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Supreme Court of Victoria |
Last Updated: 3 November 1999
SUPREME COURT OF VICTORIA VALUATION, COMPENSATION & PLANNING LIST | |
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No. 4687 of 1999
NO. 2 PITT STREET PTY. LTD. (ACN 008 624 771) |
Applicant |
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WODONGA RURAL CITY COUNCIL |
Respondent |
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JUDGE: |
Balmford, J. | |
WHERE HELD: |
Melbourne | |
DATE OF HEARING: |
9-11, 16, 17, 21 & 22 June 1999 | |
DATE OF JUDGMENT: |
6 September 1999 | |
CASE MAY BE CITED AS: |
No 2 Pitt Street Pty Ltd v Wodonga Rural City Council (No. 3) | |
MEDIA NEUTRAL CITATION: |
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PLANNING -
Interpretation of Legislation Act 1984 (Vic); s 35 Planning and Environment Act 1987 (Vic); ss 57(2), 60, 63, 64, 82, 82B, 89, 149B, 150 Planning and Environment Regulations Annetts v McCann [1990] HCA 57; (1990) 170 CLR 596 Heatley v Tasmanian Racing and Gaming Commission [1977] HCA 39; (1977) 137 CLR 487 Keller v Bayside City Council [1996] VicRp 23; [1996] 1 VR 356 Kentucky Fried Chicken Pty Ltd v Gantidis [1979] HCA 20; (1979) 140 CLR 675 Masters v McCubbery [1995] VICSC 209; [1996] 1 VR 635 National Companies and Securities Commission v News Corporation Ltd [1984] HCA 29; (1984) 156 CLR 296 Romanella v City of Melbourne (1986) 62 LGRA 327 Russell v Duke of Norfolk [1949] 1 All ER 109 Twist v Randwick Municipal Council [1976] HCA 58; (1976) 136 CLR 106 |
APPEARANCES: |
Counsel |
Solicitors |
For the Applicant |
Mr SR Morris QC with Mr S O'Bryan and Ms SM Brennan |
Coadys |
For the Respondent |
Mr EN Magee QC with Mr JH Gobbo |
Maddock Lonie & Chisholm |
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HER HONOUR:
(a) the Council failed to accord Pitt Street natural justice in that:(i) it did not give Pitt Street an adequate or any opportunity to make any submissions, oral or written, to the Council before the decision was made;
(ii) further or alternatively, it did not give Pitt Street any notice that the Council proposed to make a decision which adversely affected it;
(b) in making the decision, the Council acted at the dictation of its solicitor;
(c) in making the decision, the Council relied upon a conclusion which was not open, namely that the grounds of Pitt Street's objection were entirely without merit;
(d) the decision involved an error in law in that it was mistakenly predicated upon only one objection being received;
(e) the Council failed to have regard to the discretionary nature of the power in section 57(2A) of the Planning and Environment Act 1987 ("the Planning Act").
2. Definitions
In this Act unless the context or subject-matter otherwise requires--
"decision" means a decision operating in law to determine a question affecting the rights of any person or to grant, deny, terminate, suspend or alter a privilege or licence and includes a refusal or failure to perform a duty or to exercise a power to make such a decision;
"person affected" in relation to a decision, means a person whether or not a party to proceedings, whose interest (being an interest that is greater than the interest of other members of the public) is or will or may be affected, directly or indirectly, to a substantial degree by a decision which has been made or is to be made or ought to have been made by the tribunal;
"tribunal" means a person or body of persons (not being a court of law or a tribunal constituted or presided over by a Judge of the Supreme Court) who, in arriving at the decision in question, is or are by law required, whether by express direction or not, to act in a judicial manner to the extent of observing one or more of the rules of natural justice.
3. Tribunal decisions may be reviewed
Any person affected by a decision of a tribunal may make application (hereinafter called an application for review) to the Supreme Court for an order calling on the tribunal or the members thereof (hereinafter called an order for review) and also any party interested in maintaining the decision to show cause why the same should not be reviewed.
7. Powers of Court
Upon the return of the order for review, the Court may discharge the order or may exercise all or any of the jurisdiction or powers and grant all or any of the remedies which upon the material adduced and upon the grounds stated in the order might be exercised or granted in proceedings for relief or remedy in the nature of certiorari, mandamus, prohibition or quo warranto or in proceedings for a declaration of invalidity in respect of the decision or for an injunction to restrain the implementation thereof and may extend the period limited by statute for the making of the decision but shall not exercise any other jurisdiction or power or grant any other remedy.
Please note that our client is conducting further inquiries and seeking further advice in respect of the proposed development and use. Accordingly we may wish to supplement this objection in the next week or so.
We further advise that our client has requested that it be heard in support of the objection and wishes to attend any meeting of the Council or Committee in that regard.
We would be pleased if you would advise the proposed time and date of that meeting.
On 25 November, Coadys wrote again to the Council asking for information as to when the Council or relevant committee would be meeting to consider the application for the permit, and reiterating that their client wished to be heard in relation to the application.
(2A) The responsible authority may reject an objection which it considers has been made primarily to secure or maintain a direct or indirect commercial advantage for the objector.
(2B) If an objection has been rejected under sub-section (2A) this Act applies as if the objection had not been made.
The effect of section 57(2B) is that where an objection has been rejected under section 57(2A), the Council is no longer obliged by section 60(1)(a) of the Planning Act to consider the objection, and the person who made the objection is not entitled as of right to apply to the Victorian Civil and Administrative Tribunal ("the Tribunal") under section 82(1) of that Act for review of a decision of a responsible authority to grant the permit. Sections 60 and 82 read, so far as relevant:
60. What matters must a responsible authority consider?
(1) Before deciding on an application, the responsible authority--
(a) must consider--
(i) all objections and other submissions which it has received and which have not been withdrawn;
82. Appeals where objectors
(1) an objector may apply to the Tribunal for review of a decision of the responsible authority to grant a permit.
63. Grant of permit if no objectors
Once it has decided in favour of an application, the responsible authority must issue the permit to the applicant if no one has objected or if notice of the decision to grant the permit is not required to be given to objectors under section 64.
64. Grant of permit if there are objectors
(1) The responsible authority must give the applicant and each objector a notice in the prescribed form of its decision to grant a permit.
. . .
(3) The responsible authority must not issue the permit to the applicant -
(a) until the end of the period within which an objector may apply to the Tribunal for a review of the decision to grant the permit; or
(b) if an application for review is made within that period, until the application is determined by the Tribunal or withdrawn.
Thus, the issue of a notice of decision to grant a permit enables a person who has objected to the grant to apply to the Tribunal under section 82 for review of the decision to grant the permit. The period within which the application must be made appears from Regulation 27 and Form 6 of the Planning and Environment Regulations 1998 to be 21 days from the giving of the notice. In this case, the effect of the rejection of Pitt Street's objection under section 57(2A) was that by the operation of section 57(2B), Pitt Street's objection was deemed not to have been made, and, assuming the absence of any other objector, the Council was entitled to issue a permit, rather than a notice of decision to grant a permit. The question raised in the writ proceeding as to whether there was in fact any objection on foot at the time of the issue of the permit is not presently relevant.
The requirements of natural justice must depend on the circumstances of the case, the nature of the inquiry, the rules under which the tribunal is acting, the subject-matter that is being dealt with, and so forth.
Gibbs CJ went on to say:
The authorities show that natural justice does not require the inflexible application of a fixed body of rules; it requires fairness in all the circumstances, which include the nature of the jurisdiction or power exercised and the statutory provisions governing its exercise. Moreover, as Stephen J said in Salemi v MacKellar [No 2] [1977] HCA 26; (1977) 137 CLR 396 at 444, the rules of natural justice "may also vary from case to case although each be conducted before one and the same tribunal or person".
The law in Australia now is . . . that there is a strong presumption that an administrative or executive decision-maker, the repository of a statutory power, owes a duty to accord procedural fairness, and in particular a "hearing" in some form or other, to any person affected or likely to be affected by the decision, and not merely in respect of a legal or proprietary interest, even though that person is not directly involved in the decision-maker's proceedings; and a clear contrary legislative intent is required to rebut the presumption: Commissioner of Police v Tanos [1958] HCA 6; (1958) 98 CLR 383 at 395-6; FAI Insurances Ltd v Winneke [1982] HCA 26; (1982) 151 CLR 342 at 360; R v Ludeke; Ex parte Customs Officers' Association of Australia [1985] HCA 31; (1985) 155 CLR 513 at 528; Kioa v West [1985] HCA 81; (1985) 159 CLR 550 at 584, 609-12 and 618-19; Haoucher v Minister for Immigration & Ethnic Affairs [1990] HCA 22; (1990) 169 CLR 648 at 651-3 . . . ; and Annetts v McCann [1990] HCA 57; (1990) 170 CLR 596 at 598.
He went on to find that the scheme of the Building Act 1993 manifested a clear intention to exclude an obligation to observe any of the rules of natural justice towards the owners of property adjoining the subject property, and noted at 379 the marked contrast with the rights of adjoining owners under the Planning Act with respect to planning applications.
This is not to say that the Commission is obliged to adhere to the rules of evidence or conduct formal hearings or to be satisfied according to any stated onus of proof. It is clear that the Commission has an "absolute discretion", in the sense that they may devise their own criteria and no appeal is available against their decision, whether it be mistaken or not. . . . Fairness requires that the person affected should, save in an emergency, be given notice by the Commission of its intention to issue a warning-off notice and of grounds for that proposed action and should be afforded an opportunity to make representations to the Commission on his own behalf, which it must consider before taking action. . . . I do not think that fairness requires in this context an oral hearing though in some circumstances the Commission may well find that it cannot resolve inconsistencies between its information and written submissions from the person concerned without such a hearing. It is however for the Commission itself to devise its own procedures in the light of its obligation to act fairly.
Nor is such an intention to be inferred from the presence in the statute of rights which are commensurate with some of the rules of natural justice: Baba v Parole Board of New South Wales (1986) 5 NSWLR 338 at 344-5, 347, 349.
The common law rule that a statutory authority having power to affect the rights of a person is bound to hear him before exercising the power is both fundamental and universal: . . . But the legislature may displace the rule and provide for the exercise of such a power without any opportunity being afforded the affected person to oppose its exercise. However, if that is the legislative intention it must be made unambiguously clear. . . . But, if the legislation has made provision for that opportunity to be given to the subject before his person or property is so affected, the court will not be warranted in supplementing the legislation, even if legislative provision is not as full and complete as the court might think appropriate. Thus, if the legislature has addressed itself to the question whether an opportunity should be afforded the citizen to be relevantly heard and has either made it clear that no such opportunity is to be given or has, by its legislation, decided what opportunity should be afforded, the court, being bound by the legislation as much as is the citizen, has no warrant to vary the legislative scheme . . . The court will approach the construction of the statute with a presumption that the legislature does not intend to deny natural justice to the citizen.
In that case, the majority (Barwick CJ and Mason J) found that the existence of a full right of appeal to the District Court as to the facts and the law against the making of an order for demolition showed that the owner of the building did not have a right to be heard by the Council before the order was made.
82B. Affected person may seek leave to appeal
(1) Any person who is affected may apply to the Tribunal for leave to apply for review of a decision of the responsible authority to grant the permit in any case in which a written objection to the grant of the permit was received by the responsible authority.
(2) Subject to sub-section (3), the Tribunal must give the applicant for the permit, the responsible authority and the affected person an opportunity to be heard before making a decision.
(3) The Tribunal is not required to hold a hearing under sub-section (2) if the applicant for the permit consents to the request for leave to apply for review.
(4) The Tribunal may grant the leave to appeal if it believes it would be just and fair in the circumstances to do so.
(5) If leave is granted by the Tribunal, the person affected may apply to the Tribunal for review of the decision of the responsible authority to grant the permit.
(6) This section does not apply if--
(a) the decision on the application for a permit is exempted from section 82(1); or
(b) a permit has been issued under section 63 in respect of the application for a permit.
89. Request for cancellation or amendment
(1) Any person who objected or would have been entitled to object to the issue of a permit may ask the Tribunal to cancel or amend the permit if--
. . .
(b) the person believes that the person has been adversely affected by--
(i) a material mis-statement or concealment of fact in relation to the application for the permit; or
(ii) any substantial failure to comply with the conditions of the permit; or
(iii) any material mistake in relation to the grant of the permit.
149B. General application for declaration
(1) A person may apply to the Tribunal for a declaration concerning--
(a) any matter which may be the subject of an application to the Tribunal under this Act; or
(b) anything done by a responsible authority under this Act.
(2) On an application under sub-section (1), the Tribunal may make any declaration it thinks appropriate in the circumstances.
150. Tribunal orders in relation to proceedings
. . .
(4) If any proceedings are brought before the Tribunal under this Act and the Tribunal is satisfied that--
(a) the proceedings have been brought . . . primarily to secure or maintain a direct or indirect commercial advantage for the person who brought the proceedings; and
(b) any other person has suffered loss or damage as a result of the proceedings--
the Tribunal may order the person who brought the proceedings to pay to that other person an amount assessed by the Tribunal as compensation for the loss or damage and an amount for costs.
. . .
(6) The Tribunal may make an order under sub-section (4) whether or not the responsible authority has under section 57 rejected an objection by the person bringing the proceedings on the ground that it was made primarily to secure or maintain a direct or indirect commercial advantage for the objector.
The Act allows councils to consider significant economic effects of proposed development before making decisions. Clearly this was not intended to mean and does not currently mean that planning schemes may regulate commercial competition. It is important that the Act be strengthened to recognise this well established principle of town planning law so that objectors whose grounds are based on trying to secure or maintain a direct or indirect commercial advantage do not create delay to the disadvantage of applicants.
. . .
Clause 14 [which introduced sub-sections 57(2A) and (2B)] provides that a council may reject an objection based on such grounds and clause 26 [which amended section 150(4)(a) and introduced section 150(6)] allows the tribunal to make awards for compensation against a person if proceedings are brought by that person on such grounds. This will help ensure that delays to the granting of permits caused by persons objecting and appealing on these grounds will be cut.
Resort to this section has become almost common place as parties strive to find support for the proposition which they seek to make. In my view the court needs to be careful not to permit recourse to this section to undermine its primary function of seeking to ascertain the intention of the legislation from the content of the Act itself. So commonly is the court asked to refer to the speeches in Hansard, pursuant to the authority given by this section, that it is necessary to keep reminding ourselves of the caution referred to by the court in R v Kean and Mills [1985] VicRp 21; [1985] VR 255 at 259:
We were urged to refer to the Attorney-General's second reading speech in the Legislative Council on the Bill ... It was said that we were entitled to do so pursuant to s35(1) of the Interpretation of Legislation Act 1984. It is unnecessary to attempt the interpretation of that section. It is sufficient to say that apparently the Court is not obliged to refer to the Minister's speech. It "may" do so. The criteria for the exercise of such a power seems, however, not to be specified.
For my own part I think it is unhelpful for the court to resort to the power provided by the section in a case like this when the court is being asked to look at the "scheme" of a statute to determine whether that "scheme" demonstrates a manifest intention to deprive a statutory tribunal of a duty to act with fairness in the exercise of its powers. It can be conceded that this Act, through its stated objectives, can be seen to be intending to provide dispute resolution procedures which are "cost effective". What cannot be gleaned by reading the Act as a whole in my opinion is an intention or objective to absolve medical panels from a duty to act fairly in carrying out their functions. Indeed, in the same speech to which we were referred, the Minister stated that "Decision making on disputes will be consistent and fair".
If the shopping facilities presently enjoyed by a community or planned for it in the future are put in jeopardy by some proposed development, whether that jeopardy be due to physical or financial causes, and if the resultant community detriment will not be made good by the proposed development itself, that appears to me to be a consideration proper to be taken into account as a matter of town planning. It does not cease to be so because the profitability of individual existing businesses are at one and the same time also threatened by the new competition afforded by that new development. However the mere threat of competition to existing businesses, if not accompanied by a prospect of a resultant overall adverse effect upon the extent and adequacy of facilities available to the local community if the development be proceeded with, will not be a relevant town planning consideration.
He submitted that that principle did not apply, for example, to an operation such as a service station, of which there would always be a number in a given area, and a particular planning decision was unlikely to affect the adequacy of the facilities available to the community. However, it was relevant when dealing with a development such as a regional shopping centre, or a cinema centre, when there was only room for a very few players in the market place. Thus the Planning Act could not be said to intend an absolute prohibition on objections based primarily upon commercial considerations. After all, he submitted, a number of planning objections are made primarily for what are effectively commercial reasons, given the effect on land values of many planning decisions.
The council had a duty to act fairly towards the applicants. This may not have required them to provide an oral hearing to the applicants, but at least the applicants should have been made aware of what was being urged against the grant of the extension and given the opportunity to counter, if they could, any such matters.
Conclusion
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