Following Londish v Knox Grammar School , he concluded:
"The Council was entitled to make the judgment that it did, and this Court should not review such a decision".
42 Mr Robertson submitted that Sheahan J had erred in concluding that the principles laid down in Londish v Knox Grammar School were applicable. He contended that, having regard to the particular legislation, there could only be one correct meaning of "area" and the question of the meaning of "area" could not be answered on the basis of whether the Council's construction was "reasonably open", but had to be answered on the basis of the correct meaning. Mr Maston, on the other hand, supported his Honour's reasoning.
43 The provisions in Div 1 of Pt 4 of the Act relating to the three-fold classification in regard to the carrying out of developments were made by an amendment to the Environmental Planning and Assessment Act which commenced on 1 July 1998 and post-dated Londish v Knox Grammar School. Section 101 of the Act, prior to that amendment, provided that the Minister might give a direction to a consent authority to refer to "to the Secretary for determination by the Minister" a development application for a prohibited development. It was then open to the Minister under s 100A(2) to grant consent to a prohibited development. Thus the Act, prior to the 1998 amendment, contemplated that a development application for a prohibited development could be lodged with a consent authority, not being the Minister, and the Minister could then direct that the development application be referred to him or her for determination. In that way, a development application for a prohibited development made to a council (being a consent authority) was not without legal utility.
44 The position changed, however, once the Act was amended in 1998. As I have stated above, the Act as amended contains no procedure whereby a development application for a prohibited development can be made to a consent authority, not being the Minister. I repeat my conclusion that a development application to a council for a prohibited development is not an application in terms of the Act in its present form. In my view, such an application has no legal force or effect.
45 Mr Robertson submitted that, by the 1998 amendment, the classification of a development, that is, whether it is permissible or prohibited, "has now become jurisdictional". He submitted that, as an application for a prohibited development was a nullity, a council had no power to consent to it. On that basis, the question of power was not to be determined by reference to what was reasonably open to the consent authority, but by what was objectively correct.
46 In my opinion, Mr Robertson's submission should be accepted. The scheme of the Environmental Planning and Assessment Act relating to the three-fold classification of developments does not suggest that the determination whether an application for development is for a prohibited development (or one of the other two forms of development applications falling within Div 1 of Pt 4 of the Act) rests upon a council's own classification of the relevant circumstances. Rather, it indicates that it is not for a council itself to determine, as a matter of its opinion, whether it has power to grant consent to a development application or whether only the Minister has such power: cf Enfield City Corporation v Development Assessment Commission (2000) 199 CLR 135 at 149.
47 I would refer also to the statement of Spigelman CJ in Timbarra Protection Coalition Inc v Ross Mining NL (1999) 46 NSWLR 55 at 65 that "if the factual reference is preliminary or ancillary to the exercise of a statutory power", the conclusion is likely to be a jurisdictional fact. The relevant factual reference in this case is whether the minimum performance criteria are met. Whether those criteria are met determines the character of the proposed development, namely, whether it is prohibited or not. That in turn determines whether the Council has the power to consent thereto. Thus, the factual reference is preliminary to the exercise of statutory power by the Council.
48 Therefore, the reasoning in Londish does not apply: Timbarra Protection Coalition Inc v Ross Mining NL at 63. In my opinion, Sheahan J erred in applying the approach adopted therein. The question whether the minimum performance criteria were met involves a jurisdictional fact and, according to the relevant legislation, must be answered objectively - not by reference to the subjective opinion of the Council.