No Way to Say No

Stakeholder analysis for compulsory purchase for public infrastructure project in Australia

Jyoti Rao, Piyush Tiwari, Norman Elliott Hutchison

    Research output: Contribution to journalArticle

    1 Citation (Scopus)
    6 Downloads (Pure)

    Abstract

    Purpose: Property often forms the biggest component of household wealth and assets. Irrespective of landowners’ willingness, the act of compulsory acquisition abruptly ceases the security that this ownership carries. This often induces dissatisfaction among affected landowners over the (i) loss of ‘property rights’; (ii) loss of commodity, or property; and (iii) loss of future opportunities associated with the property. Though there have been attempts in various land acquisition laws and a practice to compensate acquirees for their loss, the dissatisfaction of acquirees has persisted. The persisting resistance of landowners compels deeper insight into the process of compulsory purchase and the compensation mechanism to understand underlying causes for resistance. This paper investigates the extent of involvement of these different stakeholders, at various stages in the compulsory purchase process, using stakeholder interaction analysis. Results obtained from this research will be helpful in identifying the gaps in the process of compulsory purchase of land for public projects in Australia.
    Design/methodology/approach: A survey of ten different stakeholder groups has been conducted to inquire the level of interaction of different stakeholders at various stages of compulsory purchase process. A comparative study was then performed to identify the gaps between the advocated process (suggested in the literature) and the process adopted by stakeholders.
    Findings: The results illustrate that (i) affected landowners seek involvement at the initial stage when the project plan is under preparation and compulsory purchase declaration are not finalized ; (ii) objectors (from the public) seek opportunities to convey, to the public agency, their views even though the accountability of public agencies towards this stakeholder is nil; (iii) strong interactions are established during negotiation over the compensation amount thus signifying the urge of acquirer and acquirees to avoid monetary losses and time delays.
    Research limitations/implications:
    Practical implications:
    Social implications:
    Originality/value: This research will be useful in identification of pain points in the compulsory purchase process for public projects. This shall help in evolution of fairer mechanism of land acquisition.
    Original languageEnglish
    Pages (from-to)37-66
    Number of pages30
    JournalProperty Management
    Volume36
    Issue number1
    DOIs
    Publication statusPublished - 2018

    Fingerprint

    Stakeholder analysis
    Infrastructure projects
    Public infrastructure
    Purchase
    Stakeholders
    Interaction
    Dissatisfaction
    Public agencies
    Public project
    Comparative study
    Ownership
    Commodities
    Compensation mechanism
    Pain
    Household wealth
    Preparation
    Design methodology
    Assets
    Property rights
    Willingness

    Keywords

    • compulsory purchase
    • Australia
    • land acquisition
    • stakeholder interaction analysis

    Cite this

    No Way to Say No : Stakeholder analysis for compulsory purchase for public infrastructure project in Australia. / Rao, Jyoti; Tiwari, Piyush; Hutchison, Norman Elliott.

    In: Property Management, Vol. 36, No. 1, 2018, p. 37-66.

    Research output: Contribution to journalArticle

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    AB - Purpose: Property often forms the biggest component of household wealth and assets. Irrespective of landowners’ willingness, the act of compulsory acquisition abruptly ceases the security that this ownership carries. This often induces dissatisfaction among affected landowners over the (i) loss of ‘property rights’; (ii) loss of commodity, or property; and (iii) loss of future opportunities associated with the property. Though there have been attempts in various land acquisition laws and a practice to compensate acquirees for their loss, the dissatisfaction of acquirees has persisted. The persisting resistance of landowners compels deeper insight into the process of compulsory purchase and the compensation mechanism to understand underlying causes for resistance. This paper investigates the extent of involvement of these different stakeholders, at various stages in the compulsory purchase process, using stakeholder interaction analysis. Results obtained from this research will be helpful in identifying the gaps in the process of compulsory purchase of land for public projects in Australia.Design/methodology/approach: A survey of ten different stakeholder groups has been conducted to inquire the level of interaction of different stakeholders at various stages of compulsory purchase process. A comparative study was then performed to identify the gaps between the advocated process (suggested in the literature) and the process adopted by stakeholders.Findings: The results illustrate that (i) affected landowners seek involvement at the initial stage when the project plan is under preparation and compulsory purchase declaration are not finalized ; (ii) objectors (from the public) seek opportunities to convey, to the public agency, their views even though the accountability of public agencies towards this stakeholder is nil; (iii) strong interactions are established during negotiation over the compensation amount thus signifying the urge of acquirer and acquirees to avoid monetary losses and time delays.Research limitations/implications:Practical implications:Social implications:Originality/value: This research will be useful in identification of pain points in the compulsory purchase process for public projects. This shall help in evolution of fairer mechanism of land acquisition.

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