30 Accepting the documentary evidence before the court as the whole of the relevant material before the Council at the time it granted consent, one cannot escape the fact that none of it makes reference to cl 32(2) and its application or the 60% requirement. In the absence of any other evidence, this provides the foundation for a conclusion that the Council failed to consider cl 32(2) of the LEP and failed to form the requisite opinion of satisfaction as to the 60% requirement. In my opinion, the inference should have been drawn."
27 The following paragraphs in Stein JA's judgment deal with matters upon which reliance was placed in that case to demonstrate that the Penrith City Council had considered LEP 231 and his Honour's reasons for his conclusion that that material did not displace the inference that the clause had not been considered by the Council.
28 The pre-conditions to consent considered in Currey [10] and Frankins [11] were significantly different from clause 10(3) of the LEP, which required the Council to form "the opinion that the carrying out of the development [was] consistent with the objectives of the [Residential] zone" before issuing the approval.
29 Clause 10 of the LEP, including clause 10(3), is a provision of general application to all land to which the LEP applies, irrespective of its zoning. The objectives specified for the various zones, including those specified for the Residential 2 zone, are general provisions imposing general standards for appropriate development in the respective zones. The objectives for each zone provide the essential context, together with any applicable DCP, for the Council's consideration of every development application relating to land in that zone. More particularly, the objectives of the Residential 2 zone and the DCP provide the essential context for the Council's consideration of every development application relating to land in the Residential 2 zone.
30 However, clause 17 of the LEP is relevantly similar to the pre-conditions considered in Currey [12] and Franklins [13] . The Council was undoubtedly aware that the material property is in a Foreshore Scenic Protection Area. That was the reason why development consent was necessary according to the Development Control Table for "Zone No.2 - Residential Zone". The critical question is whether the Council was also aware that, by virtue of clause 17 of the LEP, it could not grant consent to the development even if it met the general objectives of the Residential 2 zone and the requirements of the DCP "unless it [was] satisfied that the development [would] not have a detrimental effect on the amenity of the Foreshore Scenic Protection Area." In other words, was the Council aware that any detrimental effect of the development on the Foreshore Scenic Protection Area was not merely a factor for it to consider when deciding whether or not to grant the applications but an absolute bar to a decision to issue the approval?
31 Since clause 10(3) and clause 17 of the LEP subjected the Council's power to issue the approval to cumulative pre-conditions, this appeal must be dismissed unless the Council establishes not only that the Land and Environment Court erred in inferring that the Council "failed to address its mind to clause 10" but that it also erred in inferring that the Council "failed to address its mind to ... clause 17 of the LEP". It is unnecessary to consider whether the Land and Environment Court erred in inferring that the Council had not considered clause 10(3) unless it is established that that Court erred in inferring that the Council had not considered clause 17.
32 The Council has not persuaded the Court of error in the approach or conclusion of the Land and Environment Court in so far as it concerned clause 17 of the LEP. On the contrary, we consider that the Land and Environment Court's approach to the question whether the Council had considered clause 17 of the LEP was consistent with this Court's approach in Currey [14] and Franklins [15] and its conclusion was correct. Having regard to the nature of the pre-condition to consent imposed by clause 17, the absence of any reference to that issue in the Council's minutes or that material before it when it made its decision and the omission to call evidence that clause 17 was considered give rise to the inference that the Council did not consider the clause unless there is other evidence which supports the opposite conclusion.
33 The Council's arguments for the Land and Environment Court's inference that the Council did not satisfy itself that the development would not have a detrimental effect on the amenity of the Foreshore Scenic Protection Area as required by clause 17 being flawed were in substance three.
34 First, it was argued that the Land and Environment Court had misconstrued and misapplied the effect of the decisions in Currey [16] and Franklins [17] . It is necessary to follow through the reasoning of the Court.
35 The Court recorded Mr Hortis' case that the Council did not give proper consideration to clause 10(3) and clause 17, a case involving that the requirements of the clauses were "mandatory statutory prerequisites" requiring an opinion and satisfaction " before addressing the question of whether or not to grant consent on the merits". It considered in some detail Currey [18] , Clifford v Wyong Shire Council [19] and Franklin s [20] . In relation to Currey [21] it said that the facts were very similar to the facts in the instant case, and at the beginning of the consideration of that case said -
"The Court of Appeal held that consideration of cl 19(5) and its exception in cl 19(6) should occur before the weighing of the merit considerations under s 90. In the absence of any other evidence, the inference should be drawn that the Council did not address its mind to cl 19(5) and cl 19(6) and, accordingly, the prohibition operated and the development was prohibited under s 91(2) of the EP&A Act. The development application for the subdivision was declared invalid. The Court (with Mason P and Handley JA agreeing with the judgment delivered by Stein JA), applied the decisions in North Sydney Council v Ligon 302 Pty Limited (1995) 185 CLR 470, Parramatta City Council v Hale (1982) 47 LGRA 319, Sommerville v Dalby (1990) 69 LGRA 422m and Clifford & Anor v Wyong Shire Council (1996) 89 LGERA 240)."
36 The Court then set out (again) cl 10 and cl 17, and said -
"It is clear from reading these two clauses that they both contain pre-conditions that the council must form an opinion (cl 10) and satisfy itself (cl 17) in order for the development to be permissible (that is, not prohibited). This must occur before consideration of matters under s 90 of the EP&A Act. Thus the relevant question is whether, in the absence of any other evidence, the Court should draw the inference that the Council failed to address its mind to cl 10 and cl 17 of the LEP."
37 It was then said that in order to answer the question "a thorough examination of the evidence is required", and in point form the evidence on which Mr Hortis, the Council and Mr Mailman respectively relied was set out.
38 The Court then said -
" Did Council consider the pre-conditions ?
Both respondents have relied on the Court presuming regularity in the Council's determination.
Stein JA in Franklins addressed this point specifically (at par 28):
'Before coming to the often difficult issue of whether the inference of failure to consider or form the requisite opinion should be drawn, it is convenient to deal with the question of the relevance of the presumption of regularity. As mentioned earlier, Bignold J thought it appropriate to apply the presumption and not to draw the inference urged by the appellant. In my opinion, the presumption of regularity has no place in a case such as this. What is here involved is a question of power. If the pre-condition in cl 32(2) was not satisfied, then Council had no power to grant consent. The existence of the mental state of satisfaction is an "essential condition" or preliminary to the exercise of the power … Accordingly, the Land and Environment Court and this court on appeal can review whether the Council held the requisite satisfaction. The presumption of regularity has no part to play in this consideration.'
The submission of the respondents also concentrated on the general or local knowledge of the Councillors. This included submissions as to the lack of complexity of the planning instruments. However, this was deemed to be irrelevant by Stein JA. He states at par 26 of his judgment in Franklins : 'Here local knowledge is irrelevant. What is needed is actual knowledge of the pre-condition of satisfaction to be held by Council.'
Mr Thompson's submissions relied on the evidence from McCarthy's report. Whilst I accept this evidence, it does not go so far as to show that the Council satisfied itself that the pre-conditions contained in cl 10 and cl 17 had been met.
Thus I conclude that there is no real evidence that the Council did, in determining to grant its approval, satisfy itself of the pre-conditions contained in cl 10 and cl 17 of the LEP. Neither clause was identified by McCarthy's report, as an issue requiring the Council's attention, and there is no evidence (from the minutes of the Council's meeting of 29 June 1998) that either pre-condition was satisfied, as required by the planning instrument.
Conclusion on Challenge 8
Following Franklins and Currey , the court must draw from the evidence in this case the inference that the council failed to address its mind to cl 10 and cl 17 of the LEP, and in doing so committed an error of law. The consent granted is, therefore, invalid, in accordance with s 91(2) of the EP&A Act."
39 The argument was put in different ways at different times, but in essence was that the Land and Environment Court had wrongly taken Curre y [22] and Franklins [23] . to require, as a conclusion of law or inevitable fact, that in the absence of evidence that the Council considered satisfaction of the preconditions in clauses 10 and 17, the inference that it did not must be drawn. The error was compounded, it was said, by rejection of the Council's reliance on general or local knowledge when the planning instruments were not complex, or at least not of the complexity of those in Currey [24] and Franklins [25] .
40 We do not think that this argument has substance. The Court well appreciated that it was making a finding of fact on the whole of the evidence, but properly took from Currey [26] and Franklins [27] that satisfaction of a precondition to the weighing of merit considerations was less readily found, and an inference of failure to consider that matter was readily found, in the absence of evidence that the precondition was addressed by the Council. General or local knowledge was insufficient in such a situation. In the Court's conclusion, attacked by the Council on the ground that Currey [28] and Franklins [29] did not require that the inference must be drawn that the Council failed to address its mind to clauses 10 and 17, the Court was making a finding of fact on the evidence, not stating a conclusion of law or inevitable fact.
41 The second argument was that there was no evidence upon which the Land and Environment Court could legitimately have inferred that the Council failed to consider clause 17 of the LEP. That submission must be rejected. In the absence of any other evidence, the lack of any reference to clause 17 in the Council's minutes or the material before the Council at is meeting would provide "the foundation for a conclusion that the Council failed to consider cl[17] of the LEP and failed to form the requisite opinion of satisfaction….". [30]
42 The third argument was also put in different ways at different times, but in substance amounted to a submission that the Land and Environment Court failed to take relevant matters, including material evidence, into account and made erroneous assumptions in drawing the inference that the Council had failed to consider whether it was satisfied that the development would not have a detrimental effect on the amenity of the Foreshore Scenic Protection Area. It overlapped the first argument.
43 This argument took as its starting-point what was said to be the lack of complexity in clause 17 of the LEP and the councillors' "expertise, local knowledge and knowledge of the issues acquired in the lead up to the final determination", i.e., in the course of deciding the two earlier applications in 1995 and 1996. It was submitted that the material available to the Council included not only the contents of "its files, reports and the like" but also the decisions of Assessors Roseth and Bull in the Land and Environment Court. Reliance was also placed upon the issues raised in the objections and letters forwarded to the Council by Mr Hortis and his solicitors.
44 The matters enumerated in the argument, and comments upon them, were as follows. The matters were enumerated in relation to both clause 10(3) and clause 17; it is appropriate to go to them all, although as will be seen some could be relevant only to clause 10(3).
45 First, it was said that the Land and Environment Court had found that the Council was aware of the provisions of the LEP and DCP. This was not accurate. It had found that the Council was aware of particular clauses of the DCP, but made no specific finding of awareness of the provisions of the LEP. No doubt general awareness of the LEP could be assumed, but it is a different thing to assume knowledge of clause 17 and its particular effect, namely, that there was no power to grant consent unless the Council was satisfied that the development would not have a detrimental effect on the amenity of the Foreshore Scenic Protection Area.
46 Secondly, it was said that the decisions of the Assessors were within the Council's collegiate knowledge and referred specifically to "the clause 17 foreshore protection area provisions". This also was not accurate. The reference to the Foreshore Scenic Protection Area was in the decision of Assessor Bull, and it was in a passage in which he concluded that the planning standards for floor space ratio and landscaped area did not relate solely to the relationship to the neighbouring dwelling but went to -
" … the location of the site within the Foreshore Scenic Protection Area and Subzone 7 under the DCP where greater emphasis is now placed in the planning framework on landscape and building quantity and quality, and protection of the environment through a limitation on overall building mass".
This did not call up clause 17 for consideration.
47 Thirdly, it was said that the Land and Environment Court had found that the Council had considered "the objectives of" the LEP when determining to grant development consent. It did, but that did not support regard to clause 17.
48 Fourthly, it was said that the Council had "twice previously considered giving consideration to [sic] the LEP considerations when determining the earlier applications, such that those matters were within the Collegiate mind of the Council". This was based on recommendations to the Council that the earlier applications be refused inter alia because "the proposal is considered contrary to the aims and objectives of Manly Local Environmental Plan 1988 as amended". Again, it did not support regard to clause 17.
49 Fifthly, it was said that on the day before the relevant meeting that Mr Hortis had specifically drawn to the attention of the councillors "the content of the decision of the assessors referring to both the clause 10 and clause 17 requirements". In relation to clause 17, this added nothing to the second matter.
50 Sixthly, it was said that "the content of the relevant clauses was specifically drawn to councillor's attention by the objector's solicitor's letter of 21 April 1998 which was delivered to councillors the day before the decision was made". This again was inaccurate. The letter relevantly said that the earlier applications had been rejected "because of the contravention of the provision [sic] of the DCP and LEP", citing part of the passage from the decision of Assessor Bull earlier set out. This did not draw attention to the content of clause 10 or clause 17; it did not support regard to clause 17.
51 Seventhly, it was said that the letter of 21 April 1988 and the location of the property within the Foreshore Scenic Protection Area were identified as matters of significance for councillors in the town planner's report before the Council. This added nothing to the sixth matter.
52 Eighthly, it was said that the councillors had visited the property. They had, but that did not support regard to clause 17.
53 There might be considerable force in this argument in relation to the Land and Environment Court's inference that the Council did not consider clause 10(3) of the LEP but that is not the issue of immediate concern. Nor is it significant for present purposes that the Council undoubtedly knew that the land to which the applications relate was in a Foreshore Scenic Protection Area so that development consent was required. The question is whether the material relied on by the Council provides support for an inference that it was aware of the specific issue which was of critical importance; namely that it had no power to grant consent unless it was satisfied that the development would not have a detrimental effect on the amenity of the Foreshore Scenic Protection Area.
54 As appears from what we have earlier said, an argument to similar effect was considered in detail and rejected by the Court in Franklins . [31] Both Currey [32] and Franklins [33] demonstrate that an inference that a consent authority considered a specific precondition to its power to grant a development consent will not normally be derived from material which demonstrates no more than that the consent authority was aware of the issues which were relevant to its decision whether or not to grant consent if it had power to do so. In the present case, it is unnecessary to do more than emphasise a point made by Stein JA in Currey . [34] In the absence of express reference to the effect of clause 17 of the LEP in the extensive information available to the Council, that material was unlikely to assist it. The extent of the available information combined with the absence of any reference to clause 17 was more likely to cause the Council to overlook that clause 17 prohibited the Council from granting consent to the development unless it was satisfied that it would not have a detrimental effect on the Foreshore Scenic Protection Area.
55 The Council's challenge to the Land and Environment Court's inference that the Council did not consider clause 17 of the LEP should be rejected.
56 Accordingly, its appeal should be dismissed, with costs.
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End Notes
1. A generally similar scheme, with differently numbered sections, was in force prior to 1 July 1998.
2. (1998) 100 LGERA 365.
3. (1999) (NSWCA 134, 13 May 1999).
4. (1998) 100 LGERA 365.
5. (NSWCA 134, 13 May 1999).
6. (1998) 100 LGERA 365.
7. 100 LGERA 365, 373.
8. 100 LGERA 365, 375.
9. (1999) NSWCA 134.
10. 100 LGERA 365
11. (1999) NSWCA 134.
12. 100 LGERA 365.
13. (1999) NSWCA 134.
14. 100 LGERA 365.
15. (1999) NSWCA 134.
16. (1998) 100 LGERA 365.
17. (1999) (NSWCA 134, 13 May 1999).
18. (1998) 100 LGERA 365.
19. (1996) 89 LGERA 240.
20. (1999) (NSWCA 134, 13 May 1999).
21. (1998) 100 LGERA 365.
22. (1998) 100 LGERA 365.
23. (1999) (NSWCA 134, 13 May 1999).
24. (1998) 100 LGERA 365
25. (1999) (NSWCA 134, 13 May 1999).
26. (1998) 100 LGERA 365.
27. (1999) (NSWCA 134, 13 May 1999).
28. (1998) 100 LGERA 365.
29. (1999) (NSWCA 134, 13 May 1999).
30. Franklins (1999) NSWCA 134, para. 30.
31. (1999) NSWCA 134.
32. 100 LGERA 365.
33. (1999) NSWCA 134, paras. 31 - 35.
34. 100 LGERA 365, 375.