The Legislative Instruments Act - Which Edition?
57 The Comcare Guide is a "legislative instrument" for the purposes of the Legislative Instruments Act 2003 (Cth) ("Legislative Instruments Act"). Part 3 of that Act requires there to be consultation before a legislative instrument is made. Part 5 provides for Parliamentary scrutiny of legislative instruments, including requirements that a legislative instrument be tabled in each House of Parliament (s 38) and for disallowance by either House (s 42).
58 It was accepted that, chronologically:
the fifth edition of the American Guide was published on 15 December 2000;
the Comcare Guide itself took effect on 1 March 2006; and
the sixth edition of the American Guide was published on 15 December 2007.
59 The terms of Principle 12, clearly enough, evince the draftsman's intention that the assessment be made using the edition of the American Guide "current at the time of assessment". And that was the form of the Comcare Guide which had been approved by the Minister and the form of the Comcare Guide as tabled before each House of Parliament. The terms of Principle 12 deny any ambit for any argument that the draftsman intended only the American Guide in force as at March 2006 was to be henceforth applied.
60 But Comcare contended that s 14 of the Legislative Instruments Act, and in particular s 14(2), precluded effect being given to that intention. Section 14 provides as follows:
Prescribing matters by reference to other instruments
(1) If enabling legislation authorises or requires provision to be made in relation to any matter in a legislative instrument, the legislative instrument may, unless the contrary intention appears, make provision in relation to that matter:
(a) by applying, adopting or incorporating, with or without modification, the provisions of any Act, or of any disallowable legislative instrument, as in force at a particular time or as in force from time to time; or
(b) subject to subsection (2), by applying, adopting or incorporating, with or without modification, any matter contained in any other instrument or writing as in force or existing at the time when the firstmentioned legislative instrument takes effect.
(2) Unless the contrary intention appears, the legislative instrument may not make provision in relation to a matter by applying, adopting or incorporating any matter contained in an instrument or other writing as in force or existing from time to time.
In the absence of any "contrary intention", s 14(2) would preclude the draftsman of the Comcare Guide from "adopting or incorporating any matter contained in an instrument or other writing…", such as the American Guide, "… existing from time to time".
61 To avoid the Comcare Guide, or at least a part of it, being rendered invalid as being in excess of the power conferred by s 28 of the Safety, Rehabilitation and Compensation Act as constrained by s 14(2) of the Legislative Instruments Act, reliance was placed upon s 13 of the latter Act which provides as follows:
Construction of legislative instruments
(1) If enabling legislation confers on a rulemaker the power to make a legislative instrument, then, unless the contrary intention appears:
(a) the Acts Interpretation Act 1901 applies to any legislative instrument so made as if it were an Act and as if each provision of the legislative instrument were a section of an Act; and
(b) expressions used in any legislative instrument so made have the same meaning as in the enabling legislation; and
(c) any legislative instrument so made is to be read and construed subject to the enabling legislation, and so as not to exceed the power of the rulemaker.
(2) If any legislative instrument would, but for subsection (1), be construed as being in excess of the rulemaker's power, it is to be taken to be a valid instrument to the extent to which it is not in excess of that power.
(3) If enabling legislation confers on a rulemaker the power to make a legislative instrument:
(a) specifying, declaring or prescribing a matter or thing; or
(b) doing anything in relation to a matter or thing;
then, in exercising the power, the rulemaker may identify the matter or thing by referring to a class or classes of matters or things.
Section 13 of the Legislative Instruments Act applies to "legislative instruments" in a comparable manner to the way in which s 46 of the Acts Interpretation Act 1901 (Cth) applies to "an instrument that is neither a legislative instrument for the purposes of the Legislative Instruments Act 2003 nor a rule of court …". Like s 13(1)(c), s 46(1)(c) provides that "any instrument … is to be read and construed subject to the enabling legislation, and so as not to exceed the power of the authority".
62 The extent to which s 46 of the Acts Interpretation Act 1901 (Cth) ("Acts Interpretation Act") permits a "reading down" of an instrument was considered in Telstra Corporation Ltd v Australian Competition and Consumer Commission (No 3) [2007] FCA 1905, 99 ALD 268 at 278 to 279. Bennett J there observed:
Does s 46 of the Interpretation Act apply to the Competition Notice?
[55] Section 46 of the Interpretation Act is applied as a rule of construction to permit the reading down of instruments. It is not a rule of law … The Commission has not referred to anything in the Act or in any extrinsic legislative materials to support the proposition that s 46 extends beyond such a limited application. Section 46 of the Interpretation Act concerns the construction of instruments. Both ss 46(1)(c) and 46(2) provide for a construction to be applied. To read and construe an instrument by the application of s 46(1)(c) is not to rewrite it or to ignore its content. Section 46 has no application to a decision made under an Act. It has no application to a denial of procedural fairness.
[56] Section 46 of the Interpretation Act, like s 15A, may apply where 'particular clauses, provisos and qualifications, separately expressed' are beyond power … It does not apply to validate a provision which extends beyond power unless the operation of the remaining parts of the instrument remain unchanged. It does not apply where the instrument was intended to operate fully and completely according to its terms or not at all …
[57] A distinction is also to be drawn between, on the one hand, questions of severance which involve an excess of power so that the ultra vires portion of an instrument can be severed and the intra vires portion preserved and, on the other hand, a lack of power to make the whole instrument by reason of a failure to comply with the consultation provision in a statute (Darling Casino Ltd v Minister for Planning and Sydney Harbour Casino Pty Ltd (1995) 86 LGERA 186). As Pearlman CJ observed in Darling Casino at 207, if the power was improperly exercised, the instrument is invalid in its totality. It is no answer that part of it could have been validly made.
[58] Before embarking on the process of reading down, there must be some part of the impugned provision that is capable of being within power. While s 46(2) of the Interpretation Act may apply to cut down the scope of an overly wide provision, there is no occasion for reading down if the provision is wholly beyond power. As with s 15A, s 46 does not turn an Act or instrument which is invalid as being wholly outside legislative power into an Act which is, in part, within power …
63 Provisions such as s 46 of the Acts Interpretation Act and ss 13 and 14 of the Legislative Instruments Act are perhaps "extraordinary provisions": cf. Strickland v Rocla Concrete Pipes Ltd [1971] HCA 40, 124 CLR 468 at 492 per Barwick CJ. And perhaps a different approach is warranted when consideration is being given to attempting to preserve the validity of legislation as opposed to attempting to preserve the validity of a legislative instrument, such as the present Comcare Guide. Whatever the difference, care must be taken to strike a balance between attempting to preserve so much of a legislative instrument as is within the ambit of the legislative power conferred but not to do so where there would be a deletion of truly "inseparable" material such that the deletion would cause the Comcare Guide to "operate differently": Bank of New South Wales v Commonwealth (1948) 76 CLR 1 at 371, 2 ALR 89. Dixon J there observed:
The effect of such clauses is to reverse the presumption that a statute is to operate as a whole, so that the intention of the legislature is to be taken prima facie to be that the enactment should be divisible and that any parts found constitutionally unobjectionable should be carried into effect independently of those which fail. To displace the application of this new presumption to any given situation arising under the statute by reason of the invalidation of part, it must sufficiently appear that the invalid provision forms part of an inseparable context. The general provision contained in s 15A of the Acts Interpretation Act 1901-1941 produces this effect, as does s 46(b), which similarly deals with severance in subordinate legislation.
But in applying s 15A and s 46(b) the courts have insisted that a provision, though in itself unobjectionable constitutionally, must share the fate of so much of the statute, regulation or order as is found to be invalid, once it appears that the rejection of the invalid part would mean that the otherwise unobjectionable provision would operate differently upon the persons, matters or things falling under it or in some other way would produce a different result. This consideration supplies a strong logical ground for holding provisions to be inseverable, whether the prima-facie presumption be in favour or against severability. It is important where there is no statutory clause like s 15A and it is important in using s 15A. For the inference in such a case is strong that provisions so associated form an entire law and that no legislative intention existed that anything less should operate as a law.
Appl'd: Telstra Corporation Ltd v Australian Competition and Consumer Commission [2008] FCA 1758 at [191], 176 FCR 153 at 200 per Rares J. For subsequent proceedings, see: Australian Competition and Consumer Commission v Telstra Corporation Ltd [2009] FCAFC 68, 176 FCR 203.
64 By recourse to ss 13(1)(c) and 13(2), in the present proceeding, it is contended on behalf of Comcare that the Comcare Guide is to be "construed … so as not to exceed the power of the rule-maker" and is "taken to be a valid instrument to the extent to which it is not in excess of that power". The contention was that as the draftsman of the Comcare Guide could have "adopted or incorporated" the edition of the American Guide current as at March 2006, namely the fifth edition, he is to be taken to have done so.
65 No "contrary intention" for the purposes of s 14(2), it is concluded, can be discerned from the terms of s 28 of the Safety, Rehabilitation and Compensation Act.
66 The power to "vary or revoke" the Comcare Guide from time to time is but one factor suggesting that s 28 does not evince any "contrary intention" - any future edition of the American Guide could readily be addressed by a variation of the Comcare Guide. A further factor suggesting that there is no "contrary intention" - but rather a commitment to certainty - is the requirement that any Comcare Guide prepared pursuant to s 28 "must be approved by the Minister".
67 For the purposes of s 14(2), however, it may be accepted that a "contrary intention" need not be found in a single express provision but may be ascertained from the legislative context: cf. Re Ross; Ex parte Australian Liquor, Hospitality and Miscellaneous Workers' Union [2001] FCA 770 at [65], 108 FCR 399 at 418 per Gray, Lee and Stone JJ. But no "contrary intention" can be discerned in any other provision of the Safety, Rehabilitation and Compensation Act.
68 Section 14(2) thus operates upon the Comcare Guide according to its term - whatever may have been the intention of the draftsman of that Guide - to constrain the Comcare Guide from "adopting or incorporating any matter… [including the American Guide] as in force or existing from time to time". Not only is this a constraint upon the presumed intention of the draftsman, it also operates as a constraint upon the Minister when approving the Comcare Guide. Neither the draftsman nor the Minister can seek to implement a legislative instrument in the form in which Principle 12 was expressed.
69 The incorporation of the fifth edition of the American Guide, rather than invalidity at least in part to the Comcare Guide, thus depends upon s 13 of the Legislative Instruments Act.
70 Notwithstanding the intention of the draftsman of the Comcare Guide, it is concluded that s 13(1)(c) is equally unambiguous in its effect - that provision expressly states how "the legislative instrument" is to be "read and construed". Notwithstanding any assumption that may have been made on the part of the draftsman, s 14(2) constrains any mistaken assumption of power that may have been made by the draftsman and s 13(1)(c) thereafter operates so as to inform the manner in which the mistaken assumption of power is to be "read and construed".
71 To employ the language of Bennett J in Telstra, there remains "some part of the impugned" Principle 12 "that is capable of being within power". So "read down", Principle 12 is to be read as though the following words have been deleted:
In the event that an employee's impairment is of a kind that cannot be assessed in accordance with the provision of Part 1 of this Guide, the assessment is to be made under the edition of the American Medical Association's Guides to the Evaluation of Permanent Impairment current at the time of assessment.
So read, the Principle unquestionably has an effect different to that intended by the draftsman; but to so read the Principle is "not to rewrite it or ignore its contents". It is simply to read it as subject to the constraint upon the power or authority of the draftsman and to confine him to the incorporation of a reference to the American Guide fixed in time.
72 One difference between reading down legislation such that it is within (for example) the constitutional competence of the Commonwealth legislature, as opposed to reading down a "legislative instrument", is the very fact that the latter involves an exercise of confining both the draftsman of the Comcare Guide (and the Minister) to the authority conferred by the enabling legislation. It is respectfully considered that the Court should strive to uphold the validity of a "legislative instrument", and to construe such a "legislative instrument", as within power if at all possible.
73 So construed, it is thus concluded that Principle 12 of the Guide is to be read as incorporating a reference to the edition of the American Guide in force as at March 2006, namely the fifth edition.