspond to the period from May 2002 to June 2007.
In 2006 mediation services were minimal due to the politico-military crisis. According to the head of Land Disputes and Mediation
at the National Land and Property Directorate office, the reason no cases were brought for resolution/mediation in Baucau and
Ainaro districts was that people in these districts preferred to use community-based mechanisms.
184 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Yet traditional community-based mechanisms for resolving disputes cannot solve all land
conflicts in East Timor. There is a need for a system that provides a compromise or ‘bridge’
between customary mechanisms and the courts. Relocated, outsider or subsidiary groups
have less access to customary mechanisms for resolving disputes than do members of the
origin group. Customary forms of dispute resolution are less likely to succeed where land
conflicts are between groups or involve individuals from different groups. The courts are
also unlikely to succeed because origin group members will resist winner–loser models of
judicial adjudication that grant ownership rights to relocated, outsider or subsidiary group
claimants. Such models of adjudication are often unable to resolve conflict where there is
little off-land employment, and the disputants are unlikely to move elsewhere should the
dispute remain unresolved.
The mediation procedures of the Land and Property Directorate ‘fill the gap’ between
local mechanisms for resolving disputes and the courts. They can incorporate traditional
institutions and reconciliation ceremonies if the parties agree. They allow disputes that
cannot be resolved to be referred to the courts. Mediation is by far the best means to
resolve conflicts that involve complex questions of social identity, group relations and
undocumented historical events. This is particularly true of conflict between groups.
There are a large number of land conflicts in East Timor that are based on claims of
dispossession by the Portuguese and Indonesian administrations. These conflicts now
involve the East Timor state because state land in East Timor is defined to include all land
owned by the Portuguese state, and all land acquired by the Indonesian administration.
As already noted, the Land and Property Directorate cannot mediate land conflicts where
one party is the state or a government official. This is a key limitation on East Timor’s land
conflict mediation model.
9 Mediating land conflict in East Timor 185
Mediation
The Land and Property Directorate office in Maliana is the district office for Bobanaro.
It has three members of staff and only one mediator, who is also the head of the district
Land and Property Directorate. Cases are usually brought to the directorate office in
Maliana after more localised attempts to resolve the conflict have failed. Sometimes
parties to a dispute bring their cases to the subdistrict administrator, who then refers the
case to the Land and Property Directorate. In other instances the police might be involved.
If the police intervene in a fight between farmers over land, they often bring the parties
to the conflict directly to the Land and Property Directorate.
Generally speaking, land conflict mediation in Maliana follows the procedures set out
in the draft mediation law and the Land and Property Directorate guidelines. According
to the Maliana mediator, it is necessary to emphasise the ‘cultural’ aspects of conflict
resolution in order to obtain the respect of the parties to the conflict. This may occur by
invoking ‘sacred’ boundaries and stressing the importance of attempts to resolve the
dispute at the family or extended family level. However, the mediator also stressed that
there is no toleration of ‘criminal acts’. If the case involves any violence the Land and
Property Directorate will refer the matter immediately to the police.
186 MAKING LAND WORK » VOLUME TWO CASE STUDIES
As with the no-violence agreements, the wording of final agreements is usually worked
out with the parties to the conflict. Only if mediation fails is there communication with
the courts. In such cases a recommendation letter is prepared for the courts by the district
Land and Property Directorate. There does not appear to be any communication with the
courts regarding successful mediations.
If cases are referred to the courts the Land and Property Directorate tries to encourage
the parties to the conflict to come to an agreement on land use while the case is pending.
For example, parties may agree to take turns to farm the land. In all cases, copies of
agreements and recommendation letters are given to the parties to the conflict, relevant
village heads, the subdistrict administrator, the district police and the national office of
the directorate. A copy is also kept at the district office of the directorate.
In the following reviews of Maliana cases of dispute and mediation, all names have been
changed to preserve confidentiality and because of the sensitivity of some allegations.
9 Mediating land conflict in East Timor 187
Abilio then made a complaint to the Land and Property Directorate office in Maliana, the
police and the local village heads on 21 February 2001. A meeting was held the next day
between the parties to the conflict, the police and community elders. One village head
suggested to Abilio that he agree to share the land with Mateus, but Abilio refused. Abilio
and Mateus ultimately agreed that neither party would farm the land while they took
their case to the Land and Property Directorate. It seems that nothing further occurred
until 2003.
Mateus filed a complaint at the Land and Property Directorate on 18 February 2003.
Abilio wrote to the head of the Land and Property Directorate on 2 March 2003 outlining
his arguments. Both letters were copied to the subdistrict administrator and the local
village heads.
The Land and Property Directorate subsequently invited both parties to a meeting where
the mediator asked each of them questions separately. The mediator told the parties that
there were a number of options available to them. For example, one could keep all the
land; both could share the land; or one could relinquish his claim to the land. The mediator
advised the parties that if they could not reach an agreement through mediation, they
should take their case to court.
Both parties demonstrated a reluctance to take the case to court and argued that it was
the other party’s responsibility to do so. In interviews for this case study, Mateus stated
that he wished to resolve the problem through mediation because he and Abilio were
188 MAKING LAND WORK » VOLUME TWO CASE STUDIES
from the same hamlet and were related through marriage, and should therefore try
to resolve the case so that neither family lost out completely. He also wanted to avoid
‘locking’ the land in a dispute and ultimately having it ‘taken back’ by the state.
The parties ultimately agreed to divide the land. On 4 March 2003 an agreement letter
was co-signed by the parties to the dispute, the head of the Maliana Land and Property
Directorate office, the subdistrict administrator and four witnesses. It provided that the
disputed land should be divided in two, with Abilio keeping the east side of the field
and Mateus keeping the west side of the field. The division of the field was calculated
according to the amount of rice produced, and it was agreed that, since Abilio had
invested more in maintaining the terracing, etc. (kabubu), he should retain slightly
more land than Mateus. The letter included an acknowledgement that the agreement
was reached together and that no person had forced or threatened the parties to
make the agreement.
After signing the agreement at the Land and Property Directorate office, both parties
went to the field to establish the border with the subdistrict administrator, the head of
the district Land and Property Directorate and the village head. The border was established
by sight (they did not have a metre at the time) and marked using stakes and rope.
It was decided that Mateus would make the mound/terracing along this agreed border.
To date there has been no further conflict about ownership and use of the land.
The case study demonstrates the manner in which ‘ordinary’ disputes over family
ownership of land can become tangled in allegations about support for or opposition
to the Indonesian occupation. For example, when Mateus tried to claim the land in 1997,
Abilio accused him of wanting to use it to feed the resistance. In his written deposition
to the Land and Property Directorate, Abilio stated that in 1999 Mateus’s father had told
Abilio to leave the land. At the time, Mateus’s father was accompanied by a man called
Luis. The suggestion in Abilio’s written deposition was that Luis was a member of the
armed resistance and his accompanying Mateus’s father was a veiled threat.
The case demonstrates how the mediation process of the Land and Property Directorate
provides an alternative to local dispute resolutions on the one hand and the state-based
court system on the other. In addition, one of the noteworthy features of this case is the
solution—dividing the land. This illustrates the flexibility of remedies available to the Land
and Property Directorate compared with normal court remedies. It should also be noted
that other parties and witnesses were present when the agreement was signed and the
land was surveyed and measured.
9 Mediating land conflict in East Timor 189
According to people from Ainuatu, during the 1960s the Portuguese administration
organised workgroups from a number of the upland villages to farm on the Maliana Plain.
As a result the land around Aireu was farmed by groups including Tuganatu and Ainuatu
villagers. When Indonesia invaded East Timor in 1975, the people of Ainuatu either fled
to the hills or to West Timor. According to local narratives of Indonesia’s invasion around
Maliana, people who fled to West Timor became associated with the Indonesians and
‘pro-integration’, while those who fled to the mountains were suspected of being Fretilin
supporters and therefore loyal to the resistance and independence.
Informants from Ainuatu allege that they were punished because of their association
with Fretilin. While this did not necessarily mean that the people of Ainuatu who had
settled in and around Maliana were displaced, it did mean that they had no control over
decisions made about ‘their’ village land. At around this time, local officials allowed people
from other villages, notably Tuganatu, to take over the land they had farmed since their
relocation by the Portuguese administration. Ainuatu people allege that the people from
Tuganatu regularly threatened them and said they would never leave the land while
Indonesia was in power.
Two further attempts at dialogue were made on 9 January and 24 March 2001. During
these meetings a number of ‘outside’ mediators were asked to facilitate the meetings.
The people from Ainuatu claimed that they were happy to come to an agreement over
the land, provided the people from Tuganatu recognised that the land under dispute
was originally farmed by people from Ainuatu. They alleged, however, that the people
from Tuganatu did not want to negotiate and continued to insult the people of Ainuatu.
The readiness of the people of Ainuatu to participate in informal dispute resolution
190 MAKING LAND WORK » VOLUME TWO CASE STUDIES
appears to have been motivated in part by their belief that they would not receive a
fair trial through the courts because a local traditional leader, with whom the Tuganatu
group are close, has relatives in the court in Dili.
This dispute was officially taken to the Land and Property Directorate in January 2002.
A memorandum of understanding between the parties to the conflict was signed on
11 January 2002. Under the memorandum the parties agreed to participate in mediation
and agreed that while this was occurring neither party would farm the land under dispute.
The Land and Property Directorate organised a number of meetings between January
2002 and July 2003 in an effort to mediate between the two parties. However, the people
from Ainuatu were not satisfied with the process and wanted more mediators to be
involved, including the local church and human rights organisations. It appears that the
people from Ainuatu did not want to discuss the land issue in isolation from other issues
of disenfranchisement that occurred during the Indonesian period.
An agreement was signed on 7 March 2003 by representatives of the Ainuatu and the
Tuganatu groups, and the local village head. The agreement provided that the parties to
the dispute:
» have the land at Aireu surveyed so that a map could be created for mediation purposes
» not engage in violence during the survey process
» send a representative from each group to a mediation meeting of the Land and
Property Directorate together with the village head, subvillage head and the
subdistrict administrator.
A group of mediators and staff from the national Land and Property Directorate office
came to interview individuals involved in the conflict in April 2003. The National Chief
of Mediation sent a letter to the head of the Maliana Land and Property Directorate on
23 July 2003 advising that the National Director of the Land and Property Directorate
had directed that the case be resolved through the courts. According to the letter, this
direction had been made due to the failure of mediation on 18 July 2003.
Jose alleged in written testimony that his family had farmed the disputed land since the
Japanese invasion. According to Jose, Pedro’s father came to work on Jose’s grandfather’s
land in 1964. When the Portuguese surveyed the land in 1966, Pedro’s father was farming
mixed vegetables in areas adjacent to Jose’s family’s field and continued to do so until
1969. Jose’s testimony alleges that in 1970 his family was unable to farm their whole plot,
so offered some of it to Pedro’s father to farm ‘temporarily’. Jose’s family asked Pedro’s
father to vacate the land in 1978 and return to farming only his own land, but Pedro’s
father refused. According to Jose, there were disputes over the land intermittently during
the 1980s and 1990s. In 2005, Pedro started planting coconut trees on the disputed land.
Jose confronted him and told him—without success—that he could not plant the trees.
In July 2006 Jose occupied the disputed land by clearing the field for rice cultivation. Soon
afterwards Pedro and his family looked for Jose in the fields, allegedly to kill him. Jose
believed that Pedro and his family would refuse to deal with the problem ‘as family’, so in
December 2006 he took the matter to the authorities.
Pedro and his family dispute Jose’s version of history. They claim to be descendants of the
original occupants of the land, that their father was responsible for clearing the disputed
land in 1966 and that prior to this the land was empty (vadio). According to Pedro and his
family, at this time the Portuguese colonial administration was surveying the rice fields
on the Maliana Plain. Although they did not distribute land certificates, Pedro and his
family claim that they still own the hoe and other tools distributed by the Portuguese
administration, proving they are the original owners of the land. When Pedro’s father
died in 1999, his land was passed to Pedro, his oldest son.
Pedro claims that neither Jose nor his family made any claim on the disputed land until
February 2007, when Pedro claims that Jose and his group began clearing and preparing
the fields for rice cultivation. Pedro asked Jose and his group to stop. On 5 February the
dispute went to the village head, but neither party would back down on their claim.
The dispute was then taken to the Land and Property Directorate.
192 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The dispute over the land appears to have first emerged in 1974, at which time the district
administrator ordered the village heads of Lariato and Bibilaro to resolve the problem.
The people of Lariato claim that the village heads resolved the dispute at this time by
agreeing to a border with witnesses from leading families of each village.
found a group of farmers from Bibilaro working ‘their’ land. For their part, Bibilaro villagers
alleged that the 1974 agreement was tainted by the two village heads’ subsequent
support for the Indonesian occupation.
An official complaint was made by a representative from Bibilaro who claimed that people
from Lariato were ‘occupying’ Bibilaro land. The mediator told the groups to return in one
week, and in the interim he talked to elders from both communities to learn more about
the history of the rice fields. It became apparent that there were a number of people who
had witnessed the establishment of the village boundary, including customary elders
from the origin group. As a result the Land and Property Directorate decided to ‘hand back’
the case to customary authorities. In the interim, the directorate facilitated an agreement
between the parties stating that:
» Lariato may continue to farm
» Bibilaro will pursue the case through legal channels
» Lariato will participate in the justice process.
These types of conflict have been greatly exacerbated in East Timor—first, by historical
cycles of dispossession and resettlement and, second, by social tensions created by the
Indonesian occupation.
The potential applicability of East Timor’s mediation model in Pacific island countries
would be enhanced by the following:
» a preliminary assessment of prevailing dispute-resolution mechanisms to ensure
that mediation by local land officials does not overlap with or undermine effective
existing systems such as village courts
» a preliminary assessment of the financial capacity of the local land office and,
if necessary, recommendations to apply revenues collected from the transfer
and registration of titles or from the lease of public land to mediation programs,
infrastructure and training
» workshops and consultations to gauge political support for mediation by local
land officials, and to advocate the value of such mediation on the basis of its flexible,
low-cost and high-potential attributes
» further research into the types of customary land conflict that respond best to
mediation by land administration officials
» mandatory obligations for mediators to have adult female members of affected
households attend and participate in the mediation process
» comprehensive mechanisms and training in relation to recordkeeping at the district,
regional and national levels of land administration, and in the court registry in cases
of successful agreements
» mechanisms and obligations to keep copies of successful agreements in the offices
of village and subdistrict officials, so as to maintain local awareness of agreements
over a long period
» inclusion of provisions relating to the legal status and (simple) enforceability of
mediated agreements in mediation laws and regulations
» integration and harmonisation of mediation by local land officials with any
mediation or alternative dispute-resolution functions adopted by the courts.
9 Mediating land conflict in East Timor 195
Lessons
lesson
There should be ongoing efforts to identify and use customary dispute-
The current land mediation system in East Timor creates a bridge between traditional
dispute-resolution mechanisms and the courts. It allows the use of ritual and customary
institutions if the parties agree, and reference to the courts if the parties are unable to agree.
lesson Mediation systems should reduce burdens on the court system and broaden
2 the options available to deal with land disputes.
lesson Where necessary, systems should incorporate provisions for interim land-use
3 agreements.
The mediation of land conflicts in East Timor is embedded in land administration rather
than judicial administration. This allows remedies unavailable in the courts, such as
selling, leasing, dividing or swapping land and establishing interim agreements to allow
the land to be used until the dispute is resolved. It also alleviates problems associated
with a lack of capacity in the court system, including minimal facilities in rural areas. Land
administration generally has greater access to self-funding opportunities than the courts.
In East Timor the Land and Property Directorate generates substantial revenues from
leases over public land.
lesson Mediation is often the most effective means of dealing with land conflict
4 between groups with potential for violence.
lesson Where necessary, mediation systems should incorporate provisions for interim
5 no-violence agreements.
The mediation system can be better suited to dealing with conflicts involving groups or
individuals from different groups than traditional dispute-resolution mechanisms. It can
manage the potential for violence in complex cases of conflict between groups. Where
mediation has involved interim no-violence and land-use agreements, it has successfully
managed a number of potentially violent conflicts, pending resolution through agreement
or adjudication.
196 MAKING LAND WORK » VOLUME TWO CASE STUDIES
A large number of land conflicts will never be resolved through mediation, not only
because of their complexity and high stakes but also because of social tensions arising
from the Indonesian occupation. East Timor needs to pass its draft law on land restitution
and establish a land claims commission to complement existing mediation mechanisms.
Also, the current system does not deal with cases where one party is the state or a
government official. This excludes most claims of dispossession by the Portuguese
and Indonesian administrations.
District land officials have local knowledge and expertise but they are more susceptible
than outsiders to allegations of bias and partisanship. There should be more resources
devoted to training programs for mediators, and more transparency and accountability
built into the mediation system.
lesson
Mediation systems should require specifically that gender issues are given
8 adequate weight and should include some requirement for female mediators
when appropriate.
The absence of women’s voices and interpretations of law from the mediation process
tends to encourage decision making that overlooks the land rights of women.
lesson Political support for mediation systems needs to be maintained, which requires
9 ongoing monitoring at the local level and effort to maintain it.
In some districts of East Timor, mediation by the Land and Property Directorate has
suffered a loss of political support since it was first established by the United Nations
Transitional Administration.
9 Mediating land conflict in East Timor 197
Bibliography
Commission for Reception, Truth and Reconciliation in Timor-Leste 2005, Final report,
viewed June 2007, <http://www.etan.org/news/2006/cavr.htm>.
De Sousa, P 2005, ‘East Timor: land management—a long way to go but we have started’,
viewed June 2007, <http://www.fig.net/commission7/bangkok_2005/papers/6_3_sousa.pdf>.
Direcção de Terras e Propiedades & ARD Inc. 2003, Report on research findings and policy
recommendations for state property administration/lease of government and private
property, viewed June 2007, <http://landlawprogram.com/web/pdf/research/
StateProperty-e.pdf>.
Fitzpatrick, D 2002, Land claims in East Timor, Asia Pacific Press, Canberra.
——2002, Restitution and dispossession: international property norms in East Timor’s new
Constitution, refereed published proceedings of the Australia New Zealand Society of
International Law Annual Conference, 17 June, Centre for International and Public Law,
Australian National University, Canberra.
——and McWilliam, A 2005, ‘Waiting for law: land, custom and legal regulation in
Timor-Leste’, in H Hill and P Thomas (eds), Cooperating with Timor-Leste: options
for good development practice, Development Bulletin no. 68, Australian National
University, Canberra.
Guasmao, X 2000, To resist is to win: the autobiography of Xanan Gusmao, ed. S Niner,
Aurora Books, Melbourne.
Monk, K, de Fretes, Y & Reksodiharjo-Lilley, G 1997, The ecology of Nusa Tenggara and Maluku,
Periplus Editions, Singapore.
Pederson, J and Arneberg, M (eds) 2000, Social and economic conditions in East Timor,
International Conflict Resolution Program, School of International and Public Affairs,
Columbia University, New York.
Simo, J 2005, Report of the National Review of the Customary Land Tribunal Program in
Vanuatu, Vanuatu National Cultural Council, Port Vila.
Taylor, John G 1999, East Timor: the price of freedom, Zed Books, London.
Tiffany, SW 1983, ‘Customary land disputes, courts and African models in Solomon Islands’,
Oceania, vol. 53, pp. 277–90.
Timor-Leste Land Law Program 2004, Report on research findings and policy
recommendations for a legal framework for land dispute mediation, viewed June 2007,
<http://www.jsmp.minihub.org/Traditional%20Justice/Reports/LLP_Mediation%20
Report/LLPMediationReportEnglish.pdf>.
World Bank 1999, Report of the Joint Assessment Mission to East Timor, World Bank,
Washington, DC.
Wright, W 2004, ‘An overview of the provisions of East Timor’s Law No. 1 of 2003 on
the juridical regime on immovable properties’, East Timor Law Journal, vol. 6.
——2004, ‘Some observations on the report on research findings and policy
recommendations for a legal framework for land dispute mediation prepared
by Timor-Leste Land Law Program’, East Timor Law Journal, vol. 10.
199
Dispute resolution
10
Resolving land disputes in Samoa
Jennifer Corrin » Associate Professor, TC Beirne School of Law, Executive Director—Asia Pacific Law,
Centre for Public, International and Comparative Law, University of Queensland, Brisbane
The contribution of Leota Laki Lamositele-Sio, Project Manager, ADB Small Business
Development Project, Samoa, to the writing of this case study is gratefully acknowledged.
200 MAKING LAND WORK » VOLUME TWO CASE STUDIES
A snapshot
Resolving land disputes in Samoa
The importance of the customary system of land tenure has long been
recognised by the Samoan people and their leaders. Government resources
have been allocated to nurture the customary system, including the
provision of forums to resolve customary land disputes outside common
law courts. The principle forum for such dispute resolution is the Land and
Titles Court, which has a number of advantages over the customary courts
established by legislation in other Pacific island countries. Village councils are
also recognised by legislation, highlighting their importance and reducing
the potential for conflict with common law courts.
The system for resolving land disputes in Samoa provides important lessons on:
» ways to recognise, support and build on existing
local customary systems and institutions
» issues to consider in the creation and sustainability of a
specialist institution to resolve customary land matters
» the benefits of legally recognising customary
institutions and issues that may arise
» the importance of the legal system being able to adapt to the
changing status of institutions for resolving customary land disputes
» the potential for alternative methods to reduce the
time and costs associated with resolving disputes and
increase compliance with agreed solutions.
10 Resolving land disputes in Samoa 201
Contents
» Innovations 215
Resources, leadership and cultural underpinnings 215
The dual court system 216
Avenues for developing customary land 217
» Lessons 217
Build on tradition 217
Create specialist institutions 218
Address issues arising from a specialist institution 218
Recognise customary institutions 219
Recognise the challenges to tradition 219
Provide alternatives for resolving land disputes 219
» References 221
202 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The setting
Samoa has been relatively successful in maintaining its traditions, and a complex code
of social rules exists. The country is divided into 11 traditional districts, each of which
is subdivided into villages. There are about 330 villages and each has several extended
families (aiga). The power an extended family wields in village affairs is proportionate
to its size.
The head (matai) of each extended family directs its social, economic and political affairs.
The matai title is not automatically inherited (although blood relationship is a factor
in selection). Rather, the honour is bestowed by the family, taking into account the
candidate’s record of service to the family and village. The role of the matai is complex
and interwoven into the fabric of Samoan culture and history.
Each village has a council (fono) made up of the heads of the village families. The council
is responsible for governing village affairs. The other strong influence in a village is the
church, which is a focus of recreational and social life.
The courts
Samoan courts follow the common three-tier model:
» lower courts of limited jurisdiction (the District Courts)
» a superior court of unlimited jurisdiction (the Supreme Court)
» an appeal court (the Court of Appeal).
The Court of Appeal hears appeals from the Supreme Court. The Supreme Court has
the right to conduct the trial of any matter, including matters relating to titles to
non-customary land. It can interpret the Constitution and hear cases on breaches of
fundamental rights. Its powers are guaranteed by the Constitution. The District Court’s
jurisdiction is not described here as it is not empowered to hear cases on customary land.
Most disputes over alienated land are dealt with by these courts.
The Constitution (Art. 103) provides for a separate body, the Land and Titles Court, to deal
with matai titles and customary land. The other forum authorised by legislation to deal
with customary land is the village council, a traditional forum.
Procedure in civil cases in the Supreme Court is adversarial in nature. The rules have
not been amended since they were introduced in 1980 and they need to be reformed.
Samoa is one of the few countries of the South Pacific region to have its own Evidence
Act. This Act incorporates rules that are unsuitable for resolving customary land disputes.
From the definition of ‘court’ in the Act, it appears to apply to all courts established by
legislation in Samoa. However, in practice it does not seem to be used by the Land and
Titles Court. The Act does not apply to the village council as it is not a court.
Land tenure
The Constitution recognises and defines three types of land tenure: freehold, public and
customary. Of the total land area in Samoa, about 81 per cent was estimated in 2002
to be customary land, 4 per cent freehold land and 15 per cent public land (Taule'alo,
Fong & Stefano 2003).
Freehold land provides extensive rights to the titleholder, including disposition by sale,
gift, mortgage, lease or will. The only restriction on such disposition is that the transfer
must be registered in the Lands Registry and sale to a non-citizen requires the consent
of the head of state.
204 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Public land is held by the state. Land below the high water mark is public land, thus
avoiding the types of dispute that have arisen in other Pacific island countries on the
ownership of reefs.
Customary land is held ‘in accordance with Samoan custom and usage and with the law
relating to Samoa custom and usage’.1 Consequently, it is not owned individually. Authority
over the land is vested in the holder of the matai title to which it is attached or, in the case
of uncultivated land, in the chiefs and orators (faipule) of the village.
Customary land is fundamental to Samoan society and identity. Its value cannot be
assessed in economic terms alone because of its symbolic and cultural value. It is
protected from alienation by the Constitution under Article 102—the only article in
the Constitution that requires a referendum to be changed. This article states that it
is unlawful to alienate or dispose of an interest in customary land. However, there are
three ways in which land may, in effect, be taken out of the customary system.
The only direct means of alienation is by compulsory acquisition under the Taking of
Lands Act 1964. Another way is by granting a lease or a licence under the Alienation of
Customary Land Act 1965. Compulsory acquisition and leasing or licensing are stated
by the Constitution to be exceptions to the bar on alienation or disposal.
1 Land and Titles Act 1981, s. 8. See also Government of Western Samoa (1975, pp. 62–3).
10 Resolving land disputes in Samoa 205
Village Fono Act 1990 Disputes relating to uncultivated village land; disputes relating to
the use of village land for betterment of the village; disputes over
village land where the village’s authority is still accepted.
Land and Titles Act 1981 Disputes regarding authority over land and the right to register
authority over land.
Land Titles Investigation Act 1966 Disputes about the status of land.
Taking of Lands Act 1964 Disputes regarding title to land and compensation for taking land.
The legislation provides five forums for resolving disputes involving customary land:
» village council
» Land and Titles Court
» Land and Titles Court Appeal Division
» Supreme Court (with an appeal to the Court of Appeal)
» Land Investigation Commission.
There are two other ways to resolve disputes, the first arising from custom and
usage and the second under the contract law in leases of customary land:
» determination by matai
» arbitration.
2 It is a rule of statutory interpretation referred to as ‘generalia specialibus non derogant‘ that general provisions in an Act do not
derogate from more specific provisions (Bennion 2002, pp. 255–7).
206 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Village council
Unlike most other Pacific island countries, Samoa does not have village-level courts.
However, each village has a council with some judicial functions. At present there are
about 350 village councils. Some very large villages have more than one council.
The Village Fono Act 1990 recognises the authority of such councils to deal with village
affairs in accordance with ‘custom and usage’. The jurisdiction of the village council is
limited to people usually resident in the village. It does not normally extend to people
residing in the village on government, freehold or leasehold land who are not liable in
custom to render service (tautua) to a matai of that village.
The Village Fono Act also gives the council power to make rules governing the
development and use of village land ‘for the betterment of the village’. However, while
it can make decisions about land use, its jurisdiction to resolve disputes is limited in
some areas to uncultivated village land. Decisions on cultivated land are normally
made by the matai in consultation with the family.
Where there are disputes between matai on matters such as boundaries these are usually
referred to the Land and Titles Court, not the council. However, the council can impose
punishments in accordance with the custom and usage of the village. Punishments can
be fines of money, mats, animals, food or a combination of any of these. Punishments
can also include work on village land.
The Act does not permit appeals to the common law courts. Instead, they are made
to the Land and Titles Court, which may allow or dismiss an appeal or refer it back to
the council to reconsider. However, the Land and Titles Court cannot substitute its
own decision for that of the council or entertain a second appeal after the council
has reconsidered the matter.
There are no written rules governing procedure in the village council, but it must exercise
its power and authority in accordance with custom and usage. Within the council there
are strict rules of rank; the chiefs and orators form the core of the decision-making
process. The orators take charge of the proceedings, but the chiefs have the final word,
after listening to the deliberations of the lower ranked matai. Practices may differ slightly
depending on the location of the village and the personalities of the matai involved.
10 Resolving land disputes in Samoa 207
The Land and Titles Court also hears appeals from the village councils.
The law to be applied by the Land and Titles Court is expressly stated to be:
» custom and usage
» the law relating to custom and usage
» the Land and Titles Act and any other enactment expressed to apply to the court.
Otherwise, the court decides matters in accordance with what it considers to be fair
and just.
The registry of the Land and Titles Court is in Apia but it has a subregistry in Savaii,
where it also hears some cases.
The Act governing the Land and Titles Court provides for it to use the same rules of
procedure as the Supreme Court. In practice, however, rules are largely ignored and
the Land and Titles Court appears to take an inquisitorial approach.
Hearings are normally attended by the parties and their family members. The proceedings
are formal and begin with a prayer and sometimes a brief kava ceremony. Traditional
forms of address involving complex customary courtesies are used and the recital of
village and district genealogies is undertaken by all parties to set the parameters of the
dispute. Samoan judges are entitled to be heard on all questions before the court and can
examine any party or witness. Legal practitioners have no right of audience before the
Land and Titles Court.
Judgements are made against the land and are therefore binding on all people affected,
whether parties to the case or not. Decisions must give reasons, be pronounced in open
court and be published.
208 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Some of these appeals are also grounds for a judicial review by the Supreme Court.
Supreme Court
The Constitution names the Supreme Court as the forum that deals with disputes over
compensation for land compulsorily acquired under the Taking of Land Act. The court can
also resolve boundary disputes between neighbours arising out of decisions by the Land
Investigation Commission. Where the commission has issued a title to land, the court may
also deal with a claim by a person who was overseas during the investigation, provided
the claim is made within a year.
The Supreme Court can also review decisions of the Land and Titles Court under the
common law. The Supreme Court has held that it can review such decisions relating
to customary land. Similarly, the Supreme Court can review decisions of the Land
Investigation Commission, notwithstanding that these decisions are stated in its
governing acts to be ‘final and conclusive’.
The modern English law of judicial review applies in Samoa and the principal grounds on
which decisions are reviewed include illegality, procedural impropriety and irrationality.
Illegality includes cases where decision makers do not understand or give effect to the law.
The Supreme Court also has jurisdiction to review decisions of a village council and
the decisions of a matai if they contravene the fundamental rights guaranteed by
the Constitution.
Arbitration
The standard form of lease for customary land is prescribed under the Alienation of
Customary Land Act. The Act provides for all disputes relating to leases to be referred
to arbitration.
Arbitrators’ powers and the procedures they must follow are outlined in the Arbitration
Act 1976. Arbitrators may subpoena witnesses and take evidence on oath or by affidavit.
The Supreme Court may intervene in the case of partiality by an arbitrator.
… the customs and usages of Samoa accepted as being in force at the relevant time
and [including]:
(a) The principles of custom usage accepted by the people of Samoa in general.
(b) The customs and usages accepted as being in force in respect of a particular place
or matter.
210 MAKING LAND WORK » VOLUME TWO CASE STUDIES
This definition avoids three problems that have arisen in defining custom in some other
Pacific island countries:
1 Reference to custom instead of customary law avoids arguments about the often
illusory line between the two.
2 Reference to customs ‘in force at the relevant time’ avoids the suggestion that ‘custom’
must be ancient to qualify.
3 Reference to customs ‘in force in respect of a particular place’ avoids arguments about
how widespread a customary rule must be to warrant recognition.
Although custom is defined, its content is not written down. Lawyers from a common law
background may see the lack of clear rules as a source of uncertainty. On the other hand,
the flexibility of customary law may be an advantage, permitting a holistic approach to
resolving disputes. So far, the Land and Titles Court has resisted declaring general rules
of custom.
A related issue is the imprecise relationship between custom and other sources of law.
While the Constitution and legislation are stated to be superior to other sources of
law, the relationship between customary law and common law is not expressly stated,
so it is not clear which takes precedence (see Corrin & Paterson 2007, pp. 41–2).3
Procedure
As already mentioned, the Land and Titles Court seems to take an inquisitorial approach.
Beyond that, little is known about how it operates although, outside Samoa, Samoans
are increasingly adept at bringing and fighting claims before the Lands and Tiles Court.
One important question that remains undecided is whether custom and usage must be
proved as a fact or whether they are a matter of law (see Zorn & Corrin Care 2002). The
uncertainty about the practice and procedure of the court has led to it being criticised
for lack of transparency. It has also been suggested that the lack of clear procedure
contributes to delays because parties are apparently allowed to tell stories at their
own pace and to summon as many witnesses as they want to.
3 By way of contrast, legislation in Kiribati and Tuvalu—Laws of Kiribati Act 1989 (Kiribati), s. 6(3)(b) and Laws of Tuvalu Act 1987
(Tuvalu), s. 6(3)(b)—makes it clear that customary law is to prevail over the principles of common law and equity in relation
to a specified list of matters.
10 Resolving land disputes in Samoa 211
Legal representation
At present, the Land and Titles Act prohibits legal representation in the court, although
there is a specific right to have petitions prepared by a lawyer. There is also nothing to
prevent a party from using a lawyer (if they can afford it) to prepare their case. The Law
Society believes it is time to change the Act to allow representation by lawyers, who could
save time by narrowing issues and preventing irrelevant evidence being put forward.
The contrary view is that lawyers would introduce formal and adversarial procedures
and, rather than reducing delays in the Land and Titles Court, lawyers would increase the
length of hearings and party costs (Anesi & Enari 1988, pp. 107, 110).
Notice
Notice of proceedings in the Land and Titles Court must be published in the government
newspaper, Savali. Many regard this notice procedure as inadequate because Savali has
a relatively low circulation—estimated by one interviewee to be about 2000 copies of
each edition. Steps have been taken to address this by giving copies to village mayors to
circulate in their villages. However, there are still too few copies and some suggest that
village mayors do not circulate the paper, to suppress notice of proceedings in which they
have an interest.
There are also concerns about the content of notices when they describe land by reference
to parcel numbers since this is not always recognised by those concerned. One complaint
arising from the government’s current attempt to acquire land for a hydroelectric project
in Sili village is confusion over what land is affected. Another complaint is that the
environmental impact statement cannot be understood because it is in English (Samoa
Observer, 16 April 2007, pp. 1, 3). Most people interviewed for this case study agreed that
an illustrated plan or picture showing the location of land would be more effective.
Another issue relates to the notice of decisions. As already noted, the Land and Titles Act
requires decisions to be made in open court and be published. It requires the Registrar
of the Land and Titles Court to publish decisions in Savali, and decisions are deemed
complete on publication. However, since an amendment to the Act requires reasons to
be given, decisions are no longer published because it is considered to be too expensive
to publish a document that is likely to be 10–15 pages.
212 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Failure to publish could be an issue when a party is trying to enforce a decision or when a
decision is needed on whether the time for appealing has expired. It could be argued that
a decision is not complete or enforceable until after publication. It could also be argued
that the time limit relating to appeals does not begin until after publication. However,
since the Act requires only ‘particulars’ of decisions to be published one option is to
publish them without reasons and to supply full details directly to the parties concerned
and members of the public for a fee.
Delay
The Constitution of Samoa guarantees the right to ‘a fair and public hearing within a
reasonable time’. In the past there have been considerable delays in hearing matters,
particularly in the Land and Titles Court. This issue is being addressed and cases are
now listed within six months of a claim being lodged.
A related but more specific problem arising is the registration of authority over land. It has
been suggested that this is being used as a device to individualise landholdings, which
may affect the traditional basis of society (O’Meara 1995, p. 150). Cabinet approval has
apparently been given for the development of legislation to abolish the registration of
authority over land.
Statutory recognition
The Village Fono Act highlights the importance of the village council at village and
national government levels. This Act reduces the potential for conflict between the two
court systems because village council punishments are taken into account in mitigation in
common law courts. However, it has been argued that the Act may have limited the power
of the council rather than enhanced it. By setting out available penalties it has been held
to prohibit the imposition of other sanctions. It has also been argued that the legislation
entrenches the patriarchal and status-based norms of customary law, and that these
powers have sometimes been abused by traditional leaders (Meleisea 2000).
One reason for the court’s decision was that the council’s procedure did not ensure that
notice of proceedings was given to those involved or ensure their right to be heard. The
court said that this conflicted with the constitutional guarantee of the right to a fair trial.
214 MAKING LAND WORK » VOLUME TWO CASE STUDIES
There are counterarguments to this, including the fact that proceedings in the village
council are not a trial, nor do they purport to be. While there is no written or posted notice,
those who offend against custom are informed by word of mouth. The council acts along
‘fairly predictable lines and is capable of reaching clear decisions in matters of everyday
concern to Samoans’ (Gilson 1970, p. 48). Further, there is normally a hearing, and untitled
men are usually entitled to make representations through their matai. 4 The council can also
act quickly, unhampered by the adversarial system and complex rules of procedure that
restrict the formal courts (Gilson, p. 22). Customary procedure is also much more flexible,
and this often works to the offender’s advantage, although it could be argued that this
flexibility allows for the arbitrary exercise of discretionary powers (see Corrin Care 2006a).
Gender discrimination is also an issue in dispute resolution. The number of females who
are heads of extended families (matai) is gradually increasing, with most estimates being
between 5 and 10 per cent. Females are involved in decision making at the family level and
those who hold matai titles sit in the village council. However, they do not form part of the
decision-making elite. This may change gradually as more matai titles are bestowed on
women. The conflicts between constitutionally enshrined rights and the composition and
actions of the village council raise complex questions about how to balance traditional
values with those reflected in human rights (Corrin Care 2006b).
4 See Mose v Mosame [1930–49] WSLR 140, where the village council’s decision was set aside on the grounds that it had been imposed
in the absence of any representation on behalf of the offender. The reference to ‘men’ in this sentence is deliberate as the responsible
parties and ‘advocates’ in customary societies are much more likely to be male. Only a small percentage of women are heads of
extended families, and the majority of these hold lesser matai titles bestowed solely for the purpose of standing for election to
parliament (Aiono 1986, p. 102).
10 Resolving land disputes in Samoa 215
Innovations
In several ways Samoa’s approach to resolving customary land disputes is unique in
the Pacific. For example, it builds on the strength of tradition and attempts to balance
continuity and change. Some of the most striking innovations are now discussed.
As with all justice systems, there is tension between the desire to give access to justice
and the desire to have a sustainable ‘user pays’ system for resolving disputes. In Samoa
there are court and registration fees. While these are manageable for the user they are
insufficient to sustain the system. However, there is another source of revenue from
customary land—the 5 per cent rent the government is entitled to under the Alienation
of Customary Land Act.
Samoa has forthright, authoritative leaders at national and village levels. Both leaders
and citizens are proud of their culture. The desire to retain the strengths of custom and
usage, while allowing Samoa to adapt to the changing needs of ‘modern’ society, is
evident in several leadership initiatives. An example is the 1975 review of the matai system,
mentioned earlier. The resulting report, based on extensive consultation and analysis,
addressed how to retain the best elements of the matai system while dealing with
problems resulting from it.
A related and important initiative is the program linking the village council and central
government through village mayors and government women’s representatives. Village
mayors are matai, although women’s representatives may not be. Members of both
groups are nominated by their villages to represent the villages at a weekly meeting at
the Ministry of Women, Community and Social Development. They are paid a stipend
by government and pass on information to each side about their plans and concerns.
They also distribute the Savali in their village.
Having highlighted the strength of tradition, this case study acknowledges that the
matai system—and custom more generally—faces challenges from the gradual
breakdown of traditional patterns.
216 MAKING LAND WORK » VOLUME TWO CASE STUDIES
These factors have led most Pacific island countries to seek alternative ways of resolving
customary disputes, particularly over land. This usually involves establishing, through
legislation, separate ‘customary’ courts that exist alongside western-style courts. This
is the rationale behind Samoa establishing the Land and Titles Court. However, this
court is unique in many ways and its differences allow it to avoid some of the pitfalls
of ‘customary’ courts. One significant difference is that, apart from the Supreme Court,
the Land and Titles Court has been accorded superior status as a court of record.
Another significant difference lies with the avenue of appeal. In Samoa, appeal lies only to
the Appellate Division of the Land and Titles Court, whose decision is final. Together with
the Land and Titles Court’s status as a court of record, this helps to avoid the suggestion
that it is inferior to the courts administering common law. In other countries appeal often
lies from the ‘customary’ court to the superior court within the formal structure. Even
where such appeal is restricted to questions of law, questions of fact are often ‘dressed
up’ so as to gain re-entry to a system ill-equipped to deal with questions that should be
decided in accordance with customary law.
As already noted, the Land and Titles Court has also avoided getting bogged down with
common law procedure and rules of evidence by adopting an inquisitorial approach and
does not permit lawyers in court, which helps to prevent an adversarial approach. Samoan
judges are appointed on their knowledge of custom and usage and their standing in the
community, not on their expertise in the common law system.
Customary resolution
Many issues are resolved at the family level in the customary way without interference.
Further, Samoa is one of only two countries in the region that have attempted to integrate
traditional dispute resolution with the formal court system (the other being Solomon
Islands). The Village Fono Act recognises the village council’s authority to resolve minor
disputes in a customary way. Resolving matters in accordance with custom and usage
without written record by the village council is endorsed by the Act. This is a far cry from
the customary courts established by legislation that are burdened with written rules of
procedures and western practices (see, for example, Island Court (Civil Procedure) Rules
1984 (Vanuatu), now repealed).
10 Resolving land disputes in Samoa 217
Robust judiciary
Samoa has a robust and well-qualified judiciary served by able administrators. The
sensitive approach of the judiciary to custom has led it to find ways to reconcile conflicts
with human rights so progress can be made without denigrating customary values. The
introduction of universal suffrage in Samoa within a decade of a Supreme Court decision
refusing to interfere with such practice has been referred to by the Samoan Court of
Appeal as a ‘striking illustration of how progress may be achieved if not unduly rushed’.
Lessons
Build on tradition
Customary land is fundamental to Samoan society and identity and this has long been
understood by Samoan people and their leaders. Generally, government policy has
been to build on the strength of tradition and to try to balance continuity and change.
Resources have been devoted to nurturing the customary system, including establishing
forums outside common law courts for resolving customary land disputes. An important
initiative that might be valuably employed elsewhere in the Pacific is that of the village
mayors and government women’s representatives. This line of communication links the
state to traditional society and avoids the disconnection apparent in some other parts
of the region.
218 MAKING LAND WORK » VOLUME TWO CASE STUDIES
lesson
One way of improving the resolution of customary land disputes is to create a
In Samoa the principal forum for resolving customary land disputes is the Land and
Titles Court. This court has an advantage over ‘customary’ courts established elsewhere
in the Pacific in that it has been accorded superior status and the only appeal is to its
own Appellate Division. The court’s inquisitorial approach is suited to dealing with
customary land disputes as it avoids a competitive battle between parties and unfair
litigation tactics. Further, the court is not bound by technical rules of evidence, which
make it very difficult for parties to prove their case in customary matters.
lesson
Establishing and maintaining a specialist institution involves choosing from a
Establishing and maintaining a specialist institution to deal with land disputes is not
a simple exercise. The failure of the Samoa Land and Titles Court to give notice in ways
that can be understood, to distribute decisions publicly and to register judgements has
led to dissatisfaction and a sense of unfairness. More generally, the extent of the court’s
independence from the Supreme Court is unclear. A process is under way to determine
the parameters of the Supreme Court’s supervisory jurisdiction.
There are uncertainties about the practice and procedure of the Land and Titles Court and
whether the rules of custom and usage are to be proved and whether they are subject to
the common law. Delays are also a source of criticism. Queries also arise from the fact that
judgements are made against the land and are binding on people who were not parties
to the case. The lack of access to legal advice is also an issue, not only with representation
in court but also in negotiating compulsory acquisitions or leases to third parties.
10 Resolving land disputes in Samoa 219
lesson
Legal recognition of customary institutions makes dispute resolution more
Samoa is one of only two countries in the Pacific region that have attempted to integrate
traditional dispute resolution within the formal court system. Recognising the importance
of the village council through the Village Fono Act reduces the potential for conflict with
the common law courts. The Act expressly recognises that the council acts in accordance
with custom and usage. However, it may have unwittingly limited the powers of the
council. There are also conflicts between constitutionally enshrined rights and the
composition and actions of the village council.
Customary land is attached to chiefly title, and the titleholder has authority over that
land. Outside formal avenues for resolving disputes in Samoa, the matai and the extended
family are left to deal with customary land in a customary way, and many disputes are
resolved at the family level. This appears to have worked well in Samoa, where customary
authority is still well respected. However, the growth in the number of titles and the
(mis)use of registration of authority are among the factors that pose a challenge to the
traditional basis on which Samoan society operates.
lesson
Creating alternative methods for resolving land disputes, particularly disputes
6 about land acquisitions, may reduce the time and costs of disputes and increase
compliance with agreed solutions.
The negotiation process during land acquisitions is not well defined. Further, if negotiation
is unsuccessful the only avenue available for resolving a dispute is to refer the matter
to the Supreme Court. Once this occurs, avenues for settlement outside court are
limited. Because not all disputes can be resolved through mediation, further options for
settlement might be valuable in Samoa and in other parts of the Pacific.
220 MAKING LAND WORK » VOLUME TWO CASE STUDIES
References
Aiono, F 1986, ‘Western Samoa: the sacred covenant’, in Land Rights of Pacific Women,
University of the South Pacific, Suva.
Anesi, T & Enari, A 1988, ‘The Land and Chiefly Titles Court of Western Samoa’, in G Powles &
M Pulea (eds), Pacific courts and legal systems, University of the South Pacific, Suva, Fiji.
Bennion, F 2002, Statutory interpretation, Butterworths, London.
Corrin, J & Paterson, D 2007, Introduction to South Pacific law, 2nd edn, Routledge-Cavendish,
London, chs 2, 3 & 10.
Corrin Care, J 2005, ‘Hemi go finis: reform of civil procedure in Vanuatu’, Asia Pacific Law Review,
vol. 13, no. 1, p. 19.
——2006a, ‘A green stick or a fresh stick: locating customary penalties in the post-colonial era’,
Oxford University Commonwealth Law Journal, vol. 6. no. 1, pp. 27–60.
——2006b, ‘Negotiating the constitutional conundrum: balancing cultural identity with
principles of gender equality in post colonial South Pacific societies’, Indigenous Law
Journal (Wilfred Laurier University Press, Toronto, Canada), (2006) 5, pp. 51–81.
Gilson, R 1970, Samoa 1830 to 1900: the politics of a multicultural community,
Oxford University Press, Melbourne.
Government of Western Samoa 1975, Report on matai titles, customary land and the Land
and Titles Court, Government of Western Samoa, Apia.
Meleisea, M 2000, ‘Governance, development and leadership in Polynesia: a microstudy from
Samoa’, in E Huffer and A So'o (eds), Governance in Samoa, Asia Pacific Press, Canberra,
p. 198.
O’Meara, T 1995, ‘From corporate to individual land tenure in Western Samoa’, in R Gerard Ward
& E Kingdon (eds), Land custom and practice in the South Pacific, Cambridge University
Press, Oakridge, Victoria.
Taule'alo, TI, Fong, SD and Stefano, PM 2003, ‘Samoan customary lands at the crossroads—
options for sustainable management’, proceedings of the National Environment Forum
2002, Department of Lands, Surveys and Environment, Apia.
Zorn, JG & Corrin Care, J 2002, Proving customary law in the common law courts of the
South Pacific, British Institute of International and Comparative Law, London.
223
Dispute resolution
11
Settling customary land disputes
in Papua New Guinea
A snapshot
Settling customary land disputes in Papua New Guinea
Land disputes are common to all regions of Papua New Guinea and cause
social and economic disruption. Disputes may go back several generations,
and settling them is complex. Papua New Guinea’s Land Disputes
Settlement Act 1975 created a three-tiered structure for settling disputes—
mediation, arbitration and appeal—based on a combination of Melanesian
customs, principles and practice, and formal law of British origin. However,
the system is struggling to operate effectively. Since 2004, and especially
following the National Land Summit of 2005, there has been renewed
interest in land policy reform and dispute settlement, with major structural
and operational changes proposed.
Contents
» Lessons 235
Make use of existing cultural institutions 235
Provide government support and adequate resources 235
» Bibliography 237
226 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The setting
Papua New Guinea is a country with diverse natural environments, and social, cultural and
linguistic groups. The country is made up of 19 provinces and the National Capital District.
Most Papua New Guineans live on land under customary tenure. Customary land accounts
for more than 97 per cent of the total land area. This case study focuses on the dispute
settlement procedures that apply to customary land.
In 1963 the Native Land Commission was replaced by the Land Titles Commission. In its
early years the Land Titles Commission had exclusive jurisdiction to hear disputes over
customary land and applications for ownership of that land. Appeals from the Land Titles
Commission were to the Supreme (now National) Court. The commission was staffed by
experienced professionals with legal training and/or long-term field experience. Over time
the jurisdiction of the Land Titles Commission has been reduced and for many years it was
administered by an Acting Chief Commissioner.
Following a surge in tribal fighting in the early 1970s, the independent Committee to
Investigate Tribal Fighting in the Highlands Districts was appointed. That committee’s 1973
report argued that most fights were connected with land disputes and that pressures
on land, created by population increases and the planting of permanent cash crops
(coffee in particular), had produced high levels of anxiety about land and undermined
traditional authority (Fingleton 1981, p. 225). The committee concluded that the introduced
system of deciding land disputes under the Native Land Commission and later the Land
Titles Commission had not worked effectively and it recommended replacing it with a
decentralised system of village-based courts with powers to dispense justice based on
local customs and sanctions and with the full backing of the government.
11 Settling customary land disputes in Papua New Guinea 227
CILM’s guiding philosophy was that land policy ‘should be an evolution from a customary
base, not a sweeping agrarian revolution’. The commission recommended an entirely
new system for settling land disputes, based on the principles that:
» people should settle their own disputes (and not pass that responsibility on to officials)
» the process of dispute settlement should be brought much closer to the people
» hearings should not be confined solely to who owns the land, but should also consider
the rights of others to use the land and the needs of the parties in dispute.
It recommended that the Land Titles Commission, as an agency for settling disputes
over customary land, be abolished and replaced by a three-tiered system of mediation,
arbitration and appeal that was a part of the national judiciary and was decentralised
to the provinces and the districts.
The current Land Disputes Settlement Act of 1975, drafted in accordance with these
recommendations, was one of the earliest pieces of legislation to result from this inquiry.
228 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Based on CILM’s recommendations, the Land Disputes Settlement Act in Papua New
Guinea addressed these questions in innovative ways, and important lessons can be
gleaned from more than 30 years of the Act’s operation.
Mediated settlements are evidence of land rights but they do not bind the parties
(unless approved by a Local Land Court), whereas arbitrated settlements do bind the
parties. The Local Land Court is also authorised to deal with other matters ‘inextricably
involved’ with the land dispute before it. In general, disputes cannot be taken further
than the Local Land Court, but the Act does allow a limited right of appeal (against a
Local Land Court’s decision) to the Provincial Land Court (stage three). Grounds for appeal
are confined to errors of jurisdiction, decisions made contrary to natural justice or cases
of manifest injustice.
The Act is largely administered by the Provincial Land Disputes Committee for the
province concerned, lawyers are in general excluded from appearing in Land Court
hearings and the Land Courts are not bound by any laws other than the Act itself or any
other Act expressly applied to them. In special circumstances, under Section 4 of the Act
the national government may declare that a land dispute should be settled by some
means other than those provided by the Act. Such special circumstances include that the
dispute is longstanding and previous attempts at mediation have failed, or the dispute
has already resulted in serious breaches of the peace. This section of the Act was included
as a ‘safety valve’ to help resolve intractable cases. It was not envisaged as a mechanism
to facilitate, for example, speedier access by resource companies to customary land
(as has recently occurred in a number of cases).
Although the dispute settlement system for customary land was introduced hastily and
without adequate training of the major participants in its operation, it nonetheless began
to work. Communities across the country gradually became accustomed to it and the
system continued to function until the mid-1990s.
Regrettably the first 20 years of independence saw a steady decline in official interest in
the fate of Papua New Guinea’s land dispute settlement system, and herein lay a number
of important lessons. One of the major lessons was that all systems of regulation and
control, however innovative at the time, need to be reviewed regularly. While the Act had
a virtual in-built review system via the Provincial Land Disputes Committees, like other
elements of the Act these committees tended to atrophy over the years.
230 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The purpose of the review was to examine the existing organisations and mechanisms
responsible for resolving land disputes and make recommendations on their
rationalisation and possible reinforcement. The review included discussions and
interviews across the country with judges, magistrates, district officers, councillors,
mediators, clerks of court and others involved in the dispute resolution process.
The review identified major shortcomings in the implementation of the Act and made a
number of recommendations to address these issues. However, little official government
interest was shown in the way the Land Disputes Settlement Act was working.
In his view, mediation had a longstanding history in Papua New Guinea. At the centre
of traditional dispute settlement processes was consultation and consensus, with
customary leaders usually representing the disputant groups. The payment of reasonable
compensation and the maintenance of existing relationships and the creation of new
ones were the usual focus.
Judge Kandakasi identified some weaknesses in the system, training being a major
problem. He suggested that better and more frequent training in the mediation
and arbitration systems of the Act would create more understanding of the law and
procedures and increase their effectiveness. Additionally, he suggested the act could be
improved by adding definitions of the words ‘mediate’, ‘mediation’, ‘custom’ and ‘customary
law’. Without a clear explanation of these terms it is difficult to begin the proceedings
of mediation and arbitration (Kandakasi 2003).
11 Settling customary land disputes in Papua New Guinea 231
A book on land mediation was discussed at the workshops and one is being prepared
by the Magisterial Service. Another result of the workshops was the installation of an
electronic database to keep track of cases brought before Land Courts.
In arriving at this recommendation, the taskforce concluded that having three separate
bodies—the Land Titles Commission, National Land Commission and Land Courts—was
cumbersome, confusing to the community at large and costly to the nation because of
conflict, the waste of resources and delays in development (National Research Institute
2007, p. 84). It noted that the proposal for a single land court system was not new, having
been made a number of times since the 1973 Commission of Inquiry into Land Matters.
The preferred option, set out in a white paper, was to establish a single land court
system within the Magisterial Service. Other recommendations called for:
» a specialist Land Division to be established, headed by a Deputy Chief Magistrate
and staffed by specialist magistrates dedicated full time to disposing of land
dispute matters
» the Land Titles Commission and the National Land Commission to be abolished,
and their jurisdictions transferred to a specialist District Court.
The white paper stated that a structure designed along these lines would be
more cost-effective than establishing an entirely new single land court, as proposed
by the taskforce.
11 Settling customary land disputes in Papua New Guinea 233
The prohibitive costs of accessing Local Land Courts could be seen as a legislative design
fault. The introduction of computer and communication technology and the allocation
of adequate funding may help to overcome this problem.
Finance remains the biggest constraint on the effective operation of the Land Disputes
Settlement Act. Some provincial and community governments have realised that land
mediators fill an important role in society by maintaining harmony, peace and stability
and allowing peaceful contact and commerce to grow, and have decided to fund their
salaries. However, this has not become common throughout the country and has been
adopted by only the more prosperous provinces, such as East New Britain.
Melanesian principles
Despite the constraints mentioned, the principles underlying the system for resolving
customary land disputes remain popular and legitimate in the eyes of the people of
Papua New Guinea. The underlying principles, which include mediation based on familiar
custom and tradition, and personal involvement by disputants in a local setting, also have
resonance in other parts of Melanesia and the Pacific islands.
Decentralised system
Land dispute resolution has been decentralised to fit into Papua New Guinea’s system of
provincial government. Being administered from the provinces brings the Act closer to
the people. Local Land Courts have been established in smaller administrative districts
bringing the system even closer to people. Many nations of the South Pacific have similar
systems of administrative governance, which lend themselves to such decentralised and
localised community involvement in dispute settlement.
11 Settling customary land disputes in Papua New Guinea 235
Lessons
lesson
A three-tiered system of land dispute resolution involving mediation, arbitration
1 and appeal works well within the context of local Melanesian cultures and is
regarded as a legitimate form of intervention.
lesson
Mediation is more likely to be successful where procedures take place locally, the
2 disputants personally take part in the resolution process, and local expertise in
land and custom is drawn on.
Papua New Guinea’s Land Disputes Settlement Act was designed by Melanesians for
a Melanesian society. Its structure of mediation, arbitration and appeal is based on a
combination of Melanesian customs, principles and practice, and formal law of British
origin. The mandatory involvement of the disputing parties in mediation is based on
the principle that a resolution by consensus is more permanent than one imposed by
authority. The system is decentralised to district level to bring it closer to the community
it is designed to serve.
A land dispute resolution system that makes extensive use of local custom does
not require less effort and resources from government and other stakeholders
lesson to maintain it. It requires ongoing training and support for administrators
3 (mediators and arbitrators), cost-effective procedures for disputants, clear
leadership from bureaucracy, and ongoing financial commitment from
government.
lesson
To remain relevant and effective, the system for settling land disputes needs
Although Papua New Guinea’s dispute settlement system has a number of good features,
it is now struggling to operate effectively. The major problems with the system reflect a
lack of adequate resources, legislative design flaws, a lack of bureaucratic leadership and
failure to maintain a pool of adequately trained people to administer it.
236 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Appendix: Interviews
» John Numapo, Chief Magistrate, Magisterial Service
» Stephen Oli, Deputy Chief Magistrate, Magisterial Service
» Rodney Togumagoma, Deputy Registrar, Magisterial Service
» Josepha Kiris, Chief Commissioner, Land Titles Commission
» Agi Ila, Registrar, Land Titles Commission
» Micah Pitpit, Commissioner, National Land Commission
» Oswald Tolopa, Director of Policy, Department of Lands and Physical Planning
Bibliography
Colquhoun-Kerr, A & Lakau, AL 1983, ‘Land tenure and land dispute settlement in Enga’,
Melanesian Law Journal, vol. 11, pp. 59–90.
Cooter, RD 1989, Issues in customary land law, Discussion Paper No. 39, Institute of National
Affairs, Port Moresby.
Demian, M 2003, ‘Custom in the courtroom, law in the village: legal transformations in
Papua New Guinea’, Journal of the Royal Anthropological Institute, vol. 9, no. 1, pp. 97–115.
Fingleton, JS 1981, ‘Policy-making on lands’, in JA Ballard (ed.), Policy-making in a new state:
Papua New Guinea 1972–77, University of Queensland Press, Brisbane.
Government of Papua New Guinea 1973, Report of the Commission of Inquiry into
Land Matters, Port Moresby.
Kandakasi, A 2003, ‘Customary mediation under the PNG Land Dispute Settlement Act’,
paper delivered to the National Mediation Conference, Darwin.
Knetsch LJ & Trebilcock MJ 1981, Land and economic development in Papua New Guinea,
Discussion Paper No. 6, Institute of National Affairs, Port Moresby.
National Research Institute 2007, The National Land Development Taskforce report,
NRI Monograph 39, National Research Institute, Port Moresby.
Oliver, NF 1995, Review of land dispute settlement organisations and mechanisms,
United Nations Development Programme report (TA 215), UNDP, Port Moresby.
Westermark, GD 1984, ‘Old talk dies slowly: land mediation in Agarabi’, Windsor Year Book
of Access to Justice, 3, University of Windsor, Ontario, pp. 186–203.
Land for public purposes
Case Studies
12 Acquiring land for public purposes in Papua New Guinea and Vanuatu 241
13 Accessing land for public purposes in Samoa 265
241
12
Acquiring land for public purposes in
Papua New Guinea and Vanuatu
Michael Manning » Mirel Ltd, Kokopo, East New Britain, Papua New Guinea
Philip Hughes » HEH Pty Ltd, Canberra, ACT, Australia
242 MAKING LAND WORK » VOLUME TWO CASE STUDIES
A snapshot
Acquiring land for public purposes in Papua New Guinea and Vanuatu
The countries of the Pacific need land on which to build and supply social
and economic infrastructure such as schools, health clinics, roads, ports,
and electricity, water and sewerage services. Frequently the land must
be acquired from customary owners. Government officials and private
companies must negotiate with customary owners to acquire land but
the laws and administration systems supporting all parties are usually
inadequate. Problems arise for many reasons: old or missing records,
disputes over ownership or rights, excessive compensation demands,
long delays and failure to communicate adequately and to understand
the attitudes of villagers.
Contents
» Vanuatu 256
The law and acquisition of land by the state 256
Developing problems in Vanuatu 259
» Lessons 261
Provide effective land administration 261
Provide alternatives to outright land acquisition 261
Emphasise negotiation rather than compulsory acquisition 262
Consult landowners 262
Value land in an agreed transparent way 262
» Bibliography 263
244 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The setting
Pacific island countries require land on which to build and supply social and economic
infrastructure such as schools, health clinics, roads, ports, and electricity, water and
sewerage services. Frequently, the land must be acquired from customary owners. The
negotiations to acquire land usually involve government officials from several agencies,
customary owners from several different groups, and often people from the private sector,
sometimes from several different companies, one or more of which may be from overseas.
Even with the best laws and processes in place, such negotiations would be complex.
Customary land is land owned by a citizen or a group of citizens who are regulated by
custom. Customary land, also known as unalienated land, makes up about 97 per cent
of the total land in Papua New Guinea. In Vanuatu 98 per cent of land is customary land.
The 1980 Constitution of Vanuatu designated all land except land required for public
purposes and urban land to be customary land (Art. 80).
This case study focuses on acquiring land for public purposes in Papua New Guinea
and Vanuatu, particularly:
» the legal structures used by the state to acquire land from customary owners
for public purposes
» the relationships between government officials and customary owners as land
is being acquired
» the payment of fair compensation to customary owners for the loss of their land
» the problem of how to ensure negotiations are finalised so that customary
owners do not repeatedly seek additional compensation from the government
for the same piece of land
» the poor funding and staffing of all aspects of the process associated
with acquiring land for public purposes, including maintaining records
» reports of illegal activity related to paying compensation for acquiring
and disposing of land used for public purposes
» proposed reforms to current laws and processes.
Many groups in Papua New Guinea and Vanuatu are willing to give up, or share rights over,
parts of their land if it is used for the public good. Even so, when customary owners have
been made to feel powerless or exploited they have been known to damage infrastructure
being built on their land or threaten violence that has led to schools, aid posts, airstrips,
and water and electricity supplies closing down.
While some landowners may threaten violence or closure of facilities to demand excessive
rents or repeated compensation, it is also possible they are correct when asserting that
the land was never purchased or they were not compensated for its loss. It is common
to find that land acquisition records are poorly kept, damaged, lost or even stolen.
12 Acquiring land for public purposes in Papua New Guinea and Vanuatu 245
Papua New Guinea and Vanuatu take similar approaches to using customary land for
public purposes. These approaches involve the principles of due process and natural
justice. Both countries are culturally diverse, especially Papua New Guinea, and any
strategies to access land for public purposes must take this diversity into account.
Previous approaches to acquiring and using customary land for public services often have
been flawed. Better ways need to be found to balance the needs of the community with the
rights of customary landowners. The paper focuses mostly on Papua New Guinea due to its
much greater size, diversity and amount of development activity compared with Vanuatu.
As well as acquiring land itself, the government can acquire an easement, a right or an
interest in the land. The Land Act also covers lease and lease-back acquisitions1 but only
when granting special agricultural and business leases. The Land Regulations set out the
procedure for buying or leasing land.
1 In Papua New Guinea the Land Act prevents customary landowners from directly leasing land to outsiders. But they can lease it to
the state and then lease it back. Thus, landowners wishing to engage in direct land dealings are able to enter into a lease – lease back
arrangement with the government. In this way, landowners acquire a leasehold interest in their land, which may then be mortgaged
or subleased to investors.
246 MAKING LAND WORK » VOLUME TWO CASE STUDIES
If a dispute arises during negotiations (which is not uncommon and is often between local
people who disagree over who owns the land), it can be mediated locally by a village land
mediator or taken to the District Land Court and ultimately to the Provincial Land Court.
The procedure for compulsory acquisition requires the Department of Lands to:
1 serve a notice to landowners that they are legally required to negotiate
with the government over the acquisition of their land
2 negotiate with the landowners over price and compensation
3 gazette the notice of acquisition.
Once the gazettal takes place the land becomes the property of the state and is free of all
claims by any individual or group that had an interest in the land. No further payments
or actions by the purchaser can be demanded by the former owners. The provision for
assessing and paying compensation is set out in the Land Act.
An early problem with the Lands Acquisition (Development Purposes) Act was the number
of appeals against decisions made under the Act, particularly those made by the Minister
for Lands. The National Land Registration Act 1977 attempted to reduce the number of
appeals against ministerial decisions by excluding appeals to a higher court over such
matters as failure of landowners to respond to a notice to negotiate in the time allowed
(two months). It also sought to limit appeals in relation to the absolute power of the
minister to acquire land by compulsion and decide how much compensation should
be paid. However, the National Court saw this legislation as an attempt to exclude the
courts from reviewing the exercise of administrative powers by tribunals (Muroa 1997)
and found that, despite the National Land Registration Act, the right to appeal continued
to exist under the Constitution and in common law. An unintended consequence of this
decision, or of the poor drafting of the original Act, has been the awarding of extraordinary
amounts of compensation on appeal.
12 Acquiring land for public purposes in Papua New Guinea and Vanuatu 247
To give some perspective, before the mid-1950s the Australian administration required
customary landowners to give their land and labour freely for road building on the
grounds that they would benefit from its construction. Many existing provincial roads
were built this way and some provincial governments still apply the policy of landowners
donating land although they are now paid for their labour.
As a result of this approach many provincial roads have been built on land that remains
in customary ownership. This is often not understood by public servants planning
to upgrade a road, who believe that the land has been properly acquired and that
landowners are being obstructive and ‘greedy’ in demanding compensation. The fact
that land records are frequently lost or destroyed—usually by decay and poor storage—
exacerbates the situation.
With the passing of the Land Act 1962, customary land was bought through a process
called Native Land Dealing. This process fully investigated the relevant landowning
groups and others with rights to the land in question, a valuation was made of the land
and improvements, the land to be purchased was surveyed and the boundaries marked,
a survey plan was attached to the Native Land Dealing documents, and these were
registered in the Department of Lands.
The Land Act 1996 further revised the way the state acquired customary land and ensured
compensation was for the value of improvements to the land. The requirements for
surveying and marking boundaries became more rigorous than those in the Land Act 1962.
As a result, the process of acquiring land for roads is now difficult and time consuming,
taking several years to complete.
248 MAKING LAND WORK » VOLUME TWO CASE STUDIES
If the negotiations with customary owners to acquire land go smoothly, the process can
take only one to two years. Such was the case with an EU-funded project to reconstruct
127 kilometres of the Ramu Highway in Madang Province, which was completed in 2000.
The land acquisition process was left entirely to the government. It took two years to buy
the land and the landowners did not contest the purchase price or the compensation paid.
In a few cases where there were disputes over ownership the money was placed in a trust
fund to be disbursed when the disputes were settled. This reduced the likelihood of delays
to construction.
But, if there are disputes over who are the customary landowners—which is usually
the case—these can take much longer to settle. On average it is about three years and
sometimes as long as five to ten years. On the Bereina–Malalau Highway project in Central
and Gulf provinces, which was funded by Japan, the land acquisition process started in
January 1993. In July 1993 the land was compulsorily acquired. A court injunction was then
obtained to prevent the landowners from interfering with the project. The process of
identifying landowners and determining compensation started at the beginning of 1993
and continued for the seven years of the project. Much of it involved the court resolving
disputes while construction proceeded. Construction work started in March 1996 and the
road was completed on schedule in early 2000.
The Bereina–Malalau area had poor roads and the people wanted the project to proceed.
They accepted that the compulsory land acquisition and court injunction actions
were necessary to allow construction to proceed while the land issues were resolved.
Nevertheless, once the right of way was identified villagers planted crops and trees along
it to benefit from compensation, which was duly paid to them. They also built 52 houses
along the right of way. When compensation was refused on the houses, they accepted the
decision. It was as though they were seeing how far the state could be pushed before it
resisted. Importantly, the project team devoted considerable effort to community affairs,
including preparing and distributing a package of information to ensure villagers were
fully aware of the project and process involved. A lands officer was engaged full time for
three years to work with the government officials responsible for acquiring the land.
of government officials from the Department of Lands and the Land Court involved in the
land acquisition and compensation process. Even after issues were legally settled, most
road subprojects were plagued by additional compensation claims and disputes. In some
cases these caused further delays in project implementation. Land and compensation
disputes, especially the delays they caused, were a factor in some of the road subprojects
being abandoned.
Even where the right of way has been acquired, if road rehabilitation involves sealing an
existing gravel road, the design invariably involves widening and straightening certain
sections of the road and improving drainage, which may encroach on adjacent customary
land. Given the difficulties in acquiring customary land in a timely fashion, ideal design
requirements may be watered down to ensure works are confined to the existing right
of way, which in turn compromises the safety of motorists and pedestrians.
In 2000 the AusAID Gravel and Resealing Project in seven coastal provinces confined
their works to existing rights of way, even along road sectors where this was not the
best design outcome. All gravel was obtained from existing sources. The PNG Office of
Works handled all negotiations and paid only the standard government royalty and
compensation rates. There were a few occasions where the project declined to implement
proposed works because landowner demands were judged unreasonable and the work
was moved elsewhere. Because the works were confined to existing rights of way, the
project was not concerned with whether land was customary or government owned.
There is no centralised computer-based record of land registration. Under the Land Act
1996, once documents related to land have been returned to the Department of Lands for
registration of a Native Land Dealing and the registration process has been completed,
a designated departmental draughtsman checks the survey data and plots the area
acquired (and the Native Land Dealing registration number) onto a master transparency
copy of the relevant 1:50 000 map. In 2000 there was a two-to-three year backlog of
Native Land Dealing registrations that required checking, revising boundaries and
plotting onto master transparencies.
250 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Even where road improvement projects are confined largely to road easements previously
acquired by the government, increasing numbers of demands are being made for further
payments for land in the rights of way. The claims are usually based on arguments that
‘the original price was too low’, ‘the money was paid to the wrong families’, ‘the purchase
was not made in accordance with customary law’, or ‘the elders who agreed to the sale
had no right to dispose of the birthright of future generations’. This situation arises mostly
with land acquired before the Land Act 1962 came into force, as was the case for much of
the Highlands Highway.
The state finds itself in a difficult situation when it cannot provide documentary
evidence of a purchase. Despite these issues having considerable potential to disrupt
road rehabilitation projects, with notable exceptions until the early 2000s claims
made were mainly of a nuisance value rather than of the proportions to endanger
projects. Most were successfully resolved by face-to-face negotiations with landowners.
Such negotiations, however, are very time consuming.
Valuations and associated negotiations with landowners are undertaken by District Lands
Officers, District Services Officers or valuers from the Valuer-General’s Office. In 2000
staff of the Valuer-General’s Office in the Highlands reported mounting evidence of
irregularities in the compensation process, especially exaggeration of amounts to be paid
and payments to ‘phantom’ (non-existent) claimants. Because of this, the Valuer-General’s
Office began increasingly to undertake field assessments for compensation payments
after District Lands Office staff had carried out the initial identification of landowners.
12 Acquiring land for public purposes in Papua New Guinea and Vanuatu 251
A good example of this is the AusAID-funded Mendi and Wabag highway upgrade projects
in Southern Highlands and Enga provinces undertaken during the late 1990s and early
2000s. The land had already been acquired, but it was clear from the start that there
would be ongoing, complex compensation issues, especially for physical improvements
(houses and trade stores) built on the rights of way. The project made use of the Lands
Unit established in the Office of Works. The salaries and expenses of the government
employees in the Lands Unit were paid by the road contractor out of project funds.
The unit was effective in dealing with compensation issues on a day-to-day basis.
Another example is the Lae to Wau road in Morobe Province. The project team had
believed that the necessary land had been acquired before the project began in the
early 1990s. As the project progressed it discovered that many land problems were
unresolved. When the land acquisition process began it was slow and there were delays
during the early stages due to land and crop compensation issues. Fortunately, these
problems did not become critical and lead to major delays or cause a halt to the project.
That was because landowners were patient as long as they saw survey work in progress
and as long as the project employed a full-time lands officer to whom they could talk.
The contractor recommended that all future major road projects use such an officer
to minimise disputes and delays.
It is common for gardens or buildings such as trade stores and tyre repair shops to
gradually encroach onto previously acquired rights of way—to the edge of the road
itself. If the state has acquired the land through the proper process and compensation
has been paid, people that encroach in this way are squatters. There do not appear to be
well-established procedures in rural areas for addressing this issue. To be fair to former
customary owners, if the boundaries of acquired land are not clearly marked, after some
time they assume that the land acquired is represented by the road itself and not by the
wider right of way. On the other hand, people also deliberately try to extract the maximum
possible amount of money from what they view as an infinitely wealthy state that does
not distribute its wealth fairly. In practice, another round of compensation payments
is usually negotiated, generally following the procedures outlined above.
It is important that road construction takes place as soon as possible after settlements
have been reached and payments made (Egis Consulting Australia 1999; Hughes & Yok
2000). Delays beyond two or three months often result in further compensation demands.
People often claim to have been wrongly excluded from the original negotiations, perhaps
because they were living elsewhere at the time. Further demands are also commonly
made in relation to crops or trees that landowners have planted in the right of way.
The longer the delay the greater the number of extra demands. A good example is the
9.2-kilometre Ogelbeng–Ambra section of the Ogelbeng–Kotna–Banz road in Western
Highlands Province. It was rehabilitated by a project funded by the Asian Development
Bank (Egis Consulting Australia 1999). Acquiring and paying for land for this section of the
road was reported to have been completed about a year before the technical feasibility
study was carried out in 1999. During this time, extensive garden crops and commercial
pineapple crops were planted to the edge of the existing road and District Services staff
expected another round of compensation demands.
At a minimum, major road projects need the full-time services of a lands officer, probably
for the duration of the project. In addition, for complex projects such as upgrading major
roads such as the Highlands Highway it is necessary to set up for the duration of the project
a community affairs team, like those used by mining projects. As well as facilitating land
investigation and acquisition and associated compensation negotiations, the community
affairs team can implement community information programs (in Tok Pisin or the local
language), address women’s issues, arrange to employ local labour, support small business
activities, plan road safety and carry out environmental management and monitoring.
This increases the costs of infrastructure projects but helps to avoid more costly delays
or conflicts. Project budgeting should take these costs into account.
Positive trends
A number of positive trends can be drawn out of the road examples.
» Customary owners are generally willing to provide land for roads from
which they will benefit.
12 Acquiring land for public purposes in Papua New Guinea and Vanuatu 253
» Provided the acquisition process is transparent, is seen to be fair to all involved, and
the officials involved in negotiations are competent, honest and do not have vested
interests, land can be acquired for public purposes in a reasonably straightforward way.
» Most disputes are not about whether the land should be acquired for the purposes
set out, or even in many cases over the amount of compensation. Rather most
disputes are between local people and about who are the real customary owners.
» Lands officers who can competently identify owners and lead disputants to an
agreement can resolve most problems in a relatively short time. Attempts to hurry
the acquisition process by preventing local people from appealing decisions have
failed in the National Court and resulted in disruptions at the local site.
Acquiring land is expensive, but governments have never provided sufficient funds to
the agencies that must manage the process for the work to be done satisfactorily. Where
private contractors pay lands officers to work full time on the acquisition process, land can
be acquired within one or two years and, in some cases, construction of infrastructure can
go ahead while final acquisition details are worked out. Problems are created and delays
and cost blowouts occur in cases where the genuine concerns of customary owners are
brushed aside or where the process is discontinued and started again a number of times
through a lack of funding or poor administration.
Concerning trends
In Papua New Guinea there are a number of concerning trends in acquiring land for public
purposes. One is that the amount of compensation paid is increasingly exceeding the
amount specified by law. The road examples above noted that staff of the Valuer-General’s
office reported claims for compensation were increasingly being exaggerated. In the
period 1999–2001, K45.5 million was paid out to 28 claimants—an average of K1.6 million
per claim, with some significantly lower but some much higher than this average.2
The claims applied to a range of different types of land acquired before independence.
These claims were appealed by the state using a private law firm and most if not all
appeals were allowed3 and referred back to the Land Commission. It is not clear how
many claims were paid but some were. A commission of inquiry has been investigating
the possibility that there was collusion with officers in the Attorney-General’s and
Finance Department to expedite payments. 4
Another trend is the growing number of cases in which the process of acquiring land
as set out under the law has not been properly followed. This is resulting in increases
in public allegations of corruption and a loss of confidence in the acquisition process
by landowners, who then become reluctant to make land available because they fear
they are going to be ‘ripped off’.
2 Department of Lands, Summary Brief on Orders of Settlement Payment Over Lands Commission Awards-Under National Land
Registration Act. These payments were part of a total of K157.6 million paid out in that period as opposed to K2.2 million paid out
in the first 20 years of the scheme.
3 Jacob Wafinduo, Manager Customary Land, Department of Lands, pers. comm., 2007.
4 The investigation was terminated during Papua New Guinea’s recent election campaign.
254 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Another disturbing trend is where compensation is paid more than once on a single piece
of land. The loss of records combined with a loss of corporate memory in government
departments increases the potential for repeat demands to be paid. This is leading to
more groups making repeat demands. It is also giving rise to allegations of individual
corruption within government agencies responsible for paying compensation. Recently,
large amounts of public money have been paid to individuals who claimed to be
representing customary landowners, to compensate them for public land acquired
some years ago. In 2001 the Land Commission was suspended pending a review of
the Act and a court review of awards made by the commission.
Problems have also arisen around the opposite process to acquiring customary land.
Questions have been asked recently about the disposal of some pieces of public land
acquired from customary owners and said to be no longer required. In at least two
cases such land was sold cheaply to individuals and some sold illegally. As a result,
much suspicion and unhappiness have been created among the former customary
owners of the land concerned and among the general public. Demonstrations and
letters to newspapers have highlighted these concerns.
As a result, it is fair to say that the management of and the process for acquiring
customary land for public purposes need to be improved. It is necessary to be blunt
about this situation, because it is one that can and should be avoided in other countries.
If governments do not address the situation it will mean that customary landowners
will resist the just and lawful acquisition of any land by the state for the public good.
The East New Britain Provincial Government, for example, has a ‘no compensation’
policy for some forms of land acquisition or state land use that dates back to the need
to clear trees from access roadways during a volcanic scare in the town of Rabaul in
1984. The policy aims to ensure that there are no ‘unnecessary land compensation
demands’. The policy establishes local and provincial compensation tribunals that deal
with compensation for the removal of soil or trees to maintain or build roads or other
infrastructure such as schools and aid posts, but not for the land itself if it is acquired for
public purposes.
There is no simple way to balance the rights of customary owners with the interests of
the wider community when land is acquired for public purposes. The only way to do it
successfully is to ensure that the landowners receive ‘fair and just’ compensation based on
a properly assessed value of their land at the time of acquisition or adjudication. A number
of laws and agencies exist to handle this. These laws and the offices set up to administer
them have demonstrated that they can work. An ongoing adjustable rent based on
inflation or the unimproved capital value of the land may be a better way to ensure that
owners and their descendants are fairly recompensed over time than outright acquisition.
In Fiji land can be returned to customary ownership if the public purpose lapses. This
option, if incorporated into the system of land acquisition in Papua New Guinea, might
help in some cases to address intergenerational issues if landowners knew that the land
would be returned to them at some time in the future.
Vanuatu
5
5 The authors are greatly indebted to Michael Mangawai, former Director of Lands, for his invaluable help and guidance in this section
of the case study.
12 Acquiring land for public purposes in Papua New Guinea and Vanuatu 257
The Act sets out the procedures for acquiring land, which includes measures to
compensate for damage while investigating the land as well as compensation for the land
itself. The Act also requires that adequate notice is given and that adequate consultation
takes place. The Government of Vanuatu has successfully used the Act many times to
acquire land and, importantly, agreement has always been reached on compensation.
This has meant that so far the government has not needed to use its powers under the
Act for compulsory acquisition (Lunnay et al. 2007). In Vanuatu compensation demands
for land on which public assets stand or are proposed are far less common than in
Papua New Guinea.
At independence the Constitution of Vanuatu ceded ownership of all land to the people
but also recognised individual land rights and the need to acquire urban land and land
for public purposes. The Alienated Land Act 1982 (amended in 2000) enables customary
owners to lease parts of their land. However, the Act requires the lessee—the individual or
group that wants to lease the land from the customary owners—to apply for a Certificate
of Registered Negotiator. This certificate is issued by the Minister for Lands and entitles
the lessee, also called the alienator, to negotiate with customary owners for a lease
(Land Reform Act 1980, consolidated 2004).
Under the amended Alienated Land Act the government can hold a perpetual lease
of urban land and land used for a public purpose, and the customary owners are
entitled to a continuing share of revenue from it. Customary owners can also continue
to occupy some of the land. The length of a lease depends on how the land is to be
used—30 years for rural uses, 50 years for urban uses and 75 years for large investment
projects (Lunnay et al. 2007, p. 8). The Land Leases Act 1983, as amended in 2003 and
2004, deals with registering leases. The 2003 amendment allows leases of land for public
purposes to be extended to 75 years if a premium is paid and the 2004 amendment
defined the calculation of the premium to be paid.
The Alienated Land Act generated controversy when introduced. The Opposition argued
that it was unconstitutional because the Council of Chiefs (Malvatumauri) had not been
consulted, as required under Article 76 of the Constitution. The Chief Justice ruled that it
was constitutional because the government’s powers to acquire public land, provided to
it under the Constitution, overrode Articles 73, 74 and 75 of the Constitution, which give
protection to customary landowners (Holmes 1996).
When a dispute occurs over ownership or the valuation of a land parcel to be acquired by
the government and when the land is required with reasonable urgency, landowners can
agree that it is disputed and the land is then leased by the Minister for Lands who holds
the proceeds in trust until the dispute is resolved. However, these powers have not always
been used responsibly or in the interest of landowners (Lunnay et al. 2007, p. 4). A recent
example of how the government carries out its obligations is its dealings on the Sarakata
hydropower station.
258 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The Sarakata hydropower station on the island of Santo has been operating since
1994 and provides 70 per cent of electricity to the area around the town of Luganville.
The station owners intend to add another stage to the facility with Japanese aid.
The government now has to resolve land claims that have been outstanding since 1994.
It appointed a technical advisory group to do so. The areas under dispute are 5.2 hectares
that are part of land occupied by an agricultural company called Plantation Reunion de
Vanuatu (PRV) and 13.9 hectares that are in customary ownership.
The ownership of the 5.2 hectares parcel was disputed. The customary owners had agreed
to lease land to the company in 1986 but had never agreed about the location of the
boundaries of the land belonging to the individual owners. Until the dispute was registered
in 2005 the Minister for Lands was powerless to hold the lease. In July 2005 instructions
were given to survey both portions of land, which was completed in October 2005. A village
land tribunal began in September 2005 and awarded ownership. This decision was appealed
in October 2005.
Meetings were held in November 2005 and unanimous agreement was reached to allow
the lease to be issued to the minister until the customary owners were identified. Conditions
regarding preferential employment and business opportunities for the customary owners
were included and signed off. As of July 2006 the minister had not signed the lease although
it had been prepared. Meanwhile, PRV had applied for and been awarded compensation
payments for loss of income due to the dispute. In total, the government paid the
company Vt3.5 million (around A$40 000).
Source: Technical Advisory Group, Ministry of Lands and Natural Resources (2006).
Present government policy is to acquire only land that will be required by the state
indefinitely or for more than 75 years6 because it is not possible to lease land for this long.
This includes land for airports, roads, other infrastructure projects, provincial headquarters
and commercial centres. Roads were declared state property at independence, but since
independence little of the land on which other public assets are located has been acquired
or had formal lease agreements completed. In 2006 and 2007 the government allocated
Vt300 million (around A$3.5 million) for compensation. Government officials admit that
this is only a small start and that the task is formidable.7
Because roads were declared state property when Vanuatu gained independence, the
government has not been subjected to the same pressure for compensation payments
over roads as has the Government of Papua New Guinea. Also there have been few new
roads built on customary land requiring government compensation since then.
In isolated cases Vanuatu has negotiated non-cash payments for land. In the capital,
Port Vila, for example, the government acquired land from the local Ifira, Erakor and
Pango communities for urban use and provided allocations of land in kind as payment.
In September 2006 the Vanuatu Department of Lands and Natural Resources organised
a National Land Summit, which emphasised the need for ‘fair dealings’ as a principle
for all land transactions. The government is considering introducing a Fair Rental Act to
embody this concept.8 The Department of Lands and Natural Resources prefers outright
acquisition to leases, believing it is easier to administer and less likely to result in a
dispute. Disputes over leases are probably occurring because the government is not
organised properly to pay rents.9
In many parts of Vanuatu people are prepared to lease land freely to the state for
public purposes. Land can be acquired or leased by the state without recourse to law if
landowners agree. One main weakness of this arrangement is that the notices supposed
to be given to landowners are often not properly served. Thirty days notice should be given
and the government should ensure that the necessary criteria are met if land is to be used
for a public purpose.
In some cases the government just states the value it proposes to pay landowners
because customary owners often have no idea of the true value of their land. There is
often also difficulty when the land has already been leased. For example, in acquiring the
land occupied by Norsup airport, the lessee wants to receive the present market value
of the land instead of the payment going to the customary owners. When leased land is
acquired, lessees receive payments for improvements to the land, as well as compensation
for the unexpired part of the lease.
While acquiring land for public purposes in Vanuatu is not as difficult as it is in Papua New
Guinea, there are signs that not all is well. Vanuatu can benefit from analysing difficulties
in Papua New Guinea and seeing how fraught and expensive acquiring land for public
purposes can become if problems are not addressed early.
Maintaining bureaucratic and political support for fair and transparent acquisitions of
land is proving difficult in Vanuatu. Failure to pay compensation to customary owners for
land acquired or being used for public purposes since independence has created a serious
problem, which the present government acknowledges but which is going to require
money and other resources that it may not have to solve the problem. Likewise, the need
to balance the aspirations for development and the rights of customary landowners
places politicians in a dilemma.
Senior bureaucrats believe land for public purposes should not be acquired at premium
prices but rather at a minimum acceptable price because of the benefits it normally
brings to the people giving up the land as well as the general public. Most ni-Vanuatu
have not made large demands on the government for compensation or rents for land
acquired for public purposes.10 Nevertheless, introducing the concept of market value in
the Land Acquisition Act, along with an effective method for calculating market value,
would significantly improve the acquisition process. It would remove the notion of a
premium being paid on any land while adding greater transparency and a better sense
of fair dealings.
Senior bureaucrats also favour outright acquisition of land over leasing, believing it is
simpler and involves less long-term responsibility. However, landowners favour leasing
because it ensures a long-term continuing interest in the land and maintains customary
tenure. As discussed earlier, the present policy is to issue long-term leases for all land
acquired for public purposes except land that is required indefinitely. Land for schools,
aid posts and health centres is considered to be needed ‘short term’ because this
infrastructure may be moved in the short term due to demographic and other changes.
An important matter is timeliness and the need for the government to meet its
obligations to customary owners for acquisitions and leases. Failure to make timely
payments for compensation and rentals or to meet other conditions undermines
confidence in the state and encourages ni-Vanuatu to challenge the state on grounds
of non-payment and failure to perform.
Speakers at the 2006 Land Summit in Port Vila argued that there is an urgent need to
consolidate all legislation relating to land, resolve issues of individual and communal
ownership, and remove or further restrict ministerial discretionary powers, in particular
powers to lease land that is under dispute.
Vanuatu, like Papua New Guinea, needs to make greater efforts to devote adequate money
and people to administering publicly owned land. The process of acquiring or leasing
government land and administering that land requires well-trained and motivated staff
and an adequately staffed departmental structure. The Vanuatu Department of Lands and
Natural Resources is understaffed. It is also poorly housed and lacks adequate office space.
10 It is said that to make a high claim in public would bring shame on the clan making the claim.
12 Acquiring land for public purposes in Papua New Guinea and Vanuatu 261
Lessons
lesson
Fundamental to an effective system for acquiring customary land for public
lesson
When laws governing the acquisition of land for public purposes provide a
2 mix of options that include leasing and land swaps rather than permanent
alienation, there are more amicable outcomes for landowners and governments.
In general, leasing arrangements that involve regular payments are fairer for customary
landowners than outright alienation. Leasing allows land no longer required for public
purposes to more easily revert to customary owners and helps them retain a connection
to traditional lands. Governments, however, prefer the certainty and security of alienation
through outright acquisition. In Vanuatu the policy is to acquire land through leases
unless the land is needed into the distant future. In-kind payments such as land swaps
have also been used in some instances. The reduced emphasis in Vanuatu on outright
acquisition has resulted in more amicable land acquisitions and fewer disputes.
262 MAKING LAND WORK » VOLUME TWO CASE STUDIES
lesson
Acquiring land through negotiation rather than compulsory acquisition creates
Consult landowners
lesson Adequate time and resources must be allocated for community consultation
5 over land and compensation issues.
Many landowner disputes and grievances, particularly in Papua New Guinea, are due to a
lack of consultation. Experience in Papua New Guinea shows that better outcomes have
been achieved where there is ongoing consultation with landowners. This has often been
achieved by road contractors using their own money to employ land officers dedicated to
consulting with local owners.
lesson The land acquisition process should incorporate transparent and agreed
6 methods for calculating land values.
Arbitrary decisions about compensation, rental and other payments in the land acquisition
process can create suspicion or dissatisfaction among landowners.
12 Acquiring land for public purposes in Papua New Guinea and Vanuatu 263
Bibliography
Department of Lands, Survey and Lands Records 2007, Aerodrome acquisition progressive
report, Port Vila, February.
Egis Consulting Australia 1999, TA No. 3037-PNG Road Upgrading and Maintenance Project,
vol. 4, Initial social assessment, report prepared by P Hughes, Asian Development Bank
and Government of Papua New Guinea.
Fingleton, J 2004a, Assistance with land tenure reforms in Papua New Guinea.
——2004b, ‘Is Papua New Guinea viable without customary groups?’, Pacific Economic Bulletin,
vol. 19, no. 2, pp. 96–103.
——2006, Vanuatu National Land Summit, background paper, AusAID, Canberra.
Government of Papua New Guinea 2001, National Lands Commission awards under
the National Land Registration Act, NEC Decision 13/2001.
Government of Vanuatu 2007, Final report of the National Land Summit, Port Vila.
Holmes, Patricia 1996, ‘Land tenure in Vanuatu: custom, culture, tradition … and development?’,
thesis, available through <www.vanuatu.usp.ac.fj/library/Vanuatu.htm>.
Hughes, P 2000, Issues of governance in Papua New Guinea: building roads and bridges,
State Society and Governance in Melanesia Discussion Paper 00/4, Research School
of Pacific and Asian Studies, Australian National University, Canberra.
——& Yok, D 2000, TA No. 3037-PNG Road Upgrading and Maintenance Project: Simbu and Enga
Provinces—initial social assessment, Asian Development Bank and Government of Papua
New Guinea.
Institute of National Affairs 1981, Summary of proceedings of an INA seminar ‘Land policy
and economic development in Papua New Guinea’, Port Moresby.
Lunnay, Chris, Fingleton, Jim, Mangawai, Michael, Nalyal, Edward & Simo, Joel 2007,
‘Vanuatu—review of national land legislation, policy and land administration’,
report prepared for AusAID, March.
Malampa Province 2006, Sustainable land management and fair dealings to ensure progress
with equity and stability, submission to National Land Summit, September.
Muroa, GMS 1997, ‘Judicial responses to legislative attempts to oust the judicial review
powers of the courts in Papua New Guinea’, Melanesian Law Journal, vol. 25,
<http://www.paclii.org/journals/MLJ/1997/2.html>.
National Research Institute 2006, The National Land Summit: a report on the presentations
and recommendations, National Research Institute, Boroko, March.
——2007, The National Land Development Taskforce: land administration, land dispute
settlement, and customary land development, National Research Institute, Boroko.
Technical Advisory Group, Ministry of Lands and Natural Resources 2006, Progress
on acquisition of the land occupied by the Sarakata Hydro Power Project, Port Vila,
July (and July 2005 and November 2005).
Valuer-General 2000, Price schedule for acquisition of trees and plants, all regions,
Department of Lands, March.
265
13
Accessing land for
public purposes in Samoa
The contribution of Leota Laki Lamositele-Sio, Project Manager, ADB Small Business
Development Project, Samoa, to the writing of this case study is gratefully acknowledged.
266 MAKING LAND WORK » VOLUME TWO CASE STUDIES
A snapshot
Accessing land for public purposes in Samoa
The system for acquiring land for public purposes in Samoa highlights
the benefits of:
» consulting widely and taking care to reach all affected people
» properly informing landowners of the consequences
of land acquisition, the process and their rights
» negotiating with landowners before compulsorily acquiring land
» ensuring landowners have access to independent
expert advice during the acquisition process
» ensuring there is coordination among government agencies
» ensuring objectivity in the valuation of land and
that the land valuation industry is regulated
» providing dispute resolution mechanisms for landowners.
13 Accessing land for public purposes in Samoa 267
Contents
» Introduction 268
» Lessons 278
Consult widely and provide full information 278
Provide expert assistance 278
Negotiate for land rather than compulsorily acquire it 278
Adopt a whole-of-government approach 279
Determine compensation for land regardless of its tenure 279
Regulate and license land valuers 279
» Bibliography 281
268 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Introduction
Samoa is recognised among Pacific nations for the stability of its government and its
institutions. Nevertheless, Samoa is undergoing considerable reform and the speed of the
reform process is catching many by surprise.
Samoa effectively has a dual land system. The customary system of land tenure is strong
and authorities are committed to maintaining this integral part of the Samoan way of life.
However, Samoa is subject to the same global pressures for development and improved
living conditions as anywhere else. Samoa is attempting to manage the pressure on its
limited land resources by balancing the traditional and the western-style approaches to
land tenure.
In the past the Government of Samoa appealed to the loyalty and patriotism of people
to allow roads and other works for the public good to proceed unimpeded. And many
customary landholders agreed to provide land for public purposes without compensation.
But this is no longer the case. Today landowners sometimes lodge complaints about
compensation long after works are completed, even though a community’s land may have
been pledged to works designed for the public good. Compensation may not have been
claimed because people were not aware of their rights to it. The Samoan community is
now better informed and formal compensation is sought in most cases.
Customary land
In Samoa, more than 80 per cent of land is held under customary ownership. Customary land
is protected by the Constitution for the ‘customs and usage’ of the people of Samoa and is
held in the name of a particular titleholder (matai) who has authority (pule) over the land.
1 One program is the Second Infrastructure and Asset Management Project, Component 5—Sustainable Land Administration & Survey,
which is funded by the World Bank, and the other is Technical Assistance for Promoting Economic Use of Customary Land, which is
funded by the Asian Development Bank.
13 Accessing land for public purposes in Samoa 269
Every Samoan can access land that provides a livelihood and means of family support.
The matai determines how land is distributed among family members for their use.
Customary land is essentially outside the parameters of the formal land registration
system and cannot be conveyed or mortgaged. Customary land can be alienated in
only two ways.
1 Land can be leased to a person or corporation approved by the matai. The Alienation
of Customary Land Act 1965 appoints the Minister of Lands to act as trustee for
the owners and to sign the lease. The Act requires the Registrar of Lands to register
the lease in the Land Registry, a public record administered by the Division of Land
Management in the Ministry of Natural Resources and Environment.
2 Land can be taken by the government, pursuant to the Taking of Land Act 1964, for a
‘public purpose’. The land taken must be registered as public land in the Land Registry.
The majority of customary land has not been surveyed. Boundaries are primarily based
on years of occupation and traditional knowledge. The Land and Titles Court resolves
disputes over ownership and boundaries. Under the Land and Titles Act 1981, its decisions
are meant to be registered in the Land Registry. However, for a range of reasons, essentially
to do with the poor state of the records of the Land and Titles Court, this does not occur at
present. The Land and Titles Court has initiated a program to improve records.
Freehold land
Freehold land accounts for about 12 per cent of Samoa’s land. Most of it is in Apia and the
surrounding urban area. Because of the limited area of freehold land and the increasing
number of people seeking to purchase it, land values are increasing rapidly.
How freehold land is used is not subject to customary authority, even if the land is
located in a village. Freehold land is registered in the Land Registry under a deeds system
established before independence in 1962. The government is considering a proposal to
convert the deeds registration system to a title registration system based on the Torrens
system. It is important to note that the proposal applies to only freehold land. There is a
false perception by some groups in the community that the proposal is a covert vehicle
for government to convert customary land to freehold land.
Public land
Public land is defined as land vested in the state that is free from either customary or
freehold title. Public (government) land is presently estimated to be about 34 500 hectares
or 7 per cent of Samoa’s land mass. The Land Board administers all public land.
270 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The Constitution
Article 102 of the Constitution states that customary land, or any interest in customary
land, cannot be disposed of or alienated. Thus customary land cannot be sold or
mortgaged. The Constitution explicitly allows the granting of a lease or licence over
customary land and the taking of customary land for a public purpose.
Any amendment to Article 102 requires a referendum as well as a two-thirds majority vote
of all members of parliament, thus securing the protection of customary land tenure.
Freehold land may be taken for a public purpose without using the Act by negotiating
with the landowner and registering the transfer. However, the Taking of Land Act is always
employed in the case of customary land.
The Ministry of Natural Resources and Environment administers the Taking of Land Act.
General responsibility lies with the Assistant Chief Executive Officer, Land Management
Division, who also has carriage of the Land Registry and the Land Valuation Section.
The ministry oversees the implementation of the Act and coordinates the negotiation
with landowners and the consultation with the agency undertaking the public works for
which land is required. In all cases the ministry notifies the landowners whose land is to be
acquired and initiates a formal land survey to determine the extent and value of that land.
v) Upon receiving from the Director of Natural Resources and Environment any such
objection with any reason (other than an objection to the amount or method of
payment of compensation) appoint a time and place in Western Samoa at which the
objector may appear before the Minister or some person appointed by him and support
the objection by such evidence and argument as the objector sees fit.
If the minister determines that the taking should proceed, the head of state may,
by proclamation, take the land for the public purpose.
Compensation is not always monetary. The government may exchange land if it has
comparable public land available. The Ministry of Natural Resources and Environment
has reported that land of equal value is frequently exchanged when circumstances allow.
Compensation can also be made in kind, in terms of favourable access to certain public
services or infrastructure (Box 1).
In the village of Magiagi, which is adjacent to Apia, the Electric Power Corporation sought
to establish a hydroelectric generation plant. In return for access to the land required, the
corporation agreed that the village should retain access to the water resource and receive
electricity free of charge in perpetuity.
While this resolved the compensation issue, the corporation now has serious concerns about
the efficacy of this approach and the potential precedent it has established. It now realises
that under this form of compensation it has no control over the use of water or electricity
and there is no incentive for the village to economise with either resource or energy use.
As a result, the corporation is finding use unreasonably high. Indeed, Magiagi has been
anecdotally described by some people interviewed as the ‘village from heaven’.
under the Act as a division of the Ministry of Natural Resources and Environment.
The agency provides the ministry with a useful mechanism for achieving the essential
whole-of-government approach to taking land for public purposes.
In administering both the Planning and Urban Management Act and the Taking of Land
Act the ministry is in a position to recognise the need for land for public purposes from
the outset and to ensure that land is acquired in an open and coordinated manner.
the comment was made that the description of land published in Savali was technical,
making it difficult for owners to recognise it as their own. Describing land graphically
or by photograph could help overcome this confusion.
» L and is taken without notification or with little consultation because of the perceived
urgency of the works.
There are many instances where public works have been completed without land
being formally proclaimed as public land for the purpose, because of the perceived
urgency of the works. Road construction is an example.
» Government uses the Taking of Land Act to convert customary land to freehold.
Some people in Samoa claim that the government uses the Taking of Land Act to
convert customary land to freehold and that land surplus to public purposes is
then sold as freehold land by tender. This claim reflects the sensitivity of the issue
and the potential for misinformation and misunderstanding. The Act provides that
surplus land must be offered to the original owner in the first instance and an
adjacent landowner in the second instance. In these cases the land is returned to
its customary status.
The acquisition began in 1997–98 and continues to be vigorously disputed by the affected
landowners because of the extent of land taken and the low compensation offered.
The amount of government compensation was hotly disputed and, as required under the
Taking of Land Act, referred to the Supreme Court. On appeal the court decided that ‘there
was to be no distinction between freehold and customary land’ for the purposes of assessing
land value for compensation. This landmark decision has essentially resolved the dilemma
faced by the government in assessing market value of customary land.
Many of the people party to the original meetings have moved on and the case remains pending.
In the interim the government has returned 970 hectares of land to the original owner(s).
Addressing issues
Under the provisions of the Taking of Land Act, the only avenue landowners have for
resolving disputes about compensation is the Supreme Court. Taking such action against
the government is a daunting prospect and beyond the experience and capacity of most
affected landowners. It no doubt contributes to the long delays that characterise many
land acquisitions (Box 3).
13 Accessing land for public purposes in Samoa 275
Vaitele Street is a primary road linking the airport and the city of Apia. The World Bank’s
Second Infrastructure and Asset Management Project is providing finance to widen the
street and several bridges. Construction required land from 158 holdings. Because most of the
land that needs to be acquired was in Apia and the surrounding urban area, only 26 affected
landholdings were under customary tenure.
The project began in 2003 and, by April 2007, 70 freehold landowners had received
compensation and 13 customary landowners had been identified for compensation. For the
remaining customary land, the Minister of Lands, Surveys and Environment requested that
ownership be resolved through the Land and Titles Court.
The World Bank insisted that the land acquisition for Vaitele Street comply with its Land
Acquisition and Resettlement Framework. The overall aim of this framework is to ensure
that affected landowners are fairly compensated for their losses and receive assistance to
at least maintain their pre-project situation. The framework is based on the World Bank’s
operational policy on involuntary resettlement and outlines these principles to govern
project implementation:
» avoid or minimise involuntary resettlement where feasible
» assist displaced persons to improve their former living standards, earning capacity
and production levels or at least restore them
» encourage community participation in planning and implementing resettlement
» provide assistance to affected people regardless of the legality of title to the land.
However, the Land Acquisition and Resettlement Framework requires that issues surrounding
ownership be resolved and that compensation be negotiated and paid before works begin.
This has added substantially to the time taken to complete the Vaitele Street construction
program. Because of the delays often encountered in determining customary landownership
through the Land and Titles Court, the impact of the framework is greater when customary
land is involved.
The Land Acquisition and Resettlement Framework is essentially a result of World Bank
experiences with projects elsewhere and is not unique to Samoa. The bank insists it be
applied because acquisitions of land in Samoa have sometimes been haphazard with
insufficient consultation and notification. To a large extent the issues raised during
stakeholder discussions add weight to the World Bank’s position.
Although complying with the framework has added significantly to project completion
time it has had the desired effect of increasing discipline in the land acquisition process
and reinforcing the need for full and transparent consultation as a prelude to taking land.
276 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The determination of fair land values is a critical element of compensation when taking
land for public purposes. Samoa does not have a system of land tax and there is no
program of annual valuations of freehold land. Land valuation has been ad hoc and
valuers have not been regulated by law. As a result, there often have been large differences
between valuations of the same area of land.
The need for a uniform and reliable system of land valuation has been recognised by
the Government of Samoa. Draft legislation, the Valuation Act, and regulations aimed
at standardising the registration and licensing of valuers were being prepared in 2007.
Adopting this legislation will strengthen the valuation profession in Samoa. It will also
help to introduce mediation to resolve compensation disputes.
Emphasis on consultation
While anecdotal in many cases, issues raised during stakeholder meetings reflect the
potential for misunderstanding (at best) or misinformation (at worst) on the sensitive
issue of taking land.
Consensus and negotiation are central to Samoan life and decision making. Recognising
this cultural norm, the government is increasingly conscious that time and energy
invested in the widest possible consultation will minimise obstacles to development.
13 Accessing land for public purposes in Samoa 277
In a relatively small country such as Samoa, it is not unusual for people with matai
or other chiefly status in the villages to also have senior positions in the bureaucracy.
If conflict of interest can be avoided, these people can help with consultation.
Lessons
lesson
In view of the number of people affected by the taking of their land—
2 »
»
the purpose for which the land is required
the process by which land is to be taken
» their rights to receive fair compensation and to object to the process.
For most landowners, especially customary groups, the taking of land for public purposes
is an unfamiliar experience. Unfortunately landowners are often not made fully aware
why the government is acquiring the land or of their rights under legislation.
lesson
To promote fairness and to minimise the potential for conflict and future legal
3 challenges landowners need to have access to experts who can either provide
them with advice during negotiations or act on their behalf.
Affected landowners usually cannot bring to the negotiating table a level of expertise and
experience to match that available to the government. Fairness and transparency would
be enhanced if landowners had access to expert assistance to match the negotiation
position of the government.
lesson
Irrespective of the legislative framework, when a government consults,
4 coordinates and negotiates with landowners, the outcomes are usually more
successful and fair, avoiding costly protracted disputes.
How the sensitive issue of taking land for public purposes is handled often determines the
extent to which obstacles are put in the path of development. Consensus and negotiation
remain key features of Samoan communities and most other Pacific island communities.
Governments in the region are increasingly acknowledging this cultural norm and are
starting to adopt a coordinated approach based on the widest possible consultation with
13 Accessing land for public purposes in Samoa 279
Having one agency responsible for and coordinating the acquisition of land for
lesson public purposes can ensure that information is relevant and timely, and that
5 negotiations are undertaken at the correct level on both the government and
landowner sides.
Coordination among government agencies involved in acquiring land for public purposes
is essential. Sometimes a lack of coordination has resulted in proper processes not being
followed and government officers taking on improper responsibilities.
lesson
To determine the value of customary land that is to be acquired for public
Although customary land has no ‘market value’ because market value principles do not
apply to customary tenure, it should be assumed that the land can be sold on the open
market when valuing it for compensation. Once the land is converted to public ownership,
its previous tenure arrangements are irrelevant. This approach was recently confirmed in
the Samoan Supreme Court, which found that in terms of assessing compensation there
should be no distinction between customary and freehold land.
7 may want to consider regulating and licensing professional land valuers and
providing access to mediation for landowners who wish to challenge land
value determinations.
A problem with land valuations is that the market in land is not large and the number
of land valuers is small. This often results in considerable differences in the valuations
of customary land obtained by the government. This has significant implications for the
level of compensation received by landowners and is the source of tension and disputes.
Landowners need user-friendly ways to challenge land value determinations made by the
government, as it is a quite daunting prospect to take a dispute to an appeals court.
280 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Bibliography
Asian Development Bank 2004, Economic use of customary land, discussion paper
ADB TA no. 3549–SAM, Capacity Building of Financial and Business Advisory
Intermediaries Project, October.
Land Equity International 2005, Samoa registration system—review, analysis and future
strategy, Second Infrastructure and Asset Management Project, Component 5.01
Land Administration & Survey, technical assistance report no. 2, Samoa, March.
——2006, Customary land tenure—review, Second Infrastructure and Asset Management
Project, Component 5.01 Land Administration & Survey, technical assistance report no. 25,
Samoa, January.
World Bank 1999, Land acquisition and resettlement framework, Second Infrastructure
and Asset Management Project, Project Implementation Plan, Section 4, Annex 1,
Washington, DC, June.
Policy reform and
administration
Case Studies
14 The paths to land policy reform in Papua New Guinea and Vanuatu 285
15 Strengthening land administration in Solomon Islands 307
16 Training and educating land professionals: the value of institutional partnerships 327
285
14
The paths to land policy reform
in Papua New Guinea and Vanuatu
Michael Manning » Mirel Ltd, Kokopo, East New Britain, Papua New Guinea
286 MAKING LAND WORK » VOLUME TWO CASE STUDIES
A snapshot
The paths to land policy reform in Papua New Guinea and Vanuatu
Papua New Guinea and Vanuatu recently consulted broadly on land policy
reform. Both held land summits to discuss reforms and to chart ways
forward—Papua New Guinea in 2005 and Vanuatu in 2006. The summits
were landmark national events that laid the foundation for the countries
to move forward on land policy reform. Since the summits, both countries
have taken significant steps in reform. In Papua New Guinea the National
Land Development Taskforce has held wide-ranging consultations relying
on people and resources from within the country, and a land program is
now in place to implement policy reforms. In Vanuatu a steering committee
was appointed to oversee the design and implementation process of land
policy reforms.
The land policy reform processes in Papua New Guinea and Vanuatu
provide some important lessons.
» Successful land policy reform requires a comprehensive
process of consultation in order to reach broad consensus.
» The consultation process needs to be well resourced.
» A national land summit is a powerful way to
motivate reformers of land policy.
» To have ongoing political support, strategies are needed to bring
together opposing groups and harness community support.
» A strong institutional framework for land policy reform
is a prerequisite for the process to be sustainable.
14 The paths to land policy reform in Papua New Guinea and Vanuatu 287
Contents
» Vanuatu 295
Historical context of land policy reform 295
The genesis of the National Land Summit 296
Provincial summits 297
Other consultation prior to the national summit 298
The National Land Summit 298
After the summit 301
» Lessons 302
Consult widely on the need for land policy reform 302
Allow sufficient time and resources for comprehensive consultation 302
Generate public interest and debate through a national summit 302
Gain and maintain political and community support 303
Institutionalise land policy reform 303
Recognise that donors have a limited role in the reform process 303
» Bibliography 305
288 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Land policy reform in all countries of the Pacific, however, is difficult to carry out.
Landownership has social, cultural and economic dimensions as Rowley (1968) and
Crocombe (1973) pointed out decades ago. It involves a ‘complex network of customary
rights’, including a form of ‘psychological and social security’ that is especially important as
customary owners grow old. Changes to land tenure, therefore, need to be tailored to the
specific needs of communities and undertaken at a pace with which they are comfortable.
To be effective, changes and adaptations in tenure cannot be ‘too far from the realities of
life in the particular society’. The number, diversity and complexity of individual societies
in Melanesian countries compound the legal and administrative tasks—and financial
costs—of formulating and implementing land policy reforms.
The land summits held in 2005 in Papua New Guinea and in 2006 in Vanuatu recognised
that land policy and administration had been seriously neglected over the three decades
since their independence and that philosophical and practical issues relating to land
needed to be addressed. The two countries, however, followed different paths to gain
public support and acceptance for land policy reform.
The underlying theme for the summits was the relationship between land and
development. There is strong debate about whether and/or how development can take
place while accommodating the fundamental desire and need for Melanesians to retain
customary ownership of their land. In Papua New Guinea the summit was preceded
by other public attempts to define policy both before and after independence, while in
Vanuatu it arose from the National Summit for Self Reliance and Sustainability held in
July 2005. Both land summits aimed to ensure that their results would be implemented
and, encouragingly, both have already achieved broad government acceptance.
14 The paths to land policy reform in Papua New Guinea and Vanuatu 289
Fingleton (2004) provides an exhaustive list of relevant acts and changes to them
dating back to the Native Plantation Ordinances 1918 and 1925 of the then Territory of
Papua. A striking feature of most reforms and changes was that they were imposed by
governments, albeit benevolent ones, trying to ‘protect’ native land from exploitation.
Also, they recognised the need to maintain customary land management systems for
cultural reasons.
In 1973 Chief Minister Somare set up a Commission of Inquiry into Land Matters (CILM)
chaired by Papuan Magistrate Sinaka (later Sir Sinaka) Goava. The commissioners ranged
widely in age, occupation and experience. The commission was helped by a number of,
mostly expatriate, technical experts drawn from academia around the world and lawyers
from the public service, but there were no officers from the Department of Lands (except
the Commission Secretary). It instituted a truly consultative process, holding 141 public
hearings throughout the country and receiving hundreds of submissions.
The commission’s final report in October 1973 treated all aspects of land administration as
an integral whole and stressed its fundamental importance as the basis of social, political
and economic relations. Just as the colonial land administration system had underpinned
the colonial development strategy, the commission believed the new system had to be the
vehicle for social, political and economic reform. The final report stated that to implement
these new development objectives it would be necessary to repeal and replace all existing
land legislation.
In the years following independence the CILM report formed the basis for a number of
significant land policy reforms and the introduction of new land legislation, much of
which still operates. But momentum was soon lost and the reform agenda of the CILM
report was not fully implemented. This was symptomatic of a decline in political interest.
Since that time there has been little further land policy reform, although it has been much
talked about and there have been many failed attempts at reform. In 1981, for example,
the government engaged a consultancy firm to address the underlying weaknesses of
the land systems. The firm identified administration as well as the ‘inherent problems of
integrating land held under customary practices into a modern cash economy’. A lack of
interest at the bureaucratic or political level and virtually no public pressure ensured that
its recommendations were largely ignored (Fingleton 2004, p. 13).
290 MAKING LAND WORK » VOLUME TWO CASE STUDIES
In 1986 a World Bank mission visited Papua New Guinea and proposed the Land Evaluation
and Demarcation (LEAD) Project with the objective of improving land administration
and land planning activities to create more favourable conditions for implementing
agricultural and forest development projects (Fingleton 2004, p. 20). The main
components of the proposed project involved strengthening and developing institutions,
creating a new information system for land and resources and mobilising alienated and
customary land. The mission recommended that the latter component start with two
years of trialling and evaluating two main options: tenure conversions and ‘lease – lease
backs’, and the East Sepik Customary Land Registration Act 1987. Only after these trials
had been assessed was new legislation for customary land registration to be considered.
In 1989 a World Bank loan to Papua New Guinea was approved for the Land Mobilisation
Project based on this LEAD feasibility study (World Bank 1989).
In Papua New Guinea the Land Act prevents customary landowners from directly leasing
land to outsiders. But they can lease it to the state and then lease it back. Thus, landowners
wishing to engage in direct land dealings are able to enter into a lease – lease back
arrangement with the government. In this way, landowners acquire a leasehold interest
in their land, which may then be mortgaged or subleased to investors.
The aim of the Land Mobilisation Project 1989–95 was to implement the main components
of the LEAD feasibility study. But with limited progress in the Land Mobilisation Project, in
1995 the World Bank proposed attaching a condition to a loan to Papua New Guinea that
the fundamental tasks of the project should be completed. Papua New Guinea officials
insisted, however, that this condition be withdrawn (see Filer 2000, p. 32).
The World Bank project was discredited by some politicians and groups, who likened it
to a commercial bank mortgage whereby customary landowners would lose their land
if the government defaulted on its loans to the World Bank.1 This led to riots prior to the
election in 1997 and again in 2002, when four people were shot. Central to the failure of
the World Bank’s efforts was that reform proposals were urged on the government from
outside. This approach is untenable for issues related to land, about which the people
are passionate. The results of these efforts contrast with the relative success of the CILM
reform process, which was locally driven, designed and implemented.
The coordinating committee met for several months to discuss the summit’s agenda
and agree on the broad framework. This was then fleshed out by the National Research
Institute, which managed the process, obtained funding and issued invitations. There was
considerable debate about whether to have foreign speakers and, if so, who they might
be. It was decided that, in the interests of ensuring that the summit’s proceedings were
locally driven, participation by foreigners should be strictly limited. Key foreign participants
who were accepted included a professor emeritus from the University of the South Pacific
and an indigenous Australian.
Before the summit a media publicity campaign ensured that the general public was aware
of its existence. Care was taken to include senior politicians and the National Executive
Council in this awareness campaign to build support and encourage ‘buy in’ to the project.
The National Land Summit was held from 23 to 25 August 2005 at the University of
Technology in Lae. The summit brought together members of the public, private sector
representatives, lawyers, land practitioners, public servants and politicians to enable them
to discuss the issues in a full and frank manner. The fact that it was well attended showed
how passionate people were about land matters and how much they wanted solutions
to the problems.
There was strong political support for the summit. All of the scheduled addresses
and presentations were attended by the ministers for Finance and Treasury, Lands
and Physical Planning, and Justice, the Member for Rabaul and the Chairman of the
Law Reform Commission. The summit was well received and well publicised with a
live broadcast on radio. Unfortunately summit proceedings were not recorded and
all that remains is a compendium of abstracts.
292 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The opening address was given by the Deputy Prime Minister, who outlined some of the
problems associated with land and affirmed the government’s commitment to an agenda
to reform land policy. The closing speech was by the Minister for Finance and Treasury, who
reaffirmed that the government’s commitment to reform was an essential foundation for
development. The minister also drew attention to the poor state of land administration.
The summit’s theme ‘Land, Economic Growth and Development’ was set by the two
conceptual papers—‘Making land more productive in Papua New Guinea’ and ‘Social
issues affecting land and development’. The paper on making land more productive by
Yala, Chand and Duncan2 argued that even though land was in a ‘stable institutional
equilibrium’ the status quo was costing Papua New Guinea in terms of economic and
technical efficiency. Not being able to use land as collateral makes it ‘dead capital’ and
these experts implied that this has to change if the majority (approximately 90 per cent)
of Papua New Guineans who still live on the land are to defeat the sometimes real threat
of poverty (National Research Institute 2006, p. 22).
The summit’s other conceptual paper, by Kalinoe and Kanawi3, argued that the
traditional, subsistence lifestyles of Papua New Guineans had changed, placing
‘immense pressures’ on people to make money to enable them to access basic services.
They pointed out that customary land has been the ‘keeper and absorber’ of Papua
New Guineans and questioned whether this could continue and, if not, what should
be done (National Research Institute 2006, pp. 22–3).
2 Dr Charles Yala of the National Research Institute, Prof. Satish Chand of the Australian National University and Prof. Ron Duncan of the
Australian National University and the University of the South Pacific.
3 Prof. Lawrence Kalinoe of the University of Papua New Guinea and Mrs Josepha Kanawi, Land Titles Commissioner.
14 The paths to land policy reform in Papua New Guinea and Vanuatu 293
The working group then presented 16 resolutions to the summit, which endorsed them.
The National Land Summit was a success, generating substantial public support, enjoying
highly accommodating media coverage, and successfully building a broad political will to
see the resolutions move forward. Its success came from being locally driven, although
AusAID did fund the summit. Importantly, AusAID provided the funds unconditionally,
not seeking to influence the process.
Between February and June 2006 the taskforce met every month to review the progress
of the subcommittees, which were meeting more frequently. It held consultations
with political heads at the national and the provincial levels, bureaucrats at all levels,
representatives from the business sector, non-government interest groups, as well as
the general public through public forums. Consultations were held in all four regions
of the country and in two centres of each region as well as those with specific interest
groups. Recommendations were published in the press and comments sought from
the general public. The taskforce also presented an interim information paper to the
National Executive Council.
In short the National Land Development Taskforce made every effort to consult the people
and key stakeholders, ensuring that ‘ownership’ of the proposed recommendations would
be Papua New Guinean. Overwhelmingly the public sought action as a result of the report,
stating that they were tired of ‘hearing about good ideas that never get implemented’
(National Research Institute 2007, p. 111).
However, there are differing views about the degree of consultation, especially at the
provincial level where meetings and consultations were sometimes seen to be rushed
and to involve a limited audience. This was in part dictated by the tight timetable for
reporting and the availability of taskforce members to be part of the consultative teams.
294 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The recommendation on customary land was to reform the Land Groups Incorporation
Act 1974 to make incorporated land groups ‘vehicles for development’. The groups would
have management powers over land development and control over rents and income from
land. However, this recommendation also allows individuals to ‘secure their own piece
of land’, which would remain under the ownership of the ‘landowning unit’, presumably
the incorporated land group (National Research Institute 2007, p. 21). The recommendation
also included coordinating incorporated land groups to have ‘their land surveyed,
radical title issued … at the initial stage, on some pilot projects’ (p. 22).
At the end of 2006 the recommendations of the taskforce were adopted in full by the
National Executive Council, and a Land Development Programme to be administered
within the Department of Lands and Physical Planning was established to implement
the recommendations. Seed funding of K1 million was provided, demonstrating
the government’s strong endorsement of the taskforce’s recommendations and
commitment to their implementation.
Importantly, the Land Development Advisory Group reporting directly to the National
Executive Council was established to oversee the implementation of the Land
Development Programme. This institutionalisation of the reform process should help
to make implementation robust. The strong oversight powers of the land group will
enable it to push through reforms, even in the face of hostility to reform within the
bureaucracy, most particularly within the Department of Lands and Physical Planning.
Its institutionalisation also helps to overcome reliance on the individual champions for
reform—if these champions move on, the institution will remain. The key remaining
vulnerability is the long-term sustainability of funding.
The process of land policy reform in Papua New Guinea has gone through a number
of phases and has had input from foreign consultants, lending agencies and scholars.
During the current phase, reform proponents have firmly expressed their view that there
is little need for further such input, the primary needs now being to obtain political ‘buy in’
from the National Executive Council and the Parliament, and to generate consensus and
support from the people and key stakeholders throughout the country. Reform proponents
believe that land administration issues are already well known and that the technology
is available to solve them.
14 The paths to land policy reform in Papua New Guinea and Vanuatu 295
Following the 2007 national elections in Papua New Guinea, the Minister for Lands,
Dr Puka Temu, retained his portfolio and was elevated to the position of Deputy Prime
Minister. In view of his known commitment to land policy reform, the considerable work
done on preparing draft legislation and specific administrative reforms, and the careful
groundwork carried out by the Land Development Advisory Group, the stage has been
set for steady progress in improving the use of land as part of Papua New Guinea’s
national development.
Vanuatu
Through the 1990s and into the new millennium, the same concerns about land
alienation were building up, except this time land was being alienated as a result of
long-term leases to foreign developers and a few influential ni-Vanuatu. It was on
this basis that the push for land policy reform gathered momentum. In recent years a
coalition including the Vanuatu National Cultural Centre, the National Council of Chiefs
(Malvatamauri) and the Vanuatu Association of Non-Government Organisations began
moving for land policy reform with a view to winding back the rapid rate of land alienation
and development.
In 2003 the media began to run stories about how much land on Efate was tied
up in leases to foreigners—at the time it was reported to be 25 per cent—and this
sparked a seminar in Port Vila on sustainable land management at the local campus
of the University of the South Pacific, which attracted a lot of public interest. Also, the
proliferation of subdivisions and the clearing of bush since the late 1990s have provided
tangible evidence of land alienation for all to see. The growing number of often foreign-
owned real estate companies advertising lots with long-term leases at prices substantially
higher than that originally paid to landowners contributed to the groundswell.
296 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Champions for the land summit began within civil society—the National Cultural
Centre, the National Council of Chiefs and the Vanuatu Association of Non-Government
Organisations—which joined forces with the bureaucracy (the Director General of Lands,
in particular) to make it happen. The momentum to have the land summit was sustained
by the Department of Lands, with the National Cultural Centre, the National Council of
Chiefs and the Vanuatu Association of Non-Government Organisations tracking progress.
Donors did not play a role at the summit other than as observers. Provincial summits and
the Port Vila summit were all funded out of the government’s recurrent budget. Australia’s
and New Zealand’s aid agencies assisted with funding for international land experts to
attend the summit and, with Wan Smol Bag (a non-government organisation and widely
known performing group that popularises social, environmental and governance issues),
ran a successful competition about land issues aimed at youth. Throughout the process
politicians maintained a respectful but distanced interest.
14 The paths to land policy reform in Papua New Guinea and Vanuatu 297
Provincial summits
The land summit process began with two provincial summits in each of the six provinces,
beginning in March 2006. These were open to the public, although some provinces
restricted entry. For example, Tanna restricted entry to the head chiefs who were
‘representatives of all the people’. In Malampa Province, which includes Malekula, Ambrym
and Paama islands, the provincial administration (namely, the Secretary-General) denied
knowing about the provincial summit whereas its Council of Chiefs proudly proclaimed
full knowledge of it.
The summit team, with its headquarters in Port Vila, comprised representatives of the
National Cultural Centre and the National Council of Chiefs and three officers from the
Department of Lands (from sections involved with enforcement, land tribunals and
planning). These officers visited each province to complete a questionnaire that had been
distributed in advance so participants could discuss them with their people. This process
worked better in some provinces than in others. In general, the questionnaire raised issues
more to do with technical land administration and leasing processes rather than broader
issues, such as threats to customary landownership or issues of indigenous-led development.
The questionnaire and its results were discussed at the first provincial summit and
provincial resolutions were recorded. The summit team returned to Port Vila to draft
resolutions and then two officers returned to the provinces to present the resolutions to
the provincial summits for approval. There is some dispute about whether this worked
as intended. For example, Eric Tulman, President of Malampa Province, said he did not
attend the second summit nor was he aware that a questionnaire was sent out. The
National Council of Chiefs also claimed they were not consulted (Vanuatu Independent,
17 September 2006). Many people thought the provincial summits were closed events and
did not try to attend them, instead opting to attend the National Land Summit for which
public attendance was clear.4 The Malampa provincial summit was attended by 80 people
but the President claimed it did not represent all districts. These concerns highlight the
difficulty of consulting widely, particularly when there are constraints on time and money.
Before the summit, the government also called together 67 companies from the private
sector—representing accountants, banks and other financial institutions, insurance
companies, lawyers, real estate agents and developers—and asked them to put together
a private sector view to present at the summit. The original meeting attracted 45 private
sector attendees, who elected a steering committee. The steering committee met
every two weeks from June to September and prepared and presented a representative
submission to the summit.
The National Council of Chiefs, provincial governments and the private sector made
formal submissions. Oral presentations were made by the Director of the National
Cultural Centre, representatives of women, a representative of youth, Department of Lands
officials, the sustainable development adviser from the South Pacific Forum Secretariat,
delegations from Fiji, Solomon Islands and Papua New Guinea and a number of invited
technical experts from the region. More than 20 papers were presented (Government
of Vanuatu 2007, p. 7).
14 The paths to land policy reform in Papua New Guinea and Vanuatu 299
The papers presented at the summit included a host of landownership issues such
as custom, reefs and the sea, understanding leases and land values, strata title and
ministerial intervention. Sustainability issues included landowners’ understanding of
sustainable development, environmental issues covering access to the sea, rivers and
lakes, and issues related to law enforcement, the importance of zoning, and population
pressures on land and the environment. Gender issues included problems faced by
women from the sale of land, especially losing their ability to provide for their families,
and the consequent social pressures this brings about in ni-Vanuatu society. Half a day
was set aside to discuss women’s issues.
Summit resolutions were distilled by a small working group, which took the original
1000-plus recommendations and reduced them to only 20 resolutions. After this the
summit broke into provincial groups to discuss the proposed resolutions in greater detail
and to add to, delete or change them.
Given that about 1000 recommendations were reduced to 20 resolutions in the national
summit it is interesting to look at the success rate of the provincial resolutions. From
the Malampa Province resolutions, two relating to ownership were clearly embraced, six
were probably included and five do not seem to have been included. Under the heading
‘fair dealings’ nine resolutions were embraced, and five were ambiguous (they covered
the same ground but did not use specific wording). Under ‘sustainable development’
all three resolutions were adopted.
300 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The steering committee met four times, its most recent meeting being in September
2007. Although meetings have been infrequent, regular email discussions have been held,
although more commonly between civil society actors and Department of Lands officials,
with private sector and other departmental representatives reportedly being somewhat
distant from that dialogue.
The moratorium on issuing strata title was reported to have been lifted after threats of
legal action.6 However, during the months before the 2006 summit more than 300 lease
applications were lodged, which the Department of Lands is duty-bound to process. This
processing has been perceived as a lifting of the moratorium.
The issues of public ownership of reform and the direction of that reform are by no means
settled. The underlying reasons for land policy reform in Vanuatu are still being debated
despite the summit resolutions. Interviews carried out for this case study revealed an
ideological rift between those who support custom as the paramount ideal guiding land
matters and pragmatists who state that population pressure on land and the need to
provide income-earning opportunities require land to be freed up and better used.
The ‘battle lines’—if they can be called that—are between the National Council of
Chiefs, the National Cultural Centre, non-government organisations and some women’s
groups who want more emphasis on custom and traditional values, and the government
and private sector, which want land to be freed up for economic development and the
country’s future. While the debate is far from over, the summit and follow-up activities
mean the issues are now on the table and the resolution process under way.
It is also important to note that the differences are ones of degree and that custom and
economic development are not mutually exclusive. The process of embracing reform
and continuing consultation will help to reduce these tensions, as will the eventual
introduction of a Land Act based on the outcome of this debate.
6 Doug Patterson, private sector representative on the steering committee, pers. comm., September 2007. The Director General of Lands
says that the moratorium is still in effect but it is unclear how strictly the moratorium is being enforced (Anna Naupa, pers. comm.,
September 2007).
302 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Lessons
lesson An essential prerequisite for successful land policy reform is comprehensive and
1 ongoing consultation in order to reach and maintain broad consensus.
The most important lesson to be drawn from the land policy reform experiences in
Papua New Guinea and Vanuatu is that gaining broad consensus through consultation
is an essential prerequisite for a successful reform process. Targeted roundtables with
key stakeholders, such as the private sector, before the land summits allowed for a broad
participatory process and the formulation of concise recommendations representative
of the sector. To gain support for reform the community has to be consulted, not only to
understand and support the proposed changes, but to provide input to the directions of
change. That is why the consultation processes in both Papua New Guinea and Vanuatu
were successful. And all stakeholders need to be kept aware of the reform process and
consulted after the summits to maintain the momentum of land policy reform.
lesson
Strategies to bring together groups with opposing viewpoints and to
The reform process depends on political support and bureaucratic action; if either of these
is not present it will not happen. It is therefore imperative that people within the political
and bureaucratic systems are ‘harnessed’ to the implementation of reform. Central to
achieving this is broad community support. Regular discussions on radio and appearances
on television and in the press by prominent reformers help to maintain momentum and
community awareness. It is important that those seeking to implement reform identify
their potential allies for support, but especially their opponents so that they can be
included in the process and either converted or compensated. This was done in Papua
New Guinea, and in Vanuatu key groups representing opposing view points were brought
together in an institutional framework.
lesson A strong institutional framework for land policy reform is the key to the
5 sustainability of a reform process.
Individuals will not be able to drive change in land policy. A broad coalition needs to be
formed to drive the process and educate and inform the public. The process of land policy
reform has to be institutionalised and embedded within the government to be able to
succeed. An early ‘road map’ of reform, as in Vanuatu and Papua New Guinea, provides
continuity for the reform movement. A committee that reports directly to cabinet has
been set up by both countries to oversee the implementation phase of reform. With an
issue as far reaching and invoking as much passion as land, anything less is likely see
implementation come ‘off the boil’.
lesson For donor support of land policy reform in the Pacific to be effective, it must
6 support the initiatives of the local people rather than be the driver.
The role of donors has been important in both Papua New Guinea and Vanuatu. Although
AusAID provided financial support it has not sought to influence or be part of the reform
process. Donors must recognise that land policy reform can work only if it is initiated and
supported by the people of the country.
304 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Bibliography
Cooter, RD 1981, Land policy and economic development in Papua New Guinea, Institute
of National Affairs, Port Moresby.
Crocombe, RG 1973, The new South Pacific, Reed Education Books, Christchurch, New Zealand.
Dodson, M & McCarthy, D 2005, ‘Customary land as the key for future development-empower
those who want to use their land and protect those that don’t’, National Land Summit
‘Land, Economic Growth and Development’, Papua New Guinea University of Technology,
Lae, August.
Filer, C 2000, The thin green line: World Bank leverage and forest policy reform in Papua New
Guinea, Research School of Pacific and Asian Studies, Australian National University, Canberra.
Fingleton, J 2004, Assistance with land tenure reforms in Papua New Guinea.
Gorevski, S, Hughes, H and Windybank, S 2004, ‘Is Papua New Guinea viable?’,
Pacific Economic Bulletin, vol. 19, no. 1, pp. 134–8.
Government of Vanuatu 2007, Final report of the National Land Summit, Port Vila.
Institute of National Affairs 1981, Summary of proceedings of an INA seminar: land policy
and economic development in Papua New Guinea, Port Moresby.
Jones, LT & McGavin, PA 2000, Creating economic incentives for land mobilisation in PNG,
Institute of National Affairs, Port Moresby.
Knetsch, J & Trebilcock, M 1981, Land policy and economic development in Papua New Guinea,
Institute of National Affairs, Port Moresby.
Levants, T & Manning, M 2002, The business and investment environment in PNG: the private
sector perspective—a private sector survey, Institute of National Affairs, Port Moresby.
Lunnay, C, Fingleton, J, Mangawai, M, Nalyal, E & Simo, J 2007, Vanuatu review of national
land legislation, policy and land administration, Report to Steering Committee,
March, viewed June 2007 <http://www.ausaid.gov.au/publications/pubout.
cfm?ID=9890_470_5909_2050_163>.
Millett, J (ed.) 1993, Seminar on employment, agriculture and industrialization; Institute
of National Affairs, Port Moresby.
National Research Institute 2006, The National Land Summit: a report on the presentations
and recommendations, National Research Institute, Boroko, March.
——2007, The National Land Development Taskforce: land administration, land dispute
settlement, and customary land development, National Research Institute, Boroko.
Rowley, CD 1968, The New Guinea villager, Cheshire, Melbourne.
Sowei, J, Lahari, W & Vatnabar, M 2003, Rural informal sector study, National Research
Institute, Port Moresby.
World Bank 1989, Staff appraisal report: Papua New Guinea Land Mobilisation Project,
Washington, DC.
307
15
Strengthening land administration
in Solomon Islands
A snapshot
Strengthening land administration in Solomon Islands
This Solomon Islands project provides some key lessons for future
land administration activities in the Pacific.
» It is important for the partner agency to own and control
the support project, and for the project to maintain
effective communication with all stakeholders.
» When working on complex issues such as informal
settlements and recording customary land, pilot
activities can provide valuable insights.
» Assistance to build the capacity of an agency needs to have
a flexible design and to take into account both the constraints
imposed by and any changes in the local context.
15 Strengthening land administration in Solomon Islands 309
Contents
» Lessons 322
Ensure aid projects are owned locally 322
Engage and communicate with all stakeholders 322
Build capacity 322
Measure project outcomes 323
Adopt flexible approaches to both design and implementation 323
» Bibliography 324
310 MAKING LAND WORK » VOLUME TWO CASE STUDIES
By the late 1990s the then Department of Lands and Survey (DoLS) could reasonably
be described as dysfunctional. The old colonial buildings were in need of repair, the
public inquiry area was scuffed and dusty, there was no protected public waiting area
and members of staff were rarely seen at the service counter. Staff morale was low—
absenteeism was high, and service was virtually non-existent. Land records, including
aerial photographs, registered titles and survey plans, were not maintained and were in
decaying brown envelopes. The retrieval of records to meet customer requests was slow,
tedious and often unsuccessful. Land transactions were very slow and, correspondingly,
customer satisfaction was very low. Most senior managers were aware that the
department needed outside assistance.
In 1998 the Solomon Islands Government requested AusAID support for what became the
Solomon Islands Institutional Strengthening of Land Administration Project (SIISLAP). The
project, which began in January 2000 in the Department of Lands and Survey, focused
on upgrading and establishing functional systems for land administration. It had an
emphasis on activities to generate revenue and to build the capacity of the department.
The project was completed in June 2007.
The design team undertook an organisational review of the ministry and the design
placed priority on building the technical capacity and skills of DoLS staff where these
were low, to enable the staff to meet basic operational requirements such as procedure
documentation, land registration, land transactions, cadastral mapping and valuations.
Further activities included decentralising the delivery of services through regional land
offices, improving customer service and making better use of mapping data.
At the root of the tensions, particularly in Guadalcanal and Honiara, was illegal squatting
and use of customary lands, the commercialisation of land, rapid population growth and
land pressure and poor management of urban growth … (p. 1)
Australia’s broad response to the conflict focused on three areas: peace and reconciliation,
the links between poverty and conflict, and public sector reform to improve economic
management. The land ministry was central to these responses. The SIISLAP design had
been based on the assumption that public sector reform would continue, law and order
would be maintained, and the operating costs of the land ministry would be stable, but
that situation had changed before the project commenced.
When the project began in January 2000 its term was intended to be three years.
Unfortunately this period coincided with the peak of civil and political unrest, which
undermined the ability of the ministry to function effectively and hampered SIISLAP’s
activities. Between 2000 and 2003 project staff were evacuated for a brief period to
Australia, there were three changes of governments, four ministers, two permanent
secretaries and four different project coordinators appointed by the governments.
The design advocated the use of simple computer systems—with manual systems to back
them up—to support administrative functions, and it included support for improved land
administration and improved revenue benefits from that. It also adjusted the original
approach to focus more on:
» building the capacity of staff within the ministry
» responding to the growing recognition being given to customary land as a national
economic asset
» promoting good governance to underpin the integrity of the land administration system
» strengthening the links between the land and justice sectors in resolving land disputes
» addressing issues of equitable land distribution, land accessibility and security of tenure.
SIISLAP adjusted its plans and approaches to implement the revised design in late 2003,
and began to implement its second phase in March 2004, with an increased budget that
initially required more resources and skills than the ministry had.
Priorities for the second phase of SIISLAP, which ran until June 2007, were to:
» improve the capacities of both senior managers and supervisors
» consolidate gains made in systems and processes during the first phase
» establish capability in mapping and geographic analysis
» introduce pilot land tenure activities.
Activities resulting from the intervention of the Regional Assistance Mission to Solomon
Islands (RAMSI) in 2003 and subsequent increases in aid led to a huge demand for
thematic maps from new development programs. The project was able to respond to this
expanding market for mapping products, as it had set up a computer-based geographic
information system (GIS). Over the longer term this mapping unit could form the basis of
a land resource information system that could help to support more effective use of the
nation’s resources for social and economic development.
Capacity building was a major component of the project and was successful within the
project’s timeframes and resources. The project sought to build the capacity of managers
and supervisors by:
» developing an organisational structure to reflect the department’s functions1
» introducing a corporate plan and budget-based work plans as management tools
» establishing procedures to recruit senior and middle managers
» designing and delivering a significant staff training program
» preparing standard operating procedures.
These activities to improve processes and develop systems demanded a lot of the
department’s resources. A high enough priority was not put on increasing staff capacity
at management and supervisory levels to cope with the workload. So the systems
established by SIISLAP are fragile and require ongoing support.
1 The current government’s policy framework outlines new directions for land reform. Structural changes have already commenced,
with the creation of the Land Reform Unit in 2006.
314 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The interaction of project advisers and the DoLS staff had a major positive impact on staff
competence, self-confidence and morale. A high proportion of the project’s effort went
into developing the technical skills of staff to a high level. Training was delivered mainly
through on-the-job support from technical advisers hired by the project. Postgraduate
distance education programs in spatial mapping and business management were
successful despite being demanding on the staff. All advisers were required to develop
operational manuals for the upgraded systems, and those manuals are a comprehensive
source of information on how to maintain the systems.
The computer-based land register will need further support to ensure its continued use.
Adherence to the system’s procedures will be important and the support, motivation
and leadership of senior managers will be essential. Commitment from the ministry is
also required to keep transaction processing up to date, particularly if the system is to
accommodate an anticipated expansion in the administration of customary land.
These regional centres mean customers do not have to travel to Honiara to undertake
land dealings or query land transactions. However, they are relatively high-cost operations,
requiring experienced staff. Budgets, staffing and computer support from the ministry
remain concerns and the link between the regional centres and Honiara still needs to
be strengthened.
2 Power sharing with provinces has been the subject of political debate for many years. The term ‘decentralise’ is used here to describe
an outreach delivery mechanism aimed to improve land administration services to local communities. It does not yet involve the
devolution of decision-making powers to the provinces from the Minister of Lands.
15 Strengthening land administration in Solomon Islands 315
Demand for thematic maps has always exceeded the centre’s ability to supply them,
and this led the centre to develop service agreements for the supply of products and
services. Sales data indicate a modest income stream, not yet sufficient to achieve full
cost recovery. A business plan for the centre is now needed to address structural and
management options, including prospects for commercialisation or privatisation, as well
as sustainability issues (data management, funding, staffing, training and markets).
Survey data and plan records provide the geographic integrity for land administration.
This information underpins the valuation and rent collection systems and is the basis for
land tenure mapping. The centre now faces growing customer expectations, the need for
advanced staff skills and new product specifications, and an increase in the demand for
special products such as land tenure maps. It is important that new systems in the centre
are affordable and that any cost recovery through sales can be afforded by the users.
Revenue generation
To support activities that generate revenue for the lands department, a computer-based
system was developed for collecting land rents but it was not implemented because
government priorities changed (SIISLAP II 2006b). Inadequate staffing was an impediment
but the system requires the ministry to formulate specific policies on how it should work
and to officially endorse the use of the system. In a market where the value of land has
soared in recent years there are concerns about its impact on land rent and land taxes
such as city council land rates, which are based on the value of the land or property on it.
SIISLAP introduced a formula-based approach for determining valuations but its uptake
was limited. The ministry and Honiara City Council need to collaborate to ensure increased
land values do not trigger excessive sudden increases in the council rates. The Honiara
City Council’s system for collecting rates also needs urgent repair as currently only about
25 per cent of a total of more than SI$2 million (A$400 000) a year is collected.
3 Clients include RAMSI, AusAID, other donor agencies and non-government organisations and there is still considerable scope for
providing services to other government agencies, provincial organisations and the private sector.
316 MAKING LAND WORK » VOLUME TWO CASE STUDIES
SIISLAP supported a pilot project to demonstrate a way of converting the small pieces of
land occupied by households in the unauthorised settlements to a more secure form of
long-term lease, known as fixed-term estates (SIISLAP II 2007). International experience
shows that when residents in unauthorised or squatter settlements gain security over
their piece of land it produces wider social and economic benefits. This is because people
with a secure title to their home are more likely to find and hold onto secure employment
and then are more likely to invest in improving their living conditions. When this happens
to thousands of people and households in a city the positive effect on social and economic
development can be enormous.
The pilot project involved creating in three stages 310 parcels of land with secure tenure in
Honiara. The task significantly increased the workload of the land ministry, but all survey
and registration processes were completed over several months, which implied that there
are no inherent barriers in the land administration system. By early 2007 the ministry had
begun the process of offering the long-term secure leases (in the form of 50-year fixed-term
estates) to individual residents. The leases are not free; residents are required to pay an initial
fee for the conversion and a subsequent annual fee for rent. This will create a significant
revenue stream for the government and the Honiara City Council. These fees could be
used to improve services to households such as water, sanitation, electricity and roads.
15 Strengthening land administration in Solomon Islands 317
The outcomes of the pilot project exceeded expectations because it was well planned and
funded and involved local staff with the rapport and skills to conduct public awareness
campaigns, consultations and negotiations within the local communities. Previous attempts
(with support from the European Union) had achieved little beyond design and land surveys.
The project adopted a participatory ‘people-centred’ approach that focused on the needs of
the squatter communities. This well-planned and consultative approach helped to ensure
that fears of significant social disruption from the process were not realised.
The pilot project was able to build capacity within the Honiara City Council and the
Town and Country Planning Board while focusing on community outreach. It also
provided on-the-job training, engaged senior managers, established a land development
advisory group, progressed the Site Development Fund and involved private sector survey
companies. In addition, planning expertise was improved and it was recognised that an
integrated approach to planning, which incorporates social, environmental and physical
perspectives, is required. There is now a critical mass of reliable information from which
better policies can be formulated.
The pilot demonstrated that the ministry has limited capacity to manage land
development in the face of increasing demand for land, and highlighted the importance
of community awareness and engaging all stakeholders in the physical planning process.
If land tenure and related issues are not managed, a sector of society will be living in
unacceptable conditions. Solving these issues is paramount to maintaining peace in
Honiara City, improving access to the settlement areas and meeting basic levels of health
and environmental control.
SIISLAP assisted with the pilot project, which is described in Case Study 3, ‘Recording land
rights and boundaries in Auluta Basin, Solomon Islands’. Lessons from that pilot could
inform the government’s new land reform agenda and its impact on policy, procedures
and legislation as they relate to customary land. Such reform should involve review,
further research, careful monitoring, extensive awareness and information, consultation
and other pilot applications in different cultural and tenure settings before the reform
is implemented.
318 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Resolving disputes
SIISLAP cooperated with a law and justice aid program run under RAMSI to look at
improving the resolution of disputes involving customary land. This cooperation focused
on efforts from within the Solomon Islands justice system to establish a Tribal Land
Dispute Resolution Panel. This incorporates the Melanesian concepts of consensus
resolution as opposed to a western system perceived as adversarial and implemented
through the Land Courts. It recognises that a systematic policy on customary land tenure
must be developed in concert with procedures for resolving disputes (Hamilton 2006).
Ultimately this project resulted in an improved land administration agency, with good
functioning systems and improved institutional morale. However, the sustainability of
the improvements is not guaranteed. The records management area still had a backlog of
work when the project ended, which was likely to increase without ongoing assistance.
The required knowledge of the systems and level of operational skills is shared by only a
few staff. Without ongoing and extended support what has been achieved through the
project will not be sustained.
15 Strengthening land administration in Solomon Islands 319
The circumstances in the Ministry of Lands, Housing and Survey in March 2003 and the
changes since—at the time of a review in December 2006 and at the end of the project
in June 2007—can be seen in the table.
Staffing Levels are about 35 per cent Levels are about 15 per cent Levels are less than
below approved levels. below approved levels. 15 per cent below
approved levels.
Workplace Staff morale is low, salaries Staff morale has improved, Staff morale is high
culture are in arrears, work attitudes salaries are paid on time, work with some concern
are poor, and absenteeism attitudes are poor, absenteeism over sustainability, and
is high. is high but reduced. absenteeism is slightly
reduced.
Revenue Average annual collection The equivalent rate to 2006 was Ongoing high demand
generation rate to 2003 was 28 per 29 per cent. Demand for maps for thematic products.
cent. Map sales are low and GIS products is high. A cost-recovery plan is
(no GIS products). needed.
Land equity Law and order is better than Law and order is still a major A Land Reform Unit
in previous years but issues concern and land reform issues has been established
of land equity have not are on the policy agenda. in the ministry.
been addressed.
320 MAKING LAND WORK » VOLUME TWO CASE STUDIES
When SIISLAP began there was no secure office. As part of improving the general
workplace, which included minor repairs and better lighting, the project set up a locked
office for its key staff and expensive equipment. This had the effect of immediately
separating the international technical advisers from DoLS staff. A few long-term advisers
chose to move into DoLS offices to work closely with their counterparts in the lands
department, especially as functions became progressively computer-assisted. Most
advisers, however, were encouraged to work in the separate project office, and this
effectively generated a separate system. Even as DoLS work-spaces were improved and
made more secure the project’s technical advisers were not integrated into the workplace.
Some project technical advisers developed work systems and procedures in the isolation
of the project office, and where these were complex—for instance, the computing chain of
the land administration process—the DoLS staff almost certainly did not attain the level
of competence and confidence required to manage and maintain those systems.
As the project was implemented there were several changes to activities for justifiable
reasons. But because DoLS staff and most of the support project team were physically
separated, there was some uncertainty and confusion about the scope of the project. This
might have been avoided if a more participatory and more integrated approach had been
used to select activities.
With hindsight it is clear that the project design caused several problems. A major
problem was that a parallel work-planning system evolved in which the project worked
in parallel with the department rather than as part of it. SIISLAP managers and advisers
were driven by fixed timelines, an outputs schedule and associated payment milestones,
while DoLS remained without clear institutional goals.
15 Strengthening land administration in Solomon Islands 321
Despite project support to address staff issues, SIISLAP never slotted in effectively to assist
DoLS to achieve its objectives. Because SIISLAP advisers were driven by relatively fixed
timelines and milestones, rather than supporting the departmental staff in doing many
of the project’s activities, on many occasions the project team did the work themselves
to meet the deadlines. DoLS staff were participants, but not the leaders, in improving
and developing land administration systems.
There are clear lessons from this on the need for any donor project to have the flexibility
to respond to the agency’s needs—not to attempt to define those needs and not to be
driven by schedules that require delivery of particular outputs. The in-country agency
should be the primary partner in developing the design and know from the outset that
they own and control the project.
Senior managers did not own the project and communication was poor
Because the project was designed during a period of increasing instability there was no
strong leadership from within the ministry at that stage. DoLS had no strategic plan or
clear goals and objectives that the project could support, so project goals were established
in isolation during the design, and the ministry had no real ownership.
Communication between the project team and the ministry was inadequate, particularly
in the latter years. Had SIISLAP been better integrated into DoLS workplaces as it
was implemented, senior managers might have become more aware of the project’s
achievements. Many DoLS staff were initially reluctant to use new standard operating
procedures because of problems in getting them officially approved. This arose because
project advisers had not worked with DoLS counterparts to develop the procedures,
nor with DoLS managers to have them integrated into agency operations.
Departmental staff generally lacked basic and routine workplace skills such as report
writing, file management, document control, quality assurance and supervision. The lack
of these skills was a capacity constraint and undermined the project’s ability to introduce
more complicated procedures. The high incidence of absenteeism, ongoing high vacancy
rates and the lack of counterpart funding made it difficult to achieve some project
outcomes. All of these internal issues required senior managers to engage and own
the project. Overall there was a lack of political or senior management commitment to
consolidate the project’s achievements or to endorse key policy and regulatory changes.
Closely associated was the lack of adequate project and inter-agency and intra-agency
cooperation. Good relationships are essential for successful project outcomes. In an
environment of political and social instability it is easy for relationships to become
strained. During SIISLAP there was confusion about the reporting obligations of the
project to the ministry, and failing to keep the ministry fully informed undermined
acceptance of the project. The government would almost certainly have valued
SIISLAP more highly had there been more effective communication and extensive
and continuing consultation with stakeholders.
322 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Lessons
For donor activities in the land sector to be successful, the land agency must be the
lesson primary partner in developing the design and be fully involved in implementing the
1 project or program to ensure that it owns the project or program from the outset
and that the activities are aligned with government policies.
Donor-supported projects in the land sector require a context of clear government policies
for both alienated and customary land. Improvements to land policy require political
leadership, a champion for change within the land agency and a long-term partnership
with and commitment from the donor. Systems being introduced must match the
skills and resources of the land agency, and marketable products and services must be
affordable to customers, yet cover product costs if they are to be sustainable. All processes
used must be culturally appropriate.
lesson
A flexible and responsive approach to selecting project activities is necessary,
All stakeholders need to understand the objectives and benefits of the project so that
it is recognised primarily as a process for improving resources, not just a mechanism for
providing additional resources. For SIISLAP poor communication between its managers
and the ministry reflected badly on the project, but there was effective communication
with external stakeholders when activities (conferences, summits, workshops and forums)
were organised outside of formal project meetings, involved senior land representatives
from the Pacific region and were designed to address specific themes.
Build capacity
lesson
Agency resources and the needs and skills of staff should be assessed before
For activities that may generate conflict, it is important to identify and use
lesson local people who have rapport with the communities as well as the necessary
5 skills and knowledge, or have the potential to develop those skills through
appropriate training.
SIISLAP demonstrated that the competence, confidence and morale of the staff in an
in-country agency can be increased through hands-on training to provide technical
and organisational skills. It also demonstrated the need to integrate advisory roles into
the partner agency’s work plans and structure, to provide ongoing support to build the
capacity of managers and decision makers, and to engage more with staff to assess their
individual needs. Specific skills are needed for work that could generate conflict, such as
in settlement areas and involving customary land.
lesson
To demonstrate the benefits of strengthening land departments, it is critical to collect
6 a broad range of social and economic data, including baseline data, and measure
improvements against economic and social indicators, not just project outputs.
Initiatives to strengthen land systems and tenure arrangements depend on human and
organisational change. Such changes cannot be easily planned and sequenced in a project
design format.
Unlike a project, a program does not have structured timelines or reporting but does
have clear outputs such as the installation of a functioning records management system.
It can also allow a stronger focus on broader social and economic outcomes that flow
from improved land administration.
324 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Bibliography
AusAID 1999a, ‘Solomon Islands institutional strengthening of land administration’, project
design document, Australian Agency for International Development, Canberra, June.
——1999b, ‘Solomon Islands short term expertise in management of land administration
and registration’, final report, Australian Agency for International Development, Canberra,
August.
——2000, Improving access to land and enhancing the security of land rights: a review of land
titling and land administration projects, Quality Assurance Series No. 20, Australian Agency
for International Development, Canberra.
——2001, Undertaking land administration projects: sustainability, affordability, operational
efficiency and good practice guidelines, Quality Assurance Series No. 26, Australian Agency
for International Development, Canberra.
——2003, ‘Solomon Islands Institutional Strengthening of Land Administration Project’,
final report, Technical Advisory Group Mission, Australian Agency for International
Development, Canberra, April.
——2006, ‘Solomon Islands Lands Sector Mission’, draft report, Australian Agency for
International Development, Canberra, August.
——2007, ‘Solomon Islands Institutional Strengthening of Land Administration Project (Phase 2)’,
final report, Evaluation Mission, Australian Agency for International Development,
Canberra, February.
Deininger, K 2004, ‘Land policies for growth and poverty reduction: key issues and challenges
ahead’, paper presented to UN, FIG, PC IDEA Inter-regional Special Forum ‘The Development
of Land Information Policies in the Americas’, Aguascalientes, Mexico, 26–27 October,
viewed June 2007 <http://www.fig.net/pub/mexico/>.
Hamilton, L 2006, Tribal Land Dispute Resolution Panel issue paper: land tenure policy,
Solomon Islands Law and Justice Institutional Strengthening Program, March.
Land Equity 2007, Land administration reform: indicators of success and future challenges,
Agricultural and Rural Development Discussion Paper 37, World Bank, Washington, DC.
Scheudler, D, Rajabifard, A & Williamson, IP 2004, ‘Evaluation of land administration systems’,
Journal for Land Use Policy, vol. 21, no. 4.
SIISLAP 2003, Action and policy plan to improve the income from land rent, Australian Agency
for International Development, Canberra, April.
SIISLAP II 2006a, Establishment of a National Geographic Information Centre, milestone
report #5, Australian Agency for International Development, Canberra, July.
——2006b, Transaction processing control, milestone report #2, Australian Agency for
International Development, Canberra, August.
——2007, Lessons learned: tenure conversion of unauthorised settlements in Honiara, milestone
report #3, Australian Agency for International Development, Canberra.
15 Strengthening land administration in Solomon Islands 325
Solomon Island Government 2001, Economic and Structural Reform Action Plan 2001/2003,
Ministry of Economic Reform and Structural Adjustment, April.
——2002, Programme of Action Policies, Priorities, Strategies and Target 2002–2005,
National Government for Peace, Unity and Restoration.
——2006, ‘Policy translation and implementation document’, Grand Coalition for
Change Government, August.
UNDP 2004, Solomon Islands peace and conflict development analysis: emerging priorities in
preventing future conflict, an independent study commissioned by the United Nations
Development Programme with the support of the Department of National Unity,
Reconciliation and Peace and the National Peace Council, United Nations Development
Programme, viewed June 2007 <www.undp.org/cpr/documents/prevention/integrate/
country_app/sol_is/Solomon_Islands_-_PCDA_Report.pdf>.
327
16
Training and educating land professionals:
the value of institutional partnerships
A snapshot
Training and educating land professionals:
the value of institutional partnerships
Contents
» Introduction 330
» Lessons 336
Establish partnerships with tertiary institutions 336
Build in financial sustainability 336
Customise education material 337
Build links between education institutions and government and private sectors 337
» Bibliography 345
330 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Introduction
Donor programs to assist developing countries to improve their land administration and
tenure systems often include education and training components to build the capacity
and skills of professionals and officials in the those countries. The education and training
may involve supporting students while they study at institutions in the donor country or,
where courses are available, in the recipient country.
A major project supported by AusAID and the World Bank provides an example of
how an education institution in Laos was strengthened to serve the needs of the land
sector. The Lao–Australia Property Rights and Land Titling Project focused on building
capacity within the tertiary education sector in Laos. It provides useful lessons on how
local institutions in developing countries can establish partnerships with institutions
in a donor country to increase their capacity in a sustainable way.
According to the report of the Papua New Guinea National Land Development Taskforce,
there is an urgent need to train more physical planners. The country’s education
institutions do not offer degrees in this field, so there is little prospect of the situation
improving soon. Government officials in Fiji have been concerned that there are not
enough professionals in government with technical qualifications in land administration
or surveying. There are large numbers of professional surveyor positions vacant, but
without a surveying degree at the University of the South Pacific these are unlikely to be
filled. The university offers only a diploma course in this field. Solomon Islands, Vanuatu—
indeed most countries in the region—lack professional expertise in land administration
and the impact is clearly visible in each country’s land administration structures.
16 Training and educating land professionals: the value of institutional partnerships 331
Most Pacific island countries have little if any capacity of their own to train land
professionals. Tertiary education in the required fields is available in the region at
the University of the South Pacific, based in Fiji, and at the University of Technology
in Papua New Guinea (see Appendix A for more details). Courses in urban and rural
planning, in applying data from specialised remote sensing and geographic information
systems and in more general spatial sciences are provided through the University
of Papua New Guinea. These institutions have difficulty meeting the education and
training needs in land-related areas for their host countries, let alone for the region.
The quality of the land-related courses provided by the three universities is mostly of an
acceptable level although, as already noted, no degree-level qualifications in surveying are
offered at the University of the South Pacific. The courses generally meet the requirements
of the government and private sectors. But the lack of financial resources is having an
impact on their ability to deliver courses effectively. Student numbers are high but limited
survey equipment and library and computer facilities mean lecturers cannot provide high-
quality course content and practical classes. The lack of lecturers also means that lecturers
struggle to undertake research or other professional development activities. This makes
it difficult for lecturing staff to keep abreast of the developments in land administration.
During the project’s design phase, education and training were seen as key factors in
ensuring the long-term sustainability of project activities. However, potential trainees
lacked the foundation knowledge and skills needed for the project’s training and the Lao
education system did not have the capacity to provide those skills or subsequent technical
and professional expertise.
It was proposed that the course would be developed through a partnership with a
foreign tertiary institution, with the course’s modules delivered by visiting lecturers who
worked with a full-time national education adviser and full-time translator. Staff from the
Polytechnic School would also assist. The Australian Government agreed to provide funds
to establish and run the course in Laos, including funds for providing technical assistance,
refurbishing lecture rooms and providing lecturing facilities.
The course was designed initially to upgrade the skills of 23 government officials and three
Polytechnic School staff. It was originally designed to have 11 modules but three of them
were removed because lecturing staff at the Polytechnic School lacked the qualifications
to teach them.
A set of comprehensive lecture notes was developed for each module, in English and
Lao languages. Each student received a copy of the notes at the beginning of the module
and many copies were included in the Polytechnic School library as reference material.
All 26 students who began the two-year course graduated. Following the completion
of modules 1–8, the Western Australian college obtained Australian accreditation for
the course, with certificates of accreditation being issued for Certificate II, Certificate III
and Certificate IV in surveying and land administration.
16 Training and educating land professionals: the value of institutional partnerships 333
An objective of the course was to ‘train the trainers’ so that lecturing staff at the
Polytechnic School would have the qualifications needed to teach the modules at
levels equivalent to Australian Certificate IV and Diploma. So during the first two years
the course also focused on upgrading the skills of the lecturers. AusAID then provided
funding for the remaining three modules of the course’s original design:
» Module 9: Land Adjudication
» Module 10: Customer Relations and Service/Gender and Development
» Module 11: Control Surveys.
The Western Australian college developed the curriculum so that a number of the subjects
had a specific project-related focus. For example, customer relations and service and
dispute resolution skills were seen as high priorities within the project and whole modules
were developed around them. It is doubtful whether this would have been possible if the
course had been developed around existing subject material and without the partnership
support provided by the land project for developing course materials.
The course was designed to ensure that the Polytechnic School would be able to operate
and maintain the courses in surveying and land administration at an acceptable standard
once the partnership with the Western Australian TAFE college finished. So, while the
lecturers of the Polytechnic School undertook the course, at least one was selected to
assist in presenting each module of the course. This approach proved extremely successful
and led to the development and approval of the High Diploma in Surveying and Land
Administration at the school, which is now providing graduates to the land titling project,
government agencies and the private sector.
Early efforts to publicise the course through radio and newspapers and inform potential
students of the course proved very successful. The Lao Government has seen the success
of the courses as an opportunity to generate revenue and now runs two streams—one
fee paying and the other the normal annual tertiary institution intake. This has resulted
in large increases in student numbers. With only 11 full-time and 4 part-time lecturers, the
increase in student numbers has been well beyond the capacity of the school to manage.
This issue will have to be addressed if the course is to remain sustainable.
334 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The Lao approach to the education and training of land professionals has succeeded
in developing a significant level of financial sustainability, mainly through fee-paying
students. Despite the introduction of fees, student numbers have increased substantially.
The Polytechnic School continues to receive donor funding, but funding responsibility is
gradually being transferred to the Lao Government. There are issues to be addressed in
how to obtain a balance between cost recovery and course quality and how donors can
develop an appropriate exit strategy.
2002–03 23 9 32 23 9 32
2003–04 56 33 89 79 42 121
Source: ‘Education status report’, Lao–Australia Property Rights and Land Titling Project report, Canberra, 2005.
After the college had completed the contract to develop the course, additional technical
support was provided through the land project to improve the management and
administration of the Polytechnic School. This support, which covered curriculum
development, lecturer training, course scheduling and education management, was
terminated when the school achieved an acceptable level of sustainability.
But a strong professional relationship continued between the two institutions, with
support and communication at a distance. In June 2006 the Western Australian college
donated more than 100 second-hand computers and 20 printers to the Polytechnic School,
which enabled the school to establish two computer laboratories. Its remaining obsolete
computer equipment was made available to other AusAID-funded projects.
16 Training and educating land professionals: the value of institutional partnerships 335
The success of the Lao project was contingent on the success of the partnership
arrangement. A strategy of building capacity by, for example, employing individual
consultants could not have achieved many of the project’s positive outcomes.
Some of the factors that formed the basis of the successful partnership included:
» excellent cooperation between the institutions, with the establishment of
close links, including personal links
» a willingness of the Polytechnic School to accept capacity-building measures
and changes in curriculums
» the willingness and commitment of lecturers to participate in the capacity-building
process
» a strong commitment from the partner institution
» the availability of follow-up support with the partner institution when required
» sufficient funding to facilitate the partnership.
336 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Lessons
lesson
The tertiary institutions of the Pacific should establish partnerships or twinning
lesson
Funds made available to train and educate land professionals (whether donor
Land courses at the universities in the Pacific region have few resources, inadequate
facilities, and poor access to international developments in methods and technology.
By partnering with the Western Australian Central Technical and Further Education
College, the Lao Polytechnic School overcame many of these hurdles. In particular, the
partnership helped the school access the latest methods, technology and literature, and
has allowed the school to present courses at a significantly raised standard. In addition,
the partnership provided a very cost-effective and sustainable basis for building the skills
of land professionals in Laos.
lesson
The financial sustainability of a capacity-building program through an
3 institutional partnership requires a plan for ongoing funding and an exit plan
for donors.
lesson
The introduction of student fees to help fund land courses (and possibly other
4 vocational courses) is a feasible strategy when the standard of the course is good
and this is publicised.
In the Pacific there are many unique issues that are not well addressed by tertiary institutions,
which tend to continue to focus on technical subjects. These issues relate to understanding
customary rights and land practices. The Lao project allowed for the development of a
curriculum that was context-specific, rather than simply transposing a curriculum from
the partner institution. The result was that much of the course material was unique to the
Polytechnic School, better preparing graduates for the circumstances in Laos.
lesson Education institutions need to have the resources to forge closer ties to the
6 government and private sectors that need their education services.
The Lao Polytechnic School and the Lao government land agencies benefited immensely
from the close links forged by the land project. Such links mean that the education
provider can better meet the needs of the government and private sectors. In the
Pacific, it is difficult for most countries (except Fiji and Papua New Guinea) to forge
such links because they do not have education institutions that can deliver such courses.
Most countries are unlikely to develop that capacity for many years.
338 MAKING LAND WORK » VOLUME TWO CASE STUDIES
There are other institutions and development assistance arrangements that could possibly
support an education and training program for land professionals in the future, including:
» Vanuatu Technical College
» Solomon Islands College of Higher Education
» National University of Samoa
» Australian Development Scholarship
» Australia–Pacific Technical College.
The surveying program focuses on the technical aspects of surveying and spatial
measurement assessment as well as techniques associated with land, engineering,
mining and hydrographic surveying, with land administration, and with property
management.
The cartography program focuses on preparing, analysing and using digital and paper
maps and plans as well as applying digital data, including digital mapping, desktop
publishing, geographic information systems, and remote sensing (the collection of
geographic information by remote means, such as aircraft, ships or buoys).
The land studies program focuses on land issues such as property development,
estate and plantation management, and valuation.
Students are encouraged to develop broad skills by taking subjects in one of the other
disciplines or one of the common subjects available during the first year. Postgraduate
studies are also available, although few have taken advantage of the opportunity in recent
times. All courses offered are accredited by the appropriate professional association.
The Department of Surveying and Land Studies has 14 academic staff (two of them
females) and a Head of Department. The Head of School was recently appointed, the
department having been without a permanent head for a number of years.
Each year around 80 new students are accepted for the three programs and at any point
approximately 300 students are enrolled. There is an equal mix of male and female
students in the diploma and degree courses for land studies but only a small number
of females in surveying and cartography courses. The number of students from countries
other than Papua New Guinea undertaking any of the courses on offer is minimal,
with only two students from Solomon Islands and one from Nauru currently enrolled.
This has not always been the case. During the 1980s and 1990s there were large numbers
of students from other Pacific countries. The reduction in numbers is a direct result of
reduced funding at the university to sponsor students and due to reduced support from
donor agencies in providing scholarships.
Surveying and other land administration subjects are also taught to students in the
departments of engineering and architecture. With this added responsibility, the small
team of academic staff has a heavy workload. The Head of Department believes the
number of academic staff needs to be increased by approximately five to enable the
department to deliver its programs effectively and to enable lecturers to participate in
research and other professional development activities. At present this is not possible.
Departmental facilities can be described as basic. The library has few current publications
and there are not enough funds to subscribe to professional journals. The department
has only small quantities of survey equipment—such as levels, total station theodolites
and global positioning system (GPS) equipment—far less than required for students to
receive adequate practical training. Access to computers is limited, which restricts the
340 MAKING LAND WORK » VOLUME TWO CASE STUDIES
assignments that can be undertaken by students and the way assignments are presented.
The department also has limited copies of survey software, which restricts the level
of technical training on offer.
A Melanesian Land Studies Centre has been established within the Department of
Surveying and Land Studies. Some activities have been undertaken but the centre is
now ‘on hold’ due to a lack of funding. Until 1998, UniTech also trained government land
officers and other officials in land administration. This is now the responsibility of the
Institute of Public Administration, which provides this training on an ad hoc basis—
only when it has a trainer with appropriate land-based experience.
In 2006 the department began a review of its curriculum, as part of the university’s
regular review process and in recognition of the need to bring courses and subjects into
line with modern developments. The curriculum review involves widespread industry
consultation with the public and private sectors and with professional associations in
surveying, spatial information and valuation. It addresses issues in Papua New Guinea
relating to licensing surveyors, including the extended time taken for graduates to
become licensed, which has caused a decline in the number of licensed surveyors.
Following an approach by the Association of Surveyors, it was proposed to develop
a one-year postgraduate course for surveying, which will enable surveyors to get
their licences as soon as they graduate. This is similar to the model adopted by the
University of Queensland.
Under the current land reform process in Papua New Guinea, there is a planned initiative
to reform and upgrade the land dispute settlement process. The university will therefore
need to look to its Law School to upgrade its delivery of relevant land-related legal
courses and training.
The University of the South Pacific is tasked to meet these challenges and has
14 campuses, located in Fiji (3), Vanuatu, Samoa, Solomon Islands, Tonga, the
Cook Islands, Tuvalu, Kiribati, Nauru, the Marshall Islands, Tokelau and Niue.
1 Geomatics
– Certificate in Geomatics
– Diploma in Geomatics
3 Real Estate
– Certificate in Real Estate
– Diploma in Real Estate
– Bachelor of Arts in Land Management (Real Estate)
– Postgraduate Diploma in Real Estate
4 Land Management
– Master of Arts in Land Management
– Doctor of Philosophy in Land Management.
Land use planning incorporates land tenure, land use, planning principles, development
control, planning law, property development, and land economics—all of which cover the
optimal use of land as a communal resource.
The Department of Land Management has five lecturers (one a female who is also acting
head), with the head of the department giving all lectures in geomatics. Student numbers
have progressively increased and now as many as 130 students are enrolled. This is more
than double the student numbers prior to the changes in 2005.
342 MAKING LAND WORK » VOLUME TWO CASE STUDIES
The workload for all lecturers is heavy and they find it difficult to participate in
professional development and to devote sufficient time to developing distance and
flexible learning (DFL) materials. The department cannot therefore expand the number
of courses it offers.
In addition, the Department of Land Management has limited survey equipment and
computer facilities for practical training and is often forced to borrow equipment from
government departments in Suva. It faces a unique set of issues in providing practical
training in its distance education program.
Even though its resources are limited, the Department of Land Management has
attempted to adopt the university’s strategy for distance and flexible learning and has
developed most first-year subjects and many second-year subjects so that they can be
presented through the DFL program. While the department proactively supports DFL it is
restricted in developing more course material by the limited number of staff and the time
they have available.
The university’s overall concept and approach for delivering DFL is a cost-effective way
of providing education to people living in the geographically dispersed Pacific island
nations. However, there are important constraints to this form of education. For example,
delivering quality regional education and training programs requires adequate resources,
lecturers and finance, and sufficient resources are not always available. The lack of
facilities such as computers, internet access and tutors and equipment for practical
training at its satellite campuses is an impediment to the successful delivery of land
programs through DFL.
The Department of Land Management has attempted to address this by working through
the surveyors general or heads of land departments in relevant countries. In most cases
the department relies on the ‘good will’ of relevant agencies to provide survey equipment
and government staff to support student training. In most Pacific island countries
professionals are prepared to support this aspect of education and training, but there
are no formal arrangements. An alternative approach, although expensive, may be to
engage mobile tutors.
16 Training and educating land professionals: the value of institutional partnerships 343
Fiji
» Mele Rakai, Head of Department of Land Management, University of South Pacific
» Sevanaia Dakaica, Lecturer, Planning, University of South Pacific
» Abdul Hassan, Lecturer, Valuation, University of South Pacific
» Ken Chambers, Lecturer, Law, University of South Pacific
» Paula Raqeukai, Lecturer, Valuation, University of South Pacific
» Eroni Bakikawai, graduate student, University of South Pacific
» Koroata OBrien, Communication Assistant, University of South Pacific
» Silvia Dewiyanti, Instructional Designer, University of South Pacific
» Nimillote Naivalumaira, Executive Officer, Native Land Trust Board
» Kemueli Masikerei, Acting Deputy Permanent Secretary,
Ministry of Lands and Mineral Resources
» Luke Rokomokoti, Acting Director of Lands and Surveyor General,
Department of Lands and Surveys
» Paserio Samisoni, Principal Surveyor, Control, Department of Lands and Surveys
» Eparaman Ravaga, Manager, Central/Eastern Region, Native Land Trust Board
» Silika Tuivoalavoa, Spatial Information Coordinator, Native Land Trust Board
» Padric Harm, Program Manager (Education), AusAID
Bibliography
AusAID 2000, Improving access to land and enhancing the security of land rights: a review of
land titling and land administration projects, Quality Assurance Series No. 20, Canberra.
——2001, Undertaking land administration projects: sustainability, affordability, operational
efficiency and good practice guidelines, Quality Assurance Series No. 26, Canberra.
——2004, ‘Gender and scholarships in the high diploma of surveying and mapping
and high diploma and land administration at the Polytechnic School’, Lao–Australia
Property Rights and Land Titling Project report, Canberra.
——2005a, ‘Pacific 2020—background paper: land’, Canberra.
——2005b, ‘Pacific 2020—background paper: framework for growth’, Canberra.
——2005c, ‘Core Group recommendations report for a white paper on Australia’s aid program’,
Canberra.
——2005d, ‘Education status report’, Lao–Australia Property Rights and Land Titling Project
report, Canberra.
Lunnay, CW 2006, ‘Surveying and land administration—sustainable education for developing
countries’, XXIII FIG Congress, Munich, Germany, 8–13 October.
Uegama, W & Buchanan, J 2004, ‘A mid-term review of the AusAID Distance and Flexible
Learning Project at the University of the South Pacific (USP)’, AusAID, Canberra.
UN-ECE 1996, ‘Land administration guidelines’, Meeting of Officials on Land Administration,
UN Economic Commission for Europe, viewed July 2007, <www.unece.org/env/hs/wpla/
docs/guidelines/lag.html>.
Annex: Contributors to the case studies 347
Process
A customary land consultant developed the preliminary themes and topics for the case
studies in consultation with AusAID’s Pacific Land Program team. These were appraised
by a panel of experts and reviewed and adjusted by the steering group.
The case studies were drafted in 2007 by academic and sectoral experts and practitioners.
Five of the case studies with an emphasis on Papua New Guinea were produced under the
supervision of the State, Society and Governance in Melanesia Program at the Australian
National University. All but two of the case studies are based on in-country research and
consultations by authors.
Early drafts of the case studies were reviewed by a panel of independent experts and
practitioners during a series of four meetings at Apia in Samoa, Port Vila in Vanuatu,
Nadi in Fiji and Brisbane in Australia. Each panel reviewed four or five case studies.
At each meeting, the authors of the studies being reviewed were present in all but one
case and they acted as peer reviewers of the other case studies considered at the meeting.
Following this review the studies were prepared for publication by an editorial team
within AusAID.
» Dr Stephen Howes
Principal Adviser and Chief Economist, AusAID
» Hon. Tuala Tagaloa DC Kerslake
President, Land and Titles Court, Samoa
» Mr Steve Likaveke
Land Consultant (former Permanent Secretary of Solomon Islands
Department of Lands and Survey)
» Mr Bob Lyon
Chairman, ANZ Pacific, Fiji
» Mr Russell Nari
Director General, Ministry of Lands, Vanuatu
» Dr Jimmie Rodgers
Director General, Secretariat of the Pacific Community, New Caledonia
» Dr Charles Yala
Senior Research Fellow, National Research Institute, Papua New Guinea
» Bryant Allen, Land Management Group, Research School of Pacific and Asian Studies,
Australian National University, Canberra
» Steve Darvill, Humanitarian/Peace-Conflict Adviser, AusAID
» Colin Filer, Resource Management in Asia-Pacific Program, Research School
of Pacific and Asian Studies, Australian National University, Canberra
» Padma Lal, Sustainable Development Adviser, Pacific Islands Forum Secretariat
» Ken Lyons, Land Administration Consultant, Queensland
» Charles Yala, Senior Research Fellow, National Research Institute, Papua New Guinea
Annex: Contributors to the case studies 349
CHAIR
» Peter O’Connor, Director, Pacific Land Program, AusAID
FACILITATOR
» Lyla Rogan, RPR Consulting, Canberra
PANEL MEMBERS
Authors
» Tanira Kingi
» Ron Crocombe
» Jennifer Corrin
» Chris Grant
» Leota Laki Lamositele-Sio
350 MAKING LAND WORK » VOLUME TWO CASE STUDIES
Others
» Brenda Heather-Latu, Consultant, Samoa (former Attorney General, Samoa)
» Masinalupe Tusipa Masinalupe, Chief Executive Officer, Ministry of Justice and Courts
Administration, Samoa
» Tu'u'u Ieti Taulealo, Chief Executive Officer, Ministry of Natural Resources, Environment
and Meteorology, Samoa
» Sione Nailasikau Kitefakalau Halatuituia, Secretary, Ministry of Lands, Survey, Natural
Resources and Environment, Tonga
» Tupou Faireka, former Minister for Justice and Lands, Cook Islands
» Padma Lal, Sustainable Development Adviser, Pacific Islands Forum Secretariat
» Theo Levantis, Economics Adviser, AusAID
The Native Land Trust Board of Fiji and development within communal tenure 1
» Chris Lightfoot, Independent Economist, Australia
» Kaliopate Tavola, Consultant, Fiji
» Jim Fingleton, Development Law Consultant, Australia
12 Acquiring land for public purposes in Papua New Guinea and Vanuatu
» Michael Manning, Mirel Ltd, Kokopo, East New Britain, Papua New Guinea
» Philip Hughes, HEH Pty Ltd, Canberra, Australia
14 The paths to land policy reform in Papua New Guinea and Vanuatu
» Michael Manning, Mirel Ltd, Kokopo, East New Britain, Papua New Guinea
1 As a result of a delay in agreeing to the final text of this case study, it is not included in this volume. It will be published on AusAID’s
website and in any reprint.
Annex: Contributors to the case studies 351
CHAIR
Peter O’Connor, Director, Pacific Land Program, AusAID
FACILITATOR
Lyla Rogan, RPR Consulting, Canberra
PANEL MEMBERS
Authors
» Chris Lightfoot
» Jim Fingleton
» Anna Naupa
» Mike Manning
» Philip Hughes
Others
» Russell Nari, Director General, Ministry of Lands, Vanuatu
» Selwyn Garu, General Secretary of the Malvatumauri National Council
of Chiefs of Vanuatu (alternating with Ralph Regenvanu)
» Ralph Regenvanu, Director, Vanuatu National Cultural Council
(alternating with Selwyn Garu)
» Betty Lovai, Lecturer in Social Work, University of Papua New Guinea
» Stephen Kassman, Kassman Lawyers, Port Moresby
» Charles Yala, Senior Research Fellow, Economic Studies Division,
National Research Institute, Port Moresby
» Padma Lal, Sustainable Development Adviser, Pacific Islands Forum Secretariat
» Semi Tabakanalagi, Deputy General Manager of Operations, Native Land Trust Board, Fiji
» Eric Gorapava, Undersecretary, Ministry of Lands, Housing and Survey, Solomon Islands
» Satish Chand, Associate Professor, Crawford School of Economics and Government,
Australian National University, Canberra
» Theo Levantis, Economics Adviser, AusAID
352 MAKING LAND WORK » VOLUME TWO CASE STUDIES
CHAIR
» John Munro, Adviser, Pacific Land Program, AusAID
FACILITATOR
» Lyla Rogan, RPR Consulting, Canberra
PANEL MEMBERS
Authors
» Mick Dodson
» Daniel Fitzpatrick
» Doug Larden
Annex: Contributors to the case studies 353
Others
» Harry Waitara, Director of Physical Planning, Ministry of Lands, Housing and Survey,
Solomon Islands
» Esther Maelanga, Chief Lands Officer, Ministry of Lands, Housing and Survey,
Solomon Islands
» Steve Likaveki, Land Consultant, Solomon Islands
» Riby Tupiti, Program Officer, AusAID, Honiara, Solomon Islands
» Pedro de Sousa Xavier, Director of Land and Property, East Timor
» Semi Tabakanalagi, Deputy General Manager of Operations, Native Land Trust Board, Fiji
» Iris Wielders, Conflict Prevention Adviser, Pacific Islands Forum Secretariat
» Theo Levantis, Economics Adviser, AusAID
4 Land registration among the Tolai people: waiting 50 years for titles
» Jim Fingleton, Development Law Consultant, Australia
» Oswald ToLopa, Director of Policy, Department of Lands and Physical Planning,
Papua New Guinea
5 Informal land systems within urban settlements in Honiara and Port Moresby
» Satish Chand, Australian National University, Canberra
» Charles Yala, National Research Institute, Port Moresby
CHAIR
» John Munro, Adviser, Pacific Land Program, AusAID
FACILITATOR
» Lyla Rogan, RPR Consulting, Canberra
PANEL MEMBERS
Authors
» Tony Power
» Jim Fingleton
» Oswald ToLopa
» Satish Chand
» Charles Yala
» Norm Oliver
» Chris Lunnay
Others
» Lawrence Kalinoe, Professor of Law, University of Papua New Guinea
» Kaluwin Potuan, PNG Chamber of Commerce, Port Moresby
» Lillian Holland, New Britain Palm Oil, Papua New Guinea
» Max Kep, Director, Office of Urbanisation, Papua New Guinea
» Padma Lal, Sustainable Development Adviser, Pacific Islands Forum Secretariat
» Anna Naupa, Senior Program Officer, AusAID, Port Vila, Vanuatu
» Theo Levantis, Economics Adviser, AusAID
Annex: Contributors to the case studies 355
The growing push for reform is not coming from governments alone.
Customary landowners in many countries recognise that their present
and future livelihoods depend on sensible and sustainable development
of traditional lands. But there are challenges. Reconciling customary
land and development requires:
» linking customary land into formal economic and legal systems
» broad community consensus
» extensive technical and managerial skills
» long timeframes and adequate funding
Making land work is a resource for Pacific countries grappling with these
challenges. Both volumes seek to provide ideas and inspiration for Pacific
governments, officials, landholders and the private sector on how to increase
the contribution of land to communities and economies while protecting
traditional tenure systems.