1. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne Day: Wednesday 9 th November Session: 9.00am - 10.30am Speaker: Jude Wallace Topic:Research Report

2. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne Incorporating Sustainable Development Objectives into ICT Enabled Land Administration Systems Expert Group Meeting 9- 11 November 2005 Geomatics The University of Melbourne Australia’s International Science Linkages Program Centre for Spatial Data Infrastructures and Land Administration Research Report Sustainability Accounting in Land Administration Jude Wallace

3. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne Research was a journey to : identify a National Vision for LAS in Australia, and show our European visitors the Australian achievements in web based solutions. The innovations of Australian land administrators will be clear from their presentations. Notice: technological solutions to problems of size, low value land, difficult environmental problems use of the Internet use of cooperation to overcome federal divisions

4. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne NATIONAL VISION FOR AUSTRALIAN LAND ADMINISTRATION Sustainability accounting in land administration Comprehensive integrated land management built on digital information about land and the way we use it and cooperative public/private sector arrangements Components: Integrated land management paradigm Comprehensive land policies Flexible tenure systems Authentic registers for valuable commodities Information policies: Spatially enabled government using modern ICT iLand ?? Framework for land use regulation and management – RRRs (current) ?? Integrated with water and resource management (in contemplation)  Monitoring and evaluation systems (in contemplation)

5. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne The national vision is not final. The EGM will examine and modify the vision.

6. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne The research story – Simple research aims met – technology issues (Wow ! – how computers change ….) institutional issues (But institutions remain the same) epistemological issues (Law meets Engineering) The story is organised because of our partners and their contributions, particularly Professor Stig Enemark. Professor Ian Williamson and the researchers at the Centre are the key to success of this project. It has been a joint intellectual and administrative exercise.

7. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne Starting point - 2003 Explain how modern land markets work. Why can some countries run successful markets? Half the story : De Soto The Mystery of Capital– We passport land: we give it an identity. PS, we do not passport “land”, but abstract “rights” in land. Other half of the story: We also need - Cognitive capacity Trust and confidence in government Mutually reasonable arrangements in public and private sectors

8. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne First, explain how modern land markets build wealth out of land.

9. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne Explain we encourage invention of new commodities

10. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne Economic Analysis of land markets - costs

11. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne The World Bank, Doing Business in 2005, Removing Obstacles to Growth,, figures 3.7. and 5.8

12. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne The case study countries did comparatively well in the global comparisons of LAS registration systems, but still show remarkable divergences. # Procedures Time: # days Cost: % of value Australia574.5 Denmark6420.6 Germany44.14.2 Netherlands456.4 Switzerland4161.4 Table: Registering Property WB Report Doing Business in 2005: Removing Obstacles to Growth, pp92-94

13. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne Complex property markets require additional tools The land market capable of wealth acceleration must provide: Corporatisation - ability of business to separate risk from capital, debt from equity – for protection of creditors Securitisation - ability to convert balance sheet asset into liquid funds and create another layer of commodities Separation - ability to separate ownership and management, benefit entitlement from capital input, layers of interests in same land or resources These capacities mix private and public sectors. The LAS is the essential foundation of their success. The more streamlined the LAS, the better the wealth acceleration capacity of the complex property market.

14. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne Dale’s Three Pillars Diagram - modified

15. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne Market issues in land administration are familiar territory. But we are claiming land administration delivers ‘triple bottom line’ sustainability economic social ??? environmental ???

16. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne Differences in approach – Law = text and concepts Engineering = organisation of information Vitality of the Cadastre in LAS must be communicated

17. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne GRI Indicators: Environmental: an organisation’s impact on living and non- living natural systems including eco-systems, land air and water Social: an organisation’s impact on social systems in which it operates How many LAS organisations can sign off on these indicators?

18. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne Graphic Nathaneal Scott, Tim Colbatch, The Age, 4 July 05. Housing ‘bubble’ doubled household wealth between 1998 and 2004. Predictions for market correction are common in 2005. “ABN AMRO's research found that almost two- thirds of Australian household wealth is now in housing, with a market value of $3.2 trillion - almost six times households' annual income. Over the past 45 years, the value of housing has, on average, been just three-and-a-half times household income, and for much of that period interest rates were as low as now or lower. While 64 per cent of Australian households' wealth was in real estate, just 6 per cent was in ownership of shares, the bank said. Another 18 per cent was in superannuation, 8 per cent in cash or bank deposits, and 3 per cent in cars and other durables.” SOCIAL VALUES

19. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne Environmental sustainability? Saying is not doing

20. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne The Land Management Paradigm (Enemark and others 2005)

21. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne LAND AND RESOURCE TENURES IN MATURE MARKETS Controls and disputes Controls and disputes Government roles - Control and restrict non-owners’ use Protect, control and restrict owners’ use Withdraw from decisions about land Government roles - Control and restrict non-owners’ use Protect, control and restrict owners’ use Withdraw from decisions about land Basic tool kits Announcements (laws and standards) Tenure varieties Organisations Spatial identification Repeatability Basic tool kits Announcements (laws and standards) Tenure varieties Organisations Spatial identification Repeatability Stability systems Stability systems Open-ended opportunities for owners’ decisions

22. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne CAPACITIES OF MATURE TENURE SYSTEMS Describe interests in the tenure system.. Length of time Source Relationship with possession Vocabulary of opportunities Describe interests in the tenure system.. Length of time Source Relationship with possession Vocabulary of opportunities Evidence Procedures Publicity Evidence Procedures Publicity Constitutional limitations Eminent domain Compulsory acquisition Land planning, services Regulation of land uses Land tax Constitutional limitations Eminent domain Compulsory acquisition Land planning, services Regulation of land uses Land tax Settle and integrate interest type among all other types.. Settle and integrate interest type among all other types.. Reliable administration Government insurance/guarantee Private insurance Risk transfer to next owner, borrower, lender … Risk absorption by original owner Reliable administration Government insurance/guarantee Private insurance Risk transfer to next owner, borrower, lender … Risk absorption by original owner Articulate Rights Identify Interests RestrictLayerPrioritise Risk Manage Organise competitions among interests, eg by… Date order Type of formality used Registration order Knowledge of next owner Good faith of next owner Publicity by owner Organise competitions among interests, eg by… Date order Type of formality used Registration order Knowledge of next owner Good faith of next owner Publicity by owner

23. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne WWII197519902003 2010 Development of Land Administration Phase 1 Building Instrumentalities Phase 2 Building markets Phase 3 Supporting Development Land registration and survey Private rights focus Valuation Planning Cadastre focus Sharing capacity Computerisation Land titling adaptation Sustainability Poverty reduction Multi-discipline SDIs Broad land policies Interoperability Regulation Gender equity Complex commodities Land management tools Restrictions and responsibilities Phase 4 Contingency planning with spatial integration Economic Paradigm Social JusticeGovernance & Information Society EnvironmentThemes

24. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne Land information databases for Australian Government AgencyDatabasePurpose ATOLand transactions since 1999 To facilitate the collection of CGT and GST ABARENon-arable land To facilitate land management APRIRisks and claims To better manage insurance business sector CentrelinkLand ownership To administer pension entitlements ARBAustralian property markets Australian Property Monitors was commissioned to provide timely and complete information about the property markets in major capital cities. ABSHouse price indices Release of 3 June 05 contained price information to December quarter 2004.

25. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne Registration Valuation Development Building control Land Tax Utility management Land market support Restrictions Source focused LAS Basic spatial information Land administration activities ….the rest Parcels Properties Buildings Values Zones/uses Addresses

26. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne Registration Valuation Development Building control Land Tax Utility management Land market support Restrictions Spatially enabling government Basic spatial information Spatial administration activities ….the rest Parcels Properties Buildings Values Zones/uses. Addresses - People/time/place/activity/interest

27. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne Registration Valuation Development Building control Land Tax Utility management Land market support Restriction s SPATIALLY ENABLING GOVERNMENT Basic spatial information Land administration activities ….the rest Parcels Properties Buildings Values Zones/uses. Addresses - People times places activities interests Digital definition of “WHERE” is now possible EMERGING LAND ACCOUNTING ENGINE Accounting system goes into our Land Management Paradigm Mesh blocks – 60 parcels Analytical geo- coded spaces Properties and their geo-coded addresses - GNAF

28. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne Relative land information Socio/legal constructs, aspatial, abstract, dispersed, volatile, invisible, but visualisable Modern governments create new kinds of information about land Traditional land information Stable, objective, scientifically proveable, observable

29. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne SEE Grid of CSIRO, a web community aimed at creating an innovative new data exchange network Making the top kilometre of Australia transparent https://www.seegrid.csiro.au/twiki/bin/view/Infosrvices/MCAProjectTop Meanwhile, resource sectors are driving technological innovation, not waiting for the perfection of the new products

30. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne

31. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne iLand presupposes competencies in LAS iLand involves: Spatially enabling public and private sectors Managing land by appropriate regions and areas, not agencies and jurisdictions Integrating information (SDI) Evaluating as we go.

32. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne Evaluation and monitoring

33. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne UNEP Global Reporting Principles, Sustainability Reporting Guidelines, 2002

34. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne GRI Reporting principles

35. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne

36. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne

37. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne Highlights of publications Markets – land administration perspective Privacy – nature of spatial information and need to free it from limitations of “purpose” restraints Registration systems – differences between systems for managing work activities and systems for tracking transactions Cadastres – to service complex commodity markets Tenures – using markets to measure security of tenure Tenures – using remedies (not rights) to regularise land Spatial Information – the emerging opportunity for government Relative Information – incorporating the expanding realm of information used by government into LAS

38. Expert Group Meeting 2005 Centre for Spatial Data Infrastructures and Land Administration Department of Geomatics, The University of Melbourne Questions ?????