Sustainability Accounting in Land Administration

1. Day: Wednesday 9th November Session: 9.00am - 10.30am Speaker: Jude Wallace Topic: Research Report

2. Research Report Sustainability Accounting in Land Administration Jude Wallace

3. 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. 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. The national vision is not final. The EGM will examine and modify the vision.

6. 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. 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. First, explain how modern land markets build wealth out of land.

9. Explain we encourage invention of new commodities

10. Economic Analysis of land markets - costs

11. The World Bank, Doing Business in 2005, Removing Obstacles to Growth,, figures 3.7. and 5.8

12. The case study countries did comparatively well in the global comparisons of LAS registration systems, but still show remarkable divergences. Table: Registering Property WB Report Doing Business in 2005: Removing Obstacles to Growth, pp92-94

13. 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. Dale’s Three Pillars Diagram - modified

15. Market issues in land administration are familiar territory. • But we are claiming land administration delivers ‘triple bottom line’ sustainability • economic • social ??? • environmental ???

16. Differences in approach – Law = text and concepts Engineering = organisation of information Vitality of the Cadastre in LAS must be communicated

17. 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. SOCIAL VALUES 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.” Graphic Nathaneal Scott, Tim Colbatch, The Age, 4 July 05.

19. Environmental sustainability? Saying is not doing

20. The Land Management Paradigm (Enemark and others 2005)

21. Basic tool kits • Announcements • (laws and standards) • Tenure varieties • Organisations • Spatial • identification • Repeatability • Government roles - • Control and restrict • non-owners’ use • Protect, control and • restrict owners’ use • Withdraw from • decisions about land Stability systems Controls and disputes Open-ended opportunities for owners’ decisions LAND AND RESOURCE TENURES IN MATURE MARKETS

22. 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 • Constitutional limitations • Eminent domain • Compulsory acquisition • Land planning, services • Regulation of land uses • Land tax • Describe interests in the tenure system.. • Length of time • Source • Relationship with possession • Vocabulary of opportunities Articulate Rights Identify Interests Risk Manage Restrict Layer Prioritise Evidence Procedures Publicity • 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 CAPACITIES OF MATURE TENURE SYSTEMS

23. Development of Land Administration Phase 1 Building Instrumentalities Phase 2 Building markets Land registration and survey Private rights focus Valuation Planning Phase 3 Supporting Development Phase 4 Contingency planning with spatial integration 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 Themes Economic Paradigm Environment Social Justice Governance & Information Society WWII 1975 1990 2003 2010

24. Land information databases for Australian Government

25. Source focused LAS Land administration activities Building control Utility management Land market support Registration Restrictions Land Tax ….the rest Development Valuation Basic spatial information Parcels Properties Buildings Values Zones/uses Addresses

26. Spatially enabling government Spatial administration activities Building control Utility management Land market support Registration Restrictions Land Tax ….the rest Development Valuation Basic spatial information Parcels Properties Buildings Values Zones/uses . . . Addresses - People/time/place/activity/interest

27. Land administration activities Restrictions Building control Land market support Utility management Registration Land Tax ….the rest Development Valuation Basic spatial information Parcels Properties Buildings Values Zones/uses . . . SPATIALLY ENABLING GOVERNMENT Addresses - People times places activities interests Mesh blocks – 60 parcels Analytical geo-coded spaces Properties and their geo-coded addresses - GNAF Digital definition of “WHERE” is now possible EMERGING LAND ACCOUNTING ENGINE Accounting system goes into our Land Management Paradigm

28. Modern governments create new kinds of information about land Relative land information Socio/legal constructs, aspatial, abstract, dispersed, volatile, invisible, but visualisable Traditional land information Stable, objective, scientifically proveable, observable

29. Meanwhile, resource sectors are driving technological innovation, not waiting for the perfection of the new products 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

31. 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. Evaluation and monitoring

33. UNEP Global Reporting Principles, Sustainability Reporting Guidelines, 2002

34. GRI Reporting principles

37. 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. Questions ?????