(a) arguable case on the appeal
34Mr Harris' notice of appeal contained 16 grounds, raising, in summary, the following issues: the construction of relevant provisions of the Act and the proper application of those provisions to the facts; challenges to her Honour's sentencing methodology; challenges to her Honour's fact finding, including that there was actual environmental harm caused by the commission of the offence; and a contention that her Honour failed to sentence in accordance with the charge in that her Honour wrongly treated the offence as one of taking water rather than the offence of tampering with a water meter. There is then a catchall ground of appeal that the fine, the publication order and the costs order, taken together, were manifestly excessive having regard to the proper assessment of the objective seriousness of the offence and the matters raised in mitigation.
35I do not propose to deal with all the grounds of appeal. Rather, it is sufficient to focus on the questions of statutory construction raised in the first ground of appeal and with the issue raised in grounds 2 and 3, and ground 12.
36In ground 1 of his notice of appeal, Mr Harris challenged the sentencing judge's construction, at [97], of the Water Management Act, s 52. He contended that this error of construction had implications for her Honour's finding as to the objective severity of the offence and to the manner in which her Honour dealt with his case in mitigation. He submitted that if he was successful on this ground of appeal, he has a strong ground for contending that the sentencing discretion miscarried.
37Section 52 of the Water Management Act provides, relevantly:
"52 Domestic and stock rights
(1) ... an owner or occupier of a landholding is entitled, without the need for an access licence, water supply work approval or water use approval:
(a) to take water from any river, estuary or lake to which the land has frontage ... and
(b) to construct and use a water supply work for that purpose, and
(c) to use the water so taken for domestic consumption and stock watering, but not for any other purpose.
...
(3) In this section:
domestic consumption, in relation to land, means consumption for normal household purposes in domestic premises situated on the land.
stock watering, in relation to land, means the watering of stock animals being raised on the land, but does not include the use of water in connection with the raising of stock animals on an intensive commercial basis that are housed or kept in feedlots or buildings for all (or a substantial part) of the period during which the stock animals are being raised."
38The sentencing judge, at [97], stated:
"... in my opinion, acting lawfully pursuant to an exercise of rights under s 52 could only authorise the extraction of sufficient water to fill the House Dam. Otherwise the provision would give those water users with a domestic dam some distance from the water source a considerable advantage over those whose dams were closer in proximity to the extraction source. I do not believe that this was the objective intention of the legislature in enacting s 52 of the [Water Management Act]."
39Mr Harris submitted that the trial judge's error was in rejecting his contention that his rights under s 52 included the placement of water in an irrigation channel for the purposes of conveying the water to the point where it could be used, when express words of the section included that right. It would seem that this submission was based upon the terms of s 52(1)(b) and the definition of "water supply work" in the Dictionary of the Act.
40The prosecutor submitted that this ground raised a mixed question of fact and law. He contended that in order for this aspect of Mr Harris' case on mitigation to succeed it was necessary for him to prove, on the balance of probabilities, that he had used the water taken for domestic consumption but not for any other purpose. On the prosecutor's argument, there was a difficulty with this aspect of Mr Harris' case as he had made admissions both in a record of interview and under cross-examination that part of the un-metered water that he had taken was to be used for the purpose of irrigation. In other words, it had not been taken for domestic consumption.
41Mr Harris denied he made admissions as the prosecutor contended.
42In my opinion, it is likely that this issue does raise a mixed question of fact and law. In the absence of having been taken to the evidence, it is not possible for the Court to make any assessment of the strength of Mr Harris' argument. The most that can be said is that it has been advanced by Senior Counsel for Mr Harris, and in accordance with his obligations to the Court, can only have been advanced responsibly and on the basis that it is arguable. On the other hand, it has been refuted by equally responsible Senior Counsel for the prosecutor, although the refutation is an argument that the ground will not succeed. It was not expressly put that the ground was not arguable. That is relevant, but, having regard to my conclusion in respect of grounds 2, 3 and 12, I do not need to finally decide whether it would be sufficient to satisfy the first limb of the test stated in Alexander v Cambridge Credit.
43Grounds 2 and 3 were directed to the relevance, as a mitigating factor, of the absence of any regulatory requirement for a meter on the part of the water source from which the water was taken. Mr Harris submitted that this had been conceded by the prosecutor. Mr Harris' complaint was that the sentencing judge failed to decide this matter and consequently had failed to take it into account at all. He contended that it was a significant omission.
44In response, the prosecutor submitted that this submission failed to fully draw to the Court's attention what was otherwise in the amended statement of agreed facts and in other parts of the prosecutor's submissions. The prosecutor pointed out that this was an example of why Mr Harris' application for a stay was misconceived, as the Court is not expected to hear a rehearsal of the appeal.
45In my opinion, the respective arguments of the parties on these grounds of appeal also make it apparent that there are issues raised on the appeal, which on their face, are arguable. The prosecutor's response that an application for a stay is not a rehearsal for the appeal is correct. I would only comment that a blocking response of that nature does not assist the Court in determining whether there is an arguable case. Something more would need to be demonstrated in opposition to an otherwise apparently arguable case if the Court was to be persuaded to come to a different conclusion.
46In ground 12, Mr Harris contended that her Honour erred in finding that damage to the regulatory system was actual environmental harm. This ground challenges her Honour's interpretation of the Water Management Act, s 364A(1)(c). Section 364A requires the Court to take certain matters into account when imposing a sentence for an offence under the Act. Those factors include subs (1)(c), which provides:
"(c) the extent of the harm caused or likely to be caused to the environment (including, in particular, any water source or waterfront land) by the commission of the offence."
47The amount of unmetered water, between 30-40 ML was, having regard to the water resource, miniscule. Mr Harris argued, therefore, that the effect on the river and the catchment and, therefore, on the environment, was all but negligible. Her Honour stated, at [108], that this argument was superficially compelling, accepting, as I understand her reasons, that there was a "barely registrable amount of water" extracted during the approximate 17 hours over which the offending conduct occurred. However, her Honour applied the approach taken in Harrison v Baring (No 2) [2012] NSWLEC 145, where Pain J stated, at [44]:
"The systems of ordering water and measuring water taken are important as they allow the New South Wales Office of Water to monitor and control the taking of water, manage the flow of the river, lesson negative impacts on the environment, and ensure the lawful and equitable sharing of water."
48I have set out the terms of s 364(1)(c) at [46]. In my opinion, Mr Harris' contention that a finding of damage to the regulatory system was actual environmental harm within the meaning of that provision is clearly arguable. In coming to that conclusion, I have not overlooked the fact that the Court may take into consideration other matters that it considers relevant: s 364(2). However, that is not the approach her Honour took to the section. Whether, on appeal, if this ground is made out, it will make any difference to the sentence imposed, is not something that was argued and it would be inappropriate for me to make any comment.
49Although I have not considered whether there is an arguable case in respect of each ground of appeal, I am satisfied that the appeal itself is arguable such as to satisfy this aspect of the principles governing the grant of a stay.