The respondents' submissions should not be accepted
34 The Director-General notes that the term "draft LEP" is not defined and submits that a draft LEP exists from the moment a council makes a resolution under s 54 of the unamended Act to prepare a draft LEP, that section being the first reference in the unamended Act to the concept of "a draft local environmental plan". The submission also relies upon the notification of the council's decision under s 54 containing the information specified in cl 9 of the Regulation (noted at par [14] above), so that it is properly described as not only a notification under s 54 but is also a draft LEP.
35 I do not accept the submission. The Council had no power to make a draft LEP until it had made a resolution under s 54(1). That resolution was a necessary preliminary step. The fact that the first reference to a draft LEP appears in s 54 does not mean that the draft LEP exists - the section refers to a decision "to prepare" a draft LEP - that is, it is a document yet to be prepared. Similarly, cl 9 of the Regulation, which states what the notice to the Director-General under s 54(4) must contain, refers to "the proposed" plan (pars (2)(b)(i), 2(b)(ii) and 2(b)(iii)), and to the consultation procedures "to be" adopted and the environmental study "to be prepared".
36 It follows that the reference in cl 12(1) of the Regulation to "a draft principal LEP received by the Director-General" (par (a)) and to "a draft amending LEP received by the Director-General" (par (b)) can only be a reference to a draft local environmental plan received by the Director-General from a council under section 64, as described in s 65(1) of the unamended Act.
37 In so finding, I reject the submission of the third respondent, Canberra Estates Consortium No. 4 Pty Ltd, that there is a distinction between the concept of a draft local environmental plan in the Act and a "draft principal LEP" or a "draft amending LEP" in cl 12 of the Regulation. There is no reason why they should not all have the same meaning and I reject the suggestion that a draft LEP under the Regulation is something less than a draft local environmental plan for the purpose of s 64 of the unamended Act.
38 The Council and the third respondent submit that a draft principal LEP in cl 12 of the Regulation is capable of referring to what was required to be submitted to the Director-General under 54(4) of the unamended Act. I do not accept the submission. As pointed out by counsel for the applicant, s 54(4) does not require a council to submit anything to the Director-General - it only required the council to inform the Director-General of its decision to prepare a draft LEP. A duty to inform a person of a decision that has been made to prepare a document is quite different from a duty to actually submit the document once prepared. Neither can a duty to "inform" be seriously understood as a duty to "submit".
39 The second and third respondents also rely upon cl 9 of the Regulation as unamended, noted in par [14] above, and the Departmental Planning Circular of 16 February 2006 in order to amplify the duty under s 54(4). Clause 9 of the Regulation does not, however, assist in amplifying the duty under s 54(4) - it simply provides that the mode of communicating the information that the council had made a decision under s 54(4) was to be by a notice complying with cl 9. The Planning Circular does not assist the respondents' submission and it is not capable of being used to construe the language of either s 54(4) of the Act or of cl 12(1) of the Regulation defining "pending LEP".
40 The respondents next rely upon a sentence in the judgment of Jagot J in Pongrass Group Operations Pty Ltd v Minister for Planning [2007] NSWLEC 638; (2007) 156 LGERA 250 at [42], that "a draft local environmental plan exists from a council's resolution under s 54 until the plan is made or the process is otherwise exhausted under s 70". The statement of her Honour was made, however, in a case in which she was construing a direction given by the Minister under s 117, and in particular, the words in s 117(2)(a), which state that the Minister may direct a council "to exercise its functions under Division 4 or 5 of Part 3 in relation to the preparation of a draft local environmental plan in accordance with such principles, not inconsistent with this Act, as are specified in the direction, ...". The full statement of her Honour at [42] of the judgment is:
"[42] First, a draft local environmental plan exists from a council's resolution under s 54 until the plan is made or the process is otherwise exhausted under s 70. Section 117 does not preclude the Minister from identifying the circumstances in which a direction applies to a draft local environmental plan by reference to stages in the statutory process."
41 Two observations may be made about this. Firstly, even if a draft LEP exists from the date of a council's resolution under s 54(1), the language of the definition of "pending LEP" in cl 12 would not be engaged. Secondly, no reasons are given by her Honour for the statement made in the first sentence of par [42], presumably because the point was not argued or not fully argued. There is no rule of law which binds a judge of first instance to follow the decision of a judge of co-ordinate jurisdiction, although considerations of judicial comity suggest that a judge of first instance will usually follow a decision of another judge of first instance in the same jurisdiction, unless convinced that the judgment was wrong: Michael Realty Pty Ltd v Carr [1975] 2 NSWLR 812 at 820, Q & R Developments Pty Ltd v Sutherland Shire Council [2001] NSWLEC 250; (2001) 117 LGERA 438 at [23] - [24]. In a case in which it appears that the point was not fully argued or developed before or by her Honour - whereas this is what the present case is all about - then I respectfully decline to follow her Honour's dictum.
42 The Council submits that the phrase "draft principal LEP" in the definition of "pending LEP" in cl 12(1) is capable of including the substance of what will ultimately be contained in a draft instrument later submitted to the Director-General under s 64. That is, according to the submission, such a meaning is entirely consistent with the reference to s 54 in the definition of "pending LEP". The Council submits that there is a textual indication that such a meaning was intended, namely, sub-cl (5) of cl 12:
"(5) In any Act or instrument, a reference in relation to a pending LEP:
(a) to a planning proposal includes a reference to a draft local environmental plan, and
(b) to community consultation includes a reference to the public exhibition of any such draft plan."
43 The Council submits that "the equivalence is significant": Under the amended Act a "planning proposal" is an early step in the planning process, before gateway determination (s 56) and well before the actual draft instrument (under s 59(1)); and it follows that the obvious intention of cl 12 was to employ "draft local environmental plan" or "draft LEP", as encompassing more that just the actual draft instrument.
44 I am unable to accept the submission. Clause 12(5) is not a definition of draft LEP. It is a deeming provision. Under cl 12(5)(a) any reference in Acts or instruments to the preparation of "planning proposals" are deemed, in the context of a draft LEP which continues to be prepared by a council under the unamended Act, to include a reference to such a draft LEP. Under cl 12(5)(b) references in Acts or instruments to "community consultation" are deemed, in the context of a draft LEP which continued to be prepared by a council under the unamended Act, to include a reference to public exhibition. That is, cl 12(5) has nothing to do with the definition of "pending LEP" in cl 12(1). It appears to be directed to the amending Act, in which the term "planning proposal" is used as a term of art in relation to the new procedures for the making of local environmental plans: ss 55 to 60 of the Act as amended where the term "planning proposal" is used instead of "draft local environmental plan".
45 Although the first respondent, the Director-General, accepts that the draft LEP in these proceedings is, in the context of cl 12(1) of the Regulation, a draft principal LEP, the Director-General relies upon par (b) of the definition of an additional period of twelve months from 1 July 2009 (if as at that date a s 65 certificate had been issued) or until 1 January 2011 (if a s 65 certificate had not been issued by 1 July 2009). The Director-General contends that if the applicant's submissions are correct there would be no reason to extend the period for a further twelve months as, on the applicant's argument, the draft LEP would have been prepared and submitted to the Director-General. That is, as I understand the submission, if "54" in par (b) is also a typographical error then par (b) appears to provide for time limits which are not required.
46 I am not persuaded by the Director-General's contention. It seems to me that the explanation provided by the applicant is more plausible. Draft amending LEPs are defined as containing only direct amendments to other environmental planning instruments. Paragraph (b) of the definition of "pending LEP" allows them to be pending LEPs and thus able to continue to follow the procedure under the unamended Act only if the draft amending LEP was received by the Director-General under ss 64 and 65(1) before July 2009 and allows them to continue to have the status of pending LEPs until 1 July 2010. As the applicant notes, this effectively sets a time limit for completing the procedure under the unamended Act. Once 1 July 2010 is reached, irrespective of whether the process has been completed, such as by a final decision made by the Minister under s 70(1) of the unamended Act, the procedure under the unamended Act may no longer be followed. On 1 July 2010 the draft amending LEP would lose its transitional status as a pending LEP and could not continue to be processed under the unamended Act.
47 Moreover, as the applicant points out, in the bracketed part of par (b) of the definition of "pending LEP", a different approach is taken to a draft amending LEP received by the Director-General under ss 64 and 65(1) prior to 1 July 2009 where the Director-General has not issued a certificate under s 65 prior to 1 July 2009. In that event, the draft amending LEP has the status of a pending LEP for a longer period of time - until 1 January 2011. Once that date is reached, irrespective of whether the process has been completed, such as by a final decision of the Minister under s 70(1) of the unamended Act, the procedure under the unamended Act may no longer be followed.
48 The clear objective of par (b) of the definition is simply to allow more time for the completion of a draft amending LEP under the unamended Act in cases where a s 65 certificate had not been issued before 1 July 2009; that is, the time for processing the draft under the unamended Act is extended to 1 January 2011. It does not assist the Director-General's construction of the definition at all. Indeed, the express reference in the bracketed part of par (b) to s 65 suggests that the immediately preceding reference in par (b) is to the step immediately before the step of issuing a certificate, namely submission to and receipt by the Director-General of the draft LEP under s 64.
49 The Council submits that the discretionary power of the Director-General under cl 12(2) of the Regulation to notify a council that the provisions of the unamended Act do not apply to the making of a pending LEP is more consistent with the selection of an early step in the process, such as a decision under s 54 as the relevant trigger point for the application of the transitional provision. The Council submits that, by way of illustration, the discretion would allow the Director-General to allow a substantially advanced plan-making process (even prior to the actual draft instrument) to continue under the unamended Act, given the obvious benefit of so doing in terms of avoiding repetition of steps already undertaken,
50 There is, however, no inconsistency needing to be addressed. By exercising the power the Director-General stops the application of the unamended Act and the amended provisions apply. The illustration given by the Council describes the reverse of what may occur if the discretion is exercised. The conferral of the discretion shows that there is no intention to preserve absolutely the application of the unamended Act, even where the process had reached an advanced stage by 1 July 2009.
51 The Director-General relies upon cl 122(2) in Sch 6 of the amended Act:
" The Minister may dispense with any conditions precedent to the making of an environmental instrument under that Division if satisfied that the instrument was in the course of preparation prior to the commencement of this clause ."
52 The Director-General submits that this provision makes it plain that it is the totality of the course of preparation that is intended to be covered by the dispensing power and not merely the conditions precedent which only flow up to the receipt of a draft LEP as it was under the unamended Act. That is, according to the submission, it is open to the Minister to dispense with any condition precedent either before or after the formulation of a final draft by the Council.
53 It is clear to me, however, that the words "under that Division" in cl 122(2) are a reference to Div 4 in Pt 3 of the Act as amended. The conditions precedent which the Minister may dispense with are the conditions precedent under the Act as amended and not those under the unamended Act.
54 The Council submits that the availability of the dispensing power in cl 122(2) does not support s 64 as being the trigger point for the application of the transitional provision. Clause 122(2) does not, however, support any particular step as the trigger point. And, as noted above, the dispensing power relates to conditions precedent under the Act as amended.
55 The Council relies upon the fact that the only criterion for the exercise of the Minister's discretion in cl 122(2) is satisfaction that "the instrument was in the course of preparation", which is apt to include even the early step of notification under s 54(4) of the unamended Act. I am unable to agree. The words support a construction where something more has been done than the making of a decision under s 54. The preparation of an LEP occurs only after that decision has been made. That is, the Minister's satisfaction that a draft LEP was in the course of preparation could only be reached if the preparation had commenced, which must be after the decision under s 54 had been made.
56 The Council also submits that cl 122(2) of Sch 6 and cl 12 of the Regulation are complementary provisions and should be construed harmoniously. They are not, however, necessarily complementary. Clause 122(2) is not expressed to be limited in its application to a "pending LEP" as defined in cl 12(1) of the Regulation.
57 The third respondent submits that there is further textual support for reading the plain words of cl 12(1) as they are written: the express preservation of the repealed Pt 5 of the Heritage Act 1977 (preserved by cl 12) would be to an extent meaningless if "section 54" were to be replaced by "section 64" in cl 12(1). This is said to be because s 84 of the Heritage Act provides guidelines for the preparation of LEPs by councils and is clearly intended to have most work to do in guiding the early stages of a council's draft LEP preparation process in ss 54 to 63 - the sections preceding s 64 - not to the post s 65 processing of the draft LEP.
58 The third respondent's submission is based on the argument that these provisions were relevant to the steps from s 54 to s 63 in the preparation of a draft LEP. This has no greater significance, however, than the fact that the steps from s 54 to s 63 of the unamended Act were required prior to the submission of the draft LEP under s 64. The third respondent's submission does not point to the construction which it has advanced.
59 The Director-General submits that the purpose of the amending Act was to simplify the planning regime with consequential savings in time and money for the council; and it would be contrary to this objective to require the council to set everything at nought and proceed under the new regime because of timing.
60 However, contrary to the Director-General's submission, the purpose of the amending Act is promoted by construing cl 12 of the Regulation so that "pending LEP" has a narrower ambit rather than a broader ambit. With a narrower ambit, more draft LEPs in preparation are required to be completed under the simplified and flexible provisions of the amended Act. The object of the amended Act is to replace the existing procedure with a new one preferred by the legislature. The Council and the third respondent submit that there is an object of saving time and expense for the council. However, no support for this object is found in the amended Act, the Regulation, or in any extraneous material.
61 Moreover, as noted by the applicant, there is no evidence that the Council would need to repeat anything that it has done between making its decision under s 54(1) on 28 January 2009, and 1 July 2009. The Council complains that it will have to repeat work done over seven years preceding 1 July 2009. It offers no explanation, however, as to why this work would have no utility, or have to be repeated.