[2010] VCAT 601
General information, not legal advice.
Victorian Civil and Administrative Tribunal
2010-05-06
Senior Member J, Mr P
Original judgment source is linked above.
(b) a document that has been prepared by a Minister or on his or her behalf or by an agency for the purpose of submission for consideration by the Cabinet;
(ba) a document prepared for the purpose of briefing a Minister in relation to issues to be considered by the Cabinet;
(d) a document the disclosure of which would involve the disclosure of any deliberation or decision of the Cabinet, other than a document by which a decision of the Cabinet was officially published
(1) Subject to this section, a document is an exempt document if it is a document the disclosure of which under this Act -
(a) would disclose matter in the nature of opinion, advice or recommendation prepared by an officer or Minister, or consultation or deliberation that has taken place between officers, Ministers, or an officer and a Minister, in the course of, or for the purpose of, the deliberative processes involved in the functions of an agency or Minister or of the government; and
(ii) in the case of an agency engaged in trade or commerce - information of a business, commercial or financial nature -
that would if disclosed under this Act be likely to expose the agency unreasonably to disadvantage;
Submission marked 'Commercial-in-Confidence' prepared by external consultant and submitted to committee of Cabinet
Submission marked 'Commercial-in-Confidence' prepared by external consultant and submitted to committee of Cabinet
Final draft report marked 'Cabinet-in-Confidence' prepared by external consultant and submitted to committee of Cabinet
Business case marked 'Commercial-in-Confidence' prepared by external consultant
Copy of presentation briefing marked 'Cabinet-in-Confidence' prepared by DSE, Capital Projects Division for Minister and Treasurer and presented to committee of Cabinet
Copy of presentation marked 'Cabinet-in-Confidence' prepared by DSE and presented to committee of Cabinet
1. Email from DSE officer to officers of DTF and DSE attaching six page draft discussion paper.
2. Email response from DSE officer to officers of DTF and DSE in relation to draft discussion paper
1. Email from external consultant to DSE officer and officer of external consultant attaching a one page document in relation to cost estimates.
2. Email response from DSE officers (including Peter Sammut) in relation to costs estimates
He is the responsible executive for managing the delivery of the Victorian Desalination Project on behalf of the Secretary of the respondent nominated as the Facilitating Agent under the Project Development and Construction Management Act 1994.
Capital Projects is a division of the respondent with responsibility for the delivery of the desalination project as well as assisting the respondent in the development and delivery of the capital projects.
As part of its water plan the Victorian Government proposed the development of a desalination plant to be delivered as a public/private partnership. The respondent's Capital Projects Division acts as the proponent for the project. The plant and associated works are to be constructed and operated through the public/private partnership involving a private consortium paid to build and operate the plant for a period eventually handing back control to Government at the end of the contract term.
Later the Government conducted a further financial assessment of the project and different configuration options as part of the further development of the Partnerships Victoria Business Case and the preparation of a public sector comparator (PSC). The different configuration options have an impact upon the cost of the project.
In June 2008 the Government called for expressions of interest in the construction and operation of the project, the submissions being assessed by a project team and a range of experts with a view to selecting two bidders.
In March 2009 the short-listed bidders submitted bids for the project team to evaluate.
AquaSure was the successful bidder. Construction commenced in September 2009.
The Government has established a Committee of Cabinet to make decisions in relation to the water plan including the desalination project. It meets as and when required to discuss water issues including the desalination project. As far as he is aware, he has attended all meetings at which the project has been considered.
The documents in dispute cover the period 1 January 2007 to 30 May 2008 during which period a substantial amount of research and analysis were conducted by Melbourne Water and the respondent. A public sector comparator was created for the project as required under the Partnerships Victoria policy, the public sector comparator being the estimated whole-of-life, risk-adjusted cost of Government delivering the project. It is used to test whether any private investment proposal offers value for money in comparison with the most efficient form of public delivery.
The documents in dispute provide an analysis of how the State would allocate and value the risks associated with the project, such as risk in regard to its design, construction, operation and maintenance. Such information including the estimates of cost, is highly confidential to the State and has major implications for the cost of the project during a live bidding process.
Were such information to be provided to project bidders, they could adjust the allocation of risk and their costs of delivering the project accordingly.
The documents in dispute contain the State's costs estimates for the project together with methodology for arriving at the estimates and assessing risk. Having regard to the size and complexity of the project, the documents are commercially very sensitive.
Although the bidding process is complete, the financial and methodological information in the documents could reveal the Government's detailed valuation of specific risks which could compromise future negotiating positions. Were bidders to become aware of the State's estimated pricing and assessment of individual risks, it could influence their behaviour during a 'live contract'.
Documents created by the Capital Projects Division for the bid evaluation purpose are strictly confidential. Access to them was limited to a small number of people in the project team.
Since the commencement of the bidding process, the Capital Projects Division implemented a number of measures to ensure that the content of the documents in dispute and other materials remain confidential. Such measures include the following :
Release of the documents in dispute "in their current form" would cause the State significant financial detriment".
In accordance with Partnerships Victoria Policy, a project summary and relevant contract documents were released on 26 November 2009.
Documents 1, 6 and 7 were either commissioned or prepared directly by him for the purpose of submissions to the Committee of Cabinet for its consideration. They were submitted to the Committee.
External consultants retained by the respondent were commissioned to prepare document 1 for submission to the Committee for its consideration and deliberation. He attended a meeting of the Committee to which he presented the document. He himself prepared documents 6 and 7 and attended a meeting of the Committee to which he presented them.
He prepared document 5 for the purposes of briefing the Minister for Water and the Treasurer in relation to issues considered by the Committee.
Document 2 was taken by him to a Committee meeting and circulated to members and used by the Committee in making its decision on that day.
Document 8 arose out of concerns raised at a Committee meeting and, if released, would involve disclosure of a deliberation or decision of the Committee.
The Capital Projects Division is engaged in "trade or commerce". It is involved on behalf of Government in managing the contract with AquaSure.
Documents 1, 2, 3, 4, 5, 7, 8 and 9 contain highly sensitive financial and commercial information concerning the project in particular in regard to the State's projected cost estimate analysis. The project is currently in the construction phase and if released the financial and commercially sensitive information would defeat the State's negotiating position going forward. Release of it would expose the State unreasonably to disadvantage in the current contract process and potentially in future bidding processes involving public/private partnerships.
Documents 1, 2, 3, 4, 8 and 9, being in the case of 1, 2 and 3 reports, in the case of document 4 a business case and in the case of documents 8 and 9 emails, contain opinion, advice and recommendations prepared for the purpose of the deliberative process of Government in relation to the project.
Documents 8 and 9 are email chains including attachments between external consultants, Government departments and Capital Projects Division officers and internal emails between these officers and those of another agency. In addition to containing opinion, advice and recommendations, they contain consultation between officers of the Capital Projects Division and those of another agency. They also contain components of the public sector comparator cost estimates.
Their disclosure would be contrary to the public interest because of commercial sensitivity. Although the bidding process is complete, they detail costing and tender analysis methodology likely to be applied in other tender processes. Their release would prejudice those matters.
Release of the contract and the public sector comparator amount (compared to the winning bidder's contracted value), as required by the Partnerships Victoria Policy on public disclosure of contract details, will fulfil the public interest.
The portfolio Minister needs to seek approval of Cabinet or the relevant committee for any major departures from the approved PSC after the bidding process begins.
Portfolio Minister and Cabinet (or relevant committee) to sign off on the PSC.
Approval by Cabinet or the relevant Cabinet committee must be obtained for funding the Partnerships Victoria project and/or funding a full business case to substantiate the partnership approach.
Primary responsibility for the construction and use of the PSC lies with the relevant portfolio department or agency.
The portfolio Minister is also required to sign-off on the finalised PSC and is responsible for obtaining formal approval of Cabinet or the appropriate committee before the bidding process commences.
(1) The responsible Minister may give a facilitating agency written directions in relation to a nominated project.
(2) A facilitating agency must comply with any directions under this section in carrying out its functions under this Act in relation to the nominated project.
(3) An agreement or arrangement or contract entered into under this Act in contravention of subsection (2) is not void only because of that contravention.
(1) The Treasurer may give a facilitating agency written directions in relation to any matter relating to the financing of a nominated project if the Treasurer is of the opinion that that matter may involve any direct or indirect or contingent liability to the State.
(2) A facilitating agency must comply with any directions under this section in carrying out its functions under this Act in relation to a nominated project.
(3) An agreement or arrangement or contract entered into under this Act in contravention of subsection (2) is not void only because of that contravention.
There is to be in force at all times as part of the laws of Victoria an Act the objectives and functions of which are to facilitate and promote, promptly and at the lowest reasonable cost, the disclosure of information by creating a general right of access to information in documentary form in the possession of Ministers and agencies limited only by exceptions and exemptions necessary for the protection of essential public interests and the private and business affairs of persons in respect of whom information is collected and held by agencies.
"The public interest is a term embracing matters, among others, of standards of human conduct and of the functioning of government and government instrumentalities tacitly accepted and acknowledged to be for the good order of society and for the well being of its members. The interest is therefore the interest of the public as distinct from the interest of an individual or individuals".
" 'deliberation' encompasses more than the mere receipt of information in the Cabinet Room for digestion by Cabinet Members then or later. The word 'deliberation' connotes careful consideration with a view to the making of a decision".
It is unclear from the evidence as to how Cabinet dealt with the document and as to whether it is able to be concluded that Cabinet actually deliberated or made any decision sufficient to find that the document is exempt pursuant to s 28(1)(d). Exemption under s 28(1)(d) has not been made out.
50 (4) On the hearing of an application for review the Tribunal shall have, in addition to any other power, the same powers as an agency or a Minister in respect of a request, including power to decide that access should be granted to an exempt document (not being a document referred to in section 28, section 29A, section 31(3), or in section 33) where the Tribunal is of opinion that the public interest requires that access to the document should be granted under this Act.
If the application of the override requires the Tribunal to determine whether considerations of the 'public interest' are so strong as to outweigh or override those factors which make the document exempt, that outweighing or overriding must be compelled by the public interest consideration. It is only if that concept of compulsion is borne in mind that the exercise can be appropriately termed a balancing one.
"... the desalination plant costs were based on a significant body of technical work on the project costs and risks. However, the decision was made to publish a lower profitability figure (ie a lower estimate) when a higher profitability figure was available"
"In general, where necessity forces a procuring agency to publish figures of low or variable reliability, it should inform the community that it is doing this".
Asher
Department of Sustainability and Environment