The establishment of Crown Lands as a possible public trading enterprise has prompted a corporate law firm to advertise its services to prospective corporations and individuals wanting to maximise ‘the return to the government and the community from the use of Crown land.’
Australian corporate law firm Clayton Utz says on its website that, ‘For the private sector, the reforms have the potential to open up new business and operational opportunities.’
Shift in use
The law firm’s webpage, ‘NSW Crown land – a field of opportunities’, spruiks the recommendations in the state government’s White Pa- per, which is now on public submission.
They say it demonstrates, ‘a shift in the use of Crown land towards private entities.’
‘Tenants under Crown land are currently bound by certain provisions of the Crown Lands Act which make it impracticable to operate standard business and development models.
‘Removing restrictions to enable leases to be granted on terms and conditions more regularly found in commercial leases will provide greater flexibility in the use of Crown land.
‘Roughly 42 per cent of land in NSW is Crown land (not including national parks and state forests), with a total value of over $11 billion.’
The law firm says apart from the public trading enterprise aspect of Crown lands, the new legislation will provide for the pay- ment of market rent as the default position under leases of Crown land (with rebates and waivers applied where appropriate); standardise the way in which Crown land is valued (having regard to the hypothetical value of the land as if it were a freehold parcel); require an entity ad- ministering Crown land to evaluate the expected return to be provided to the government and the community when permitting the use of an asset (and taking into ac- count the opportunity cost of allowing an asset to be used in such a way); and implement stronger compliance and enforcement provisions which will provide penalties for damage and unlawful use of Crown land.
NSW Trade & Investment says on its website that the changes are part of a ‘commitment to cutting red tape and updating legislation to improve outcomes.’
Public submissions in response to the White Paper are open until June 20.
For more information visit http://bit.ly/1ojZhIP.