Ground 1(a)
63 Both grounds raised by the applicant pertain to matters of statutory construction.
64 The way in which Courts should approach statutory interpretation has been widely discussed and is helpfully summarised in SZTAL v Minister for Immigration and Border Protection (2017) 262 CLR 362 at [14] (Kiefel CJ, Nettle and Gordon JJ):
The starting point for the ascertainment of the meaning of a statutory provision is the text of the statute whilst, at the same time, regard is had to its context and purpose. Context should be regarded at this first stage and not at some later stage and it should be regarded in its widest sense. This is not to deny the importance of the natural and ordinary meaning of a word, namely how it is ordinarily understood in discourse, to the process of construction. Considerations of context and purpose simply recognise that, understood in its statutory, historical or other context, some other meaning of a word may be suggested, and so too, if its ordinary meaning is not consistent with the statutory purpose, that meaning must be rejected.
(Footnotes omitted)
65 Furthermore, in R v A2 (2019) 269 CLR 507 Kiefel CJ and Keane J at [37] observed the following:
When a literal meaning of words in a statute does not conform to the evident purpose or policy of the particular provision, it is entirely appropriate for the courts to depart from the literal meaning. A construction which promotes the purpose of a statute is to be preferred.
(Footnotes omitted)
66 While the text of the statutory provision is the starting point, the context and purpose of the statute provide important insight into its meaning: Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355 at [69] (McHugh, Gummow, Kirby and Hayne JJ). With respect to the meaning of context and purpose more broadly, in CIC Insurance Ltd v Bankstown Football Club Ltd (1997) 187 CLR 384 Brennan CJ, Dawson, Toohey and Gummow JJ said at 408:
It is well settled that at common law, apart from any reliance upon s 15AB of the Acts Interpretation Act 1901 (Cth), the court may have regard to reports of law reform bodies to ascertain the mischief which a statute is intended to cure. Moreover, the modern approach to statutory interpretation (a) insists that the context be considered in the first instance, not merely at some later stage when ambiguity might be thought to arise, and (b) uses "context" in its widest sense to include such things as the existing state of the law and the mischief which, by legitimate means such as those just mentioned, one might discern the statute was which intended to remedy. Instances of general words in a statute being so constrained by their context are numerous. In particular, as McHugh JA pointed out in Isherwood v Butler Pollnow Pty Ltd, if the apparently plain words of a provision are read in the light of the mischief which the statute was designed to overcome and of the objects of the legislation, they may wear a very different appearance.
(footnotes omitted)
67 The Rules, established by the Minister under s 99L of the Act, are a legislative instrument for the purposes of the Legislation Act 2003 (Cth) to which the Acts Interpretation Act 1901 (Cth) applies: s 13(1) Legislation Act. As the Rules are subordinate legislation, they are to be placed in their statutory context and are to be interpreted in a manner consistent with the Act's objects: s 13(1)(c) Legislation Act; s 15AA Acts Interpretation Act. The objects of the Act were described in Walkerden at [62], set out above at [10].
68 By ground 1(a), the applicant argued that the Authority erred by making a critical mistake of law as, correctly applying s 71 of the Planning Act, it could not have been satisfied that "at all relevant times the [Glenvale] Premises could be used for the operation of a pharmacy under applicable [Queensland] laws relating to land development" as required by r 10(3)(c) of the Rules. It contended that the Authority reaching satisfaction on that point was an essential precondition of its exercise of statutory power and, by erring with regards to it, the recommendation made to the Secretary for approval is vitiated.
69 The events which lead the applicant to this contention, as described above, are that a decision notice approving the Development Application was issued on 1 April 2022, in respect of which an appeal was lodged on 10 May 2022 and subsequently discontinued on 9 June 2022. Glenvale Pharmacy's Application, although dated 3 April 2022, was received by the Authority on 20 April 2022.
70 Pursuant to s 71 of the Planning Act, a development approval has effect when either:
the approval is given;
if an appeal is commenced, once the appeal ends;
if there is a submitter for the development application that has not withdrawn their submissions, when the submitter advises it will not appeal the decision; or
when the appeal period ends.
71 The appeal period for the approval of the Development Application, pursuant to s 229(3)(g) of the Planning Act, ended on 17 May 2022. As such the applicant contended that on either 3 April 2022 or 20 April 2022, as a matter of law, Glenvale Premises could not be used for the operation of a pharmacy as a development permit was yet to be issued, and as the appeal period had not yet concluded the approval of the Development Application had not yet taken effect. Accordingly, it submitted that the Authority could not be satisfied that "at all relevant times the proposed premises could be used for the operation of a pharmacy under applicable local government and State or Territory laws relating to land development" pursuant to r 10 of the Rules, and that therefore approval should not have been recommended.
72 The applicant contended that this point was made out in the evidence referred to in the Tavakol Affidavit, namely the correspondence to it from the Authority dated 2 May 2022 which invited comments or submissions with respect to Glenvale Pharmacy's Application for approval to supply pharmaceutical benefits and the responses from its solicitors to the Authority dated 11 May 2022 enclosing letters from its planning law consultant and a Senior Planner at the Toowoomba Regional Council. Specifically, the applicant relied on the advice of its planning consultant provided to the Authority in relation to the operation of the Planning Act as follows:
19 At all relevant times, the Proposed Premises could not and still cannot be used for the operation of a pharmacy as there is currently no development approval / development permit from the Council to commence the pharmacy use on the Proposed Premises.
20 The development approval for the pharmacy use does not take effect (i.e. the Council's decision to approve the Development Application) until the last appeal period for the development approval ends.
21 Only where the Council does not receive notice by the DA Appeal Deadline Date from at least one of the four Principal Submitters appealing the Council's decision to approve the Development Application, then the development approval does not take effect until 18 May 2022.
73 Glenvale Pharmacy contended that the applicant seeks a reprisal of the merits by this ground of review, and relied on the observations of Logan J in Hallgath v Australian Community Pharmacy Authority [2011] FCA 1062 at [8]-[9]:
It can be seen by the use of the expression "is satisfied" that the relevant jurisdictional fact is a state of administrative satisfaction as to the existence of a particular state of affairs, rather than the very existence, as a matter of objective fact, of that state of affairs. This type of drafting device is often used in circumstances where the Parliament, or as the case may be, the author of an administrative determination, seeks to limit the scope of agitation concerning factual matters upon judicial review: see definitively in this regard the judgment of Gummow J in Minister for Immigration and Multicultural Affairs v Eshetu (1999) 197 CLR 611.
That does not mean that such decisions which are made by reference to such a criterion are unexaminable on judicial review. It does though mean that the grounds of review which relate to this particular aspect of the Authority's recommendation decision will not be met if there was some evidence before the Authority which was reasonably probative of the state of satisfaction which the Authority voiced in its reasons.
74 Glenvale Pharmacy also relied on the interlocutory judgment of Collier J in this matter, where her Honour found that this ground did not constitute a serious question to be tried and sought to conflate merits review with judicial review.
75 I do not accept Glenvale Pharmacy's argument that this is simply an attempt at impermissible merits review. By this ground the applicant does not seek that this Court determine whether certain of the Authority's factual findings were correct. Rather, the question that arises, based on undisputed factual findings, is whether the state of satisfaction reached by the Authority is tainted by an error of law. It is an important question with respect to the statutory construction of r 10(3)(c) of the Rules.
76 Furthermore, the judgment of Collier J needs to be understood in its context, being an interlocutory application for an injunction. Her Honour's judgment was based on the material which was before her Honour at that time which was prior to the filing of the Further Amended Originating Application and a substantial volume of evidence. The case before the Court is now quite different. Finding that there is not a prima facie case at an interlocutory stage is quite different from a final hearing of the case with all the evidence before the Court.
77 I consider the applicant has raised a valid question of law regarding the statutory construction of r 10(3) of the Rules.
78 I now turn to the relevant findings of the Authority, in respect of which Glenvale Pharmacy contended that the Authority had made no error in any event.
79 The relevant findings of the Authority are at paragraphs [32]-[34] of its statement of reasons:
32. The Authority considered:
(a) the Development Application Decision Notice dated 1 April 2022 issued by the Toowoomba Regional Council, approving the Material Change of Use of the premises at 662-670 Greenwattle Street, Harristown, Qld 4350 to 'Health Care Service and Shop';
(b) correspondence and supporting documentation from third parties objecting to the Application on the basis that the proposed premises could not, at all relevant times, be used for the operation of a pharmacy under applicable local government and state or territory laws relating to land development. The third parties submitted that the Council's Decision Notice approving the Development Application does not constitute the development permit which permits the use of the proposed for the proposed medical centre and pharmacy, as the approval takes effect subject to the appeal provisions in the relevant planning legislation;
(c) a letter from the applicant's representative dated 7 July 2022, provided in response to the Authority's request for further information dated 8 June 2022.
33. The Authority found that, based on the information provided by the Applicant and third parties, proceedings were commenced on 10 May 2022 in the Planning and Environment Court to appeal the decision of the Toowoomba Regional Council to approve the Development Application for the Material Change of Use of the premises at 662-670 Greenwattle Street, Harristown, Qld 4350 to 'Health Care Service and Shop'. Those proceedings were discontinued by the appellant on 9 June 2022.
34. The Authority was satisfied that, based on the information and documents specified above, at all relevant times the proposed premises could be used for the operation of a pharmacy under applicable local government and State or Territory laws relating to land development.
80 For the reasons that follow the applicant's argument must be rejected.
81 First, as submitted by the Authority, the meaning of r 10(3)(c) of the Rules is informed by the note to the section. All material in a Commonwealth Act, including its notes, form part of the Act: s 13 Acts Interpretation Act. The note to r 10(3) of the Rules makes it clear that there is no express requirement that there be a final development approval. All that the Rules require is that at the relevant times planning approval has been obtained - not that it has taken effect. To adopt a different approach would mean that a development approval with conditions attached would similarly not suffice.
82 Importantly, r 10(3)(c) uses the words "could be", which is concerned with possibility and indicates a lesser degree of certainty is required to reach that state of satisfaction, as opposed to a matter of fact. The lack of an explicit requirement that planning approval be in full effect, or that the Rules do not prescribe the requirement as a "can" or "must" as opposed to "could", indicates that the narrow interpretation pressed by the applicant is not consistent with the purpose of the Rule.
83 Second, the Act is not concerned with the intricacies of local government and State and Territory planning legislation, and beyond providing approval to pharmacists, any subsidiary question about the practical reality of such approval is not a matter with which the Authority is necessarily concerned. According to the Authority, relying on s 15AA of the Acts Interpretation Act, the Rules should be interpreted in a manner consistent with the purpose and objects of the Act, which relevantly for this matter relate to the supply of designated drugs prescribed by a health practitioner to persons, not local government and State and Territory planning laws.
84 As the Authority submitted such an interpretation is clear from Terry White Chemists Australia Fair v Secretary to the Department of Health and Ageing (2009) 178 FCR 161 at [20] and [22] (Gray, Greenwood and Tracey JJ):
The preferable construction is to regard s 90(4) of the National Health Act as not so much a limitation on the power of the Secretary to grant an approval pursuant to s 90(1), as a limitation on the extent of the approval that the Secretary grants. Viewed in this way, s 90(4) makes it clear that an approval granted by the Secretary pursuant to s 90(1) is not to be regarded as extending beyond the purposes of the scheme set up by Pt VII of the National Health Act, the Pharmaceutical Benefits Scheme. The approval is not to be regarded as overriding any provision of State or Territory laws under which the carrying on of the business of a pharmacy at the relevant premises by the particular pharmacist would not be permitted. On this construction, the Secretary would not be concerned with the operation of any laws of any State or Territory, but only with the granting or refusal of approval to a particular pharmacist to supply pharmaceutical benefits at particular premises, for the purposes of the Pharmaceutical Benefits Scheme. A pharmacist to whom such approval is granted would still need to be permitted by the laws of the relevant State or Territory to carry on the business of a pharmacist at the premises in respect of which the approval has been granted. The Secretary cannot grant the pharmacist an approval that would oust the effect of those State and Territory laws, but only an approval for the purposes of the Pharmaceutical Benefits Scheme. It would be for the authorities of the relevant State or Territory to apply and enforce the laws of that State or Territory. Accordingly, s 90(4) of the National Health Act is a declaratory provision that seeks to put beyond doubt that, although a pharmacist might be approved under s 90(1) for the purpose of supplying pharmaceutical benefits at or from particular premises, he or she being willing to do so on demand at particular premises, such an approval does not cover the field of all permits, licences or approvals a pharmacist may be required to obtain in order to comply with a law of a State or Territory in which the premises are situated, in order to carry on the business of a pharmacist.
….
The adoption of a purposive construction of s 90(4) of the National Health Act leads to the conclusion that, when considering an application for approval under s 90(1), the Secretary is not concerned with provisions of State or Territory laws, but only with the functioning of the Pharmaceutical Benefits Scheme. To the extent to which it stated that town planning and land use laws are irrelevant to the Secretary's function, what the Full Court said in Kaderbhai (quoted at [11] above) is consistent with that conclusion. Not all of the reasoning of the Full Court in Kaderbhai is consistent with the reasoning based on a purposive construction, however. Whether a purposive construction is adopted, or whether what was said in Kaderbhai is followed, the proper conclusion is that s 90(4) of the National Health Act does not require the Secretary to consider laws of a State or Territory relating to town planning or land use. On either view, the appellant cannot establish that the Secretary's grant of approval to Glenvale Pharmacy to supply pharmaceutical benefits from the premises in respect of which he applied for approval was invalid. In our view, the purposive construction is to be preferred to the reasoning in Kaderbhai. The primary judge was correct to dismiss the application to set aside the Secretary's decision. The appeal must be dismissed. No reason was advanced, and none appears, why the usual principle, that costs follow the event, should not be applied. Accordingly, the appellant will be ordered to pay the costs of the appeal of the Secretary and Glenvale Pharmacy.
85 The applicant contended both that Terry White is distinguishable on its facts, as it was concerned with the interpretation of s 90(4) of the Act rather than the proper interpretation of the Rules, and that it was in fact supportive of the applicant's case. Section 90(4) of the Act provides:
(1) Nothing in this section authorizes the Secretary to grant approval to a pharmacist in respect of premises at which that pharmacist is not permitted, under the law of the State or Territory in which the premises are situated, to carry on business.
86 It is clear that Terry White is directed at an approval granted by the Secretary. In my view that does not make Terry White distinguishable. The decision being made by the Authority is for the purpose of the supply of pharmaceutical benefits, not for the purpose of enforcing planning law. It is also true that Terry White at [19] states that "[t]o the extent to which it might be considered that State or Territory laws are relevant, it is open to the Minister to make rules pursuant to s 99L of the National Health Act, requiring the Authority to apply those laws as part of its consideration of an application for approval referred to it under s 90(3A) of the National Health Act". According to the applicant, therefore the Authority is required to determine whether "premises could operate under the laws of a state or territory relating to land development". The applicant also took issue with the proposition advanced by Glenvale Pharmacy that the use of the words "could be used as a pharmacy" indicate a broad interpretation should be applied, such that the word "could" is read as "possibly could". Those submissions are rejected.
87 The weight of authority makes it clear that the Authority is not concerned with local government and State and Territory planning laws. Support for this approach is also found by recourse to r 10(3)(e) of the Rules which makes it plain that the premises will be operating as a pharmacy six months after the Authority makes its recommendation. Further, the use of the words "could be used" in r 10(3)(c) is not to be taken as meaning "are able to be used". "Could" is defined in the Macquarie Dictionary as "referring to a potential event or situation". Therefore, in context, the requirement that "at all relevant times the proposed premises could be used for the operation of a pharmacy under applicable local government or State or Territory laws relating to land development" is concerned with a potential, or possibility, that the proposed premiss could be used, as opposed to a certainty.
88 Third, as submitted by the Authority, to accept the applicant's construction of r 10(3)(c) of the Rules would risk applicants not being able to satisfy, as a matter of evidence, r 10(3)(e) that they will be able to begin operating a pharmacy at the proposed premises within six months of the Authority making its recommendation. This is because if an appeal has been commenced and has not been finalised in relation to the development approval, it may be difficult to prove that a pharmacy can begin operating within the time specified by r 10(3)(e). The effect of approval is relevant to r 10(3)(e), and whether or not approval has been obtained is relevant to r 10(3)(c). So much is clear from the note.
89 Fourth, s 99N of the Act does not require a lawyer or other person with specialist knowledge about local government and State and Territory planning laws to be appointed to the Authority. The Act prescribes that there be a chairperson, pharmacists, an officer from the Department and a person who the Minister regards as appropriate to represent the interests of consumers. Both the Authority and Glenvale Pharmacy quite properly submitted that this composition is inconsistent with the applicant's interpretation of what is required in order for the Authority to reach a state of satisfaction pursuant to s 10 of the Rules. In considering the construction of "a legal right to occupy" it was stated in Watson v Australian Community Pharmacy Authority (2012) 206 FCR 365 at [73] (Lander, Jessup and Foster JJ):
The composition of the Authority is inconsistent with the appellant's argument that the Authority has to be satisfied of the legal relationship between an applicant and the owner of the proposed premises before it can be satisfied that the applicant has a legal right to occupy the proposed premises. The majority of the members of the Authority are pharmacists who have no legal training and would not necessarily understand the legal differences between ownership, leasing, licensing, and other dealings in land. They are likely to have practical experience, because it is likely that they would be in business themselves, and would have obtained premises for the purpose of carrying on a business. However, it is unlikely Parliament would have expected persons unqualified in the law to have considered the issue of whether an applicant has a legal right to occupy proposed premises by reference to the vagaries of property law. The Authority's decision to recommend approval has to be understood in this light.
90 The composition of the Authority as prescribed by the Act supports the interpretation that the Authority need only be satisfied that planning approval has been obtained, rather than having to interpret various forms of local government or State or Territory legislation to confirm when that approval might take effect or the practical realities of the approval.
91 Fifth, as the Authority submitted, correctly in my view, that to accept the applicant's interpretation is to risk the possibility that a competitor could frustrate an applicant's ability to satisfy r 10(3)(c) of the Rules by appealing planning approvals. This could lead to a manipulation of the process which is not intended by the statute.
92 For those reasons ground 1(a) does not succeed.