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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

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Expert Group Meeting 2005Centre for Spatial Data Infrastructures and Land Administration

Department of Geomatics, The University of Melbourne

• Day: Wednesday 9th November• Session: 9.00am - 10.30am• Speaker: Jude Wallace

• Topic: Research Report

Expert Group Meeting 2005Centre for Spatial Data Infrastructures and Land Administration

Department of Geomatics, The University of Melbourne

Incorporating Sustainable Development ObjectivesIncorporating Sustainable Development Objectivesintointo

ICT Enabled Land Administration SystemsICT Enabled Land Administration Systems

Expert Group Meeting 9-11 November 2005

GeomaticsThe 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

Expert Group Meeting 2005Centre 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

Expert Group Meeting 2005Centre 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)

Expert Group Meeting 2005Centre 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.

Expert Group Meeting 2005Centre 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.

Expert Group Meeting 2005Centre 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

Expert Group Meeting 2005Centre 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.

Expert Group Meeting 2005Centre for Spatial Data Infrastructures and Land Administration

Department of Geomatics, The University of Melbourne

Explain we encourage invention of new commodities

Expert Group Meeting 2005Centre for Spatial Data Infrastructures and Land Administration

Department of Geomatics, The University of Melbourne

Economic Analysis of land markets - costs

Expert Group Meeting 2005Centre 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

Expert Group Meeting 2005Centre 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

Australia 5 7 4.5

Denmark 6 42 0.6

Germany 4 4.1 4.2

Netherlands 4 5 6.4

Switzerland 4 16 1.4

Table: Registering Property

WB Report Doing Business in 2005: Removing Obstacles to Growth, pp92-94

Expert Group Meeting 2005Centre 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.

Expert Group Meeting 2005Centre for Spatial Data Infrastructures and Land Administration

Department of Geomatics, The University of Melbourne

Dale’s Three Pillars Diagram - modified

Expert Group Meeting 2005Centre 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 ???

Expert Group Meeting 2005Centre 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

Expert Group Meeting 2005Centre 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?

Expert Group Meeting 2005Centre 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

Expert Group Meeting 2005Centre for Spatial Data Infrastructures and Land Administration

Department of Geomatics, The University of Melbourne

Environmental sustainability?

Saying is not doing

Expert Group Meeting 2005Centre for Spatial Data Infrastructures and Land Administration

Department of Geomatics, The University of Melbourne

The Land Management Paradigm (Enemark and others 2005)

Expert Group Meeting 2005Centre for Spatial Data Infrastructures and Land Administration

Department of Geomatics, The University of Melbourne

LAND AND RESOURCE TENURES IN MATURE MARKETS

Controls anddisputes

Controls anddisputes

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

Open-ended opportunities for owners’ decisions

Expert Group Meeting 2005Centre 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 integrateinterest type among all other types..

Settle and integrateinterest 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

IdentifyInterests Restrict Layer Prioritise

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

Expert Group Meeting 2005Centre for Spatial Data Infrastructures and Land Administration

Department of Geomatics, The University of Melbourne

WWIIWWII 19751975 19901990 2003 20102003 2010

Development of Land AdministrationDevelopment of Land Administration

Phase 1 Phase 1

Building Building InstrumentalitiesInstrumentalities Phase 2Phase 2

Building Building marketsmarkets Phase 3Phase 3

Supporting Supporting DevelopmentDevelopment

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 4Phase 4

Contingency Contingency planning with planning with spatial integrationspatial integration

Economic Paradigm

Social Justice Governance & Information Society

EnvironmentThemesThemes

Expert Group Meeting 2005Centre for Spatial Data Infrastructures and Land Administration

Department of Geomatics, The University of Melbourne

Land information databases for Australian Government

Agency Database Purpose

ATO Land transactions since 1999

To facilitate the collection of CGT and GST

ABARE Non-arable land

To facilitate land management

APRI Risks and claims

To better manage insurance business sector

Centrelink Land ownership

To administer pension entitlements

ARB Australian property markets

Australian Property Monitors was commissioned to provide timely and complete information about the property markets in major capital cities.

ABS House price indices

Release of 3 June 05 contained price information to December quarter 2004.

Expert Group Meeting 2005Centre for Spatial Data Infrastructures and Land Administration

Department of Geomatics, The University of Melbourne

Reg

istr

atio

n

Val

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Dev

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t

Bui

ldin

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Land

Tax

Util

ity

man

agem

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Lan

d m

arke

t su

pp

ort

Res

tric

tions

Source focused LAS

Basic spatial information

Land administration activities

….th

e re

st

Parcels

Properties

Buildings

Values

Zones/uses

Addresses

Expert Group Meeting 2005Centre for Spatial Data Infrastructures and Land Administration

Department of Geomatics, The University of Melbourne

Reg

istr

atio

n

Val

uatio

n

Dev

elop

men

t

Bui

ldin

g co

ntro

l

Land

Tax

Util

ity

man

agem

ent

Lan

d m

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pp

ort

Res

tric

tions

Spatially enabling

government

Basic spatial information

Spatial administration activities

….th

e re

st

Parcels

Properties

Buildings

Values

Zones/uses

.

.

.Addresses - People/time/place/activity/interest

Expert Group Meeting 2005Centre for Spatial Data Infrastructures and Land Administration

Department of Geomatics, The University of Melbourne

Reg

istr

atio

n

Val

uatio

n

Dev

elop

men

t

Bui

ldin

g co

ntro

l

Land

Tax

Util

ity

man

agem

ent

Lan

d m

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pp

ort

Res

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s

SPATIALLY ENABLING GOVERNMENT

Basic spatial information

Land administration activities

….t

he r

est

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

Expert Group Meeting 2005Centre 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

Expert Group Meeting 2005Centre 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

Expert Group Meeting 2005Centre for Spatial Data Infrastructures and Land Administration

Department of Geomatics, The University of Melbourne

Expert Group Meeting 2005Centre 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.

Expert Group Meeting 2005Centre for Spatial Data Infrastructures and Land Administration

Department of Geomatics, The University of Melbourne

Evaluation and monitoring

Expert Group Meeting 2005Centre for Spatial Data Infrastructures and Land Administration

Department of Geomatics, The University of Melbourne

UNEP Global Reporting Principles, Sustainability Reporting Guidelines, 2002

Expert Group Meeting 2005Centre for Spatial Data Infrastructures and Land Administration

Department of Geomatics, The University of Melbourne

GRI

Reporting principles

Expert Group Meeting 2005Centre for Spatial Data Infrastructures and Land Administration

Department of Geomatics, The University of Melbourne

Expert Group Meeting 2005Centre for Spatial Data Infrastructures and Land Administration

Department of Geomatics, The University of Melbourne

Expert Group Meeting 2005Centre 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

Expert Group Meeting 2005Centre for Spatial Data Infrastructures and Land Administration

Department of Geomatics, The University of Melbourne

Questions ?????