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is as follows:
"1.
The object of this Ordinance is to make it clear that in resumptions under the Crown Lands Resumption Ordinance no compensation is to be awarded in respect of mere expectancies or probabilities. For example, the owner of agricultural land held under a Crown Lease which prohibits the erection of buildings except with the licence of the Crown is not to receive any compensation with respect to the possibility that such a licence might at some time have been obtained if the land had not been resumed. This principle is not new as it is in force under the Lands Clauses Consolidation Acts in England, and it seems only reasonable that the community should not have to pay for a mere possibility of this kind which the claimant could
never have enforced.'
43.
There
The statement that the principle of no compensation
for potential value was not new and that it was in force under
the Lands Clauses Consolidation Acts in England is untrue.
is no exception of potential value in Section 63 of the Land
Clauses Consolidation Act 1845 which is the relevant section.
In the notes to this section in 3 Halsbury's Statutes, 2nd
edition 917, the editors state
"Under these sections elaborate rules were worked
out by the courts as to the measure of compensation. In fixing the price of the land taken, the general rule was that the value to be ascertained was the
value of the land to the vendor with all its
potentialities and with all the use made of it
taking into account any restrictions to which it was subject".
See also 11th edition of Cripps on the Compulsory