The new compensation provisions of the Expropriation Act

Abstract: In 2010 the compensation provisions of the Expropriation act changed and the proposals made in the bill (prop. 1971: 122) and which this essay takes focus on was to introduce a standard increment of 25% and to abolish the rule of presumption that limited the right for compensation for so-called expectation values. The essay examines the investigation behind the changes of the compensation provisions of the Expropriation act and outlines the propositions’ and respondents' cited pros and cons of the adjustments. The aim of the study is to explain what motivated the adjustments of the Expropriation act and to investigate whether there were alternative proposals for the changes introduced. The main motive behind the standard increment was that the private ownership would be strengthened and that the compensation would be determined closer to the market value and thus become more fair and equitable. In addition to this the intention with the changes were to adapt the compensation to the contemporary conditions. Alternative solutions to the standard increment that was proposed in the investigation was that the standard increment is limited only to be added to the value of current land use and not expectation values. Most of the respondents were in general optimistic to adjusting the rules for compensation with the motives that private ownership should be strengthened and that the regulation should be adapted to modern conditions. Many respondents anticipated that the changes of the compensation provisions would lead to a more reasonable and fair balance between individual and public interests.