GROUNDS 1 AND 2 - NO AUTHORITY AND NO JURISDICTION to make the decisions
15 These grounds can be considered together as they were argued on the same basis.
16 It was contended that the minimum distance requirement prescribes an objective jurisdictional fact, which makes the exercise of the powers of the Authority and the Secretary to grant approval contingent on the actual fact of a minimum 1.5 kilometre distance between the proposed premises and the nearest approved pharmacy. It was further submitted that the applicants have shown by the unchallenged surveyor's report that the actual distance is less than 1.5 kilometres.
17 No cases have considered the minimum distance requirement but there is support for this contention having regard to the objective language of the requirement read in conjunction with rr 10 and 11 which are mandatory in terms. However, the third and fourth respondents argued that I should find that the minimum distance requirement is an evaluative fact, involving an exercise of judgment about whether the requirement is met. The third and fourth respondents relied on Pharmacy Guild of Australia v Australian Community Pharmacy Authority (1996) 70 FCR 462 per Branson J and Karalis v Australian Community Pharmacy (1998) 90 FCR 473 ("Karalis") per Goldberg J in support of this submission.
18 Those cases concerned a different requirement that was also couched in objective terms. The Rules (as they were at the time) required a maximum distance between the old and new premises "measured door to door by the shortest lawful access route" if an applicant had approval under s 90 of the National Health Act in respect of premises and was relocating. The Courts in both cases construed the requirement as involving an exercise of judgment and not simply the determination of an objective fact. In both cases, the Courts expressly followed the reasoning of the dissenting judgment of Black CJ in Australian Heritage Commission v Mount Isa Mines Ltd (1995) 60 FCR 456 at 465-7 (which the High Court upheld in effect in Australian Heritage Commission v Mount Isa Mines Ltd (1997) 187 CLR 297). In issue in Australian Heritage Commission v Mount Isa Mines Ltd was whether the eligibility of a place for inclusion of the heritage register was a jurisdictional fact. Black CJ stated that:
In considering the present question it is appropriate to examine first the nature of the task committed to the Commission under the Act. Reference to the definition of the national estate in s 4 of the Act reveals that the task of determining whether a place is part of the national estate may be a difficult and complicated one, involving the careful assessment of complex facts and the formation of opinions and value judgments on a potentially very wide range of matters. Questions of science, history and aesthetics may well need to be considered. Many branches of science, from biology to geology, may be involved. A wide range of historical and cultural issues might need to be considered if, to take just one example, it were necessary to determine whether a place had a special value for future generations by reason of a strong association with a particular cultural group for social, cultural or spiritual reasons: see s4(1A)(g).
In such circumstances the very nature of the task of identifying places that are part of the national estate is suggestive of an intention that the body established by the Parliament with the function of identification is to have the power to make a conclusive determination of that matter. What the respondent argues is "a jurisdictional fact", namely the identity of a place as part of the national estate, is a conclusion of fact and one that must often rest on a range of potentially difficult and complicated facts, assessments and value judgments. If the conclusion that a place is part of the national estate were to be seen as a jurisdictional fact, one of the Commission's most important functions, and a key function in the overall scheme of the Act, would be performed only provisionally. Even where none of the familiar grounds of judicial review could be made out, and there was no suggestion that the Commission had acted otherwise than according to law, the identification of a place as part of the national estate could still be challenged on the facts. Despite the possible application of the principle that weight is given to the findings of fact of a specialist tribunal concerning a jurisdictional fact, there would be something approaching merits review of the Commission's decision since the matter for factual review would be, essentially, the performance of the whole function of identification.
The inconvenience of such a result, an inconvenience that would be of a large dimension having regard to the subject matter of the "jurisdictional fact", is a powerful indication that it was not the intention of the Parliament that the finding should, in effect, be only provisional. Rather it suggests that it was the Parliament's intention that the power of the Commission to enter a place in the Register of the National Estate was to be contingent upon the Commission's own view of the matter. Inconvenience is a matter to be considered in ascertaining the intention of the Parliament in this area: Parisienne Basket Shoes v Whyte at 393 per Dixon J; cf Tasmanian Conservation Trust Inc v Minister for Resources (1995) 55 FCR 516 at 538-539 per Sackville J.
19 In Pharmacy Guild of Australia v Australian Community Pharmacy Authority, Branson J applied similar reasoning when she stated at 476:
There is, in my view, a real difficulty in seeking to construe the determination as making the power of the Authority to make a favourable recommendation contingent upon the actual existence of a state of fact, as opposed to its own determination of that state of fact. The recommendation of the Authority is necessary before the Secretary can approve an application under s 90 of the Act. The Authority is established with a membership calculated to lead to substantial industry input into its decision making processes. The rules bind the Authority but have no direct relevance to the discretion of the Secretary under s 90(1) of the Act. If the power of the Authority to recommend an approval under s 90 of the Act is contingent upon the actual existence of the prescribed distance, measured by the prescribed route, between the two relevant sites, the Secretary would be unable to act on the recommendation of the Authority until he or she had satisfied himself or herself of the actual existence of that prescribed distance, a task by the rules given to the Authority with its industry representation. In strict theory, the validity of the recommendation would remain an outstanding question until a court or tribunal possessing power to determine the question decided that the prescribed distance did in fact exist (Parisienne Basket Shoes Pty Ltd v Whyte at 391 per Dixon J). Plainly, in my view, neither the Act nor the determination discloses an intention that the Secretary should review the work of the Authority in this way.
Branson J considered that although the Rules drew a distinction between matters of fact and matters in respect of which the Authority was to be "satisfied", this distinction did not reflect an intention that the Authority's power to act was contingent upon the actual existence of those matters of fact. Her Honour reasoned that that the distinction between matters of fact and matters in respect of which the Authority was required to be satisfied reflected a distinction between matters capable of objective determination and those which involved an exercise of judgment.
20 In Karalis, Goldberg J rejected the submission that Branson J's reasoning was clearly wrong and that he should not follow her decision. His Honour reasoned:
Although par 6(a) is expressed in absolute or objective terms in the sense that it refers to the measurement of a particular route and par 6(b) is expressed in terms of the Authority being satisfied that certain matters exist, I do not consider that the change in words is intended to reflect the fact that the Authority's decision or recommendation is dependent on the fact of the measurement of that route being objectively true. Rather the change in terminology is reflective of the nature of the inquiry to be made. Both sub-pars (a) and (b) are introduced by the words "and one of the following circumstances applies" and, in my opinion, the intention to be deduced from the structure of par 6, taken as a whole, is that the existence of the circumstances which apply is to be determined by the Authority forming the view that they apply. I consider that the application of the principles and considerations referred to by Black CJ in Australian Heritage Commission v Mount Isa Mines Ltd support this conclusion. In particular I have had regard to the relationship between the functions of the Authority and the Secretary and the inconvenience to which a contrary decision would lead. It would leave as an open question whether the Secretary's approval was based on a valid recommendation: at 484.
Goldberg J considered that the interpretation of whether something was "the shortest lawful access route" may require an exercise of judgment and assessment and concluded that the power of the Authority to recommend approval was not contingent on the existence of an objective fact that the relevant distance was not exceeded by the shortest lawful access route but on the Authority's opinion that there was the relevant maximum distance.
21 The applicants sought to distinguish those authorities on the basis that the minimum distance requirement in Item 131 of Part 2 to Sch 1 of the Rules involves a simple and objective measurement from one point to another and does not require any exercise of judgment. The applicants also argued that the law as it now stands in light of the High Court decision in Enfield City Corporation v Development Assessment Commission (2000) 199 CLR 135 has given primacy to language and overtaken the approach followed in Pharmacy Guild of Australia v Australian Community Pharmacy Authority and Karalis. Reference was made to Cabal v Attorney-General of the Commonwealth (2001) 113 FCR 154, where Weinberg J stated at [72] that he considered that the approach taken by the High Court in Enfield City Corporation v Development Assessment Commission was somewhat broader than that which has found favour in earlier decisions, including Australian Heritage Commission v Mount Isa Mines Ltd and that there was "nothing special about the task of statutory construction with regard to the determination of whether a factual reference in a statutory formulation is a 'jurisdictional fact' and that all the normal rules of statutory construction apply".
22 In issue in Enfield City Corporation v Development Assessment Commission was a determination made by a relevant authority on an application relating to a proposed development, that the proposed development was "general industry" rather than "special industry", which the authority then dealt with on that basis as required by the regulations. The validity of the authority's determination that the proposed development was "general industry" was challenged as a jurisdictional fact. The High Court held that the criterion of "special industry" was a matter of fact that did not depend on the satisfaction or opinion of the authority, reasoning that taken as a whole the relevant text of the statutory provision was not expressed so as to turn on the satisfaction or opinion of the relevant authority as to the classification of the proposed development. The High Court also held that where the legality of a decision depends on a jurisdictional fact, it is the function of the Court to determine whether the fact does or does not exist having regard to the evidence before the Court, as opposed to the material that had been before the original decision maker.
23 In the present case, the starting point is the text considered in its statutory context. The language of the minimum distance requirement is expressed objectively as a factual requirement in contrast to other requirements prescribed by the Rules that depend upon the Authority's "satisfaction" of certain matters. This suggests that Parliament intended to make a distinction, though the use of objective language is not determinative as the authorities make clear. As Spigelman CJ said in Timbarra Protection Coalition Inc v Ross Mining NL (1999) 46 NSWLR 55 at [89] a matter was less likely to be intended by Parliament to be an objective fact if it was "characteristically, a matter on which reasonable minds may differ": cf Pharmacy Guild of Australia v Australian Community Pharmacy Authority at 476. The applicants reasoned that the minimum distance requirement is not, however, a matter on which reasonable minds may differ because it is a straight line door to door measurement which involves no element of judgment. There is considerable force in that submission, which I accept.
24 I do not consider it necessary to express a view on whether Pharmacy Guild of Australia v Australian Community Pharmacy Authority and Karalis would be decided differently following Enfield City Corporation v Development Assessment Commission. Those cases can be distinguished upon the basis that they related to a different requirement with some differences in statutory context. It is significant that the requirement under consideration here stipulates in express terms a fact that is objectively determinable, not requiring any degree of evaluation. This is reinforced by r 8 which delineates the reference points from which the measurement is to be taken. There is no element of judgment involved.
25 I am satisfied that the minimum distance requirement is a jurisdictional fact and that the jurisdiction of the Authority and the Secretary to exercise their powers in relation to a grant of approval is made subject to the existence in fact that the minimum distance requirement is met. As Spigelman CJ stated in Timbarra Protection Coalition Inc v Ross Mining NL at [37] - [38]:
The issue of jurisdictional fact turns and turns only, on the proper construction of the statute: see, eg Ex parte Redgrave; Re Bennett (1946) 46 SR (NSW) 122 at 125; 63 WN (NSW) 31 at 33. The Parliament can make any fact a jurisdictional fact, in the relevant sense: that it must exist in fact (objectivity) and that the legislation intends that the absence or presence of the fact will invalidate action under the statute (essentially): Project Blue Sky Inc v Australian Broadcasting Authority (1998) 72 ALJR 841 at 859 - 861; 153 ALR 490 at 515-517.
"Objectivity" and "essentiality" are two interrelated elements in the determination of whether a factual reference in a statutory formulation is a jurisdictional fact in the relevant sense. They are inter-related because indicators of "essentiality" will often suggest "objectivity".
"Essentiality" is mandated by r 11 which provides that the Authority must not make a recommendation for approval unless, amongst other things, the minimum distance requirement is met.
26 In this case, the undisputed fact is that the proposed premises is less than 1.5 kilometres from the nearest approved premises. In that circumstance, it follows that the minimum distance requirement was not met and in consequence both decisions are affected by jurisdictional error.
27 If am wrong and the minimum distance requirement turns upon the Authority's opinion or judgment of that fact, such opinion or judgment, in any event, was not in my view formed reasonably upon the material before the Authority and Secretary: Enfield City Corporation v Development Assessment Commission at [34]. The third and fourth respondents argued that the Authority and Secretary reasonably believed on the basis of the material provided to them that the location of the proposed premises was 66 Howitt Avenue. Assuming the correctness of that submission, it does not assist them. The Google Earth map on which the Authority and Secretary both relied to satisfy themselves that the requirement was met, was measured from a point that was not the actual location of the proposed premises and, therefore, was not evidence before them of the straight line distance between the proposed premises and the nearest approved premises. There was simply no evidence at all of the distance between the proposed premises and the nearest approved premises on which to satisfy themselves that the minimum distance requirement was met. To put it another way, the measurement in the Google Earth map was not the measurement required by r 8 of the Rules and the Google Earth map did not, and could not, constitute evidence of the minimum distance requirement.
28 Accordingly, these grounds have been made out.