The approach of the primary judge
30 The primary judge commenced by a description and analysis of the relevant statutory framework for management of reserves and of the history of the missions.
31 After a discussion of the evidence, the primary judge made the following findings of fact at [108], [109] and [110]:
"I am satisfied that both missions have always been dependent to a substantial extent upon funding from the Government. I am also satisfied that from a point in time prior to 1975, the level of such funding, to some extent, reflected the cost to the Government of managing reserves. Annual grants frequently, perhaps always, included amounts identified as being for wages payable to indigenous residents. It may have been competent for the Government, by regulation, to fix wage levels and levels of employment on missions, subject only to any limitation upon such power imposed by relevant industrial legislation. However it did not do so. As far as I can see, its decisions as to wage levels had no binding legal affect upon wage levels payable on church missions. I accept Mr Sutton´s evidence that the calculation of the wage component of each grant was a notional exercise and that it was not expected that its expenditure would precisely reflect the method of calculation. In other words, the Church could vary wage rates and employment levels. Nonetheless it is probable that both the Government and the Church desired to keep as many people as possible in employment.
I accept that it was not financially feasible for the Church to pay substantially more "across the board" than the amount allowed as wages in each grant. The Government probably knew this. However it had no knowledge of how many people would be employed, how many hours per week they would work, or what they would do. Nonetheless, it seems that the Government was aware that wages were paid on the missions at rates below award rates and that there was pressure to remedy the position. At some stage, the Government seems to have accepted that churches would pay increased wages to indigenous employees on missions only to the extent that it increased their grants.
The above summary inevitably contains many generalizations about practices which developed and changed over time. Such practices may not always have been consistently adopted. If it were necessary that I identify the events leading to any particular payment to the Church or the state of knowledge of the Government at any particular time, I would not assume that any practice or state of mind necessarily applied throughout the whole of the period from 1975 to 1986, save to the extent that I have expressly so found."
32 The primary judge then turned to the appellants' claims. At [113] and [114] his Honour said:
"The applicants´ claims depend substantially upon the allegation contained in par 4 of the statement of claim that:
All of the applicants were employed by the [Government] on Church-run reserves for some or all of the period between 1975 and 1986.' The allegation of employment by the Government is critical to the engagement of s 15 of RDA in these proceedings. However the allegation is also of importance in connection with s 9. That section applies to an act 'involving' a 'distinction, exclusion, restriction or preference' which is 'based on'race. In practice, each of the words 'distinction', 'exclusion', 'restriction' and 'preference' implies differential treatment of at least one person as compared to the treatment of at least one other. In this case the only differential treatment pleaded by the applicants is in connection with their alleged employment by the Government. They claim that the grants paid by the Government to the Church were insufficient to enable the Church to pay wages at higher levels. If employment by the Government is not established, there is no basis for alleging discrimination." 33 As I have sought to explain, the s 9 claim did not depend upon a conclusion that the appellants had been employed by the State. His Honour took the references to the comparison to non-Aboriginal employees of the State (see for example paragraph 8A) as meaning that the only differential treatment pleaded was in connection with their alleged employment with the State. As I have sought to show, that is not the case. 34 The primary judge then analysed who was the employer of the appellants and concluded that the State was not their employer. As I have already said, there is no appeal from that conclusion. 35 The primary judge returned to the s 9 claim. His Honour dealt with it between [129] and [146] of his reasons. At [130] and [131] the primary judge set out the elements of s 9 of the Act, saying: "For present purposes, an act will be contrary to s 9 if it: · involves a distinction, exclusion, restriction or preference which is 'based on race'; and · has the purpose or effect of impairing the applicants' rights to be paid at higher rates. It is not sufficient that the relevant act has a discriminatory purpose or effect. The act must also 'involve' one of the discriminatory elements (a distinction, exclusion, restriction or preference) which must be based on race." 36 The primary judge then turned his attention to paragraph 8A and said at [133], [134] and [135]: "There are two major difficulties with this plea. Firstly, it tends to confuse the two requirements identified above, namely that the act involve a discriminatory element and that it have a discriminatory purpose or effect. Secondly, use of the word grants indicates that the applicants complain of not one, but numerous 'acts'. However no attempt has been made to identify them, let alone to show that each payment involved a discriminatory element or an identifiable discriminatory purpose or effect. In other words, the applicants invite me to infer that each of numerous unidentified payments over a period of eleven years involved a discriminatory element based on race and had a discriminatory purpose or effect. The basis for such inferences is that there is a long history in which calculation of grants to the Church was based upon an assumption that a hypothetical number of employees would be paid at rates which were below those paid to Government employees or specified in relevant awards. I will return to this matter at a later stage. I will first consider the relationship between the pleading and s 9. The allegedly discriminatory element of the payments is that each grant´ was `based on race´. Grants were certainly based on race in the sense that they were made in order to assist indigenous people, but the applicants do not rely on that discrimination in their favour. They assert that the calculation of the amount of each grant involved a discriminatory element. The Government paid wages at higher levels to its own employees who were not on reserves, and it presumably observed the requirements of relevant awards. However, in calculating the amounts to be paid to churches conducting missions on reserves, it included in each grant an amount which was calculated using pay rates which differed from rates paid to Government employees and/or specified in awards. In the end, I do not think that anything hangs upon the distinction between the two alternatives. The case has proceeded upon the tacit assumption that the Government was paying at least award rates to employees, the relevant awards also applying to some or all of the applicants.
There can be no doubt that indigenous people in Queensland were, for some or all of the period in question, significantly disadvantaged. One such disadvantage was that wage levels paid on reserves were lower than levels prescribed by awards and therefore paid in the general community. It is probable that the system of reserves established and maintained under the 1971 Act and the 1984 Act was a cause of such disadvantage. The Government's apparent acceptance of the fact that the Church was not paying award wages on the missions also contributed. Such acceptance was the natural consequence of the fact that, as I infer, the Government was paying below-award wages to indigenous workers on the reserves which it administered."
37 The first point made by the primary judge in [133] may be accepted. The pleading can be seen to conflate two separate elements of s 9: (i) the act must involve a distinction; and (ii) that act involving the distinction must be based on race. However, this infelicity of pleading would not prevent the recognition of those elements in the analysis of the substance of the appellants' case. Also, in fairness to the pleader, one must be careful to recognise that s 9(1) is one whole section and not a sum of finite elements. The provision is to be interpreted in a holistic way rather than by reference to disembodied individual elements.
38 The second point made by the primary judge in [133] was critical of how the case had been presented on behalf of the appellants. The presentation lacked, his Honour said, the necessary specificity and particularity of the acts in question. His Honour elaborated upon this point at [136] when he said:
"… No particular Cabinet decision or Government payment was specifically identified as being the subject matter of these proceedings. None was examined to see if it involved a discriminatory element or had a discriminatory purpose or effect. The failure to address particular acts is probably fatal to the applicants´ claims under s 9. It is possible to identify from the evidence particular decisions which involved calculations using particular wage rates. It would be more difficult to demonstrate that each decision had a discriminatory purpose or effect. In any event, the case has not been conducted in that way. …"
39 The appellants contested this asserted lack of particularity. They relied upon the determinations referred to in paras 4A to 4H and the Cabinet records in Exhibit 13 as the basis taken by both parties to the litigation in dealing with the decisions to pay the grants. The State sought to support the primary judge's criticism by pointing to the lack of particularity in the pleading. It does appear, however, that the evidence was ample to support the clear identification of the payments made as a result of the decisions disclosed in Exhibit 13. That is how the case appears to have been run. The decisions were as follows:
(a) Decision No. 23317 dated 20 October 1975 based on Submission No. 20838 (AB 298);
(b) Decision No. 23510 dated 24 November 1975 based on Submission No. 21006 (AB 301);
(c) Decision No. 25246 dated 11 October 1976 based on Submission No. 22524 (AB 305);
(d) Decision No. 25353 dated 18 October 1976 based on Submission No. 22574 (AB 308);
(e) Decision No. 27215 dated 17 October 1977 based on Submission No. 24266 (AB 312);
(f) Decision No. 27216 dated 17 October 1977 based on Submission No. 24267 (AB 316);
(g) Decision No. 294626 dated 7 November 1978 based on Submission No. 26251 (AB 319);
(h) Decision No. 29463 dated 7 November 1978 based on Submission No. 26257 (AB 322);
(i) Decision No. 30752 dated 12 June 1979 based on Submission No 27410 (AB 325)
(j) Decision No. 32015 dated 8 January 1980 based on Submission No.28547 (AB 332)
(k) Decision No. 32060 dated 15 January 1980 based on Submission No. 28584 (AB 337);
(l) Decision No. 32980 dated 26 May 1980 based on Submission No. 29412 (AB 341);
(m) Decision No. 33882 dated 21 October 1980 based on Submission No. 30240 (AB 346);
(n) Decision No. 34033 dated 17 November 1980 based on Submission No. 30384 (AB 354);
(o) Decision No. 35710 dated 3 August 1981 based on Submission No. 31906 (AB 357);
(p) Decision No. 38342 dated 9 August 1982 based on Submission No. 34302 (AB 360);
(q) Decision No. 38376 dated 16 August 1982 (AB 363);
(r) Decision No. 39901 dated 28 March 1983 based on Submission No. 35739 (AB 365);
(s) Decision No. 42170 dated 17 January 1984 based on Submission No. 37862 (AB 369);
(t) Decision No. 44383 dated 15 October 1984 based on Submission No. 39907 (AB 373);
(u) Decision No. 48290 dated 10 March 1986 based on Submission No. 43540 (AB 377);
(v) Decision No. 48651 dated 29 April 1986 based on Submission No. 43872 (AB 381);
(w) Decision No. 48902 dated 27 May 1986 based on Submission No. 44103 (AB 384);
(x) Decision No. 48945 dated 3 June 1986 based on Submission No. 44145 (AB 388);
40 However, as the State recognised, these views of the primary judge were not critical, because his Honour then looked at the case in what he described as a "generic approach" to the s 9 case. That is, he dealt with the matter on the basis that the acts had been adequately identified.
41 It is necessary to understand why his Honour rejected this case on this basis. The first reason for rejecting this case was the view of the primary judge that the claim depended upon a conclusion that the appellants were employed by the State. At [137] the primary judge stated:
"…the only discrimination arguably appearing from the evidence is in connection with wages. To prove entitlement to wages, it is necessary to prove employment. The applicants plead only employment by the Government and have failed to establish that plea. …"
42 For the reasons earlier expressed, this is not the only way the case was put. However, his Honour then approached the matter on the basis that the appellants were entitled to bring their s 9 case as former employees of the Church or the relevant Aboriginal Councils. Thus, for the appellants to succeed it is necessary for them to demonstrate error in the primary judge's approach on this basis.
43 The primary judge's reasons for dismissing the claim based on s 9 of the Act, not based on employment by the State and based on the numerous acts identified in Exhibit 13, were contained in [137] to [146] of his reasons.
44 The primary judge referred to paragraph 8A as the only "act" for the purposes of s 9 that was pleaded. The appellants submitted that the acts for the purposes of the s 9 case were the determination, that is the calculation and the paying of the grants. Elsewhere in the submissions on appeal, (see [2(f)] of the appellants' outline of submissions) the appellants identified the acts for the s 9 case as the "decisions as to the rate of pay and the consequent payments to the Church for the wages payable to the appellants". Notwithstanding a degree of imprecision in this aspect of the presentation of the appeal, it is tolerably clear that on appeal the appellants asserted that:
(a) the acts were the determining and paying of the grants;
(b) the determining and paying of the grants involved a distinction, exclusion or restriction;
(c) the distinction, exclusion or restriction was based on race; and
(d) the acts, involving the relevant distinctions and which were based on race had the effect of nullifying or at least impairing the relevant economic right by denying them award wages to which they were entitled.
45 The State submitted that the acts so identified represented a new case not run below that should not be entertained on appeal. I cannot agree. Though less than pellucid, the terms of paragraphs 4A to 4H, when read with paragraph 8A in the context of the opening and final addresses and written submissions, demonstrate that the reference to payment of grants in paragraph 8A is to be understood as the determination, that is the calculation, and payment, of the grants. The reasons of the primary judge reflect this: in this respect see [134] set out above, [138] and [141] set out and discussed below.
46 The appellants' submissions criticised the primary judge's statement of the relevant issues for the s 9 case as set out in [137] of his reasons which was in the following terms:
"Nonetheless they must show that the Government performed an act which involved a discriminatory element based on race. The only act pleaded (in par 8A of the statement of claim) is the payment of grants to the Church. It is said that the grants:
· were 'based on race'; and
· resulted in the applicants receiving lower wages than were paid to other employees of the Government doing similar work and/or than were prescribed by relevant awards."
It was submitted that this reflected the introduction of a foreign element into s 9, the so-called "discriminatory element". This criticism is misplaced. His Honour had defined the phrase in [131] as meaning a distinction, exclusion, restriction or preference. He was plainly using the phrase as a shorthand for the relevant elements of s 9.
47 Having posited the elements of s 9, the primary judge then proceeded in [138] to reject the claim. He said:
"As I have said indigenous people on reserves were undoubtedly disadvantaged, but it does not follow that every act connected with their disadvantage was contrary to s 9. The Government was under no obligation to make payments to the Church for use on the missions. No doubt, in discharge of its duty to maintain peace, order and good government throughout the state, it had an interest in seeing that the missions were well run. Clearly, it considered that the payment of grants would contribute to that outcome. However it is difficult to see how the payment of a grant could involve a relevant discriminatory element based on race. Such payments were, in themselves, entirely neutral, save for the fact that they were intended to benefit indigenous people. As I have said, the applicants do not complain on that basis. There is no suggestion that other grants were made at higher rates to facilitate higher payments to non-indigenous workers. As to discrimination in calculating the amount of each grant, there is no evidence that the Government calculated payments to other organizations using higher wage rates. The applicants have established that the grants were not sufficient, themselves, to enable the Church to pay award wages, but there is no basis for asserting that the calculation of the grants involved any discriminatory element. Any discrimination arose from the discrepancy between the amounts paid to indigenous workers (which amounts were derived from the grants) on the one hand, and amounts paid to other workers (which amounts were unrelated to the grants) on the other. That discrimination was the result of numerous factors, unrelated to the acts upon which the applicants rely. For this reason that discrimination was not involved in those acts. In these proceedings the applicants complain of discrimination against them as employees, not that they failed to receive a fair share of public resources generally."
48 The primary judge then dealt with the phrase "based on race" and concluded, based on the Full Court decision in Victoria v Macedonian Teachers' Association of Victoria Inc (1999) 91 FCR 47 upholding the decision of Weinberg J (1998) 91 FCR 8 that "based on race" meant "by reference to" and involved no causal connection between race and the relevant distinction or exclusion. No criticism was made of this approach.
49 The balance of his Honour's reasoning was at [141] to [146] in the following terms:
"Calculation and payment of grants were incidents of Government funding of the missions. As I do not accept that such acts involved discriminatory elements, it is difficult to determine in the abstract whether, if they did so, such elements would have been so based. It is sufficient to say that it seems that any discrimination against the applicants was based on the fact that they resided and worked on the missions rather than on their race. The applicants argue that those living and working on missions were, almost inevitably, indigenous. There may be something in that argument, but it is not raised on the pleadings. It is not necessary to take it further.
If s 9 is to be engaged, the act (having the relevant discriminatory element) must also have had 'the purpose or effect of nullifying or impairing the recognition, enjoyment or exercise, on an equal footing' of an applicants' right to equal pay. It cannot be said that the payments made to the Church had the purpose or effect of depriving the applicants of their proper pay rates. The payments enabled the Church to pay them something. Had there been no grants, there would have been other funding arrangements and in particular, reductions in employment levels and greater reliance upon social security payments.
It might be thought that such an interpretation of s 9 is inconsistent with the protective and remedial nature of the legislation. However, although s 15 is not to be read as narrowing the ambit of operation of s 9 (see subs 9(4)), the former section offers protection which is designed to deal with wage discrimination. More importantly, following the Murgha case, it was known that relevant industrial legislation offered the applicants the same wage protection as was offered to all other workers. I am not suggesting that the applicants were in any way blameworthy for not seeking out, or pursuing remedies under industrial legislation. I am merely demonstrating that my view of s 9 does not mean that the applicants were without appropriate remedies.
Although they have not said so directly, the applicants' real complaint is not that the Government paid money to the Church, but that it did not pay enough. That raises the question of whether the word "act" in s 9 includes an omission to act. There is nothing in RDA to support such an argument. Section 9 may be contrasted with s 15. The latter section clearly addresses omissions to act. In any event, such an argument would inevitably involve the assertion that the Government was obliged to make sufficient funds available to enable the Church to pay higher wages and could not make a partial contribution. Such a construction of the section is simply not available. It might also raise constitutional questions.
I should point out that the applicants have not alleged that the Government is liable as a party to any conduct by the Church. There seems to be no statutory basis for such a claim.
The claim pursuant to s 9 must fail."
50 Before dealing with the essential and determinative aspects of the primary judge's reasoning, it is necessary to say something about [144] and [145] of the reasons. As to [144], the gist of paragraph 8A and how it was developed was the assertion that the State did not pay enough in the grants and that it fixed upon the amounts that it did (which were inadequate to see the appellants paid the award wage) because the recipients of the wages payable through the grants were Aboriginal. This case involved both the acts taken and the omission or failure to do something different. Contrary to the primary judge's conclusion that the Act, and in particular s 9, could not support such a case based on omission or failure to act, s 3(3) of the Act specifically deals with this issue. That subsection is in the following terms:
"For the purposes of this Act, refusing or failing to do an act shall be deemed to be the doing of an act and a reference to an act includes a reference to such a refusal or failure."
51 As to [145], the primary judge was undoubtedly correct that no case was run to the effect that the State was liable as a party to the conduct of the Church. Section 17 of the RD Act does provide a basis for such a case; but none was pleaded or run. The submissions of the intervenor sought at times to agitate such a case. No such case should be allowed to be ventilated on appeal.