The Relevant Facts
9 The Minister and the ARC read and relied upon two affidavits affirmed by Letitia Margaret Abela. Ms Abela is the In-House Legal Counsel at the ARC. She was and is familiar with the relevant processes undertaken by the ARC in respect of Future Fellowships. The two affidavits affirmed by Ms Abela were affirmed on 3 March 2014 and on 26 March 2014 respectively. The respondents also tendered as Exhibit A an ARC document in which the scores given to Dr Ghanem's fellowship application by each of the persons who assessed it are set out. That document also includes brief commentary on the application given by each assessor. In support of his case and in answer to the respondents' arguments, Dr Ghanem tendered and relied upon a number of documents which were annexed to an affidavit affirmed by him on 13 March 2014 and filed by him on 17 March 2014. He did not rely upon any other affidavits which he had filed in the proceeding.
10 The evidence before me established the following facts.
11 On 20 February 2013, the University of Canberra (UCAN) applied to the ARC for consideration for funding under the Future Fellowship scheme for 2013. UCAN's application included Future Fellowship Proposal FT 130100026 titled "Integrated Microsystems for Chiral Doping Drug Testing in Sports" in which Dr Ghanem was listed as the Chief Investigator and Future Fellow Candidate.
12 On 9 October 2013, the Chief Executive Officer of the ARC, Professor Aidan Byrne, made recommendations to the Minister regarding the Future Fellowship scheme for funding commencing in 2013.
13 Professor Byrne's recommendations included a recommendation from the ARC College of Experts to the effect that FT 130100026 was uncompetitive in the 2013 funding round. That recommendation was itself based upon recommendations coming forward from an ARC Selection Meeting held in the period 19-23 August 2013.
14 On 15 October 2013, Professor Byrne made a submission to the Minister in the form of a Ministerial Briefing Note for Decision (BR13-003522) seeking approval for those Future Fellowship proposals which he was supporting. His submission also included his recommendations in respect of those proposals which he did not support.
15 Included amongst Professor Byrne's recommendations was a recommendation that Funding Proposal FT 130100026 not be funded.
16 On 15 October 2013, the Minister approved all of the recommendations made by Professor Byrne contained in Briefing Note BR13-003522.
17 On 8 November 2013, the ARC notified UCAN of the outcome of the proposals which that University had submitted for funding in 2013 under the Future Fellowships scheme. Included within that notification was notification that Proposal FT 130100026 had been unsuccessful in the 2013 funding round.
18 The Minister announced publicly the outcomes of the 2013 Future Fellowships funding round on the same day viz 8 November 2013.
19 On 5 December 2013, Dr Ghanem requested a Statement of Reasons from the ARC pursuant to s 13(1) of the ADJR Act setting out the reasons why funding application FT 130100026 had not been successful in the 2013 funding round.
20 Professor Byrne provided a Statement of Reasons pursuant to that request on 7 January 2014. After setting out the framework pursuant to which the relevant decision was made, Professor Byrne said:
4. Evidence on which the findings were based
The ARC CEO's decision to recommend that FT130100026 not be approved for funding
Pursuant to clause 11.1.3 of the FT13 Funding Rules, Proposal FT130100026 was assessed by four external assessors and two College of Experts members. In accordance with clause 11.2, the applicant was provided with all external assessors' comments on 22 May 2013, and provided a rejoinder by the due date of 4 June 2013. The ARC College of Experts considered the rejoinder alongside the assessors' comments and scores.
Of the cohort of 500 proposals considered by the Physical, Mathematical and Information Sciences and Engineering panel, FT130100026 was ranked 442 on the basis of all assessors' scores. Following deliberations at the Selection meeting, 81 proposals out of 500 were recommended for funding in this panel.
Following the assessment, and pursuant to section 33B(b) of the ARC Act, the recommendations were submitted by the Chief Program Officer to the ARC CEO for approval. On 9 October the ARC CEO agreed with the ARC College of Experts' recommendation not to fund FT130100026.
UC, as the Administering Organisation for FT130100026, was advised by email dated 8 November 2013 that the assessment process for the Future Fellowships scheme had been finalised and the Proposal was unsuccessful.
5. Reasons for decision
The ARC assessed FT130100026 along with a selection of others from the ARC Future Fellowships for funding commencing in 2013. (In relation to FT130100026, a copy of the Assesor's comments is provided at Attachment A to this Statement.)
Pursuant to section 33B(b) of the ARC Act, and clause 11.1.3 of the FT13 Funding Rules, on 9 October 2013 the CEO made a decision to agree with the recommendation of the ARC College of Experts that FT130100026 not be approved for funding, and provided this recommendation to the Minister responsible for the ARC.
21 Professor Byrne attached to the Statement of Reasons which he furnished to Dr Ghanem a copy of each of the Detailed Assessments (A) to (D) made in respect of funding proposal FT130100026.
22 The Briefing Note submitted to the Minister in respect of the 2013 round included as Attachment B a full list of proposals which Professor Byrne recommended not be funded. Attachment B included reference to Proposal FT130100026. In Attachment B to the Briefing Note, that proposal was described by Professor Byrne as "uncompetitive". Most, if not all, of the other proposals described in Attachment B were also described as "uncompetitive".
23 Ms Abela said that the descriptor "uncompetitive" was defined at Attachment F to the Briefing Note to the Minister to mean that a proposal has been assessed in accordance with the Future Fellowship Funding Rules for funding commencing in 2013 as not being as competitive as the proposals which were recommended for funding.
24 The process followed by the ARC in relation to the selection and approval of proposals submitted to it are outlined in the 2013 Funding Rules. In particular, the 2013 Funding Rules provided:
11.1.1 Assessment of proposals is undertaken by the ARC, which has the right to make recommendations for funding to the Minister, based on any number of assessments or solely on the basis of its expertise.
11.1.2 All proposals will be considered against eligibility criteria and compliance with the Funding Rules.
11.1.3 All Proposals may be:
a. assigned to independent assessors, from a range of organisations, who will assess and report, which may include written comments, on the Proposal against the selection criteria; and
b. ranked and allocated a budget, relative to other Proposals, by the ARC College or other Selection Advisory Committee, on the basis of the Proposal, any assessors' reports and any rejoinder.
11.1.4 Following the recommendations of the ARC College or other Selection Advisory Committee, the CEO must make recommendations to the Minister in relation to what Proposals should be approved and at what level of funding, and what Proposals should not be approved.
25 Under s 59(1) of the ARC Act, each year, the CEO of the ARC is required to prepare a set of rules dealing with the matters set out in s 59(2) for funding proposals that relate to each particular funding year. That set of rules must then be approved by the Minister pursuant to s 60. The rules take effect from a time determined by the CEO which time must not be before the Minister approves them.
26 Under s 53(1)(d) of the ARC Act, a funding proposal must not be approved under s 51(1) of that Act, or recommended by the CEO of the ARC for such approval, as deserving financial assistance under Pt 7 Div 1 of the ARC Act unless the eligibility criteria set out in the approved Funding Rules are satisfied in relation to the proposal.
27 Clause 9.1.2 of the approved Funding Rules in respect of the Future Fellowship scheme for 2013 provided that:
The Future Fellowship Candidate may not submit more than two Future Fellowships Proposals in the funding rounds between 2009 and 2013. This includes Proposals that have been withdrawn after the closing time of submission of Proposals and Proposals which were deemed ineligible by the ARC.
28 Dr Ghanem had submitted two Future Fellowships proposals, one in 2009 and another in 2010. His 2013 proposal was, therefore, his third proposal in the funding rounds between 2009 and 2013. For this reason, it appeared to me that Dr Ghanem did not satisfy the eligibility criteria laid down in the 2013 Funding Rules. However, Dr Ghanem told me that, as a term of the settlement of the 2012 judicial review proceeding brought by him in respect of the 2009 and 2010 funding proposals submitted by him, he was given an assurance by the ARC that the CEO of the ARC and the Minister would not treat any 2013 funding proposal submitted by him as invalid by reason only of the fact that it would be his third proposal submitted in the years 2009-2013. The legal significance of his having been given such an assurance was not explored before me.
29 The ARC considers that peer review should play a critical role in the assessment of Future Fellowships Proposals. The peer review process is based upon both the independent Expert Assessors and the generalist assessors in the ARC College of Experts or the generalist assessors who come from a Selection Advisory Committee.
30 Proposal FT130100026 was assessed by four independent Expert Assessors (referred to as "Detailed Assessors") and two ARC College or Selection Advisory Committee members (referred to as "General Assessors").
31 The Expert Detailed Assessors may include written comments on the proposal against the relevant selection criteria. This occurred in the case of Dr Ghanem's proposal. The detailed assessments were provided to Dr Ghanem as part of the Statement of Reasons given by Professor Byrne pursuant to his request made under s 13(1) of the ADJR Act.
32 The Expert Detailed Assessors are typically provided with only one or a small number of proposals to assess using an A-E rating scale. These individuals are generally assigned proposals to assess which are within or related to their particular areas of expertise.
33 In the case of Proposal FT130100026, each of the Detailed Assessors was involved only in the assessment of that proposal and was not asked to assess any other proposals in the 2013 funding round.
34 Once assessment by the Detailed Assessors is complete and an opportunity for rejoinder has been afforded to the administering organisation (in the present case, UCAN), members of the ARC College of Experts or of a Selection Advisory Committee consider the Future Fellowships proposals received. These assessments are referred to as "General Assessments". There is no requirement under the Funding Rules for the ARC College of Experts or Selection Advisory Committee member assessors to give reasons for their rankings.
35 At the time when Proposal FT130100026 was assessed, there were 159 members of the ARC College of Experts. These experts are identified on the ARC's website by discipline group. The members of this group nominate to be a part of the group and are approved for appointment by the CEO of the ARC for one to three years. Importantly, they are not ARC officers but are considered experts of international standing drawn from the Australian research community. They come from the higher education sector, industry generally and the public sector research organisations. Although there may be a small number of researchers from UTAS, UWA and UCAN who are members of the ARC College of Experts, none of those individuals was involved in the review of proposal FT130100026.
36 In the present case, the ARC took particular steps to ensure that knowledge of the 2012 proceeding between Dr Ghanem and the ARC was strictly confined. On the evidence before me, only the CEO of the ARC (Professor Byrne), Ms Abela, and a small number of ARC officers with a need to know were aware that Dr Ghanem had previously applied for funding. Ms Abela said that, having carefully reviewed the relevant files relating to the assessment process for proposal FT130100026 and based upon other relevant enquiries, she found no evidence to suggest that the existence and subject matter of Dr Ghanem's prior judicial review proceeding had been made known to any of the individuals assessing proposal FT130100026.
37 The ARC received a total of 1,236 proposals for Future Fellowships for funding commencing in 2013. This was a significant increase upon the number of applications received for funding commencing in 2012. Only the top 201 proposals were able to be recommended for funding. Effectively, this meant that only one proposal in six was ultimately successful.
38 As Ms Abela testified, the General Assessors from the ARC College of Experts or the Selection Advisory Committees have an important role to play, not only rating each individual proposal on its merits but also in ranking the proposals relative to one another for the purpose of making recommendations to assist in the distribution of the limited amount of funding available in each calendar year.
39 In the present case, the two General Assessors involved in assessing proposal FT130100026 reviewed a total of 61 and 49 other proposals respectively. They also had the benefit of the detailed assessments provided by the Detailed Assessors in respect of each of those proposals, including proposal FT130100026. In addition, they had the rejoinder provided by UCAN.
40 At pars 30-32 of her affidavit affirmed on 3 March 2014, Ms Abela said:
30. I have examined the scores provided by each of the assessors at Annexure AG-2 of the affidavit affirmed by the Applicant on 5 December 2014 [sic]. I have seen many ratings records for many Future Fellowship proposals since 2009. In my experience it is not unusual for the ratings of the expert and general assessors to vary, especially when the expert assessors only assess a handful of applications and the general assessors are reviewing a large number of applications and are required to rank proposals with similar ratings, to assist in determining which proposals should be recommended for the limited funding available.
31. The ratings provided by all assessors inform the discussion of the Selection Meeting of the ARC College of Experts held in Canberra. Following this meeting a list of grants recommended for funding is provided to the CEO for consideration, and the CEO of the ARC then presents that to the Minister, together with the brief attached to the Applicant's affidavit affirmed on 18 February 2014 ('Annexure AG-4').
32. In the case of Proposal FT130100026, it was ranked 442 out of 500 proposals in the Physical, Mathematical and Information Sciences and Engineering panel. Only 81 of the 500 applications in this panel were recommended for funding.
41 Annexure AG-2 became Exhibit A at the hearing.
42 In her second affidavit, Ms Abela testified that, had Dr Ghanem's proposal been assessed using only the scores provided by the Detailed Assessors, it would have received a score of 73. She said that, in that event, Dr Ghanem's proposal would have ranked 149 out of 500 proposals received in the Physical, Mathematical and Information Sciences and Engineering discipline panel for Future Fellowships proposals. She said that the lowest funded application in this panel was ranked 120 and that the lowest ranked application for a level 2 Future Fellowship was ranked 70 with a score of 85. The effect of this evidence is that, even if the assessments made by the General Assessors were disregarded, Dr Ghanem's proposal would not have received funding.
43 In her second affidavit, Ms Abela also addressed Dr Ghanem's allegation that Professor Brian Yates had been involved in selecting the particular individuals who were to provide the general assessments of Dr Ghanem's proposal and had chosen people who would deliberately and inappropriately cause that proposal to be rejected for funding.
44 Ms Abela testified that, although Professor Yates may have been involved in nominating to the general panel of General Assessors the two individuals who ultimately made the general assessments of Dr Ghanem's proposal, Professor Yates did not recommend which external assessors should assess that proposal. The external assessors were selected by the lead College of Experts member assigned to the proposal as a discipline expert and not by any ARC staff. Professor Yates did not attend any of the three panel selection meetings for the Future Fellowships scheme including the August 2013 meeting.
45 The ARC enters into confidentiality agreements with assessors in order to preserve the integrity of the selection process. Ms Abela informed the Court that she did not consider that she was in a position to breach those arrangements by revealing the names of the particular assessors involved in the assessment of Dr Ghanem's proposal.