Consideration - The construction and invalidity issues
26 The construction and invalidity issues overlap. The source of the power to make the Guide was s 28 of the Act. Importantly s 28 provided:
"28 Approved Guide
(1) Comcare may, from time to time, prepare a written document, to be called the "Guide to the Assessment of the Degree of Permanent Impairment", setting out:
(a) criteria by reference to which the degree of the permanent impairment of an employee resulting from an injury shall be determined;
(b) criteria by reference to which the degree of non-economic loss suffered by an employee as a result of an injury or impairment shall be determined; and
(c) methods by which the degree of permanent impairment and the degree of non-economic loss, as determined under those criteria, shall be expressed as a percentage.
(2) Comcare may, from time to time, by instrument in writing, vary or revoke the approved Guide.
(3) A Guide prepared under subsection (1), and a variation or revocation under subsection (2) of such a Guide, must be approved by the Minister.
(3A) A Guide prepared under subsection (1), and a variation or revocation under subsection (2) of such a Guide, is a legislative instrument made by the Minister on the day on which the Guide, or variation or revocation, is approved by the Minister.
(4) Where Comcare, a licensee or the Administrative Appeals Tribunal is required to assess or re-assess, or review the assessment or re-assessment of, the degree of permanent impairment of an employee resulting from an injury, or the degree of non-economic loss suffered by an employee, the provisions of the approved Guide are binding on Comcare, the licensee or the Administrative Appeals Tribunal, as the case may be, in the carrying out of that assessment, re-assessment or review, and the assessment, re-assessment or review shall be made under the relevant provisions of the approved Guide.
(5) The percentage of permanent impairment or non-economic loss suffered by an employee as a result of an injury ascertained under the methods referred to in paragraph (1)(c) may be 0%.
(6) In preparing criteria for the purposes of paragraphs (1)(a) and (b), or in varying those criteria, Comcare shall have regard to medical opinion concerning the nature and effect (including possible effect) of the injury and the extent (if any) to which impairment resulting from the injury, or non-economic loss resulting from the injury or impairment, may reasonably be capable of being reduced or removed.
(7) …
(8) Comcare shall make copies of the "Guide to the Assessment of the Degree of Permanent Impairment" that has been approved by the Minister, and of any variation of that Guide that has been so approved, available upon application by a person and payment of the prescribed fee (if any)."
27 As s 28(4) provided, a decision-maker, including the Tribunal, must make or review a decision under the relevant provisions of the Guide. Importantly, s 28(1)(a) and (c) required the Guide to set out criteria by reference to which the degree of permanent impairment, expressed as a percentage, must be determined. Because the Guide is a legislative instrument, the Acts Interpretation Act 1901 (Cth) applies to it as if it were an Act and each of its provisions were a section of an Act as provided by s 13(1) of the Legislative Instruments Act 2003 (Cth). That section provides:
"13 Construction of legislative instruments
(1) If enabling legislation confers on a rule maker the power to make a legislative instrument, then, unless the contrary intention appears:
(a) the Acts Interpretation Act 1901 applies to any legislative instrument so made as if it were an Act and as if each provision of the legislative instrument were a section of an Act; and
(b) expressions used in any legislative instrument so made have the same meaning as in the enabling legislation as in force from time to time; and
(c) any legislative instrument so made is to be read and construed subject to the enabling legislation as in force from time to time, and so as not to exceed the power of the rule maker.
(2) If any legislative instrument would, but for this subsection, be construed as being in excess of the rule maker's power, it is to be taken to be a valid instrument to the extent to which it is not in excess of that power.
(3) If enabling legislation confers on a rule maker the power to make a legislative instrument:
(a) specifying, declaring or prescribing a matter; or
(b) doing anything in relation to a matter;
then, in exercising the power, the rule maker may identify the matter by referring to a class or classes of matters.
(4) For the purposes of subsection (3), matter includes thing, person and animal.
Note: This section has a parallel, in relation to instruments that are not legislative instruments, in subsection 33(3AB) and section 46 of the Acts Interpretation Act 1901."
28 The principles of statutory construction apply to the construction of the Guide by force of s 13(1)(a) of the Legislative Instruments Act; see too Canute v Comcare (2006) 226 CLR 535 at 541 [12] per Gummow A-CJ, Kirby, Callinan, Heydon and Crennan JJ; Collector of Customs v Agfa-Gevaert Ltd (1996) 186 CLR 389 at 398 per Brennan CJ, Dawson, Toohey, Gaudron and McHugh JJ. In Australian Securities & Investments Commission v DB Management Pty Ltd (2000) 199 CLR 321 at 338 [34]-[35] Gleeson CJ, Gaudron, Gummow, Hayne and Callinan JJ said:
"In Project Blue Sky Inc v Australian Broadcasting Authority ((1998) 194 CLR 355 at 384, per McHugh, Gummow, Kirby and Hayne JJ), after pointing out that the duty of a court is to give the words of a statutory provision the meaning that the legislature is taken to have intended them to have, the majority said:
"Ordinarily, that meaning (the legal meaning) will correspond with the grammatical meaning of the provision. But not always. The context of the words, the consequences of a literal or grammatical construction, the purpose of the statute or the canons of construction may require the words of a legislative provision to be read in a way that does not correspond with the literal or grammatical meaning."
It may be added that, if a party contends that a provision, by reason of such considerations, should not be given its literal meaning, then such a contention may lack force unless accompanied by some plausible formulation of an alternative legal meaning."
29 The power to make a criterion in the Guide must be exercised in a way that sets an objective standard that may be applied with certainty and mechanically or measurably. The power to prescribe a criterion cannot be used to confer on a third party, such as a doctor or decision-maker a wide and unreviewable discretion to determine the standard against which a particular claimant's impairment is to be measured. That is because the function of prescribing a criterion is itself to set, not delegate the setting of, the standard. The criterion must be so expressed that whoever applies it will arrive at the same result, if he or she uses it correctly: Racecourse Co-operative Sugar Association Ltd v Attorney-General (Qld) (1979) 142 CLR 460 at 480-481 per Gibbs J with whom Stephen, Mason and Wilson JJ agreed. Gibbs J drew on what Dixon J had said in King Gee Clothing Co Pty Ltd v The Commonwealth (1945) 71 CLR 184 at 197, namely:
"But it is another matter when the basis of the price, however clearly described, involves some matter which is not an ascertainable fact or figure but a matter of estimate, assessment, discretionary allocation, or apportionment, resulting in the attribution of an amount or figure as a matter of judgment. When that is done no certain objective standard is prescribed; it is not a calculation and the result is not a price fixed or a fixed price."
30 The result, in such a situation, is that the power to make the criterion has not been validly exercised, and accordingly, the criterion was made in excess of the rule-maker's power. This is not because the meaning of the criterion is uncertain. Rather, it is because the criterion as expressed creates uncertainty in the result it produces: Cann's Pty Ltd v The Commonwealth (1946) 71 CLR 210 at 228 per Dixon J; see too Television Corporation Ltd v The Commonwealth (1963) 109 CLR 59 at 71 per Kitto J and my discussion of the principles in Telstra Corporation Ltd v Australian Competition and Consumer Commission (2008) 176 FCR 153 at 193-194 [159]-[161].
31 The ordinary and natural meaning of "criterion" as used in s 28 of the SRC Act is:
an established rule or principle for testing anything (Macquarie Dictionary online)
a test, principle, rule, canon or standard by which anything is judged or estimated (Oxford English Dictionary online)
32 In Herald-Sun TV Pty Ltd v Australian Broadcasting Tribunal (1985) 156 CLR 1 at 4 Gibbs CJ, Mason, Wilson, Deane and Dawson JJ discussed a power in an Act to set a standard for television programs saying:
"A standard determined for a television programme must fix the quality or nature of the programme in such a way that both the licensee required to observe the standard and the court or other body called upon to decide whether it has done so can determine whether the programme answers the criteria set by the standard. That is not to say that the test should be entirely objective, for it may involve questions of taste, but it does mean that the standard is to be found in the determination itself. The power to fix a standard which is to be generally applied is quite different from a power to decide ad hoc, from case to case, whether a particular programme may be televised. A power of the latter kind is not a power to fix standards." (emphasis added)
33 The immediate difficulty is to determine any intelligible, certain meaning for the second minor criteria for 5% and 10% impairment. The former requires that the claimant "can", while the later requires he or she "is unable to", "negotiate three or more stairs or a ramp (up and down) without the use of a walking aid or hand rails".
34 First, it is impossible to understand any rational concept in the 5% criterion reflective of an impairment. If a person can meet that criterion, he or she would seem to be quite unimpaired. The criterion is self-evidently not reflective of any measure of impairment and is a nonsense. Secondly, the expressions "three or more stairs" and "a ramp" have no content. Comcare argued that the words "or more" meant "at least" and the ramp had to be a reasonable ramp of the kind ordinarily encountered.
35 I reject that argument. A person may not be able to walk up or down a flight of stairs between storeys at his or her home or in the course of his or her ordinary activities, without the use of a walking aid or hand rails, but may be able to negotiate one, two or three stairs without that assistance. The words "or more" must have been intended to capture such a situation. However, once a person can negotiate three stairs without the use of a walking aid or hand rail, even though he or she cannot negotiate a longer flight of stairs, he or she does not satisfy the criterion.
36 Thirdly, the dimensions and gradient of the "ramp" are, like the "or more stairs" entirely unspecified. When a claimant is required to negotiate a ramp, it is not clear what characteristics the ramp must have. There was no evidence of universal standards or lengths for ramps. Often, in workplaces there will be ramps of varying inclinations and lengths, purpose built for the particular requirements of the employer. Similarly, in public places ramps can have various gradients, although there may be maximum gradients. However, a claimant may have to deal with a particular type of ramp of a particular length or inclination in his or her daily life or work. Fourthly, the words "is unable to" in the 10% criterion, particularly when contrasted with "can" in the 5% criterion, suggest complete inability. That reinforces the suggestion that if the claimant can pass the third stair he or she is not "unable to" negotiate three stairs, even if he fails at the fourth or a later stair.
37 The word "unable" means "not able, not having ability or power to perform … something specified" (Oxford English Dictionary online). When juxtaposed with "can" as used in the 5% minor criterion, I am satisfied that "unable" when used in the succeeding percentage minor criteria means not having the ability or power to negotiate the number of stairs or ramp unless the person uses the specified means of external assistance. The word "unable" has the same meaning when it is used in the first major criterion for 10% impairment. That is, the person has the ability to perform the task (negotiating uneven ground, three or more stairs or a ramp) only with the external assistance. The consequence is that no matter how difficult it is or how long it takes, if the person has the ability to perform that task without external assistance, he or she cannot satisfy the relevant criterion. Thus, a person who takes 10 minutes to walk up three stairs without using an external means to assist him or her, cannot satisfy the criterion because he or she has the ability to do so, notwithstanding the obvious and substantial impairment of that ability. He or she is not "unable". The use of the qualification of "without" a form of external assistance demonstrates that Table 9.7 does not contemplate some other qualification to the ordinary meaning of "unable" to bring within it a situation of the successful 10 minute struggle to negotiate the three stairs unaided.
38 As I have explained above, I do not consider that the words "or more", in describing the number of stairs, can be read as meaning "at least", because both "or more" and "at least" would be unnecessary surplusage if the criterion had been intended to prescribe simply three stairs. Rather by leaving open the relevant number of stairs, and the description of the characteristics of the ramp, the criterion gave the decision-maker a discretion as to the nature and extent of the task, being no less than three stairs or a ramp the inclination and length of which the decision-maker was free to decide, which the claimant had to demonstrate that he or she was unable to perform.
39 The issue is whether the power to prescribe the criteria in the Guide permitted the creation of a discretion in the decision-maker to select the number of stairs or particular ramp that the claimant had to be unable to negotiate without using the specified external assistance.
40 I am of opinion that Table 9.7 does not fix an objective standard for the number of stairs or characteristics of the ramp that a claimant must be unable to negotiate without use of an external aid. Rather, it leaves to the decision-maker the unfettered power to determine whether more than three steps will suffice, and then how many or what particular ramp must be negotiated. That discretion is not within the concept of a criterion because it leaves to the decision-maker an ad hoc power to decide from case to case as to whether some particular number of stairs or some particular ramp is, or is not, the yardstick by which to measure the claimant's ability or lack of ability: Racecourse Co-operative 142 CLR at 480-481; Herald-Sun 156 CLR at 4; Television Corporation 109 CLR at 71; Telstra 176 FCR at 193-194 [159]-[161]. Accordingly, the criteria for 5% and 10% impairment Table 9.7 are invalid since they cannot operate without two minimum criteria.
41 This makes it unnecessary to consider the proportionality argument. As I pointed out during the course of oral argument, it would be difficult to assess that argument without the benefit of expert evidence as to the appropriateness of the criteria that are challenged. The SRC Act only adopts the "whole person impairment" approach with respect to permanent impairments resulting from each "injury": Canute 226 CLR at 548 [37]. The appropriateness of the percentage assessment of the relative degree of impairment from a particular injury selected in the Guide is not readily susceptible of evaluation without expert evidence.