Metro Aboriginal Land Council to get millions in compensation for Western Harbour Tunnel while home owners get nothing

An Aboriginal Land Council is in negotiations for up to millions of dollars worth of compensation for the Western Harbour Tunnel burrowing under their bowling club — but thousands of neighbours won’t get a cent.

The disused Waverton Bowling Club, where the Western Harbour Tunnel will travel underneath. Picture: David Swift

Millions of dollars in compensation will be paid to the Aboriginal owners of a decrepit old bowling club due to the Western Harbour Tunnel being built deep underneath it — while thousands of neighbouring property owners won’t receive a cent.

The quirk in the law — impacting the Waverton Bowling Club, which was handed to the Metropolitan Local Aboriginal Land Council in 2022 following a successful land claim — has raised accusations of unfairness, with the land council boss stating the title claim reaches down from the ground “to the centre of the earth.”

The bowling club was vested to the land council following a successful land claim under the Aboriginal Land Rights Act 1983 — meaning the council also has a right to compensation for the work completed underneath it.

Meanwhile, underground land compulsorily acquired beneath other homes and properties comes under the Just Terms act, meaning they are not eligible for compensation — unless it can be proved damage has been done to the properties above ground.

The Daily Telegraph understands Transport NSW is currently negotiating with the MLALC about compensation for burrowing under their shuttered bowling club, with a figure of up to $5m being discussed.

The bowling club was vested to the land council following a successful land claim under the Aboriginal Land Rights Act 1983. Picture: David Swift

A Transport for NSW spokesman confirmed discussions on compensation were underway, but wouldn’t comment further “while negotiations associated with subsurface land remain ongoing”.

“The Just Terms Act does not apply to land owned by an Aboriginal Land Council, therefore it is not able to be compulsorily acquired,” he confirmed.

MLALC CEO Nathan Moran said the matter of compensation was “the stark reality of law”.

“I don’t understand how people have any issue with something done to address many wrongs … when our Land Rights Act is to recompense us for the loss of the entire state,” he said.

“We’re exercising the legal rights we have, that’s all I can say to someone who says ‘I don’t have those (same compensation) rights’”.

CEO of Metropolitan Local Aboriginal Land Council Nathan Moran. Picture: NCA NewsWire / Jeremy Piper

Mr Moran said his legal advice was that the Land Rights Act covers “all the way to the centre of the earth”.

“I just think people don’t want to learn or understand the context (of the Act) and its uniqueness,” he said.

While federal native title claims require Indigenous applicants to provide evidence of a cultural connection with the land, the NSW system under the Aboriginal Land Rights Act doesn’t have the same requirement.

Waverton resident Michael Stevens lives across from the club and will have the Western Harbour Tunnel travelling underneath his kitchen.

“I don’t think that’s very fair at all (that we won’t get compensation),” he said.

“That’s discrimination against all the people on the other side (of the road)”.

The MLALC was successful in their land claim on the club after it fell into liquidation in 2019.

Michael Stevens is a neighbour to the club and the tunnel goes under his apartment complex. Picture: David Swift

Since then the site has sat largely untouched, with Mr Moran saying inspections had found at least $500,000 worth of work had to be done to it.

“They gave us a decrepit, dilapidated asset … The unfortunate reality is, it’s not worth saving,” he said.

He said the council was considering using the land for uses stipulated in its current planning controls, which allow bowling clubs, cafes, preschools and events at the site.

The disused Waverton Bowling Club is subject to an Aboriginal Land Council claim for compensation. Picture: David Swift

Roads Minister John Graham said it would be too costly to rejig the alignment of the tunnel instead of paying compensation.

“This is a relatively rare instance for a tunnelling project and Transport for NSW is working with the legal tools it has available to it,” he said.

“The approach taken is preferable to costly delays or spending significantly more money to change the tunnel alignment.”

It’s understood this has only occurred once before, when the Metro land council was compensated for WestConnex travelling underneath a property they owned at Ashfield.

Real estate agents working in the area told The Telegraph neighbouring houses with similar harbour views routinely sell for $10m — putting the value of the bowling club site in the tens of millions.

The Western Harbour Tunnel will connect the Rozelle Interchange to the Warringah Freeway at a cost of more than $7bn, with an opening forecast for 2028.

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Originally published as Metro Aboriginal Land Council to get millions in compensation for Western Harbour Tunnel while home owners get nothing