Gibson and Howes Limited v Lennon (Secretary for Agriculture and Stock (Qld)) [1917] HCA 74

High Court of Australia|1917-07-01|Before: Rich JJ

H. C. or A. Sugar-cane - Assessment levied on sugar-cane received at mill - Liability of n

er in respect of sugar-cane grown by him - Statute - Interpretation - A pplica tion of definition - Regulation of Sugar Cane Prices Act of 1915 (Qd.) (6 Geo V. No. 5), secs. 3, 20.

See. 3 of the Regulation of Sugar Cane Prices Act of 1915 provides that in the Act, " unless the context otherwise indicates," the term * mill" "a sugar-mill to which sugar-cane is sold and supplied for the purpose of " and the term " cane-grower " "any person, company, corporation, firm, or association growing, selling,

supplying sugar-cane to a sugar-mill for the purpose of its being treated

supplying the same to such mill, or selling and supplying the same to other mill." Sec. 20 (3) provides that "The Central Board" (the Centr Sugar Cane Prices Board constituted by the Act) " may make and levy assessment of one penny" (afterwards increased to two pence) "on ton of sugar-cane received at a mill . . . . Such assessment shall be by the owner of the mill to the Minister, on the first day of every month, the actual number of tons of sugar-cane received at the mill during the pree month. Such -assessment shall, however, be borne by the cane-grower every ton so supplied by such cane-grower. 'The amount of the asse

shall be a debt due from the owner of the mill to the Central Board and recover- able at the suit of the Minister accordingly, but the owner of the mill may

deduct from the price of the sugar-cane each cane-grower's proportion of such assessment."

Held, that in sec. 20 (3) the terms " mill" and " cane-grower" have the meaning assigned to them in see. 3, and that the word " received" connotes a transfer from some other person to the owner of the mill.

Held, therefore, that a mill-owner, who treated and manufactured into sugar sugar-cane grown by him on his own plantation and also sugar-cane grown by other persons and sold and supplied by them to the mill-owner for the purpose of being treated and manufactured into sugar, was not liable to assessment under see, 20 in respect of sugar-cane so sold and supplied to him.

Decision of the Supreme Court of Queensland : Lennon v. Gibson & Howes Lid., (1918) S.R. (Qd.), 1, reversed.

In an action brought by William Lennon, the Secretary for Agriculture and Stock for the State of Queensland, against Gibson & Howes Ltd., a special case stated by consent of the parties for the opinion of the Supreme Court was substantially as follows : -

The plaintiff is the Secretary for Agriculture and Stock in the State of Queensland, and is and was at all material times the Minister of the Crown charged with the administration of the Regulation of Sugar Cane Prices Act of 1915.

The defendants are a joint stock company duly incorporated under the provisions of the Companies Acts 1863-1913, having their registered office at Bingera Plantation, near Bundaberg in the State of Queensland aforesaid, and carry on in Queensland the business of mill-owners, manufacturers and refiners of sugar. The defendants were at all material times the owners of a sugar-mill known as the Bingera Mill, situated at the Bingera Plantation near Bundaberg aforesaid, to which sugar-cane is sold and supplied for the purpose of being treated and manufactured into sugar.

In pursuance of the Regulation of Sugar Cane Prices Act of 1915 the Governor in Council, by Order in Council dated 4th May 1916 and published in the Government Gazette of 6th May 1916, duly fixed the amount of the assessment which the Central Sugar Cane

Prices Board constituted under the said Act might make and le on every ton of cane received at any mill on and after the date: the said Order, at the sum of two pence per ton. The said Ce Board on the said 4th May 1916 duly made and levied an assessm at the rate of two pence per ton on all sugar-cane received at mill in Queensland on and after 4th May 1916.

4, The total quantity of sugar-cane treated and manufactur into sugar at the said Bingera Mill during the 1916 season 42,470 tons.

Of the said 42,470 tons of sugar-cane in the last prec paragraph hereof mentioned, 21,193 tons consisted of sugar

plantations, and conveyed by the defendants to the said mill the purpose of being treated and manufactured into sugar, a 21,277 tons consisted of sugar-cane grown by various growers in district other than the defendants, and sold and supplied by themt the said mill for the purpose aforesaid. 7

6, The defendants have duly paid to the plaintiff the sum £177 6s, 2d., being the amount of the said assessment at two p per ton on the said 21,277 tons of sugar-cane.

The defendants have refused on demand to pay to the plainti the sum of £176 12s. 2d., being the amount of the said assessment at two pence per ton on the said 21,193 tons of sugar-cane.

The defendants duly paid in the first instance the assessment made and levied for the year 1916 under and in pursuance of the Sugar Experiment Stations Act of 1900 on the said 42,470 tons of sugar-cane, and such assessment was subsequently apportioned | manner provided by the said Act.

This action was commenced by writ of summons dated and June 1917 and indorsed with a claim for "£176 12s. 2d., being balance of money due and payable by the defendant to the plaint under the provisions of the Regulation of Sugar Cane Prices Act of 1915 in respect of an assessment duly levied by the Central Sugat Cane Prices Board, under and in pursuance of the said Act an' an Order in Council dated 4th May 1916 made thereunder, upor

defendants on 21st June 1917, and the parties have concurred in stating this special case for the opinion of the Court.

Are the defendants liable under the provisions of the Regula- tion of Sugar Cane Prices Act of 1915 to pay the assessment of two pence per ton or any assessment in respect of the said 21,193 tons of sugar-cane in par. 5 herein mentioned ?

To and by whom should the costs of this special case be paid ?

The Full Court answered the first question in the affirmative, and the second question by saying that the costs of the special case should be paid by the defendant to the plaintiff: Lennon v. Gibson & Howes Ltd. (1).

From that decision the defendant now, by special leave, appealed to the High Court.

The nature of the arguments sufficiently appears in the judgments hereunder.

Stumm K.C, and Wassell, for the appellants. Ryan A.-G, for Qd. and Macrossan, for the respondent.

During argument reference was made to R. v. Poor Law Com- missioners ; In re Holborn Union (2); In re National Savings Bank Association (3); Gough v. Gough (4); Colonial Sugar Refining Co. Ltd, vy. Attorney-General of Queensland (5).

Barton J. The special case sets out the facts. The action upon which it is raised is 'for the recovery by the respondent, the Minister of Agriculture in Queensland, of a sum claimed in respect of assessment upon sugar-cane grown upon a plantation of the

(1) (1918) S.R. (Qd)., 1. (4) (1891) 2 Q.B., 665, at p. 674. (2) 6A. & B,, 56, at p. 68. (5) (1916) S.R. (Qd.), 278, at p. 297. (3) LR. 1 Ch, 547, at pp. 549-550.

appellants in that State, and treated at their sugar mill upon th plantation. This sum is sought in addition to the sum paya and paid by way of assessment on the sugar-cane sold and suppli to the appellants by growers in the district other than themselve

The Statute under which the questions arise is the Regulat Sugar Cane Prices Act of 1915. This is an Act, as its title indica for the regulation of the price to which the cane-grower is to be entitled for his crop. There are to be constituted a Central Sug Cane Prices Board and Local Sugar Cane Prices Boards. Ei: Local Board has to do with only one mill and the lands assigned it, that is, "the mill and the lands of the cane-growers in resp of which the Local Board in question is constituted." The Boards are given extensive powers of inquiry and consideration, their duty is to make awards fixing the price or prices of the ca

payable by the owner of the mill to the growers on the "assigned " or allocated to that mill. An appeal lies to the Cent Board from an award of a Local Board. There is to be a Sugar Ca Prices Fund, out of which are to be met the expenses incurred the execution of the Act, wltich consists of seeing that prices are fail as between mill-owner and grower, and of securing that end by th necessary means. The fund is to be administered by the Central Board and audited under the Auditor-General. This fund is' to ssments made and levied by the Central Boar on sugar-cane, as will presently appear; but whether only as ca

supplied to the mill-owner by growers for a price, is now to determined.

Now, it seems to me that the prime purposes of this Act are, the fixing of fair prices to be paid by the mill-owners to the gro from whom they buy, and, secondly, the raising by assessment of fund to defray the expense incurred by the operations requi I do not see in any of'the sections which have been cited anythii to show an intention that contributions should be made to the fund for any other reason than that the machinery involving the expen namely, the processes of fixing prices and of making and levying assessment, ought in fairness to be paid for by those in whose int the transaction between buyer and seller is to be adjusted safe-guarded. The sections upon which the controversy particularly

arises are the 3rd and the 20th. The 3rd section consists of a number H. ©. or A.

of interpretations. It prescribes that in the Act, that is, throughout

the Act, "unless the context otherwise indicates," the terms set Grnson &

out have the meanings set out against them. Of these it is essential to consider two. "' Cane-grower " means " any person, company, corporation, firm, or association growing, selling, and supplying sugar-cane to a sugar-mill for the purpose of its being treated and manufactured into sugar: the term (except for the purpose of being bound by an award) does not include any owner of a mill growing sugar-cane and supplying the same to such mill, or selling and supplying the same to any other mill." "Sugar-mill," " mill," means "a sugar-mill to which sugar-cane is sold and supplied for the purpose of being treated and manufactured into sugar."

In the first of these definitions the cane-grower is a seller, as well as a supplier, to a sugar-mill, and (except for the purpose of being bound by an award) the term is not to include any mill-owner growing sugar-cane who "supplies" it to his own mill, or who "sells and supplies " it to any other mill. Obviously a mill-owner, notwithstanding that he himself grows cane, is properly to be bound by an award in respect of the cane he buys from others, or in respect of any cane he sells and supplies to another's mill. In the first case he must come under an award in respect of the price of cane which he has to pay to other people, and in the second case he has to come under an award in respect of the price which he gets from other people who are mill-owners. I do not dwell on the definition of "sugar-mill"" or "mill." It seems to relate, not merely to the particular transaction, but to the habitual dealings of the mill which buys cane. A sugar-mill is to be called by that name in the Act if it is a place where cane is usually bought and treated. Sec. 20 provides, in sub-sec. 1, for the establishment of the Sugar Cane Prices Fund already alluded to; in sub-see. 2, for the body which is to administer it, namely, the Central Board ; and, in sub-sec. 3, as follows : - " The Central Board may make and levy an assessment of one penny on every ton of sugar-cane received at a mill, or such other sum per ton as the Governor in Council may at any time fix by Order in Council. Such assessment shall be paid by the owner

of the mill to the Minister, on the first day of every month, upon 'Yok. XX1¥. 10

'Minister accordingly, but the owner of the mill may deduct from th

the actual number of tons of sugar-cane received at the mill d the preceding month. Such assessment shall, however, be bon by the cane-grower for every ton so supplied by such cane; The amount of the assessment shall be a debt due from the own of the mill to the Central Board and recoverable at the suit o i

price of the sugar-cane each cane-grower's proportion of assessment. All assessments levied under this Act shall be into the fund." It will be observed that though payment is to by made by the mill-owner to the Minister monthly, the assessment to be "borne" by the cane-grower, who has, one suppo reimburse the mill-owner. If the cane-grower is to be unde as the person defined in sec. 3, the appellants are clearly not inch in the term in respect of their own cane treated at their own That is in accord with the general scheme of the Act, which doe not seem to me to cast the burden of its administration on tr tions which are not the sales for which the awards are to fix the fair price. (See sec. 6.) Sec. 20, sub-sec. 3, further provides that t assessment shall be paid upon the "' number of tons of si received at the mill during the preceding month." Altho the act of receiving a thing can only be performed by one person 0 party, it primarily involves the delivery, on sale or otherwi that person or party by some other person or party, of the thin be received. Then "such assessment" is to be borne by th " cane-grower" for every ton which he "so" supplies, that is supplies to him who receives it. Here again the idea of two

to the transaction is connoted. Lastly, although the amount the assessment is recoverable from the mill-owner by the Minist for the Central Board, the owner may deduct each cane-g proportion of the assessment "from the price of the sugar

All these things go to show that the sub-section is dealing w "'cane-grower " in the sense which the term bears in the inte tion section, and that is the sense, in my judgment, which the

lature deliberately intended the term to bear in this, the r

section, as well as elsewhere. The Act is limited in this respect to the H. ©. or A. cane-growers who sell to the mill and the mill-owners who buy vole the cane, for the plain reason that it is their transactions which are Grsson & the subject of price-fixing and their benefits for which assessment H°v#s 1"- is to be paid, primarily by the owner but ultimately by the grower. L®SNON- I cannot find in the many sections which have been quoted anything - Barton J. to shake this view as to the party liable in an action. There is no

doubt much to confirm it. Under sec. 6 the award is to fix prices

for sugar-cane "sold and taken delivery of at the mill concerned,

and determining all matters relating to such supply of sugar-cane

and payment therefor." The Act teems with references to mill-owner

and cane-grower which show that they are regarded as separate

parties to commercial transactions having diverse interests. The

Central Board (see sec. 4) includes an elected representative of each

body, and as the mill-owner evidently has a liability under sec. 20

in respect of his purchases, and in respect of the assessment to be made, which would give him as a matter of justice representation as such on the Central Board, it is not likely that he was also intended to have a vote as a cane-growers' representative where he had not sold cane, and the representation of cane-growers is evidently to be representation only of the persons defined in sec. 3. If the cane- grower, in sec. 20 (3), includes persons other than these - that is, growers who do not supply a mill in the sense of selling the cane for treatment, but who crush their own cane - the consequence would be that in an Act giving the fixing of the assessment to a partly elective body, a grower who mills his own cane would become the ultimate payer of an assessment determined by a body in which he had no representation.

Among the provisions which so place the mill-owner and the cane- grower in separate categories as to indicate that it is in respect of their transactions inter se that prices are fixed and assessments afterwards made, are secs. 8, 10, 12 (sub-sec: 4 of which indicates very clearly that in speaking of cane supplied to a mill the Act is dealing with purchase and sale), 14 (1), (2) and (4) (which are entirely inapplicable to a cane-grower supplying his own mill), 16, and parts of the Schedule. In this connection I note par. 1 (6), which manifestly uses the word "supplied" in the same sense in which

it is employed in sec. 12 (4); and the last clause of par. 14, which needs no comment. To sec. 6 I have already referred. 3

Differing with respect and regret from the conclusion arrived at by the Supreme Court of Queensland, I am of opinion that there is no general intention disclosed in this Act which entitles the Court to attach two different meanings to the word " cane-grower" i secs. 3 and 20. The general intention seems to me to indicate the identity of the meaning attachable to that word in the two sections, If I saw or suspected any general intention which pointed to variation of meaning I should still look for a clear context outside the interpretation clause and governing it, and, not finding one, I should feel bound to let the interpretation prevail. That course _ is indicated by the principles of construction as well as by the 3rd_ section itself. In this connection some words of Lord Denman in R. v. Poor Law Commissioners (1) deserve quotation. The Lord Chief Justice said : - '' We disclaim altogether the assum tion of any right to assign different meanings to the same words - in an Act of Parliament on the ground of a supposed general intention - in the Act. We find it necessary to give a fair and reasonable - construction to the language used by the Legislature ; but we are - not to assume the unwarrantable liberty of varying that construction - for the purpose of making the Act consistent with any views of our own ... . we must look at the actual state of things, and nob - be governed merely by words; we are to see, not whether this has been called an union, but whether it be one within the meaning of the Act."

T am of opinion, then, that the appeal should be allowed, and that the questions should be answered as follows : - (1) No. (2) By the respondent. x

Isaacs and Ricu JJ. The question is whether the appellant is liable to assessment under sec. 20 of the Queensland Regulation of Sugar Cane Prices Act of 1915, in respect of sugar-cane grown by the appellant, and conveyed by it to its own sugar-mill to be mant- factured into sugar. The answer turns on the meaning of these

few words in sub-sec. 3 of that section: "The Central Board may make and levy an assessment of one penny on every ton of sugar- cane received at a mill." The Crown contends, and the Supreme Court has held, that inasmuch as the appellant's sugar-mill was a "mill" within the meaning of the Act, and the cane in fact came into the mill irrespective of its source, the words of the section referred to are satisfied and the appellant is liable.

The principle is indisputable that "the intention to impose a tax or duty, or to increase a tax or duty already imposed, must be shown by clear and unambiguous language and cannot be inferred from ambiguous words" (Brunton v. Acting Commissioner of Stamp Duties for New South Wales (1) ). The problem before us is whether, fairly reading the words relied on as they are found in the particular Statute, they do clearly and unambiguously extend to cover sugar- cane grown by the miller himself, and manufactured by him at his own mill.

The first inquiry is whether the word " received " in its primary and natural meaning applies to such a case. In Attorney-General of Ontario v. Mercer (2) Lord Selborne L.C., for the Privy Council, said ; "It is a sound maxim of law, that every word ought, prima facie, to be construed in its primary and natural sense, unless a secondary or more limited sense is required by the subject or the context." Now, the word "received" in its primary and natural sense connotes a transfer from one person to another. See the Oxford Dictionary under the word " Received." The words " at a mill," indicating the place of receipt, do not negative the inherent connotation of giver and receiver. The phrases " received at a mill" and "so supplied," in sec. 20, appear to be directly referable to the phrase " sold and taken delivery of at the mill" in sec. 6.

The primary and natural meaning of the word " received" in the expression Crown's contention. To overcome that, the learned Judges of the

Supreme Court have pointed out, first, what they consider the unreasonableness of such an interpretation, and, next, the sense in which they hold the word " received " was used in another Act, and then conclude that the word has a " wide sense," viz., that of

(1) (1913) A.C., 747, at p. 760. (2) 8 App. Cas., 767, at p. 778.

H. C. or A. applying to all sugar-cane that comes into the mill from any so

" "received " supported the claim. Unless there is something which

whatever. It seems evident that the Supreme Court did not acced to the view of the Crown that the ordinary meaning of the wo

so extends the primary meaning of the word "received" as give it the secondary meaning of " coming into " the mill, the Croy must fail.

In the view we take of the provision of the Act, whether separately, or as one of a series of enactments relating to the si industry, not only is there no legislative indication, either clear and unambiguous, or even probable, of intention to so extend meaning of "received " ; but, on the contrary, there is very stron indication of a consistent plan not to include the mill-owner's own sugar-cane. Such sugar-cane - as subject matter - is, in our opinion, entirely foreign to the purposes of the Act.

The Act is called " The Regulation of Sugai Cane Prices Act of 1915. (See, as to the " title," per Lord Moulton in Vacher & Sons Ltd. v. London Society of Compositors (1), and Fielding v. Morley Corporation (2).) It proceeds by regular steps to effect its purpose First, it repeals the Sugar Growers Act of 1913. That was an by which the State Parliament had made special provision in favour of " cane suppliers " as against mill-owners. It provided, in short, that where a mill-owner had " purchased or agreed to purchase" sugar-cane "from the persons supplying such cane for the purpose of being treated and manufactured into sugar," each cane suppl should be entitled forthwith to receive a certain part of "the price of the sugar-cane so supplied." It also provided that the payment should be in cash without any deduction on any account whatsoever.

The Regulation of Sugar Cane Prices Act of 1915 further repealed the reference to the Sugar Growers Act of 1913 in the Sugar Growers' Employees Act of 1913, so as to make the labour conditions of that Act applicable to the new legislation about to be enacted. There was then, so far, a tabula rasa as to the mutual relations of mill-owner and cane-grower.

Then the Act provides (sec. 3) that in the Act - * unless an context otherwise indicates" - certain terms are to have the (1) (1913) A.C., 107, at p. 128, (2) (1899) 1 Ch., 1.

"meanings " set against them (see Dilworth v. Commissioner of Stamps H- C. or A. (1)). One term is " cane-grower." If the ordinary meaning of that ee term were permitted to attach to it, every person who grows cane Grnson & _ would be a cane-grower, notwithstanding the fact that he also did rea ey:

something else. He might, for instance, also practise as a physician, L®SNO%-

or carry on business as a grocer, or he might be a sugar-mill owner. _ssaaes 3. But the statutory definition makes it clear that " cane-grower " in the Act (apart from some possible context to the contrary) is not to include any person, aithough he is in fact apart from the Act a cane-grower, if he owns a mill and supplies cane to that mill, or sells and supplies it to any other mill. There is one exception to this exclusion, namely, he is still to be considered a ' for the purpose of being bound by an award - which means bound as

a cane-grower - in relation to some other person as a mill-owner. "Sugar-mill" also receives a special statutory definition for the purposes of the Act. It does not include every sugar-mill, but only "a sugar-mill to which sugar-cane is sold and supplied for the purpose of being treated and manufactured into sugar."

This is the first time in the history of Queensland legislation where "sugar-mill"? has been so restricted in definition. In the Sugar Experiment Stations Act of 1900, sec. 2, the expression " sugar works " is defined as "any mill for the extraction of sugar-cane juice." In the Sugar Works Act of 1911 it is defined thus: "any mill for the extraction and manufacture of sugar and the by-products thereof," &c., the remaining words being immaterial here. And so in the Co-operative Sugar Works Act of 1914. In the repealed Sugar Growers Act of 1913 no special definition is given.

The element of "sold and supplied" expressly introduced into the preliminary statutory definition of "mill" in the Regulation of Sugar Cane Prices Act of 1915 is therefore an important guide to the intention of the Legislature. No mill which is not one where sugar-cane is bought from " cane-growers" by the mill-owner is within the ambit of the Act. The natural inference, therefore, in consonance with the word " prices," is that the operation of "sale" and "purchase" is essential to the application of the operative

The Act (sec. 4) provides for a Central Sugar Cane Prices Board on which there are to be Government representatives, and al "

"a cane-growers' representative" and "a mill-owners' sentative." The statutory duties of the Central Board, apart

of receiving returns (sec. 16) and certain other incidental po may be epitomized thus : (1) to make awards where a Local B makes default (sec. 7 (i) ); (2) to make awards where a Local Bo delegates the power (sec. 7 (77) ); (3) to decide appeals from ay of Local Boards (sec. 8); (4) to terminate an award of a Board after twelve months ; (5) to make assessments (sec. 2 It is clear that the Act dges not contemplate the activity of the Central Board without the existence of Local Boards. It is cle also that without the existence of Local Boards the sum of a p per ton on all sugar-cane milled in Queensland would be an ab and extravagant impost - really for nothing but the mere existent

of a department. It is also clear, that in the absence of a Local

Board, and consequently in the absence of an award, a mill-own selling and supplying to another mill sugar-cane of his own grot would not be a cane-grower within sec. 20, and would not have to bear any proportion of the assessment. The existence of a

Board is therefore a manifest condition of the execution of the Now, a Local Board may or may not be established in relatio a mill according to circumstances. In the first place, the mill m wt be one where the owner buys cane. This follows from the definitio and from the fact that the sole purpose of the Act is to settle contractual relations with cane-growers who supply him. Ne the Board must be applied for. The Schedule, art. 1, provides" that the application must be by (1) the owner of the particular mil, or (2) at least twenty cane-growers. These cane-growers are not necessarily growers in the immediate vicinity of the mill ; they may be in closer proximity to another mill ; their sole qualification is tha they " supplied sugar-cane during the year then last past" to that particular mill. The "owner" need not be the same person during the preceding year; but the mill must be the same.

they supplied to that particular mill, that is, to the owner for the H.C. or A. time being, "at that mill," that is sufficient qualification. The ee application is to be not later than 31st January. The Governor Grssox & 'in Council may constitute a Local Board not later than Ist March !°W ple (art. 4 of Schedule) after any recommendation by the Central L®NNoN. Board (sec. 5 (2)), which that Board may make on (inter alia) Isaacs J. information derived from returns under sec. 16.

The statutory area of the Local Board is of the greatest impor-

tance. It is indicated by sec. 5. It is in respect of " one mill and

the land or lands assigned to such mill." There is no necessary contiguity. The "mill" is one thing, the " lands " assigned to that mill are another. Sub-sec. 2 says: 'The Order in Council shall declare the mill and the lands of the cane-growers in respect of which the Local Board in question is constituted." This sub- section is a great step in the elucidation of the question before us. The mill represents the mill-owner's purchasing side, and the "lands of the cane-growers" represent the growers' selling side

in other words, the " receiving " and the " supplying " elements respectively.

Then comes a proviso which must be regarded. A " cane- grower " not under any agreement - that is, before an award is made binding him - by which he is bound to any particular mill-owner may sell his erop in whole or in part to any mill-owner other than the one to whose mill his lands are assigned, provided before Ist March he notifies the Central Board of his intention to do so. The last words of the proviso are important; they are " to supply sugar-cane to a mill-owner other than that to which he supplied sugar-cane during the last preceding season." ' Mill-owner" should read "owner of a mill." That proviso shows three things : (a) that the lands assigned to a mill may be anywhere, (6) that the qualifica- tion in art. 1 of the Schedule is strictly adhered to, and (3) that when the Act speaks of a cane-grower supplying a mill it means supplying the owner, and the operation connotes two persons.

'The one dominant circumstance for the present purpose is that inasmuch as the mill-owner himself is, by force of the definition, and of art. 1 of the Schedule and of sec. 9 of the Act, excluded from the ambit of " cane-growers " in relation to that mill, his own

H.C. or A. Jand on which he himself grows cane is not land which can by Oe assigned to the mill, and so brought under the jurisdiction of th eens « Local Board. This view is confirmed by the later Act, No. 200 Howes L™- 1915 (the Local Sugar Cane Prices Boards Confirmation Act of 1915). Lexnxon. When the Local Board is constituted it may make an award anes J. 6). Its power is first as to area, that is, with respect to lands and the mill for which it is constituted. Then as

subject matter it has power to determine as to (1) pri to be paid and accepted by owner and cane-growers res} , tively for cane sold and taken delivery of at the mill con- cerned, (2) all matters relating to supply, and (3) paym therefor. The award (sec. 8) is to bring in (a) owners of sugar-mills

and (b) cane-growers upon the lands to which the award appl

~ See. 12 requires the Board to consider various matters in ma its award. They include (1) "the estimated quantity of sug cane to be treated at the mill." The word " treated " is relied by the Crown as going beyond the cane-growers' own cane. It may be that the miller proposes to treat more than the cane to be p Ir chased. But it is possible that he does not propose to treat more than a very limited quantity - much less than the cane-gr propose or are prepared to supply. He may have opposed creation of the Board which they applied for. The indefinite w "treat"? does not necessarily show a greater quantity than that be supplied by the growers. But the actual amount intended | be treated is essential to be known when determining the supply, whatever the treated quantity may be. The second element: for consideration in sec. 12 is " the estimated commercial cane sugar contents of the sugar-cane." What is meant by "the sugar-cane." Clearly, one would say, the sugar-cane that is to be paid for. '" Commercial cane sugar" is an artificial term defined in sec. 3 as " the estimated value of sugar-cane based upot analysis of its juice." Being the value of the " cane," and based upon analysis of the " juice," it is manifest that the expression can have reference only to the cane to be paid for according to that value. F The third element is the crushing capacity and efficiency the mill - which has relation both to quantity and to price, inasmuch as one question is how far the mill is calculated to extract the fall

into any samples which may have to be taken for analysis in order

to ascertain the resultant commercial cane sugar on which payment Grssox &

The fourth element is extremely significant. It is: "The labour conditions under which the sugar-cane is grown, harvested, and delivered to the mill." The labour conditions apparently have reference to, and at all events include, the provisions of the Act of 1913 already referred to. Again, what is meant by "the sugar-cane"? It cannot well mean the owner's own cane. The labour conditions he follows as to his own cane cannot affect the price he should fairly pay the cane-growers for their cane. But they are an essential factor as to the price they should charge for their cane. Sub-sec. 2 emphasizes this. And that the clement referred to is confined to their cane seems evident from a perusal of sub-see. 6 of the same section. That sub-section is introduced as a qualification of sub-sec. 1 (d) and sub-sec. 2. The award being made on a supposed basis of labour conditions, if that basis is altered for the worse, so as to increase the margin of profit, sub-sec. 6 allows a correspondingly lower price to the cane-grower; the mill-owner, however, having got full value for his money, is not to profit, and so he deducts the difference and pays it to the Central Board. But the point is that if sub-par. (d) of sub-sec. 1 were intended to apply also to labour conditions for the mill-owner's own cane, it is inconceivable some provision corresponding to sub-sec. 6 was not made. In Attorney-General vy. Sillem (1) Pollock O.B. pointed out in very clear terms that "in order to know what a Statute does mean, it is one important step to know what it does not mean." If in sub-par. (d) "the sugar-cane" means only the cane-grower's sugar-cane, it is almost decisive in itself that the sugar- cane referred to in sec, 20 is the cane-grower's sugar-cane, because that is all that is within the execution of the Act.

Sub-see. 7 of sec. 12 is highly important in relation to sec. 20. That sub-section should be quoted literally. It i is: " Sugar-cane supplied by any cane-grower and containing over Seven per centum of commercial cane sugar shall not be refused to be taken delivery of

and purchased by the owner of any mill." That shows the may be "supplied," in the sense of being taken to the mill, o other words, of being cane that " comes into the mill," and yet proves to contain not more than seven per centum commercial eg sugar the mill-owner need not " take delivery of and purchase" that is, "receive" it. That content of course is to be asce by sampling the cane in manner provided by the regulations applying the formula prescribed.

This close examination of the Act establishes that the mill-own is only brought within the Act as a purchaser of sugar-cane ; r a Local Board in making its award has no concern with the n owner's own land, used for cane-growing ; that, consequently, theo sugar-cane with which the Act is concerned is that which comes of the lands of " cane-growers," and that a miller qué his own mill not a cane-grower under any circumstances. He may be and is a cane-grower qud another person's mill, if he sells and supplies cane to that other mill, but not for representative purposes, only ; "award " purposes, that is, for obtaining a price, and furnishing a supply. That being the scope of the execution of the Act, a fundis provided by sec. 20. It is called "" The Sugar Cane Prices Fund. Again "the sugar-cane" means "the sugar-cane"' already dealt with, and " prices" means the prices fixed under the Act.

The foregoing survey of the statutory provisions makes toleral clear what is meant by the Legislature when it comes to enact in sec. 20 that " The Central Board may make and levy an assessment of one penny on every ton of sugar-cane received at a mill."

construe "received at a mill" as simply "coming into a mill" would not only be substituting an equivalent for the words of the section, always a dangerous course (per Lord Halsbury L.C. ii Gresham Life Assurance Society Ltd. v. Bishop (1)), but would be inconsistent with sub-sec. 7 of sec. 12 above quoted. Unless "received " connotes "acceptance" by the mill-owner, all can "supplied" would, notwithstanding sub-sec. 7, be assessable, because it " came into" the mill. But if it connotes " acceptance " by the mill-owner, it necessarily connotes also a person who of

it. Again, it is clear that the word " received " cannot be consi (1) (1902) A.C., 287, at p. 291.

apart from the rest of the Act. (See per Lord Herschel in Colquhoun y. Brooks (1) and Lord Haldane L.C., for the Privy Council, in Toronto Suburban Railway Co. v. Toronto Corporation (2).) "Received" for what purpose? In Robertson v. Day (3) the Privy Council, speaking by Sir Robert Collier, said: "It is a legiti- mate rule of construction to construe words in an Act of Parliament with reference to words found in immediate connection with them." We find the word "received" used with reference to a ' and that sends us to the interpretation section to ascertain for what purpose the cane is to be received. That is the only place where we can find it stated. We must therefore read sec. 20 in this way: "Received at a sugar-mill to which sugar-cane is sold and supplied for the purpose of being treated and manufactured into sugar." It must be conceded that if cane were "received at" a mill for storage purposes only, or for fodder (as it might be if found to be under seven per cent. commercial cane sugar), it would not be assessable under sec. 20. But why? Because it was not received for the purpose mentioned in the definition of "mill." But if "yeceived " must be read subject to that part of the definition of mill, since the word "mill" is so used in sec. 20, how can we escape reading it subject to the whole definition ?

It is a fundamental error to detach the first portion of a section and settle its meaning first, ignoring even the rest of the section, and then proceed to apply the remainder of the section on the basis that the meaning of the first part is already fixed. That is, however, what the Crown argument amounts to. We must read the whole section, and perhaps the whole Act, to ascertain the meaning of the first sentence of sec. 20 (3). Reading the section by the light so far obtained, and applying it to the subject matter dealt with, its meaning is that where the owner of a mill within the meaning of the Act receives, for the purpose of its being treated and manu- factured into sugar, cane from a cane-grower who supplies it under the statutory conditions - that is, where the " price" is fixed - the cane so " received' by the miller is liable to assessment, and he must pay this to the Crown for the benefit of the "Sugar Cane

(1) 14 App. Cas., 493, at p. 506. (2) (1915) A.C., 590, at p. 597. (3) 5 App. Cas., 63, at p. 69.

H.C. or A. Prices Fund." But he can collect it from the cane-groy 1917.

deducting from the " price " payable to each the proportion of assessment referable to the cane supplied by that cane-grower, ]

" is suggested by the Crown that the miller is himself a" cane-gro within the meaning of sec. 20. The Supreme Court agreed with th view. Weare not able toshare that opinion. Ifin that section" grower" is free from statutory definition, why not " mill" ? if " mill" is free, then, though no cane came into the mill but th of the owner, the whole would be taxable. But if "mill" restricted to the statutory definition, it seems to us impossib] draw the line at " cane-grower."

Considerations of policy are inadmissible, except so far as the are the result of construction of the words of the Act itself (per Lord Selborne in Hardy v. Fothergill (1) ).

Nor are we able to accede to the Crown view that sec. 20 apy whether Local Boards exist or not. As already indicated Boards are the basis of the execution of the Act, and it wou be astonishing to think the Legislature created a fund in aid of execution of the Act, and called it " The Sugar Cane Prices Fund irrespective of whether prices were fixed or not. It would bes

refused - as it may refuse - to appoint a Local Board for a particular mill. And again it would be an unexpected use of language to permit as sec. 20 permits, the miller to deduct the proportion of assessmen from the price. Compare the difference of language in sec. 7 of Sugar Experiments Stations Act, where the corresponding w are "any moneys due." In passing, we may observe that the effect of sec. 7 of that Act is not within our province, and therefore we express no opinion as to it. But we are clear that its meaning, whatever it may be, does not control the meaning of the worl "received" in sec. 20 of the Act directly under our consideration. If previous legislation is to guide us, the word " receiving " as used in clause 1 (a) of the Schedule to the Co-operative Sugar Works 4 of 1914 is a clearer guide. Tt is not, in our opinion, consistent with the other provision (1) 13 App. Cas., 351, at p. 358.

of the Act protecting the cane-growers that sec. 20 should require H- ©. or A. cane-growers to pay a penny or two pence a ton, notwithstanding ee they get no Local Board either because they do not wish it or because Grnson & the Government refuses. The section, as we read it, assumes the ies - existence of a Local Board, and the existence of an award, and the L®NNoy. i price" fixed, in other words, it assumes "the execution of the Taacs J. Act " qué the mill concerned. The mere creation of a Central Board

is not in any substantial sense the execution of the Act in relation to a given " mill."

It was suggested that, unless the mill-owner were held liable for

his own cane, it would induce him to increase the quantity of cane grown by himself, and so largely displace the smaller growers. We can hardly think it reasonable that two pence a ton would be sufficient inducement for that purpose; but if it would, the Crown view would lead to his displacing the smaller growers altogether, because it is admitted that if his mill is one for which he purchases nothing he is quite free from assessment.

In our opinion the appeal should be allowed, and the questions answered respectively : (1) No; (2) By the respondent.

Appeal allowed. Order appealed from reversed. Questions answered as above stated. Respon- dent to pay costs of appeal.

Solicitors for the appellants, Hamilton & Nielson, Bundaberg, by Morris & Fletcher, Brisbane. Solicitor for the respondent, W. F. Webb, Crown Solicitor for

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