Authorities 'seem to have forgotten they are dealing with real people' in compulsory acquisitions, inquiry head says

"[They are] people who have invested their time, money, effort and energy into building a home for their family or a business," Abigail Boyd MLC said in a foreword to the report of the inquiry into land acquisitions for major transport projects.

"To these people, the process of acquisition is not simply a business transaction.

"The current process, which has been shown to be distressing for those having their properties acquired, appears to have been used in a way that is clearly contrary to the intent of the legislation."

The committee inquired into a range of projects, including the attempted compulsory acquisition of nine homes at Jannali for a commuter car park.

The home owners received knocks at the door in the early hours of February 11, 2021 to be told their properties were to be acquired. The orders were withdrawn three weeks later following a strong council-backed residents' campaign.

The upper house inquiry detailed the Jannali events, but did not make a specific finding about the actions of Transport for NSW or the politicians who were involved.

The report contains 10 recommendations designed to make the compulsory acquisition process fairer.

One of the recommendations calls for urgent changes to provide compensation that allows residents to buy back into the neighbourhood.

The state government was called upon to urgently amend the basis for determining compensation in the Land Acquisition (Just Terms Compensation) Act 1991, to introduce a "reinstatement" approach to the calculation of "market value".

"Displacing owners from their communities and support networks due to their inability to buy back into their own community is hardly 'just'," the report said.

"It is unfathomable that NSW is the only jurisdiction in Australia that does not allow for the concept of 'reinstatement' to be considered in determining compensation and 'market value'."

Another recommendation calls for acquiring authorities to be obliged to genuinely negotiate, provide property owners with more information and partial upfront payments, including for expert reports and legal fees.

Acquiring authorities should have to ensure the independence of valuers and, where conflicts of interest arise, draw this to the attention of the owner, the report said.

Owners should also be allowed access an independent mediator.

Ms Boyd said, "years of disquiet" about the application of the Land Acquisition (Just Terms Compensation) Act 1991 had led to similar reviews in 2014 and 2016.

"While their recommendations resulted in positive change in some areas, not all recommendations were adopted," she said.

"Instead, we are still hearing of heavy-handed approaches by acquiring authorities, cultural and performance issues in the office of the Valuer General, and the need for the Auditor General to review controversial acquisitions, including the acquisition of the Camellia site for the Parramatta Light Rail project.

"These issues have done nothing to instil public confidence in the Government's approach to land acquisitions, and have only served to reinforce the injustice being felt by those who are having their homes or businesses acquired."

View the committee's report:

https://www.parliament.nsw.gov.au/lcdocs/inquiries/2698/Report%20No.%2017%20-%20PC6%20-%20Acquisition%20of%20land%20inquiry.pdf