(1998) 152 ALR 418
Anvil Hill Project Watch Association Inc v Minister for Environment and Water Resources (2008) 166 FCR 54
[2008] FCAFC 3
Attorney General (NSW) v Quin (1990) 170 CLR 1
[1990] HCA 21
Australian Conservation Foundation v Minister for Resources (1989) 76 LGRA 200
(1989) 19 ALD 70
Source
Original judgment source is linked above.
Catchwords
(1998) 152 ALR 418
Anvil Hill Project Watch Association Inc v Minister for Environment and Water Resources (2008) 166 FCR 54[2008] FCAFC 3
Attorney General (NSW) v Quin (1990) 170 CLR 1[1990] HCA 21
Australian Conservation Foundation v Minister for Resources (1989) 76 LGRA 200(1989) 19 ALD 70[1989] FCA 794
Australian Conservation Foundation v The Commonwealth (1980) 146 CLR 493[1980] HCA 53
Australian Heritage Commission v Mount Isa Mines (1997) 179 CLR 297[1997] HCA 10
Bateman's Bay Local Aboriginal Land Council v Aboriginal Community Benefit Fund Pty Ltd (1998) 194 CLR 247[1998] HCA 49
Bridgetown-Greenbushes Friends of the Forest Inc v Executive Director (1997) 18 WAR 126(1997) 94 LGERA 380
Buck v Bavone (1976) 135 CLR 110[1976] HCA 24
Caldera Environment Centre Incorporated v Tweed Shire Council [1993] NSWLEC 102
El Khouri v Gemaveld Pty Limited (2023) 256 LGERA 24[2023] NSWCA 78
Haughton v Minister for Planning (2011) 185 LGERA 373[2011] NSWLEC 217
Hossain v Minister for Immigration and Border Protection (2018) 264 CLR 123[2018] HCA 34
Initial Action Pty Ltd v Woollahra Council (2018) 236 LGERA 256[2018] NSWLEC 118
Lo v Chief Commissioner of State Revenue (2013) 85 NSWLR 86
[2013] NSWCA 180
Minister for Aboriginal Affairs v Peko-Wallsend Limited (1986) 162 CLR 24
[1986] HCA 40
Minister for Immigration and Citizenship v Li (2013) 249 CLR 332
[2013] HCA 18
Mundine v Forestry Corporation NSW [2022] NSWLEC 140
Muswellbrook Council v Hunter Valley Energy Pty Ltd (2019) 238 LGERA 295
[2021] HCA 17
Nathanson v Minister for Home Affairs (2022) 96 ALJR 737
[2022] HCA 26
North Coast Environment Council Inc v Minister for Resources (No 2) (1994) 55 FCR 492
[1981] HCA 50
Robinson v Western Australian Museum (1977) 138 CLR 283
[1977] HCA 46
Ross v Lane (2022) 255 LGERA 136
[2022] NSWCA 235
Shellharbour City Council v Minister for Planning (2011) 189 LGERA 348
[2011] NSWCA 195
South Pacific Air Motive Pty Ltd v Magnus (1998) 87 FCR 301
(1998) 157 ALR 443
Stanley v Director of Public Prosecutions (NSW) (2023) 407 ALR 222
[2023] HCA 3
Timbarra Protection Coalition v Ross Mining (1999) 46 NSWLR 55
[1999] NSWCA 8
Trives v Hornsby Shire Council (2015) 89 NSWLR 268
[2015] NSWCA 158
VicForests v Kinglake Friends of the Forest Inc (2021) 395 ALR 367
Minister for Immigration and Citizenship v Li (2013) 249 CLR 332; [2013] HCA 18
Mundine v Forestry Corporation NSW [2022] NSWLEC 140
Muswellbrook Council v Hunter Valley Energy Pty Ltd (2019) 238 LGERA 295; [2019] NSWCA 216
Muswellbrook Shire Council v Hunter Valley Energy Coal Pty Ltd [2017] NSWLEC 184
MZAPC v Minister for Immigration and Border Protection (2021) 273 CLR 506; [2021] HCA 17
Nathanson v Minister for Home Affairs (2022) 96 ALJR 737; [2022] HCA 26
North Coast Environment Council Inc v Minister for Resources (No 2) (1994) 55 FCR 492; (1994) 85 LGERA 270
North Queensland Conservation Council Inc v Executive Director, Queensland Parks & Wildlife Service [2000] QSC 172
Onus v Alcoa of Australia Ltd (1981) 149 CLR 27; [1981] HCA 50
Robinson v Western Australian Museum (1977) 138 CLR 283; [1977] HCA 46
Ross v Lane (2022) 255 LGERA 136; [2022] NSWCA 235
Shellharbour City Council v Minister for Planning (2011) 189 LGERA 348; [2011] NSWCA 195
South Pacific Air Motive Pty Ltd v Magnus (1998) 87 FCR 301; (1998) 157 ALR 443
Stanley v Director of Public Prosecutions (NSW) (2023) 407 ALR 222; [2023] HCA 3
Timbarra Protection Coalition v Ross Mining (1999) 46 NSWLR 55; [1999] NSWCA 8
Trives v Hornsby Shire Council (2015) 89 NSWLR 268; [2015] NSWCA 158
VicForests v Kinglake Friends of the Forest Inc (2021) 395 ALR 367; (2021) 248 LGERA 28; [2021] VSCA 195
Woolworths Ltd v Pallas Newco Pty Ltd (2004) 61 NSWLR 707; [2004] NSWCA 422
Texts Cited: Coastal Integrated Forestry Operations Approval 2018 (published by NSW Environment Protection Authority, November 2018)
Mark Aronson et al, Judicial Review of Administrative Action and Government Liability (7th ed, 2022, Thomson Reuters (Professional) Australia Limited)
Leeming, Authority to Decide: The Law of Jurisdiction in Australia (2nd ed, 2000, The Federation Press)
Category: Principal judgment
Parties: North East Forest Alliance Incorporated (INC 1601738) (Applicant)
Forestry Corporation of NSW (Respondent)
Representation: Counsel:
M R Hall SC with N Hammond and P Hart (Applicant)
I Hemmings SC with J McKelvey (Respondent)
Solicitors:
Environmental Defenders Office (Applicant)
Norton Rose Fulbright Australia (Respondent)
File Number(s): 2023/239296
Publication restriction: Nil
[2]
JUDGMENT
Introduction
NEFA's notice of motion seeking interlocutory relief, and FCNSW's undertakings
FCNSW's notice of motion seeking summary dismissal
The hearing on 14 August and 7 September 2023
Outcome of the Class 4 proceedings
Factual background
Relevant provisions of the Forestry Act
The CIFOA
The parties' evidence
Documentary evidence
Lay evidence
Expert evidence
Solicitor evidence
The summary dismissal motion: the question of NEFA's standing to bring the proceedings
NEFA's submissions in relation to its standing to bring the proceedings
NEFA's submissions in relation to statutory open standing provisions
FCNSW's submissions in relation to open standing in environmental laws generally
NEFA's submissions in relation to the common law test for standing in Australian Conservation Foundation v The Commonwealth
Connections between organisation and the particular local environment
Long history of involvement and influence
Connection to the subject matter - environmentally sustainable forest management
Recognition by State and federal government bodies
Local community engagement
The importance of the environmental issue in question
FCNSW's submissions in relation to the common law test for standing in Australian Conservation Foundation v The Commonwealth, and generally in relation to NEFA's standing
Conclusions in relation to NEFA's standing to bring the proceedings
The Court's jurisdiction in relation to NEFA's grounds of challenge
NEFA's submissions in relation to the Court's jurisdiction
FCNSW's submissions in relation to the Court's jurisdiction
Conclusions in relation to the Court's jurisdiction/justiciability
Admissibility of expert evidence in relation to Grounds 1 and 3
NEFA's submissions in relation to the admissibility of expert evidence, and whether there arises a jurisdictional fact
FCNSW's submissions in relation to expert evidence in judicial review proceedings
Conclusions in relation to the admissibility of expert evidence
Ground 1: Condition 14 of the CIFOA - the principles of ESFM as a mandatory precondition or consideration, an operative condition or an objective
NEFA's submissions in relation to Ground 1
FCNSW's submissions in relation to Ground 1
Conclusions in relation to Ground 1
Ground 2 - Mandatory consideration: Capacity to comply with the conditions of the CIFOA
NEFA's submissions in relation to Ground 2
FCNSW's submissions in relation to Ground 2
Conclusions in relation to Ground 2
Ground 3: Failure to comply with condition 23.4 and Protocol 5 in relation to obtaining SSOCs
NEFA's submissions in relation to Ground 3
NEFA's first proposition: the SSOC preconditions are necessary preconditions to the SSOC process
NEFA's second proposition: the SSOC preconditions were met in relation to the Braemar and Myrtle State Forests
NEFA's third proposition: FCNSW must seek SSOCs where either or both SSOC preconditions are met and it seeks to conduct forestry operations
NEFA's fourth proposition: the SSOC process relates to the approval of HHPs as they authorise forestry operations
NEFA's fifth proposition: FCNSW's failure to seek SSOCs prior to approving the HHPs results in invalidity
FCNSW's submissions in relation to Ground 3
Conclusions in relation to Ground 3
Materiality
NEFA's submissions in relation to materiality
FCNSW's submissions in relation to materiality
Conclusions in relation to materiality
Conclusions
Costs
Orders
[3]
Introduction
These Class 4 judicial review proceedings concern the decisions of the respondent, Forestry Corporation NSW (FCNSW), by its planning supervisor Mr Matthew Howat, to approve the following "operational plans" within the meaning of condition 53 of the Coastal Integrated Forestry Operations Approval 2018 (CIFOA) granted under Part 5B of the Forestry Act 2012 (NSW) (Forestry Act) for the purpose of carrying out forestry operations:
1. Braemar 006 and 007 post-fire HHP 2023 (Harvest and Haul Plan 200002336) first approved on 29 March 2023 and subsequently varied on 30 May 2023 (the Braemar HHP); and
2. Myrtle 010-016 post-fire HHP 2023 (Harvest and Haul Plan 200001995) approved on 16 May 2023 (the Myrtle HHP).
An operational plan is a document which must be prepared by FCNSW under condition 53 of the CIFOA before forestry operations authorised under the CIFOA can commence to be carried out. The CIFOA came into effect upon execution by the then Minister for the Environment and the then Minister for Lands and Forestry on 16 November 2018. Mr Howat was the relevant FCNSW planning supervisor who "approved and dated" the Braemar HHP and the Myrtle HHP in accordance with condition 53.4(c) of the CIFOA.
There are some 40 protocols to the CIFOA compiled by the NSW Environmental Protection Authority (EPA) (the protocols) which support various requirements in the CIFOA and are to be read in conjunction with the CIFOA and with any relevant statutory provisions: Protocol 1 "Scope and Interpretation" condition 1.1(2). Condition 5.1 of the CIFOA provides that:
5. Protocols
5.1 This approval applies and adopts the protocols, as amended, made public, and in force from time to time.
5.2 A register of protocols is set out in Part 2 of Schedule 1.
5.3 FCNSW must apply, and comply with, a protocol where required by the approval or by another protocol.
By summons filed Thursday, 27 July 2023, the applicant, North East Forest Alliance Incorporated (INC1601738) (NEFA), seeks declarations that each of the Braemar HHP and the Myrtle HHP is invalid and of no effect, orders quashing the purported decisions to approve the plans, and orders restraining FCNSW from proceeding in reliance on them.
In summary, NEFA's grounds of challenge are as follows:
1. Each of the Braemar HHP and the Myrtle HHP fails to address matters that are mandatory pre-conditions to the exercise of the power to approve an operational plan in accordance with condition 53 of the CIFOA:
1. specifically condition 14.1 of the CIFOA which requires that forestry operations be carried out in accordance with the principles of ecologically sustainable forestry management (ESFM); and
2. operational requirements in sufficient detail to enable the person proposing to undertake forestry operations to comply with the conditions of the CIFOA, specifically condition 14.1 (Ground 1).
1. Further and in the alternative to Ground 1, in purporting to approve the Braemar HHP and the Myrtle HHP, FCNSW (Mr Howat) failed to consider a mandatory relevant consideration, namely the ability of a person to carry out forestry operations in accordance with the principles of ESFM (Ground 2).
2. FCNSW (Mr Howat) had no power to approve the Braemar HHP and the Myrtle HHP in circumstances where following bushfires that took place in NSW in 2019/2020 (the 2019/2020 bushfires), the circumstances described in condition 23.4 of the CIFOA were engaged, requiring FCNSW to comply with the requirements of condition 23.4 and Protocol 5 to the CIFOA in relation to obtaining site-specific operating conditions (SSOCs), but failed to do so (Ground 3).
[4]
NEFA's notice of motion seeking interlocutory relief, and FCNSW's undertakings
By notice of motion filed on Thursday, 27 July 2023, NEFA sought the following interlocutory relief (the injunction motion):
1 The time for service of the Summons herein is abridged to 4 pm on [28 July 2023].
2 Service of the Summons, the Notice of Motion dated 27 July 2023, the affidavits of Kimberley Hutchinson and of Dailan Pugh both made on 27 July 2023 and the exhibits thereto may be effected by emailed electronic copies to the email addresses of Alix Cameron, General Counsel of FCNSW...
3 FCNSW be restrained, until the claim is determined or until further order, from conducting or authorising the conduct of any forestry operation:
a. In compartments 06 and/or 07 of the Braemar state forest in reliance on the Harvest and Haul Plan number 200002336 dated 30 May 2023 or any harvest and haul plan to like effect; and
b. In compartments 10 to 16 inclusive of the Myrtle state forest in reliance on the Harvest and Haul Plan number 200001995 dated 16 May 2023 or any harvest and haul plan to like effect.
4 FCNSW pay NEFA's costs of the motion dated 27 July 2023.
5 Order 3 be entered immediately and a sealed copy of the order as entered be released to NEFA for service.
On Friday, 28 July 2023, Robson J as duty judge made Orders 1 and 2. The need for the relief sought in Order 3 to be determined on that occasion was removed as FCNSW gave a limited undertaking to NEFA to suspend harvesting operations under the Braemar HHP and the Myrtle HHP until close of business on 2 August 2023, being the next listing date. On Wednesday, 2 August 2023, FCNSW provided a further undertaking to suspend harvesting operations under the Braemar HHP and the Myrtle HHP until Monday, 14 August 2023, being the date of the commencement of the hearing before me.
On Monday, 14 August 2023, FCNSW extended its undertaking to NEFA until 15 August 2023. On Tuesday, 15 August 2023, FCNSW informed the Court that it would extend its undertaking until the delivery of judgment in this proceeding. Therefore, it does not arise for me to determine the injunction motion.
[5]
FCNSW's notice of motion seeking summary dismissal
By notice of motion filed on Tuesday, 1 August 2023, FCNSW sought the following orders (the summary dismissal motion):
1 Pursuant to rule 13.4(1)(c) of the Uniform Civil Procedure Rules 2005 (NSW), the whole of the proceedings are summarily dismissed.
2 In the alternative, pursuant to rule 14.28 of the Uniform Civil Procedure Rules 2005 (NSW), the whole of NEFA's Summons be struck out.
3 NEFA pay FCNSW's costs of the motion.
4 Such further or other orders as the Court deems fit.
[6]
The hearing on 14 August and 7 September 2023
At the hearing on Monday, 14 August 2023, FCNSW agreed that the Court should deal with its summary dismissal motion together with the determination of the substantive proceedings.
At the hearing on 14 and 15 August and 7 September, and in written submissions, there was ventilated by the parties the issue raised by FCNSW's summary dismissal motion of NEFA's standing to bring the proceedings and the issue of the Court's jurisdiction to hear and determine the proceedings.
[7]
Outcome of the Class 4 proceedings
There were filed lengthy written submissions by both parties. These voluminous submissions have been summarised in these reasons for judgment.
In summary, I have determined as follows:
1. In relation to the question of NEFA's standing, NEFA has standing at common law to bring the proceedings.
2. In relation to the question of the Court's jurisdiction, the decision of a FCNSW planning supervisor to approve an operational plan made pursuant to the embedded authority in condition 53 of the CIFOA enlivens the power of the Court to entertain an application for judicial review of the decision.
3. In relation to the admissibility of expert evidence, the evidence of neither expert is relevant to the issues raised in the proceedings and is inadmissible. Expert evidence is sought to be relied on by NEFA in relation to each of Grounds 1 and 3, and NEFA contends that each of those grounds raises a jurisdictional fact. I have concluded that neither of those grounds raises a jurisdictional fact and that, in any event the expert evidence would not assist in the determination of any such jurisdictional fact.
4. In relation to Ground 1, condition 14.1 is an objective of the CIFOA and not an operative condition. Consideration of the achievement of the principles of ESFM in the making of an operational plan is not a jurisdictional fact to be determined by the Court with the function of reviewing a decision of FCNSW to approve an operational plan.
5. In relation to Ground 2, the effect of condition 53 of the CIFOA is not to make the capacity of a person carrying out a proposed forestry operation to comply with the CIFOA in the manner contended by NEFA a mandatory consideration. In particular, I do not consider that condition 14 which sets out the general objectives of the approval is a mandatory consideration in the determination by the FCNSW planning supervisor to approve an operational plan.
6. In relation to Ground 3, condition 23.4 of the CIFOA required FCNSW to comply with the requirements of condition 23.4 and Protocol 5 to the CIFOA in relation to obtaining site-specific operating conditions. NEFA has not established that the process of obtaining site-specific operating conditions applies to the approval of operational plans which authorise forestry operations. Properly construed, each of conditions 53 and 23 of the CIFOA involves a distinct exercise of power. Nor are circumstances referred to in the chapeau to condition 23.4 jurisdictional facts.
[8]
Factual background
The following factual background is derived from an agreed chronology and supplemented by the material in the evidence book filed in the proceedings.
On 5 June 1989, NEFA was formed. NEFA's key aims were "to protect old growth forest, wilderness, rainforests and threatened species in the [N]orth [E]ast of NSW". NEFA did not become an incorporated association until 26 November 2016. The objectives of the incorporated association were agreed by its members to be as follows:
• To work for the protection of the public native forests of Northeast NSW.
• To campaign to protect:
- old growth, old hollow-bearing trees,
- rainforests, rare forest ecosystem types,
- wilderness,
- threatened species and their habitat,
- the capacity of native forests of Northeast NSW to supply clean and abundant water.
• To promote the urgent necessity of restoring the carbon storage capacity of native forests of Northeast NSW to mitigate climate change.
• To raise public awareness of the values of Northeast NSW native forests and to foster research into same.
• To support other groups working to conserve native forests in other areas.
• To audit and monitor forest operations and
• To be committed to non-violent action to persons and property in the pursuit of our goals.
On 16 November 2018, the Minister for the Environment and the Minister for Lands and Forestry granted the CIFOA pursuant to Part 5B of the Forestry Act.
On 20 August 2019, and prior to the 2019/2020 bushfires, Mr Matthew Kinny of FCNSW approved Braemar 006-007 HHP, plan ID HP_BRAEMAR_BRA007_2019 (2019 Braemar HHP). It was common ground that the forestry operations the subject of these proceedings did not commence to be carried out under the 2019 Braemar HHP.
Between October and December 2019, the 2019/2020 bushfires commenced. The Braemar and Myrtle State Forests were severely burnt as a result of the 2019/2020 bushfires. According to a report prepared by the NSW Natural Resources Commission (NRC), titled "NSW Forest Monitoring and Improvement Program: Insights for NSW forest outcomes and management", dated November 2022, (November 2022 NRC report) the 2019/2020 bushfires "were unprecedented in their extent and severity, resulting in the largest total area burnt in a single recorded fire season in eastern Australia". The 2019/2020 bushfires "also had extensive impacts on the habitat of hundreds of species".
[9]
Relevant provisions of the Forestry Act
The current structure of regulation of forestry operations in New South Wales was introduced by amendments to the Forestry Act effected by way of the Forestry Legislation Amendment Act 2018 (NSW). In Part 5B of the Forestry Act as amended, s 69M permits the granting of "integrated forestry operations approvals" (IFOAs). IFOAs may only be granted jointly by the Minister for the Environment and the Minister for Lands and Forestry (s 69N(1)).
FCNSW is constituted a corporation by s 5 of the Forestry Act. Section 10(1) provides that the principal objectives of FCNSW are as follows:
(a) to be a successful business and, to this end -
(i) to operate at least as efficiently as any comparable businesses, and
(ii) to maximise the net worth of the State's investment in the Corporation,
(b) to have regard to the interests of the community in which it operates,
(c) where its activities affect the environment, to conduct its operations in compliance with the principles of ecologically sustainable development contained in section 6(2) of the Protection of the Environment Administration Act 1991,
(d) to contribute towards regional development and decentralisation,
(e) to be an efficient and environmentally sustainable supplier of timber from Crown-timber land and land owned by it or otherwise under its control or management.
In accordance with s 10(2) each of the principal objectives of FCNSW is of equal importance. Section 11(1) of the Forestry Act specifies the principal functions of FCNSW, including in s 11(1)(a) to "carry out or authorise the carrying out of forestry operations in accordance with good forestry practice on Crown-timber land or land owned by the Corporation".
The expression "forestry operations" is defined in s 3 of the Forestry Act as:
(a) logging operations, namely, the cutting and removal of timber from land for the purpose of timber production, or
(b) the harvesting of forest products, or
(c) ongoing forest management operations, namely, activities relating to the management of land for timber production such as thinning, burning and other silvicultural activities and bush fire hazard reduction, or
(d) ancillary activities to enable or assist in the above operations such as the provision of roads, snig tracks, waterway crossings and temporary timber storage facilities.
In Part 5B, "integrated forestry operations approvals" s 69M provides in relation to the granting of IFOAs for the carrying out of forestry operations to which Part 5B applies:
69M Granting of approvals
(1) Approval for the carrying out of forestry operations to which this Part applies may be granted under this Part. Such an approval is called an integrated forestry operations approval.
(2) This Part does not prevent or affect the carrying out of forestry operations authorised by or under any other provision of this Act or any other Act or law. However, the carrying out of forestry operations to which an integrated forestry operations approval applies is subject to the terms of the approval.
[10]
The CIFOA
The text in relation to the granting of the CIFOA of approval to carry out forestry operations provides:
We, the undersigned Ministers, pursuant to Part 5B of the Forestry Act 2012:
1. revoke the Integrated Forestry Operations Approval for the Eden Region, the Integrated Forestry Operations for the Southern Region, the Integrated Forestry Operations Approval for the Upper North East Region and the Integrated Forestry Operations Approval for the Lower North East Region; and
2. grant approval for the carrying out of forestry operations in accordance with the conditions of this approval (the Integrated Forestry Operations Approval for the Coastal Region),
upon the later of the two dates on which this instrument is signed by the Ministers, or if the instrument is signed by both Ministers on the same date, on that date of signing.
In Chapter 1 of the CIFOA, in Division 1 condition 3.1 provides in relation to the interpretation of the CIFOA as follows:
3. General interpretation rules
3.1 The approval, and each protocol, is to be interpreted in accordance with the General Interpretation Rules set out in Part 1 of Schedule 1.
In Part 1 of Schedule 1, condition 124.1 provides that "in the approval and in each protocol, unless expressed to the contrary, a reference to: (e) the approval is to the approval as amended from time to time" and "(f) any protocol is to the protocol as amended from time to time".
Condition 5.1 also provides that the CIFOA "applies and adopts the protocols, as amended, made public, and in force from time to time". Condition 5.3 provides:
5.3 FCNSW must apply, and comply with, a protocol where required by the approval or by another protocol.
In relation to construing the CIFOA, condition 7 provides:
7. Most stringent condition applies
7.1 FCNSW must comply with the conditions of the approval and the protocol, as applicable.
7.2 If in a specific circumstance or location, more than one requirement of the approval or a protocol applies, the most stringent of the requirements must be complied with.
7.3 If it is unclear which requirement is the most stringent, FCNSW must seek advice in writing from the EPA on which requirement must be complied with, and comply with that requirement.
The terms of the CIFOA are set out in Division 2 of Chapter 1.
In relation to the duration of the CIFOA, condition 11.2 provides that "[t]he approval has effect for a period of 20 years from the commencement of the approval, unless otherwise revoked by the Ministers."
[11]
Documentary evidence
NEFA tendered documents including correspondence in relation to NEFA's grounds of review, historical correspondence and media excerpts in relation to NEFA's standing, and the November 2022 NRC report referred to at [20] above.
FCNSW tendered two statements of reasons in relation to the Braemar HHP and the Myrtle HHP, dated 8 August 2023 and 9 August 2023 respectively (the statements of reasons). The statements of reasons set out the background to each of the Braemar and Myrtle HHPs, the steps taken by Mr Howat in reviewing draft copies of the HHPs, the documents available to Mr Howat when reviewing the HHPs, and the "material matters taken into account" by Mr Howat and his reasons for approving each of the HHPs. The statements of reasons provide as follows:
Having had regard to the [Myrtle and Braemar HHPs], the supporting documentation...and the matters discussed above, the Planning Supervisor approved the HHP[s]. In approving the [HHPs]...Mr Howat was satisfied that:
a. The [HHPs] met the requirements of an operational plan under condition 53 of the CIFOA; and
b. The [HHPs] adequately recorded operational details to allow a person carrying out forestry operations to comply with the CIFOA.
FCNSW noted the following in relation to the statements of reasons:
This provision of this Statement of Reasons is without prejudice to the argument of [FCNSW] that the steps referred to in [NEFA's] summons do not constitute 'decisions' for the purposes of the Uniform Civil Procedure Rules 2005 (NSW) or for the purpose of judicial review of such 'decisions'. It is likewise not conceded that the actions described in this Statement of Reasons constitute 'decisions' of any kind or an exercise of a function that is conferred or imposed by a planning or environmental law.
FCNSW also tendered a "final report (updated)" of the NRC titled "Research Program Koala response to harvesting in NSW north coast state forests" dated December 2022 (the December 2022 NRC report).
[12]
Lay evidence
NEFA read three affidavits of Mr Dailan Pugh, president of NEFA, affirmed 27 July 2023, 1 August 2023 and 7 August 2023. In light of FCNSW's objections to Mr Pugh's affidavits, the parties agreed that the affidavits would be read on the limited basis that they are not expert evidence, but only as evidence of NEFA making submissions and carrying out "audits", and not of the facts asserted in the submissions.
Mr Pugh said that NEFA had 35 formal members, some 80 volunteers who volunteer with NEFA on a regular basis, and 1,443 subscribers to NEFA's general email subscription list. Mr Pugh described NEFA's activities which include conducting "audits", "scat surveys" and "vegetation plot surveys" in relation to the presence of listed threatened species in a number of State Forests and private properties in North East NSW and in relation to compliance with logging conditions under regulatory schemes. Mr Pugh expressed concern on behalf of NEFA, based on its audits and surveys in relation to the Braemar and Myrtle State Forests, that forestry operations "will compound the impacts of the 2019-20 bushfires on the remaining koala population and the slaty red gum population in the relevant State Forests".
FCNSW read two affidavits of Mr Deane Kearney, senior manager environment and sustainability employed by FCNSW, affirmed 1 August 2023 and 10 August 2023. Mr Kearney deposed that FCNSW had undertaken "Broad Area Habitat Searches" (BAHS) in some "patches" within the Myrtle and Braemar State Forests in which FCNSW marked 259 koala feed trees for retention in the Myrtle State Forest, and 170 koala feed trees for retention in the Braemar State Forest. Mr Kearney said that under the Myrtle and Braemar HHPs, BAHS would continue across the remainder of the areas to be harvested as it had in the patches covered as at August 2023. The BAHS were also expected to identify "wildlife habitat clumps" (WHC) as well as "tree retention clumps" (TRC) in each of the Myrtle and Braemar State Forests which were "likely to contain significant numbers of koala browse trees".
[13]
Expert evidence
NEFA read two affidavits of Dr Stephen Phillips affirmed 31 July 2023 and 7 August 2023. Annexed to Dr Phillips' 7 August 2023 affidavit was an expert report dated 7 August 2023 (Phillips report). Dr Phillips holds a Bachelor of Science (Honours) and a Doctor of Philosophy (PhD) in science. His PhD research focused on the identification and modelling of koala habitat. He has written book chapters and scientific publications on various aspects of koala habitat use and conservation. He is currently the principal research associate at Biolink Ecological Consultants Pty Ltd (Biolink).
In his 31 July 2023 affidavit, Dr Phillips provided his opinion in relation to the ecology of koalas inhabiting the Braemar and Myrtle State Forests and the impact of the 2019/2020 bushfires. On 20 June 2023, Dr Phillips undertook survey work in the Myrtle and Braemar State Forests. The surveys recorded "evidence of active habitat utilisation by koalas at 4 of 5 field sites in the Myrtle State Forest, and at 4 of 6 field sites in the Braemar State Forest…confirm[ing] that there are koalas present within the areas proposed for logging". Dr Phillips expressed the opinion that the Braemar and Myrtle HHPs failed to:
1. mandate protections that will maintain forest values relevant to koalas;
2. apply best available knowledge and adaptive management processes to deliver best-practice forest management;
3. apply the precautionary principle to prevent environmental harm; and
4. prevent a poor environmental outcome for local koala populations.
The reasons given by Dr Phillips in forming this opinion in the 31 July 2023 affidavit, and maintained in the Phillips report, included that:
1. it was "likely that FCNSW [had] insufficient data in relation to both the presence of koalas following the bushfires and how the bushfires [had] impacted local koala populations and habitat", and accordingly, additional surveys were required to "understand the extent and location of habitat being actively utilised by any resident population of koalas" in the Braemar and Myrtle State Forests;
2. the "CIFOA prescriptions, aimed at protecting listed threatened species, such as the koala, do not take into account the impacts of the 2019-20 bushfires"; and
3. there was a "serious risk that no suitable habitat [would] be retained for surviving koala populations in these areas under the CIFOA prescriptions" as the removal of "koala browse trees", defined in Protocol 39 as live healthy trees greater than 30 centimetre "diameter at breast height" (DBH), would "significantly compound the impacts of the 2019-20 bushfires on surviving individuals and local populations of koalas in these areas". Dr Phillips said that his research suggested that koala browse trees such as Grey Gums and Red Gums which are present in the compartments proposed for logging only become palatable to koalas when they exceed a minimum threshold of approximately 30 centimetre DBH.
[14]
Solicitor evidence
FCNSW also read an affidavit of Ms Anneliese Catrina Korber Moriarty, partner of the solicitor for FCNSW, sworn 1 August 2023, deposing to matters in relation to the injunction motion and summary dismissal motion.
[15]
The summary dismissal motion: the question of NEFA's standing to bring the proceedings
A critical question arises as to NEFA's standing to bring these proceedings. By way of its summary dismissal motion filed 1 August 2023, FCNSW sought to have the proceedings summarily dismissed, or the summons struck out, contending that NEFA lacks standing to bring the proceedings. As Craig J observed in Haughton v Minister for Planning [1] (Haughton) at [64], standing and jurisdiction are distinct concepts.
Rule 13.4 of the Uniform Civil Procedure Rules 2005 (NSW) (UCPR) provides in relation to the dismissal of frivolous and vexatious proceedings:
13.4 Frivolous and vexatious proceedings
(1) If in any proceedings it appears to the court that in relation to the proceedings generally or in relation to any claim for relief in the proceedings -
(a) the proceedings are frivolous or vexatious, or
(b) no reasonable cause of action is disclosed, or
(c) the proceedings are an abuse of the process of the court,
the court may order that the proceedings be dismissed generally or in relation to that claim.
(2) The court may receive evidence on the hearing of an application for an order under subrule (1).
Rule 14.28 of the UCPR provides in relation to the circumstances in which the Court may strike out pleadings:
14.28 Circumstances in which court may strike out pleadings
(1) The court may at any stage of the proceedings order that the whole or any part of a pleading be struck out if the pleading -
(a) discloses no reasonable cause of action or defence or other case appropriate to the nature of the pleading, or
(b) has a tendency to cause prejudice, embarrassment or delay in the proceedings, or
(c) is otherwise an abuse of the process of the court.
(2) The court may receive evidence on the hearing of an application for an order under subrule (1).
Section 69ZA of the Forestry Act in relation to the application of statutory provisions relating to proceedings by third parties, and standing to bring proceedings in relation to, inter alia, a breach of Part 5B, is extracted above at [50]. Section 69ZA(3) makes clear that the provision does not apply to proceedings brought by a Minister, the EPA or a member of the staff of the Authority or a government agency or any government official engaged in the execution or administration of the provisions of an Act referred to in s 69ZA(1)(b).
[16]
NEFA's submissions in relation to its standing to bring the proceedings
It was not in dispute that NEFA bears the onus of establishing that it has standing to bring these proceedings. NEFA appears to have put its position in relation to standing as follows:
1. Section 69ZA(1)-(2) of the Forestry Act provides that "proceedings may not be brought under" ss 219, 252 or 253 of the POEO Act or "a provision of an Act that gives any person a right to institute proceedings in a court to remedy or restrain a breach…of the Act or an instrument made under the Act, whether or not any right of the person has been or may be infringed by or as a consequence of that breach". That is, the "open standing" provisions in the POEO Act do not apply to proceedings commenced pursuant to the Forestry Act. However, s 69ZA does not go further to "impose any limitation on standing". Therefore, the question of standing is to be determined by reference to the common law.
2. There is no requirement for standing to be demonstrated in relation to proceedings commenced pursuant to any law enacted for the protection of the environment. That is to say, standing at common law exists in relation to all matters concerning the protection of the environment, whether or not brought pursuant to the POEO Act or any other Act with an open standing provision. NEFA appears to accept that this position is presently unsupported by binding authority, and is to be determined "on any subsequent appeal".
3. In any event, NEFA contends, for present purposes, that it does satisfy the common law test for standing as articulated by the High Court in Australian Conservation Foundation v The Commonwealth (ACF v Commonwealth). [2] It submitted that NEFA has a "sufficient interest" to bring these proceedings.
[17]
NEFA's submissions in relation to statutory open standing provisions
In relation to open standing, NEFA submitted that the "strong trend" in modern environmental statutes has been towards enacting "open standing" provisions. Examples are ss 252 and 253 of the POEO Act, s 193 of the National Parks & Wildlife Act 1974 (NSW) (NPW Act) and s 9.45 of the Environmental Planning and Assessment Act 1979 (NSW) (EPA Act).
NEFA accepted that s 69ZA of the Forestry Act has the effect of displacing such open standing provisions. However, NEFA submitted that the effect of s 69ZA is not to impose any restraint on standing, rather only to prevent NEFA in the present case from taking advantage of statutory liberalisations of the standing test, with the consequence that the question of standing reverts to the common law position.
NEFA submitted that following the introduction of statutory open standing provisions, particularly in ss 252 and 253 of the POEO Act, the development of jurisprudence in respect of the common law test for standing in the enforcement of environmental legislation has slowed. That was said to be "because the issue generally does not arise", and that "[t]he cases indicating the progress of the legal test for standing tend to pre-date the enactment of the POEO Act". Prior to the enactment of the open standing provisions in the POEO Act, a "clear trend of general liberalisation of the standing test was emerging from the case law".
NEFA submitted that there is a "clear statutory trend towards open standing provisions in environmental laws, dispensing with standing as a necessary requirement before a challenge can be brought", which has created a "gravitational pull" on the common law in respect of standing, citing Beaumont J in South Pacific Air Motive Pty Ltd v Magnus. [3] In that case, Beaumont J was considering whether Part IV of the Civil Aviation (Carriers' Liability) Act 1959 (Cth) governed claims by passengers for psychological injuries. His Honour referred to the decision of Olney, Kiefel and Finn JJ in Adelaide Steamship Co Ltd v Spalvins, [4] where the Court said "such is the significance of the Act's provisions in this that their advent has created an entirely new setting to which the common law must now adapt itself". Here, Mr Hall SC for NEFA submitted that "there has been a gravitational effect of the parliaments via statements of a move towards open-standing and the enforcement of environmental protection legislation."
[18]
FCNSW's submissions in relation to open standing in environmental laws generally
In relation to NEFA's contention concerning common law "open standing" in matters concerning the environment, FCNSW submitted that NEFA seeks to "go beyond established common law principles of standing to break new ground". FCNSW submitted that NEFA's concept of common law open standing for enforcement of environmental laws does not accord with binding authority, having regard to the law as stated by Gibbs J in ACF v Commonwealth at 526. In particular, FCNSW submitted as follows:
1. It should not be assumed that because environmental laws in NSW have tended to include open standing provisions, that would have had an influence on the common law position. Rather, the express steps taken by Parliament to include open standing provisions in statutes could be said to demonstrate that it does not reflect the common law, and that the legislature wishes to reserve to itself the ability to decide which matters will be the subject of open standing.
2. It is no answer to say, as NEFA does, that the existence of open standing provisions has led to a lack of development in this area of the common law. In that regard, NEFA's submission is predicated on an assumption that the development of a common law position in relation to open standing for environmental matters was otherwise certain. Such an assumption is without foundation.
3. If anything, the decision to "turn off" open standing provisions in s 69ZA of the Forestry Act suggests a legislative intention to limit the classes of people who may bring proceedings, and the suggestion by NEFA that the common law would nonetheless permit open standing in those circumstances is simply wrong.
[19]
NEFA's submissions in relation to the common law test for standing in Australian Conservation Foundation v The Commonwealth
It was common ground that NEFA's approach to standing in relation to environmental laws is generally unsupported by authority. Accordingly, NEFA accepted that the question of standing is to be determined by reference to the common law.
In ACF v Commonwealth, Gibbs J said at 530 to 531:
I would not deny that a person might have a special interest in the preservation of a particular environment. However, an interest for present purposes does not mean a mere intellectual or emotional concern. A person is not interested within the meaning of the rule, unless he is likely to gain some advantage, other than the satisfaction of righting a wrong, or upholding a principle or winning a contest, if its actions succeeds or to suffer some disadvantage, other than a sense of grievance or a debt for costs, if his action fails. A belief, however strongly felt, that the law generally, or a particular law, should be observed, or that conduct of a particular kind should be prevented, does not suffice to give its possessor locus standi. If that were not so, the rule requiring special interest would be meaningless. Any plaintiff who felt strongly enough to bring an action could maintain it."
NEFA submitted that the above statement, while authoritative, is not a statutory formula. For example, Mason J in ACF v Commonwealth referred to his earlier decision in Robinson v Western Australian Museum [5] as follows (at 547 to 548) (emphasis added):
The cases are infinitely various and so much depends in a given case on the nature of the relief which is sought, for what is a sufficient interest in one case may be less than sufficient in another. In this difficult field there is one proposition which may be stated with certainty. It is that a mere belief or concern, however genuine, does not in itself constitute a sufficient locus standi in a case of the kind now under consideration.
In relation to ACF v Commonwealth, NEFA submitted that:
1. Gibbs J expressly accepted that a person might have a "special interest in the preservation of a particular environment"; [6]
2. Mason J stated that the "mere belief" proposition was confined to cases "of the kind now under consideration"; [7]
3. the test for standing was stated by Gibbs J to be a "broad test" not confined to pecuniary interests, and that the interest need not be unique to the applicant. [8]
[20]
Connections between organisation and the particular local environment
In relation to the connection between the organisation and the particular local environment, NEFA referred to Australian Conservation Foundation v Minister for Resources (ACF v Minister) [11] where Davies J said (at 207):
While the Australian Conservation Foundation does not have standing to challenge any decision that might affect the environment, the evidence establishes that the Australian Conservation Foundation has a special interest in relation to the South-East forests and certainly those areas of the South-East forests that are National Estate. The Australian Conservation Foundation is not just a busy body in this area. It was established and functions with government financial support to concern itself with such an issue. It is pre-eminently the body concerned with that issue. If the Australian Conservation Foundation does not have a special interest in the South-East forests, there is no reason for its existence.
Similarly here, NEFA submitted, it has dedicated its existence to furthering specific protection of the native forests of North East NSW which include the Braemar and Myrtle State Forests, referring to the matters deposed to by Mr Pugh in his 27 July and 1 August 2023 affidavits:
1. NEFA is an alliance of groups and individuals from throughout North East NSW, with its activities generally covering the geographical area from the Hunter River north to the Queensland border, and inland to the eastern edge of the New England Tablelands.
2. Since 2009, NEFA has conducted audits in 19 North East NSW State Forests, including in the Braemar and Myrtle State Forests in order to document and report threatened species, and to assess compliance of logging operations against State regulations.
3. In 2020, NEFA commenced proceedings in the Federal Court, seeking to invalidate the North East NSW Regional Forest Agreement (RFA). The basis of the claim was that when the Commonwealth extended the RFA in 2018, it failed to assess logging impacts on threatened species, old growth forest and the effects of climate change, in the context of the principles of ESFM. If successful in those proceedings, additional regulatory protection for North East forests "may eventuate".
4. With particular reference to the Braemar State Forest, NEFA has a detailed knowledge of and is actively engaged with ESFM issues in relation to logging and the protection of threatened species. It has conducted numerous koala assessments within the relevant forest compartments the subject of the impugned approvals, both prior to and after the 2019/2020 bushfires. It developed a detailed proposal for what it called the Sandy Creek Koala Park which would include the Braemar State Forest "due to the high instances of koalas identified in the area". It communicated its concerns in relation to the proposed logging of Braemar koala habitat in correspondence to the former NSW Premier, and to the NSW Environment Minister on three other occasions.
5. With particular reference to the Myrtle State Forest, NEFA also has a detailed knowledge of and is actively engaged with ESFM issues in relation to logging and the protection of threatened species. Again, it has undertaken multiple koala assessments within the relevant compartments following the 2019/2020 bushfires in order to assess the presence of koalas in the post-bushfire landscape. In 2020, it wrote to the EPA concerning the issuing of SSOCs in relation to the Myrtle State Forest for the same compartments, detailing its concerns in relation to the proposed logging.
6. NEFA funded targeted koala surveys in the post 2019/2020 bushfire context to develop knowledge and expertise in relation to the presence of the listed threatened species in the North East NSW region, including in the Myrtle and Braemar State Forests. The courts have identified such expenditure as a relevant standing consideration. [12]
[21]
Long history of involvement and influence
In relation to the consideration of an organisation's involvement in the issue the subject of proceedings, NEFA referred to the decision of Sackville J in North Coast Environment Council Inc v Minister for Resources (No 2) (North Coast), [13] where his Honour noted the organisation's history of making submissions in relation to exhibited environmental impact statements for forestry and wood chipping activities. Although Sackville J said that that alone would have been insufficient to show a special interest, it was one of a number of factors. His Honour's fifth reason for upholding standing in that case was: [14]
Fifthly, independently of North Coast's long involvement with successive licences granted to Sawmillers, it has made submissions on forestry management issues to the Resource Assessment Commission and has funded a study on old growth forests, focusing upon the Wild Cattle Creek State Forest.
NEFA relied on the following evidence as establishing its "long standing involvement in seeking to protect [N]orth [E]ast NSW forests":
1. One of NEFA's first significant actions was in 1990, prior to its incorporation when a member of NEFA, Mr John Corkhill, successfully brought injunctive proceedings against the then Forestry Commission of NSW in relation to proposed forestry operations in the then North Washpool State Forest near Grafton. There was evidence that the "Commission entered into an agreement with NEFA to rehabilitate rainforest areas in the North Washpool [State Forest that] it had logged".
2. In the early 1990s, NEFA actively participated in "NSW forestry EIS processes", including making "detailed written submissions" in relation to environmental impact statements that had been prepared and the "development of forestry-related protected fauna legislation".
3. In the 1990s, NEFA had "significant" participatory roles in NSW implementation of national forest policy which led to the North East NSW Regional Forest Agreement between the NSW and the Commonwealth governments in 2000.
4. NEFA has conducted numerous "forest audits" (referred to below at [119(2)]).
5. Since 2011, NEFA has widely participated in public consultations and provided submissions relating to native forest management and threatened species, and has prepared reports about "[N]orth [E]ast NSW's forests and their protection".
[22]
Connection to the subject matter - environmentally sustainable forest management
In relation to its "concerns with the subject matter of the decisions and the closeness of its relationship to that subject matter", citing Sackville J in North Coast, NEFA referred to evidence of its activities, including research, advice, lobbying and consultation in relation to the relevant forests. In particular, NEFA referred to evidence which it submitted establishes that:
1. Its objectives are closely connected to the subject matter of the proceedings, "evidently embed the pursuit of ESFM", and particularly include the "protection of public native forests in [N]orth [E]ast NSW"; "to campaign to protect threatened species and their habitat"; and "to audit and monitor forest operations (as against the regulatory scheme)".
2. Its "activities underscore that close connectedness of NEFA with the relevant subject matter."
3. Ms Susie Russell, member of NEFA, represented NEFA as a director of the Forest Stewardship Council Australia (FSC Australia) from 2010 to 2021, serving three terms on the board (members not being permitted to serve longer than three terms). Ms Russell was also elected as Chair of FSC Australia in 2020 for a one year term. NEFA relied on an extract from FSC Australia's website which said that FSC Australia "helps forests remain thriving environments for generations to come, by helping you make ethical and responsible choices at your local supermarket, bookstore, furniture retailer, and beyond" and submitted that the FSC certification provides assurance that "paper or timber came from responsible sources". FSC members include environmental groups as well as social organisations, business, and forest owners and managers. FSC Australia is a national office of FSC International and "ensures that the voice of Australian stakeholders are heard internationally through its membership".
[23]
Recognition by State and federal government bodies
In relation to recognition, including by the grant of financial support, NEFA referred to North Coast where Sackville J (at 513) relied on recognition by the NSW government of the North Coast Environmental Council as one of five reasons for finding standing in that case:
Thirdly, North Coast has been recognised by the Government of New South Wales as a body that should represent environmental concerns on advisory committees. The most important form of recognition for present purposes has been membership of North Coast's nominees on the Forestry Policy Advisory Committee, the role of which is to advise the State Minister on forestry matters, including the management of State forests. This and other forms of participation in official decision-making processes show that the State government has accepted North Coast as a representative of environmental interests.
Here, NEFA submitted, there is no rule that standing depends upon government funding or recognition, citing Bridgetown-Greenbushes Friends of the Forest Inc v Executive Director (Bridgetown) [15] and North Queensland Conservation Council Inc v Executive Director, Queensland Parks & Wildlife Service. [16] In this matter, NEFA submitted, it has been recognised by State and Commonwealth governments as a significant and responsible environmental organisation; [17] has been represented on government committees and working groups in relation to State and Commonwealth regulation of North East forests; and is engaged with regularly by the EPA in relation to site-specific forest research and auditing. In particular, NEFA referred to the following evidence of Mr Pugh:
1. In the 1990s, NEFA had a representative/s on the NSW government's formal advisory group for the purposes of State forestry environmental impact statement processes.
2. It had an active role in the implementation of the "National Forest Policy Statement" in NSW, and in the processes and activities that resulted in the RFA for North East NSW between the NSW and Commonwealth government committees in 2000. It had representatives on four State and/or Commonwealth government "technical committees" established for the "Comprehensive Regional Assessment" (CRA) process, being technical committees for (1) ESFM; (2) Environment and Heritage; (3) Social and Economic; and (4) Forest Resource and Management System (FRAMES). It also had a representative, Mr Pugh, on the "Joint Steering Committee".
3. NEFA said that "NSW [g]overnment regulators deeply engage with the findings of NEFA's audits, value its input and have often taken regulatory action for operations in [N]orth [E]ast forests on the matters raised in those audits, including by issuing infringement notices, official cautions and formal warnings".
[24]
Local community engagement
In relation to local community engagement, NEFA referred to VicForests v Kinglake Friends of the Forest Inc [18] where the Victorian Court of Appeal agreed with the assessment at first instance that significant weight could be attributed to the factor of community engagement and education in considering standing. Here, NEFA referred to the following matters:
1. NEFA has as one of its objectives "to raise public awareness of the values of northeast NSW native forests and foster research into same".
2. Through the involvement of volunteers, NEFA actively engages the local community in North East State Forests and educates the public on how to identify the presence of threatened listed species in public forests and the State regulatory regime for logging operations. It seeks to preserve and foster understanding of local forests by its members and the local and wider community, in particular, routinely engaging with volunteers in its forest audit activities.
3. NEFA routinely engages in public debate on environmental issues affecting the North East State Forests. For example, it regularly posts on its website information in relation to its activities and invites the local community and public to participate in its campaigns and citizen science audits of State Forests; it raises debate on native forest logging issues in the North East State Forests, with its activities referred to in national and local news media and it emails its members and subscription list with news and updates in relation to its activities and native forestry issues.
[25]
The importance of the environmental issue in question
In considering the question of standing, in ACF v Minister Davies J identified the relative importance of the environmental issue in question: "It is worth remarking that the controversy underlying the present dispute…is one of the major environmental issues of the present time…the present issue is not a local issue…". [19] Acknowledging changes in public perception since the 1980 decision of the High Court in ACF v Commonwealth, Davies J said the following:
And, in the decade that has passed since the Australian Conservation Foundation was denied standing to protect the wetlands at Farnborough in central Queensland, public perception of the need for the protection and conservation of the natural environment and for the need for bodies such as the Australian Conservation Foundation to act in the public interest has noticeably increased…
In relation to the importance of the environment issue in question here, NEFA submitted that public perception of the need for the protection and conservation of the natural environment has "patently advanced" since Davies J's observations in 1989 "or, at the very least, has certainly not receded." NEFA submitted that "specific interest in and the need for the principles of ESFM has also advanced, in particular as a result of the impacts of the unprecedented bushfires of 2019/2020 on the environmental values of State Forests of coastal NSW."
[26]
FCNSW's submissions in relation to the common law test for standing in Australian Conservation Foundation v The Commonwealth, and generally in relation to NEFA's standing
In disputing NEFA's standing to bring these proceedings, FCNSW submitted that the proceedings are "in truth" proceedings to remedy or restrain apprehended breaches of the Forestry Act. In enacting the Forestry Act, Parliament provided in s 69ZA for standing to take proceedings to remedy or restrain breaches of Part 5B of the Forestry Act, including breaches of IFOAs (s 69ZA(2)(b)) and, FCNSW submitted, by extension operational plans. In providing that power to remedy or restrain actual or apprehended breaches of the Forestry Act, Parliament at the same time removed standing to take civil enforcement proceedings under other legislation where the apprehended breach results from the implementation of an approval under the Forestry Act.
Accordingly, the kind of proceedings that might be brought under the Forestry Act by someone other than the EPA has been limited. FCNSW submitted that there is no common law or statutory right to seek civil enforcement of the Forestry Act. On a proper construction of s 69ZA of the Forestry Act, judicial review proceedings may only be brought by a party who satisfies the common law criteria for standing.
FCNSW submitted that the starting proposition is that a special interest must be established which is more than a belief or concern, regardless of the subject matter of the litigation. FCNSW also relied on the observations of Gibbs J in ACF v Commonwealth at 530 to 531, extracted at [107] above.
Whilst FCNSW accepted that there are some indications that the Federal Court has treated the decision of ACF v Commonwealth as "speaking partly only to its own era, rather than as being a binding precedent for cases with similar facts", [20] it submitted that "this Court would not take such a relaxed approach to the High Court's decision" which is, and remains, the leading authority on common law standing. Although not establishing a formula for the consideration of the facts in every case, it was "plainly relevant, particularly in cases of standing involving interest groups seeking to protect the environment."
FCNSW submitted as follows in relation to whether NEFA satisfies the common law test for standing:
1. In respect of the test established in ACF v Commonwealth and built upon since then, NEFA "seeks to push the envelope when it comes to its standing suggesting that it meets the broad test [21] because it meets some of the criteria applied in ACF v Commonwealth and discussed in later cases, namely that there is connection between NEFA and the local environment, that it has a history of involvement and influence and a connection with the subject matter of the proceedings" (which NEFA says is the principles of ESFM).
2. Insofar as NEFA says it has been recognised by State and federal government bodies and that it engages with the local community, NEFA's evidence does not reach the threshold that would demonstrate that it has a relevantly special interest sufficient to establish standing.
3. In relation to the evidence of NEFA's president Mr Pugh, it might "be accepted that Mr Pugh has long held interests in the protection of forests, particularly in the [N]orth [E]ast region" of NSW, however that is irrelevant. That is because Mr Pugh is not NEFA, and his interests and motives are irrelevant. Rather, NEFA, an incorporated association, must demonstrate its standing.
4. The mere identification of an area of geographic interest - "the [N]orth [E]ast of NSW" - "is not sufficient to establish a connection over either the Braemar or the Myrtle State Forest greater than any other person or organisation with an interest in State Forests." The mere fact of NEFA's aims and objectives is inadequate to give it standing. As was observed by Gibbs J in ACF v Commonwealth at 531:
Counsel for the Foundation sought to show an interest in two alternative ways - first, because of the nature of the Foundation and its objects and, secondly, because of the fact that it had sent written comments…the fact that the Foundation is incorporated with particular objects does not strengthen its claim to standing. A natural person does not acquire standing simply by reason of the fact that he holds certain beliefs and wishes to translate them into action, and a body corporate formed to advance the same belief is in no stronger position.
1. As to the connection to the environment upon which NEFA relies, this appears to be on the basis of its "audits" of the Braemar and Myrtle State Forests (among others). There is no statutory basis for the carrying out nor the provision to the EPA of any such audit, nor was any prepared at the request of any State authority. Nothing can be taken from the fact that the EPA responds to the "audits": "It would be no different to any government agency responding to a complaint or other informal submission. An agency is generally expected to do so."
[27]
Conclusions in relation to NEFA's standing to bring the proceedings
In relation to the question of NEFA's standing to bring these Class 4 proceedings, I find as follows:
1. There is presently no authority to support the proposition that standing at common law exists in relation to all matters concerning the protection of the environment. I have recorded, but reject, NEFA's submissions in that regard.
2. Section 69ZA of the Forestry Act departs from the open standing provisions in other environmental legislation, such as ss 252 and 253 of the POEO Act, s 193 of the NPW Act and s 9.45 of the EPA Act. However, whilst s 69ZA relates to proceedings brought in relation to breaches or threatened or apprehended breaches of specified statutory provisions (s 69ZA(1)), prohibits proceedings brought in relation to breaches of provisions, including of an integrated forestry operations approval specified (s 69ZA(2)), other than in relation to proceedings brought by persons and entities specified in s 69ZA(3), it goes no further to impose a limitation on the standing of persons to bring proceedings where they satisfy the special interest test articulated by the High Court in ACF v Commonwealth. The consequence is that the question of standing is to be determined by reference to the common law.
3. On balance, I find that NEFA satisfies the test for standing articulated in ACF v Commonwealth and has a sufficient "special interest" with the subject matter of the proceedings which is more than a belief or concern to bring these proceedings. The evidence establishes that:
1. NEFA has a special interest in relation to the native forests of North East NSW which include the Braemar and Myrtle State Forests. The matters on which NEFA relies in relation to its connection with the particular environment are set out at [113] above, and I find accordingly.
2. NEFA has a long history of involvement in the issue the subject of the proceedings, that is the protection of the forests of North East NSW. I refer to the matters relied upon by NEFA and set out at [115] above, and I find accordingly.
3. NEFA has a demonstrable concern with the subject matter of the proceedings, namely environmentally sustainable forest management. The matters upon which NEFA relies are set out at [116] above, and I find accordingly.
4. NEFA has been recognised by State and federal bodies, as set above at [118], and I find accordingly.
5. NEFA has demonstrated community engagement and standing. The matters on which NEFA relies are set out at [119] above, and I find accordingly.
6. In relation to the importance of the environmental issue in question, I accept NEFA's submission, recorded at [121] above.
[28]
The Court's jurisdiction in relation to NEFA's grounds of challenge
Having found that NEFA has standing to bring the proceedings, a further central issue for determination is the status of an operational plan required under condition 53 of the CIFOA to be prepared by FCNSW, and whether the approval of an operational plan by a FCNSW planning supervisor is a decision reviewable by the Court in these Class 4 proceedings, or at all. This issue arises in relation to all three of NEFA's grounds of challenge, each of which concerns the approval by Mr Howat of the Braemar HHP and the Myrtle HHP.
Section 20(2) to (3) of the Land and Environment Court Act 1979 (NSW) (LEC Act) provides as follows (emphasis added):
(2) The Court has the same civil jurisdiction as the Supreme Court would, but for section 71, have to hear and dispose of the following proceedings -
(a) to enforce any right, obligation or duty conferred or imposed by a planning or environmental law, a development contract or a strata renewal plan,
(b) to review, or command, the exercise of a function conferred or imposed by a planning or environmental law, a development contract or a strata renewal plan,
…
(3) For the purposes of subsection (2), a planning or environmental law is -
(a) any of the following Acts or provisions -
…
Part 5A or 5B of the Forestry Act 2012, … or
(b) any statutory instrument made or having effect thereunder or made for the purposes thereof, including any deemed environmental planning instrument within the meaning of the Environmental Planning and Assessment Act 1979,
…
Accordingly, pursuant to s 20(2)(b) of the LEC Act, the Court has jurisdiction to "review…the exercise of a function conferred or imposed by a planning or environmental law". For the purposes of s 20(2), a "planning or environmental law", is defined to include any "statutory instrument made or having effect [under] or made for the purposes [of]" an Act or provision set out in s 20(3)(a), which includes Part 5B of the Forestry Act.
The expression "statutory instrument" is not defined in the LEC Act. However, the Interpretation Act 1987 (NSW) (Interpretation Act) defines "instrument" in s 3 in the following terms:
3 Definitions
(1) In this Act -
instrument means an instrument (including a statutory rule or an environmental planning instrument) made under an Act, and includes an instrument made under any such instrument.
(2) In this Act -
(a) a reference to a function includes a reference to a power, authority and duty, and
(b) a reference to the exercise of a function includes, in relation to a duty, a reference to the performance of the duty
[29]
NEFA's submissions in relation to the Court's jurisdiction
NEFA submitted that the definition of "instrument" in the Interpretation Act supports as correct its position that an operational plan made under the CIFOA (the CIFOA being a statutory instrument made under Part 5B of the Forestry Act) is itself also a statutory instrument. Accordingly, the Court's jurisdiction under s 20(3) of the LEC Act is engaged. NEFA submitted that the Court has power to review the exercise of a function, relevantly, the approval of an operational plan, conferred or imposed by an environmental law, an operational plan being a statutory instrument made under another statutory instrument, namely the CIFOA, made under the Forestry Act.
Further, NEFA submitted, that whilst the CIFOA does not directly authorise any forestry operation, it makes provision for or with respect to the carrying out of forestry operations for which a further, specific approval is required under condition 53. Condition 53 permits FCNSW, acting through one of its planning supervisors, to approve a forestry operation by approving an operational plan under condition 53. An HHP is such an operational plan and takes its force from condition 53.
NEFA submitted that the Court would reject FCNSW's submission in its opening submissions that "the only approval of forestry operations is by the Ministers in the CIFOA", and that condition 53 concerning operational plans "is a timing provision" which "relates only to when forestry operations may be commenced." NEFA submitted that the "structure and arrangement of the CIFOA", viewed in its entirety, makes plain that the decision to approve an operational plan by a planning supervisor is a decision that enlivens the power of the Court to entertain an application for judicial review of that decision. NEFA submitted that the matters that an operational plan must address are "far more extensive than just the timing of commencement of operations".
In particular, NEFA submitted that the approval of an operational plan is "a necessary requirement" for FCNSW to be able to commence forestry operations, and that "[o]perational plans are the means by which [FCNSW] ensures that it carries out forestry operations in compliance with the CIFOA", referring to the following:
1. Condition 89.1 provides that "FCNSW must not commence a forestry operation until there is an approved and current operational plan for the forestry operation".
2. Every forestry operation must be planned, implemented and conducted in accordance with the conditions of the CIFOA (conditions 14.1(c) and 18).
3. Forestry operations must be carried out in accordance with the CIFOA, including the relevant operational plan (condition 19).
4. An operational plan "must…address the conditions of the approval" and "must…contain operational requirements in sufficient detail" to enable compliance with the conditions of the CIFOA (condition 53.4). The plain meaning of the phrase "must address the conditions" is that all conditions of the CIFOA should be considered and addressed in the operational plan.
[30]
FCNSW's submissions in relation to the Court's jurisdiction
FCNSW accepted that the Court has jurisdiction to hear and determine these proceedings pursuant to s 20(2) of the LEC Act, referring to the decision of Mundine v Forestry Corporation NSW (Mundine (Duggan J)), [23] an interlocutory decision in relation to proceedings in this Court that raises issues in common with those raised in these proceedings. There her Honour said at [6]-[8]:
6. Section 20(2)(a) of the Land and Environment Act 1979 (NSW) (LEC Act), provides:
The Court has the same civil jurisdiction as the Supreme Court but for section 71 to hear and dispose of the following proceedings: (a) to enforce any right, obligation or duty conferred or imposed by a planning or environmental law development contract or a strata renewal plan.
7. For the purposes of that section, s 20(3)(a) nominates Pts 5A and 5B of the Forestry Act 2012 (NSW) (Forestry Act) as an environment law, and by s 20(3)(b) makes provision in respect of:
(b) any statutory instrument made or having effect thereunder or made for the purposes thereof including any deemed environmental planning instrument within the meaning of the Environment Planning and Assessment Act 1979.
8. The 2021 and 2022 HHPs being approvals granted pursuant to the CIFOA which was granted pursuant to the provisions of Pt 5B of the Forestry Act are, I am satisfied, statutory instruments made or having effect thereunder, and therefore I am satisfied that the proceedings are relevantly within the jurisdiction of this Court.
Here, however, FCNSW submitted that "the question of jurisdiction is different to the question of justiciability". FCNSW said that there does not appear to be "a bright line as to when the ability to review a non-statutory function (such as approval of operational plans under the CIFOA) ceases." Historically, distinctions have been drawn between the exercise of statutory and non-statutory powers and functions in order to determine whether a decision is reviewable; however, in Muswellbrook Council v Hunter Valley Energy Pty Ltd (Hunter Valley Energy), [24] Leeming JA held that such distinctions were inapt. There, his Honour said at [201]:
201. …I see no reason why anything substantive should turn on whether the "power" is statutory or non-statutory. Indeed, the facts of this case suggest that the distinctions between "statutory" as opposed to "non-statutory", and "power" as opposed to "function", are inapt.
[31]
Conclusions in relation to the Court's jurisdiction/justiciability
Leeming, extracurially, in Authority to Decide: The Law of Jurisdiction in Australia, says: "Courts have authority to decide when two conditions are satisfied: when the exercise of judicial power resolves a justiciable controversy of a kind which falls within the court's limits, and when the persons bound by the exercise of judicial power are amendable to its exercise." [25] His Honour says the "most common, and by far the most important, limitation upon the authority of all Australian courts to decide controversies is as to subject matter". [26] In relation to judicial review, "where a statute confers authority upon an officer of the executive, on a tribunal, or on any court other than one of the seven constitutionally recognised Australian courts...to exercise power, its exercise or non-exercise is reviewable where this is 'jurisdictional error'". [27]
In relation to the Court's jurisdiction and the justiciability of the matters raised in these Class 4 judicial review proceedings, I find as follows:
1. An operational plan approved by a FCNSW planning supervisor is a separate approval to the Ministers' approval of forestry operations in the CIFOA. This is plain from the requirements of condition 53.4 of the CIFOA, that the operational plan address the conditions of the CIFOA, contain sufficient detail to enable the person proposing to undertake forestry operations to comply with the conditions of the CIFOA, and be "approved and dated" by a FCNSW planning supervisor.
2. Condition 53 of the CIFOA is not "merely" a "timing provision" which relates only to when forestry operations may be commenced. The requirements of condition 53 are more robust than stipulating the time at which forestry operations may commence.
3. The power embedded in condition 53, being a condition of statutory approval, is not immune from consideration of the legality of its exercise and is amendable to judicial review. As in Hunter Valley Energy, I do not consider that anything substantive should turn on whether the "power" is statutory or non-statutory.
4. The decision of a planning supervisor to approve an operational plan made pursuant to the embedded authority in condition 53 of the CIFOA enlivens the power of the Court to entertain an application for judicial review.
5. Accordingly, the Court has power (and jurisdiction) to review the decision of the planning supervisor.
[32]
Admissibility of expert evidence in relation to Grounds 1 and 3
It next arises to consider the admissibility of expert evidence in these Class 4 judicial review proceedings in which it is said by the applicant that a jurisdictional fact arises to be determined in relation to Grounds 1 and 3.
As recorded above at [89], FCNSW objected to the admission of Dr Phillips' affidavits and the Phillips report into evidence on the ground of relevance. However, in the event that the Court finds Dr Phillips' evidence to be relevant and admissible, FCNSW relied on the Ashby report.
On 4 August 2023, Moore J granted leave to both parties pursuant to rr 31.19 and 31.20 of the UCPR to adduce expert evidence.
Where expert evidence in judicial review proceedings is not reasonably required to resolve the grounds of review, leave under r 31.19 of the UCPR should not be given. While leave was given by Moore J on 4 August 2023, senior counsel for NEFA accepted that there was no opportunity on that occasion for the matter to be fully ventilated due to the truncated timetable for the preparation of the matter for hearing.
At the hearing on Monday, 14 August 2023, I admitted the evidence of Dr Phillips for NEFA and Ms Ashby for FCNSW subject to relevance. I determined to admit the evidence provisionally "given the alacrity with which the proceeding ha[d] been prepared for hearing".
It was uncontroversial that the general position in judicial review proceedings is against admitting expert evidence.
The legal principles in relation to the question of a jurisdictional fact were also uncontroversial. A party who alleges a jurisdictional fact in judicial review proceedings is generally entitled to lead evidence of its presence or absence. In Trives v Hornsby Shire Council (Trives), [28] Basten JA with whom Macfarlan and Meagher JJA agreed said at [11] that "[a]s a practical matter, a party challenging the existence of such a fact will be entitled to call evidence and, in effect, carry out a trial in the original jurisdiction of the court, to the extent necessary for the court to determine the fact".
At the time of the hearing before me, there was a proceeding in the Court heard and reserved before Pepper J which raises issues in common with the proceedings before me: Mundine v Forestry Corporation of NSW (Mundine (Pepper J)). In Mundine (Pepper J), there was agreement between the parties as to the relevant legal principles in relation to jurisdictional facts. In this matter, FCNSW accepted [21] to [28] of NEFA's closing submissions in Mundine (Pepper J) as follows:
21. There is no single test for a court to determine whether the existence of a particular fact is an essential precondition to the valid exercise of a power of approval. Rather the Court weighs together the factors identified and discussed in cases such as Woolworths v Pallas NewCo (2004) 61 NSWLR 707 and Timbarra Protection Coalition v Ross Mining (1999) 46 NSWLR 55 to seek to identify the intention of the instrument by which the power of approval was vested in the decision maker. Often they are grouped under the heading of 'essentiality' 'objectivity' and 'inconvenience'.
22. The cases do not give any easily-applied formula for determining whether or not a matter is such an essential precondition. At a high level of generality, the test remains that stated by the High Court in Enfield City Corporation v Development Assessment Commission (2000) 199 CLR 135 at [28]. The Court said:
"The term 'jurisdictional fact' (which may be a complex of elements) is often used to identify that criterion, satisfaction of which enlightens the power of the decision-maker to exercise a discretion. Used here, it identifies a criterion satisfaction of which mandates a particular outcome".
23. What is clear is that the issue is one of construction of the instrument by which the power is conferred upon the decision-maker. Consideration must be given to the language of the power under consideration in the total context of the legislative scheme under which the power is conferred. The nature of the "fact" is also relevant.
"The determination of whether or not a fact is jurisdictional in the requisite sense can give rise to considerable difficulty and is a matter upon which reasonable minds can differ. There is no bright line between jurisdictional error and error in the exercise of jurisdiction. Nevertheless, the Court, being called upon to do so, must determine whether the repository of a statutory power has acted, or proposes to act, in a manner which transgresses the limits upon the exercise of the power that parliament has conferred." (Pallas Newco at [9]).
24. Generally the more recent cases have dispensed with the nomenclature of "jurisdictional fact". The language currently most commonly in use is that the question "involves a distinction between a fact that is an 'essential preliminary to the decision-making process' and 'a fact to be adjudicated upon in the course of the inquiry'". (Ross v Lane [2022] NSWCA 235 at [32], citing authorities including Pallas Newco at 46- 49.)
25. The Chief Justice, speaking for the majority in Pallas Newco, emphasised that the determination was closely related to the issue of "mandatory" and "directory" provisions and that one method of determining the issue is to ask whether it was a purpose of the legislation (and here, of the approval) that an act done in breach of the provision would be invalid.
26. While a number of judges in individual cases have talked of there being presumptions regarding statutory intention, no clear position to that effect has commanded consistent judicial support. Thus, in Ross v Lane, for example, Beech-Jones JA said at 37:
"Ordinarily, the scope of the matters that must be considered by a decision-maker such as a consent authority in exercise of a statutory power is a matter for a court to determine and not the decision-maker themselves. One circumstance that is outside the ordinary is those statutes that expressly provide that the decision- maker may have regard to such matters as they 'consider relevant' but even these types of provisions have their limits. In this case there is no scope for a consent authority to determine not to have regard to the considerations specified … thus, subject to considering the terms of the particular instrument, whether or not the instrument applies to the land to which the development relates is not a matter for consent authority to authoritatively determine."
(See also Pallas Newco at [50]-[51], per Spigelman CJ).
27. By way of contrast Basten JA in Ross v Lane suggested that ordinarily legislature should be assumed to intend a decision-maker to determine matters that require evaluative judgment, rather than making them objective preconditions.
28. With respect to both judges, they are not to be taken as stating any new test with the determination of the question or as laying down rules to apply in all cases. Rather, each should be taken as applying the process determined by the Court of Appeal in Pallas Newco, but placing emphasis on different aspects of the specific scheme that was before them. In the end, although they agreed on the result of the case, Beech-Jones JA would have found the question of whether SEPP 65 applied to the proposed development was a mandatory pre-condition to the exercise of power, and Basten JA would not. The case illustrates again Spigelman CJ's statement from Pallas Newco but the question is one on which reasonable minds can differ, even on the same facts.
[33]
NEFA's submissions in relation to the admissibility of expert evidence, and whether there arises a jurisdictional fact
At the hearing, NEFA contended that the evidence of Dr Phillips was admissible in relation to two issues: (1) in relation to Ground 1, whether forestry operations conducted in accordance with each of the two HHPs would achieve results consistent with ESFM principles; and (2) in relation to Ground 3, whether, at the date of each of the two HHPs, application of the CIFOA conditions, or any of them, would result in a poor environmental outcome or would, because of specific and unique circumstances, be unachievable. Each of those grounds was said by NEFA to raise a jurisdictional fact.
NEFA submitted that it is important to distinguish the present case from those in which the question arises at the point of seeking leave pursuant to r 31.19 of the UCPR to adduce expert evidence. As cases such as Shellharbour City Council v Minister for Planning (Shellharbour) [36] make clear, the "admonition of just quick and cheap" means that more is required than merely demonstrating that the evidence is admissible. In a case where leave has already been obtained and the evidence adduced, those considerations carry less weight. NEFA submitted that, even in cases in which a jurisdictional fact is not alleged, one of the well-established exceptions to the presumption against adducing additional evidence on judicial review is "to achieve an understanding of the environmental consequences of the action or inaction of [FCNSW]". [37]
Further, NEFA submitted that the present case must be distinguished from other Class 4 proceedings in which the Court has accepted that the decision-maker acted within jurisdiction, and the question was "whether he or she took account only of proper considerations, or acted manifestly unreasonably, or denied procedural fairness". The presumption in those cases that the evidence before the Court would be confined to the evidence before the decision-maker does not apply here "or does not apply with anything like the same force". In jurisdictional fact cases, NEFA submitted that "the Court's approach focuses more closely on confining the admissible evidence to the precise issue on which it can cast light, rather than excluding it at the threshold."
NEFA cited as a recent example the decision of Mundine (Duggan J), where her Honour (at [50] to [54]) granted leave to the applicant to adduce expert evidence of an ecologist in relation to one paragraph pleaded in its summons which raised a matter that was said to be a jurisdictional fact. While the question of whether that matter was a jurisdictional fact was to be determined at final hearing, her Honour said it appeared that the evidence that the applicant sought to adduce "would be necessary and relevant to the determination of the issues in dispute". [38]
[34]
FCNSW's submissions in relation to expert evidence in judicial review proceedings
In relation to the question of expert evidence, FCNSW referred to the observations of Giles JA in Shellharbour at [35]:
35. …The primary purpose of [r 31.19 of the UCPR] is to control the calling of expert evidence, restricting it to that which is reasonably required to resolve the proceedings having regard to the admonition of just, quick and cheap. That evidence may be relevant and admissible is not enough, let alone that it is possible to argue that it is relevant and admissible.
FCNSW submitted that the admissibility of expert evidence "depends on the ground of review, the relevant issue and the nature of the evidence". [39] In this case, expert evidence is sought to be relied upon by the parties in relation to Grounds 1 and 3. That evidence, FCNSW submitted, could only be relevant to those grounds if the Court were otherwise satisfied that (1) Ground 1 properly seeks judicial review as opposed to civil enforcement of the operational plans; (2) Ground 1 properly discloses the existence of a jurisdictional fact that may be re-determined by the Court; (3) the evidence addresses such fact; (4) Ground 3 properly seeks judicial review as opposed to civil enforcement of the operational plans, and not the Court's determination of whether condition 23.4 has been "triggered" and/or complied with on the facts of this case; and (5) the evidence addresses such fact.
FCNSW submitted that none of the above five matters is met. In relation to Ground 1, FCNSW submitted that Dr Philips' evidence "simply does not address the principles of ESFM" and "only addresses what he says are potential impacts on the koala if forestry operations are carried out in accordance with the CIFOA." Such a narrow focus, FCNSW submitted, does not assist the Court in determining whether the implementation of the CIFOA achieves the principles of ESFM "as the concept and principles of ESFM require consideration of more than the potential impact on a single species", assuming that Dr Philips is correct about that potential impact. Dr Philips' evidence, FCNSW submitted, does not address, among other things, forest biological diversity as a whole, the long term social and economic benefits of native forests, or best practice forest management. NEFA's evidence, FCNSW submitted, could not "rationally affect (directly or indirectly) the assessment of the probability of the achievement of the principles of ESFM as a fact in issue in the proceedings".
[35]
Conclusions in relation to the admissibility of expert evidence
It arises for me to determine the admissibility of the evidence of Dr Phillips and Ms Ashby, and relatedly whether either or both of Grounds 1 and 3 raises a jurisdictional fact.
Section 55 of the Evidence Act 1995 (NSW) (Evidence Act) provides:
55 Relevant evidence
(1) The evidence that is relevant in a proceeding is evidence that, if it were accepted, could rationally affect (directly or indirectly) the assessment of the probability of the existence of a fact in issue in the proceeding.
(2) In particular, evidence is not taken to be irrelevant only because it relates only to -
(a) the credibility of a witness, or
(b) the admissibility of other evidence, or
(c) a failure to adduce evidence.
Section 56 of the Evidence Act provides:
56 Relevant evidence to be admissible
(1) Except as otherwise provided by this Act, evidence that is relevant in a proceeding is admissible in the proceeding.
(2) Evidence that is not relevant in the proceeding is not admissible.
I find as follows:
1. It may be that the present case can be distinguished from those where leave has not already been granted to adduce expert evidence. I am not so sure, and in any event nothing turns on such distinction here.
2. Nor, with respect, does the decision of Duggan J in Mundine (Duggan J) assist. There, her Honour granted leave to adduce expert evidence noting that the question of whether the matter was a jurisdictional fact was to be determined at final hearing. Here, the question of jurisdictional fact arises to be determined at final hearing. When Moore J granted leave to adduce expert evidence in these proceedings on 4 August 2023, senior counsel for NEFA accepted that there was no occasion for the matter to be fully ventilated.
3. It is correct, as submitted by NEFA, that the presumption against adducing additional expert evidence on judicial review does not apply in cases in which a jurisdictional fact is alleged. Here, NEFA alleges an existence of a jurisdictional fact in relation to Grounds 1 and 3 and seeks to rely on the expert evidence of Dr Phillips in relation to those grounds.
4. In relation to Ground 1, and on the assumption that I find that Ground 1 does raise a jurisdictional fact as alleged by NEFA, I accept FCNSW's submission that Dr Phillips' evidence does not address the principles of ESFM. His evidence goes to the potential impacts on the koala if forestry operations are carried out in accordance with the CIFOA. Without seeking in any way to diminish Dr Phillips' learning and scholarship, his evidence does not assist in the determination of Ground 1.
5. The evidence of Dr Phillips sought to be relied on by NEFA in relation to Ground 1 is not relevant evidence within the meaning of s 55 of the Evidence Act, and hence inadmissible pursuant to s 56 of that Act.
6. In relation to Ground 3, and on the assumption that I find that Ground 3 does raise a jurisdictional fact as alleged by NEFA, it is true that Dr Phillips expressed the opinion that each of the HHPs failed to "prevent a poor environmental outcome for local koala populations". Reasons for Dr Phillips' opinion included that additional surveys should be undertaken in order to "understand the extent and location of habitat being actively utilised by any resident population of koalas" within the Braemar and Myrtle State Forests, and that "it is not best practice forestry management...to apply koala habitat management prescriptions [in the CIFOA] that were developed prior to the 2019-20 bushfire events, and the ensuing uplisting of the koala to endangered". However, I accept FCNSW's submission that Dr Phillips provides no opinion as to whether, within the meaning of condition 23.4 of the CIFOA, a particular condition of the CIFOA would result in a poor environmental outcome, or that in a "specific and unique circumstance" compliance with the CIFOA would not be able to be achieved. Again, I make no criticism of Dr Phillips' learning and scholarship in concluding that his evidence does not assist in the determination of Ground 3.
7. The evidence of Dr Phillips sought to be relied on by NEFA in relation to Ground 3 is not relevant evidence within the meaning of s 55 of the Evidence Act and hence inadmissible pursuant to s 56 of that Act.
[36]
Ground 1: Condition 14 of the CIFOA - the principles of ESFM as a mandatory precondition or consideration, an operative condition or an objective
Having found that NEFA standing to bring and the Court has jurisdiction to entertain these proceedings, I turn to consider each of NEFA's three grounds of challenge.
By Ground 1, NEFA contends that each of the Braemer and Myrtle HHPs is invalid because there is an objective question in the nature of a jurisdictional fact as to whether the HHPs or forestry operations conducted in accordance with them were "in fact able to achieve the principles of ESFM". NEFA contends that the FCNSW planning supervisor could only validly approve an operational plan if:
1. in accordance with condition 53.4(a) of the CIFOA, the plan "address[es] the conditions of the approval", relevantly condition 14.1 which requires that any forestry operation be carried out in accordance with the principles of ESFM; and
2. the plan contains operational requirements in sufficient detail to enable the person proposing to undertake the forestry operation to conduct such operation in accordance with the principles of ESFM.
[37]
NEFA's submissions in relation to Ground 1
NEFA submitted that the Court would reject FCNSW's contention in its opening submissions that condition 14.1 is not a "condition", but rather an "objective". On a proper construction of the whole of the CIFOA, NEFA submitted, it is clear that condition 14.1 is an operative condition for the following reasons:
1. Protocol 39 to the CIFOA provides that where there is a reference to a "condition" of the approval, it is a reference to a condition in the main body of the approval (conditions 1 to 125). There is no distinction between "conditions" and "objectives".
2. Conditions 6.1 and 123.1(d) provide that headings, notes and outcome statements are to assist interpretation, but do not form part of the approval and are not enforceable on their own. Those provisions do not refer to "objectives". Similarly, condition 124.2 provides for references to a Chapter, Part, condition or Schedule in the approval, but does not refer to "objectives".
3. Condition 4.1 provides that the approval must be interpreted in a manner that is consistent with achieving and giving effect to the "outcome statements", but those statements do not otherwise form part of the approval and are not enforceable on their own. The outcome statements appear to operate as objectives for the conditions in each relevant Division or Chapter that includes such a statement, but are not numbered in the same way as conditions, rather "are presented in a textbox that sits above conditions".
4. In Protocol 38, condition 38.1(2) provides that "[t]he conditions of the approval must be monitored to ensure they are effective in achieving the objectives and outcome statements set by the approval" (and see also the outcome statement at condition 121.1).
5. Other than in conditions 14 and 15, "objectives" are referred to only in conditions 23.1 and 23.3 which provide a process for the EPA to review a "condition, objective or outcome of the approval" in certain circumstances.
In relation to the application of principles to Ground 1, NEFA submitted that the Ministers, in approving the CIFOA, selected the point of approval of an operational plan as one of the points at which the principles of ESFM must be applied. Section 69P(2)(a) of the Forestry Act provides for an integrated forestry approval to, inter alia, "make provision for or with respect to the carrying out of forestry operations". NEFA submitted that s 69M of the Forestry Act (concerning the granting of approvals by the Ministers) read together with s 69P, provides the Ministers with several options for how an approval is to take effect. The approval may also be subject to the conditions of a licence under the Biodiversity Conservation Act 2016 (NSW) (Biodiversity Conservation Act), Fisheries Management Act 1994 (NSW) (Fisheries Management Act) or POEO Act, meaning that in such cases a forestry operation will not be authorised until a licence is obtained and the conditions met. An integrated forestry operations approval is also subject to protocols in force from time to time so that at the time of making of an approval it may be impossible to know whether a particular operation in a particular location will be authorised at the time it is proposed to be carried out. Those factors, NEFA submitted, preclude an interpretation of the Forestry Act requiring an approval under s 69M approving "once and for all" the operations that may be conducted.
[38]
FCNSW's submissions in relation to Ground 1
In relation to Ground 1, senior counsel for FCNSW described FCNSW's submissions as follows:
We, with respect, take exactly the opposite approach - which is to say that it is a living document, and that it has been deliberately designed by the ministers in their approval - subject to conditions - after consultation with not just the public but all relevant stakeholders - to ensure that the approval at the time of the approval in '18 is consistent with ESFM, and the approval has inbuilt processes to ensure that it continues to comply with the principles of [ESFM] during the life of the approval.
FCNSW submitted that whether condition 53 of the CIFOA imposes a jurisdictional fact as alleged by NEFA is a question of construction and must be considered having regard to the statutory scheme in which the CIFOA operates, as well as the CIFOA read as a whole. In principle, FCNSW adopted the principles identified by NEFA in relation to the determination of a jurisdictional fact. However, FCNSW considered that NEFA's attempt to distinguish this matter from Ross v Lane was misplaced. FCNSW submitted that the cases do not elevate the importance of a "gate keeper" or "neutral decision maker" in determining whether a jurisdictional fact exists as a matter of statutory construction. In particular, FCNSW also referred to Pallas Newco where Spigelman CJ observed at [5] to [6]:
5. The case law and legal literature contains a great deal of terminological confusion about the concepts of "jurisdiction" and "jurisdictional facts". The authoritative statement of the relevant concept for Australia is set out in the joint judgment of the High Court in Corporation of the City of Enfield v Development Assessment Commission (1999) 199 CLR 135 at [28]:
"The term 'jurisdictional fact' (which may be a complex of elements) is often used to identify that criterion, satisfaction of which enlivens the power of the decision-maker to exercise a discretion. Used here, it identifies a criterion, satisfaction of which mandates a particular outcome."
6. The issue is one of statutory construction. What is required is a careful analysis of the statute which confers the jurisdiction. Consideration must be given to the language of the power under consideration and to the total context of the legislative scheme in which the power is conferred, including the scope and nature of the jurisdiction and of the fact said to be jurisdictional.
[39]
Conclusions in relation to Ground 1
In relation to the question of jurisdictional fact raised in NEFA's submissions in relation to Ground 1, I find as follows:
1. Condition 53 of the CIFOA does not refer to the principles of ESFM. Rather, it sets out the operational requirements which FCNSW must meet for each forestry operation. Condition 53.4 provides that each operational plan must address the conditions of the approval; contain operational requirements in sufficient detail to enable the person proposing to undertake the forestry operation to comply with the conditions of the approval; and be approved and dated by a FCNSW planning supervisor. Condition 53 does not specify any matters to be considered by the FCNSW planning supervisor in determining whether to approve an operational plan.
2. Nor can it be implied from condition 53 or the CIFOA as a whole that the approval of an operational plan is conditional on the FCNSW planning supervisor being satisfied that the operational plan complies with the principles of ESFM. The language of condition 53.4(a) - that the operational plan "address the conditions of the approval" - does not require the plan to demonstrate compliance with each condition of the CIFOA. Rather, the planning supervisor is required to be satisfied that the operational plan addresses the conditions of the CIFOA in order to ensure that the plan has been prepared in accordance with the requirements of Protocol 4. I find that the two operational plans, the Braemar HHP and the Myrtle HHP, were prepared in accordance with the requirements of Protocol 4 which sets out "General requirements" and "Specific operational plan requirements".
3. Nor does condition 53.4(b) take NEFA's case any further. The requirement of compliance with the conditions of the approval to which condition 53.4(b) refers is that of the "person proposing to undertake the forestry operation" the subject of the operational plan; it is not a requirement of the plan itself. That is not to say that FCNSW can authorise itself to conduct otherwise unlawful operations. Rather, the condition requires the operational plan to contain "operational requirements in sufficient detail" to enable that compliance. It does so by complying with the general and specific requirements of Protocol 4. It is the "person proposing to undertake the forestry operation" who must ensure compliance with the conditions. That person must be a "suitably qualified person", as required by condition 18.1(c), a person defined in Protocol 39 as "[a] person who has experience or qualifications, or both, which enable them to carry out the requirements of a described job or task in a competent and professional manner and, where relevant, comply with the specific requirement of Protocol 6: Suitably qualified persons - training and experience".
4. Nor does it follow that because there is no requirement for a consultation process prior to the approval of an operational plan that compliance with the principles of ESFM is a precondition to the exercise of the power to approve the plan. There is, and here was, a process of public consultation in accordance with s 69NA of the Forestry Act before the grant of the approval by the Ministers. Public consultation processes are associated with the monitoring program which oversees ongoing compliance of the approval with the principles of ESFM. That renders this case akin to Australian Heritage Commission [46] where a feature of the statutory scheme which was said to indicate that the primary decision maker could conclusively determine whether a place should be registered was that the decision could only be made after a process of public consultation.
5. It is of significance that Protocol 4 which sets out "General requirements" and "Specific operational plan requirements" nowhere require that an operational plan independently address the principles of ESFM. Rather, those principles are addressed in the conditions of the CIFOA itself and are implemented by the operational plan complying with the general and additional specific requirements specified in Protocol 4:
1. Under condition 4.2(2)(b) of Protocol 4, if FCNSW proposes a forestry operation in any area within the known habitat or potential habitat of a relevant subject species, the operational plan must include the requirements of (1) any flora road management plan required to be implemented during the forestry operation in the operational area for that species under condition 83 of the approval; and (2) any species management plan required for that species under condition 82.1 of the approval.
2. Under condition 4.2(2)(c) of Protocol 4, if a forestry operation is a harvesting operation or roading or burning operation, then the operational plan must also include (1) the results of the targeted flora and fauna surveys and BAHS where conducted, as required by conditions 56 and 57 of the approval and Protocol 20; (2) each species-specific condition to be applied to the forestry operation in accordance with Chapter 4, Divisions 4 and 5 of the approval; (3) each site-specific biodiversity condition prepared under Protocol 31; (4) each site-specific research condition relevant to the operational area as approved under Protocol 5; and (5) identification of areas of the compartment that are subject to seasonality restrictions and the seasonality restrictions that apply to each area as determined in accordance with Protocol 12.
3. There are also specific operational requirements for harvesting operations (condition 4.2(3)), for roading operations (condition 4.2(4)), for burning operations (condition 4.2(5)), for forest products operations (condition 4.2(6)), and specific requirements for regeneration (condition 4.2(7)).
1. Accordingly, there is scrutiny of the consistency of the operational plan with the principles of ESFM through the approval process provided for in condition 53 of the CIFOA. That scrutiny is provided by the process of preparing the plan in accordance with Protocol 4 and confirmation by the FCNSW planning supervisor that the plan has been prepared in accordance with and addresses the conditions of the CIFOA. Here the two operational plans - the Braemer HHP and the Myrtle HHP - complied with the requirements of Protocol 4, and addressed the conditions of the CIFOA for the purposes of condition 53.4.
2. It is clear from the authorities that the determination of whether a fact said to be jurisdictional is a jurisdictional fact requires "careful analysis of the statute which confers the jurisdiction", "the language of the power under consideration" and "the total context of the legislative scheme in which the power is conferred, including the scope and nature of the jurisdiction and the facts said to be jurisdictional". [47] Having found that the embedded decisions of FCNSW (Mr Howat) to approve the operational plans are amenable to judicial review, I am not satisfied that condition 53 of the CIFOA contains a jurisdictional fact. Construing the CIFOA as a whole, and the statutory scheme in which it operates, and applying the observations of Spigelman CJ in Pallas Newco at [5]-[6] and Basten JA in Trives at [9]-[11] and [37], I do not consider that consideration of and the making of a finding as to the achievement of the principles of ESFM was a jurisdictional fact in the sense of an essential precondition to the exercise of the power of FCNSW (Mr Howat) to approve the operational plans. It is not a fact to be determined by the Court in its original jurisdiction with the function of reviewing Mr Howat's decisions to approve the operational plans.
3. The approval of an operational plan, as I have found at [154(1)] above is a separate approval from that of the Ministers to approve forestry operations in the CIFOA. However, I find in relation to Ground 1 that the legislative scheme of the Forestry Act does not indicate that the principles of ESFM are required to be separately considered and applied at the level of an operational plan.
4. I find that condition 14.1 of the CIFOA states an objective of the approval, and not an operative condition. Nothing in s 69M of the Forestry Act or in s 69L (with its "elaborate definitions" of the principles of ESFM) or in the CIFOA as a whole detracts from that conclusion. I accept the submissions of FCNSW above at [211] to [213] in relation to a textual analysis and harmonious reading of the whole of the approval.
5. Plainly, condition 53.4 of the CIFOA requires an operational plan to address the conditions of the approval. However, I do not consider from consideration of the Forestry Act as a whole, including the objects of FCNSW in s 10 which in turn include compliance with the principles of ESD which include principles of ESFM and the "elaborate definition" of the principles of ESFM in s 69L, as well as the CIFOA as a whole, that that requirement extends to a consideration of the principles of ESFM in the making of an operational plan.
6. Undertaking the balancing of the indicators in the statutory scheme in favour of and against jurisdictional fact in accordance with Trives at [37], I am unable to conclude that the characterisation of whether the HHPs or operations conducted in accordance with them were "in fact able to achieve the principles of ESFM" is jurisdictional. NEFA has not demonstrated any jurisdictional fact or condition on the exercise of power by the FCNSW (Mr Howat) to approve the two operational plans that arises from the Forestry Act or the CIFOA.
7. That is because, as submitted by FCNSW, there is nothing in the Forestry Act or the CIFOA which requires the principles of ESFM to be considered and applied at the level of the approval of an operational plan. It is at the time of deciding whether to grant an approval that the principles of ESFM are required to be considered. It is, as submitted by FCNSW, sufficient that the operational plan contains the necessary information and is approved in accordance with condition 53.4(c).
8. Nor do I accept NEFA's submission that the CIFOA is "a static instrument that can only be amended under the less versatile statutory processes prescribed by s 69R". I accept FCNSW's submissions in relation to the capacity to amend the CIFOA and to address changing environmental conditions summarised at [208] to [209] above.
[40]
Ground 2 - Mandatory consideration: Capacity to comply with the conditions of the CIFOA
[41]
NEFA's submissions in relation to Ground 2
In addition and in the alternative to Ground 1, NEFA submitted that condition 53 makes the capacity of a person carrying out a proposed forestry operation to comply with the conditions of the CIFOA, in particular condition 14, a mandatory consideration. That was submitted to require the assessing officer to consider (1) "which conditions are called up" by the proposed forestry operation sufficient to "ask whether the draft operational plan contains information to permit forestry operations to comply with the CIFOA"; and (2) to determine whether each such condition has been addressed in the operational plan. Again, NEFA submitted that the decision maker is "not given discretion but is required to consider those two matters".
NEFA submitted that it would be impossible for a planning supervisor considering a proposed operational plan to be satisfied that the requirements of condition 53.4(a) and (b) had been met without taking into account the requirements of each paragraph of the condition, and concluding either that it was not relevant to the proposed forestry operation, or that the draft operational plan "addressed it and contained sufficient detail to permit the person implementing the plan to comply with the condition." NEFA submitted that the discretion to approve an operational plan is not unconstrained; rather, "[c]onsideration of the conditions, and the capacity to comply with them in implementation, are necessary" in the sense of mandatory considerations.
In particular, NEFA submitted that:
1. "Harvesting is clearly a type of forestry operation likely to affect the environment", and that someone considering approving it is required to consider the conditions which deal with environmental protection, condition 14 of the CIFOA being one such condition.
2. If "the Court is of the view that the proposed forestry language of condition 53 is insufficient to make consideration of whether the operation will comply with condition 14 mandatory, then as a matter of statutory construction it is seen to be so nonetheless". NEFA referred to the test, much repeated, articulated by Mason J in Minister for Aboriginal Affairs v Peko-Wallsend Limited (Peko-Wallsend), [48] in relation to the determination of the factors a decision-maker is bound to consider in making a decision by construction of the statute conferring discretion.
3. The test stated by Mason J in Peko-Wallsend would be read as extending to any statutory instrument under which the relevant power is conferred.
4. The structure of condition 14.1 tells against the principles of ESFM being taken into account merely by complying with the CIFOA: "That would be to make 14.1(c) do all the work and render 14.1(a) meaningless".
5. FCNSW did not appear to contend, and hardly could contend, that the operations proposed under the two HHPs would make consideration of the principles of ESFM irrelevant, or that the "two supervisors formed that view": "It was therefore compulsory to consider whether the proposed HHP addressed those principles, and to consider whether a person proposing to implement each HHP would be able to comply with those principles".
6. On the face of the documents, FCNSW did not consider the principles of ESFM in approving the Braemar HHP and the Myrtle HHP, there being no reference to the principles of ESFM in either operational plan. That was "hardly surprising" given FCNSW's position that it was not required to consider ESFM in approving an operational plan because it was already considered by the Ministers when making the CIFOA, and because condition 14.1 is an objective and not a condition.
7. Such failure amounts to jurisdictional error. In Buck v Bavone, [49] Gibbs J said: "a person affected will obtain relief from the courts if he can show that the authority has … failed to consider matters that it was required to consider…".
[42]
FCNSW's submissions in relation to Ground 2
FCNSW submitted that its submissions in relation to Ground 1 are also relevant to Ground 2 which is an allegation that FCNSW failed to consider a matter alleged to be mandatory, namely condition 14 of the CIFOA. In particular, FCNSW submitted that:
1. Whether a decision maker is required to consider a matter is a question of law which depends on an exercise of statutory construction. A mandatory relevant consideration may be express or implied from the "subject matter, scope and purpose" of the relevant statute. [50] There is nothing express or implied in s 69L of the Forestry Act or the subject matter, scope and purpose of the Act more generally which mandates a person approving an operational plan to consider the principles of ESFM. Subsections 69L(1) and (2) identify the purpose of Part 5B of the Act, but do not mandate any particular outcome.
2. The purpose of Part 5B is to provide a framework for forestry operations that authorises the carrying out of those operations in accordance with the principles of ESFM. An operational plan is not a document which authorises any forestry operations to be carried out: the CIFOA is the relevant authorisation.
3. While s 69L might require the relevant Ministers to consider the principles of ESFM in determining whether to grant an integrated forestry operations approval, "that does not logically translate to a requirement that a FCNSW planning supervisor approving an operational plan under such an IFOA is also, and separately, required to consider those principles". The requirement to consider the principles of ESFM is "restricted to the making of an IFOA" (emphasis added). So much was submitted to be confirmed by the second reading speech for the Forestry Legislation Amendment Bill 2018 (NSW) that introduced Part 5B to the Act (emphasis added):
The Forestry Legislation Amendment Bill 2018 amends the Forestry Act 2012 to update and streamline provisions related to IFOAs, enhance the framework for regulating native forestry, and amend the arrangements for how ForestCorp may operate. Specifically, the Forestry Legislation Amendment Bill 2018 makes the following amendments related to IFOAs. It enshrines the principle of ecologically sustainable forest management as an objective in the Act when making an IFOA, and the objective of conserving species, populations and ecological communities under the Fisheries Management Act 1994. It requires the relevant Minister to consult with the Minister administering the Fisheries Management Act 1994 before approving an IFOA to ensure that important threatened species matters are considered.
1. There is no requirement for the FCNSW planning supervisor to consider the principles of ESFM at large, beyond considering whether the operational plan addresses the specific conditions of the CIFOA by ensuring compliance with the requirements of Protocol 4 which relates to operational plans.
2. As to condition 53, the only matters that the FCNSW planning supervisor is required to consider are whether the operational plan includes the documents identified in condition 53.3, addresses the conditions of the CIFOA as required by condition 53.4(a), and contains operational requirements in sufficient detail to enable the person proposing to undertake the forestry operation to comply with the conditions of the CIFOA as required by condition 53.4(b). Practically, the way the FCNSW planning supervisor ensures that the operational plan addresses the conditions of the CIFOA including condition 14 is to confirm that the plan was prepared and complies with the requirements of Protocol 4.
3. The statements of reasons for both operational plans confirm that this is what occurred here. In relation to each of the operational plans, Mr Howat:
1. reviewed the "Pulse Checklist", being the "'Pulse' due diligence checklist for the Harvest and Haul Plan for Compartments 6 & 7 of the Braemer State Forest" and for "Compartments 10 to 16 of the Myrtle State Forest", which had been completed for the purpose of confirming that the procedural steps set out in an internal FCNSW document titled "Harvest Planning Manual" had been completed (being guidance material in relation to the process for the preparation and approval of operational plans under the CIFOA (the Harvest Planning Manual));
2. reviewed the "ArcMap mapping layers with respect to the landscape features affecting the compartments"; and
3. undertook a review of documents underpinning each of the operational plans and the conditions recorded in them,
such that he was satisfied that:
1. the steps in the Harvest Planning Manual had been completed in relation to the operational plan, appropriate steps had been taken in the planning of the operational plan (including the completion of the "Ecology Report", and the "Soil Dispersibility Assessment Report" said in the statements of reasons to be "in accordance with the CIFOA"); and
2. the conditions imposed in each of the operational plans, including the application of measures consistent with the "Post-Fire Standard Operating Procedure", were appropriate.
[43]
Conclusions in relation to Ground 2
In relation to Ground 2, I find as follows:
1. In essence, in Ground 2 NEFA contends that condition 14 of the CIFOA which sets out the general objectives of the approval is a mandatory consideration in the determination by the FCNSW planning supervisor to approve an operational plan.
2. Whilst s 69L of the Forestry Act plainly requires the relevant Ministers to consider the principles of ESFM in determining whether to grant an approval, there is nothing in condition 14 of the CIFOA read in isolation, in the context of CIFOA as a whole, or in the Forestry Act which requires a FCNSW planning supervisor in approving an operational plan separately to consider those principles.
3. The planning supervisor is required to consider whether the operational plan includes the documents identified in condition 53.3, addresses the conditions of the CIFOA as required by condition 53.4(a) and contains operational requirements in sufficient detail to enable the person proposing to undertake the forestry operation to comply with the CIFOA as required by condition 53.4(b). The statements of reasons for both operational plans, as submitted by FCNSW at [226(6)] above, confirm that this is what occurred here, and NEFA did not contend otherwise.
4. The principles of ESFM were taken into account by the Ministers in granting the CIFOA. Again, NEFA did not contend otherwise.
Accordingly, Ground 2 must fail.
[44]
Ground 3: Failure to comply with condition 23.4 and Protocol 5 in relation to obtaining SSOCs
In Ground 3, NEFA alleges that FCNSW's failure to seek SSOCs prior to approving the Braemar HHP and the Myrtle HHP resulted in the operational plans being made without power, and hence void and of no effect.
[45]
NEFA's submissions in relation to Ground 3
NEFA submitted that FCNSW "was required to seek SSOCs in circumstances where, as a consequence of the 2019-2020 bushfires, the necessary preconditions to seeking SSOCs were satisfied because applying the CIFOA conditions in the Myrtle and Braemar State Forests would result in a poor environmental outcome or in a unique circumstance the CIFOA conditions could not be complied with".
In relation to the process outlined in conditions 23.4 to 23.6 (the SSOC process), NEFA submitted that condition 23.4 required FCNSW to seek SSOCs prior to commencing a forestry operation where either of the following preconditions contained in the chapeau to condition 23.4 was met (the SSOC preconditions): (1) applying a condition of the CIFOA at a specific site would result in a poor environmental outcome; or (2) in a specific and unique circumstance, FCNSW would not be able to comply with the conditions of the CIFOA.
In its written submissions in relation to Ground 3, NEFA contended that the following five propositions are established:
1. the SSOC preconditions are necessary preconditions to the SSOC process;
2. the SSOC preconditions were met in relation to the Braemar and Myrtle State Forests;
3. FCNSW must seek SSOCs where either or both of the SSOC preconditions are met and it seeks to conduct forestry operations;
4. the SSOC process relates to the approval of HHPs as they authorise forestry operations; and
5. FCNSW's failure to seek SSOCs prior to approving the Braemar and Myrtle HHPs invalidated the HHPs.
[46]
NEFA's first proposition: the SSOC preconditions are necessary preconditions to the SSOC process
NEFA submitted that the presence of either or both of the two SSOC preconditions is "necessary to enliven the SSOC process"; this was because the word "or" appears between the SSOC preconditions. Again, the question as to the characterisation of a jurisdictional fact, objective or subjective, was submitted to be a question of statutory construction, the language of the chapeau to condition 23.4 and the construction of the CIFOA indicating that the SSOC preconditions are "objective jurisdictional facts" for the reasons summarised as follows:
1. The starting point for ascertaining whether a fact or circumstance is a jurisdictional fact must be the words of the statute, read in their context. [51] Here, the two SSOC preconditions are expressed as essential preconditions to the "exercise of the SSOC process". In Anvil Hill Project Watch Association Inc v Minister for Environment and Water Resources, [52] the Federal Court held at [21] and [25] that although there is no strict verbal formula, the existence of a jurisdictional fact is frequently signalled by the use of expressions such as "where 'x' exists", or "when 'x' exists" or "if 'x' exists", then a person is empowered or obliged to act or refrain from action. The "x" in this format is the relevant fact or circumstance which is a condition precedent to the exercise of a power or performance of a duty. NEFA submitted that the SSOC preconditions in the chapeau to condition 23.4 existing as "essential preliminary matters that operate independently to the power conferred on FCNSW to seek SSOCs" was a strong textual indicator that the Ministers intended the existence of the fact, objectively, to condition the seeking of SSOCs.
2. The SSOC preconditions are not expressed as being subject to "FCNSW's opinion," "satisfaction" or "reasonable belief." The language of condition 23.4 is to be contrasted with that of condition 23.1 which provides that FCNSW can seek the review of a condition, objective or outcome of the approval where certain preconditions are "in FCNSW's opinion" met.
3. Nor are the SSOC preconditions expressed as matters to be "taken into account" or to be "taken into consideration". Rather, "where an SSOC precondition is met, then if FCNSW seeks to proceed with forestry operations, FCNSW must enliven the SSOC process", and does not have the "option to derogate from the SSOC process if it seeks to proceed with forestry operations".
4. The SSOC preconditions are confined to a consideration of whether the application of a condition would result in a poor environmental outcome and whether FCNSW can comply with conditions of the CIFOA in relation to an individual forestry operation. These matters can be "readily determined with little inconvenience when applied to a specific forestry operation". The matters to be considered are confined to whether either of the two SSOC preconditions has been met in relation to an individual forestry operation, suggesting "that they are contingent upon the existence of a fact that must be determined objectively".
5. The SSOC preconditions "go to the heart of whether the CIFOA is adequate at the scale of individual forestry operations". It would be "inconsistent with the construction of the CIFOA" for FCNSW to "subjectively determine whether it can meet the requirements of the CIFOA and authorise its own forestry operations where they fall outside of the scope of the CIFOA".
6. FCNSW's forestry operations are only authorised by the CIFOA where they comply with the conditions of the approval. This is evident from the following conditions of the CIFOA: (a) condition 7.1 which provides that "FCNSW must comply with the conditions of the approval and the protocol, as applicable"; (b) condition 8.2 which provides in condition 8 (which concerns the relationship of the approval with which the approval requires compliance) that "nothing in this condition authorises the carrying out of a forestry operation in breach of the approval"; (c) the chapeau to condition 13.1 which provides that "[t]his approval authorises the carrying out of the operations and activities…in accordance with any other conditions, terms and requirements in this approval and, where relevant, the protocols"; (d) condition 14.1(c) which provides that the "overall objective of the approval is to authorise the carrying out of forestry operations set out in condition 13…in accordance with the conditions of the approval and the protocols, as applicable"; and (e) condition 19.1 which provides that "forestry operations covered by the approval must be carried out in accordance with the approval, including in accordance with any relevant operational plan, during and at completion of a forestry operation in an operational area".
7. The SSOC process enables the conditions of the CIFOA to be reviewed or amended where either of the two SSOC preconditions apply; specifically, condition 23.4 which states the EPA may grant SSOCs specifying "(i) the conditions of the approval that must be implemented at the specific site for at least the duration of the forestry operation"; and condition 23.5 which provides that where a SSOC has been issued by the EPA to FCNSW, "the relevant forestry operation must be carried out in accordance with the [SSOC]", and unless otherwise specified in the SSOC, "all other conditions of the approval must be complied with". Condition 23.5 therefore indicates, NEFA submitted, that SSOCs can "abrogate and/or replace specific conditions of the CIFOA because the SSOCs can specify that forestry operations need not be in accordance with a specific condition of the CIFOA".
8. The SSOC preconditions refer to circumstances in which individual forestry operations do not comply with the CIFOA and would, subject to the granting of SSOCs, be prohibited (referring to Protocol 5 concerning approvals for restricted activities). The SSOC precondition "that in a specific or unique circumstance FCNSW would not be able to comply with the conditions of the approval" indicates that "the SSOC process applies where FCNSW cannot otherwise operate within the scope of the CIFOA". The SSOC precondition that "if applying a condition of the approval at a specific site would result in a poor environmental outcome" also relates to FCNSW's ability to meet the requirements of the CIFOA. Again, NEFA submitted this manifested "a clear intention" to authorise forestry operations that will not result in a poor environmental outcome, citing conditions 14.1 to 15.4 requiring, inter alia, the protection of threatened species and their habitats from the impacts of forestry operations, and Protocol 2.2(4) requiring the annual plan to be submitted by FCNSW to the EPA to demonstrate planning to reduce the cumulative impacts of forestry operations in the CIFOA region.
9. Where condition 23.4 has been "enlivened", Protocol 5 which relates to restricted activities applies and provides that where an SSOC precondition is "enlivened", "forestry operations are prohibited unless approval is granted by the EPA through SSOCs". Not only is FCNSW required to submit a report to the EPA in accordance with Protocol 5, condition 23.4 is expressly identified as a restricted activity in item 6 of Table 1 to the protocol, Protocol 5.2 providing: "The conditions require approval by the authority or person in column 4 of table 1 below, in accordance with this protocol, before FCNSW carries out a restricted activity, as set out in column 2 of table 1".
10. The proper construction of condition 23.4 suggests that while FCNSW "is given power to seek SSOCs so that it can proceed with a particular forestry operation where an SSOC precondition applies, it does not have power to develop and sign off on those SSOCs". The appropriate body "to assess the extent to which the CIFOA can be remedied through SSOCs in relation to individual forestry operations is given to the EPA under condition 23.4(b)". The language of condition 23.4(b) can be contrasted with that of condition 23.2 which requires the EPA to consult with FCNSW when the EPA is considering relevant issues under the process of reviewing a condition, objective or outcome of the CIFOA. The SSOC process contains no similar consultation requirement. Further, it was submitted: "because condition 23.4 goes to the very heart of whether the CIFOA conditions can be complied with, and without such compliance FCNSW would be conducting forestry operations without power, the construction of condition 23.4 to 23.6 indicates that whether either SSOC precondition is met is an objective jurisdictional fact (a factual determination)".
11. Despite "regulating" the CIFOA, the EPA has no express power to compel FCNSW to seek SSOCs which "heightens the significance of FCNSW's power to seek SSOCs". The chapeau to condition 23.4 does not specify who is to determine whether either of the SSOC preconditions has been met. From a practical perspective, it is likely that FCNSW is the relevant body to assess whether the SSOC process has been enlivened. That is because FCNSW approves its own HHPs which are to address the conditions of the CIFOA under condition 53.4 in relation to each individual forestry operation. It is therefore most likely to hold relevant information to enable it to assess whether either SSOC precondition is met prior to the commencement of a forestry operation. Further, the EPA is only provided with an HHP once it has been approved under condition 53.5 (or varied under condition 53.8). It would be "unlikely" that the EPA would be aware that FCNSW determined to proceed with a forestry operation in circumstances where either of the SSOC preconditions has been met unless it receives a report under condition 24.3(a) from FCNSW, or the HHP for a relevant forestry operation has been approved by FCNSW and provided to the EPA.
12. Finally, NEFA submitted, because the EPA has the function of monitoring and enforcing forestry operations under the CIFOA, it would be inconsistent with the statutory scheme to interpret the assessment of whether an SSOC precondition has been met as a subjective assessment that "conclusively determines" whether FCNSW's forestry operations comply with the CIFOA.
[47]
NEFA's second proposition: the SSOC preconditions were met in relation to the Braemar and Myrtle State Forests
In relation to NEFA's second proposition in relation to Ground 3, NEFA submitted that either and/or both of the SSOC preconditions were "satisfied as objective jurisdictional facts" or, in the alternative, that FCNSW "formed the view that they were satisfied as subjective jurisdictional facts".
NEFA noted that FCNSW's own assessment of the impacts of the 2019/2020 bushfires indicates that 45% of forest reserves in the Casino Management area (in which the Braemar and Myrtle State Forests are located) were subject to high or extreme fire damage. At the compartment scale, the operational areas of the Myrtle and Braemar State Forests were subject to mostly high and extreme severity fire in 2019: "The severity of the fire in those State Forests indicates that the fundamental assumptions upon which the CIFOA prescriptions were based (such as the forest values) have been altered".
NEFA also noted that the language of the first SSOC precondition is confined to consideration of whether applying "a condition" would result in a poor environmental outcome, therefore indicating that the consideration can be confined to the application of a single condition, rather than all conditions under the CIFOA. This language was to be contrasted with that of the second SSOC precondition which refers to "conditions".
NEFA submitted that koalas are listed threatened species known to occur in both the Braemar and Myrtle State Forests prior to and following the 2019/2020 bushfires. Following the 2019/2020 bushfires, the koala was up listed from a vulnerable species to an endangered species for the purposes of the BC Act and the EPBC Act. NEFA submitted, that most koala populations, and particularly those affected by the 2019/2020 bushfires, have been significantly impacted and are now on a trajectory of decline.
Further, in relation to its second proposition concerning Ground 3, NEFA submitted that applying KBP2 (koala browse prescription 2) in condition 65 will result in a poor environmental outcome for the following reasons. First, condition 65 KBP2 merely requires the retention of a minimum of 5 koala browse trees per hectare of net harvest area in areas where KBP2 applies, or where there are contemporary koala records. "Koala browse tree" is defined in Protocol 39 in relation to the Upper North East Subregion as a live tree selected for retention that is (1) greater than 20 centimetre DBH; (2) live and healthy; and (3) one of the listed species within primary browse trees and secondary browse trees. NEFA submitted that condition 65 does not provide for the retention of suitable koala habitat because FCNSW is only required to retain trees that are greater than 20 centimetre DBH. Because timber harvesting invariably targets larger size-class trees, it is "entirely possible" that under the CIFOA prescriptions, koala browse trees greater than 30 centimetre DBH will be harvested, and that koala browse trees greater than 20 centimetre DBH (which cannot be eaten by koalas) will comprise the retained trees.
[48]
NEFA's third proposition: FCNSW must seek SSOCs where either or both SSOC preconditions are met and it seeks to conduct forestry operations
NEFA submitted that where either SSOC precondition applies, FCNSW must either refrain from carrying out the operation, or must seek an SSOC. That is because it is clear from the "context, purpose and textual construction" of condition 23.4 that where either SSOC precondition applies, FCNSW cannot proceed with forestry operations unless it has obtained SSOCs from the EPA. Where either SSOC precondition is present, condition 23.4(a) provides that FCNSW "may" submit a report to the EPA in accordance with Protocol 5. NEFA accepted that while, on its face, the word "may" appears to provide FCNSW with the discretion to seek SSOCs, if the obligation to seek SSOCs were interpreted to provide FCNSW with the "option" to proceed with forestry operations without SSOCs, it would mean that FCNSW "could conduct forestry operations that would result in a poor environmental outcome and/or that do not comply with conditions of the CIFOA". This would, in NEFA's submission, render condition 23.4 and the CIFOA itself superfluous.
In particular, NEFA submitted, it was the intention of the Ministers in "drafting" condition 23.4 "that if 'short term' site-specific variations to the operating conditions were required, the EPA was to have a central role in preparing them and enforcing them". There could be "no suggestion that it was intended to permit [FCNSW] to make up their own conditions". Further, NEFA submitted, condition 23.5 indicates a "clear intention" of the Ministers that SSOCs issued by the EPA be enforceable. It would lead to "an absurd result" if the operator, FCNSW, "could develop its own conditions that are inconsistent with the CIFOA and cannot be enforced by the regulator".
The EPA's position in this regard was submitted to be clearly articulated on various EPA webpages. For example, the webpage titled "Bushfire-affected Forestry Operations" states that the EPA "continue[s] to advocate that FCNSW obtain site-specific operating conditions in areas recovering from the 2019-20 bushfires" (see [35] to [36] above).
Further, NEFA submitted, it is also clear from Protocol 5 that where either SSOC precondition is met and FCNSW seeks to conduct relevant forestry operations, it must obtain SSOCs from the EPA in order to do so. Protocol 5 identifies in Table 1, item 6, column 1, as a restricted activity "Special provisions requiring a review or amendment to the approval at a specific site in a specific site in a specific circumstance", referring in column 2 to condition 23.4 of the approval and in column 3 to the EPA as the approval body/person. NEFA submitted that "this implies that where either SSOC precondition is met, [FCNSW] must seek approval to conduct forestry operations in a relevant operational area". Further, conditions 5.2(2) and 5.2(3) in Protocol 5 were submitted to provide "strong textual indicators" that the use of "may" in condition 23.4(a) should be interpreted to mean that FCNSW should seek SSOCs where either of the SSOC preconditions is met and FCNSW seeks to proceed with forestry operations because condition 5.2(2) provides that "FCNSW may only propose to carry out a restricted activity where there is no practical alternative", and despite condition 5.1 in Protocol 5 stating that the protocol supports various conditions of the approval that require approval, condition 5.3 "again adopts the language of condition 23.4(a)" by stating that "FCNSW may apply in accordance with this protocol for a restricted activity approval".
[49]
NEFA's fourth proposition: the SSOC process relates to the approval of HHPs as they authorise forestry operations
In relation to its fourth proposition concerning Ground 3, NEFA submitted that the SSOC process relates to the approval of HHPs for reasons including that condition 89.1 of the CIFOA expressly provides that FCNSW must not commence forestry operations until there is an approved and current operational plan for the forestry operation. In accordance with condition 53.4, an operational plan must (a) address the conditions of the CIFOA and (b) "contain operational requirements in sufficient detail to enable the person proposing to undertake the forestry operation to comply with the conditions of the approval". NEFA submitted that "[t]he plain meaning of this phrase requires all conditions, including condition 23.4, to be addressed by an operational plan so that persons conducting the operation can comply with the CIFOA". Further, the chapeau to condition 23.4 also requires that SSOCs be sought prior to the commencement of a forestry operation. For an operational plan to be current, and for persons to be able to comply with the CIFOA, an operational plan must, therefore, refer to SSOCs.
[50]
NEFA's fifth proposition: FCNSW's failure to seek SSOCs prior to approving the HHPs results in invalidity
NEFA's fifth proposition in relation to Ground 3 was that FCNSW is required to seek SSOCs in relation to its proposed forestry operations in the Myrtle and Braemar State Forests because both, or in the alternative one, of the SSOCs preconditions was enlivened and FCNSW sought to proceed with forestry operations. Accordingly, FCNSW's failure to seek SSOCs prior to approving the Myrtle and Braemar HHPs results in invalidity of the HHPs.
[51]
FCNSW's submissions in relation to Ground 3
As to NEFA's submissions in relation to Ground 3, FCNSW submitted that the submissions "squarely" frame the ground as another ground raising a question of jurisdictional fact, and that is not how the ground was pleaded in the amended summons. While the amended summons clearly identifies the alleged mandatory precondition for the purposes of Ground 1, in relation to Ground 3 the amended summons does not identify the alleged mandatory pre-condition. The shift in approach by NEFA was submitted by FCNSW to presumably "counter the proposition" put forward by FCNSW in its opening submissions that "Ground 3, properly understood, seeks civil enforcement of the CIFOA masquerading as judicial review". At the end of the first tranche of the hearing, senior counsel for FCNSW expressed his client's concern in relation to a "shifting case" as follows:
Can we note, your Honour, that it is of great concern to us, because your Honour will have seen that we've criticised the - I don't say that in a critical way, but we've criticised the summons and the cases pleaded in our submissions already, and we do not want an adjournment to be an opportunity for the applicant to be able to stray from the case as currently pleaded in its summons. So we would be taking a strict approach to the case as already pleaded in the summons, and we just note that now that the time - part of the condition of us acceding to this request is that the case can't change.
I accept that there was a shift during the course of the hearing in the approach of NEFA to the way it casts Ground 3. Nonetheless, notwithstanding the change in approach, FCNSW in its written submissions addressed Ground 3 as it apprehends the ground to have been put, and sought to "cut through the voluminous submissions on the point". Put shortly, FCNSW submitted, NEFA was wrong in that the SSOC process, as referred to by NEFA, does not relate to the approval of operational plans, and that NEFA failed to establish the fourth of its propositions in relation to Ground 3.
Again, FCNSW submitted, as it had submitted in relation to the question of jurisdiction and justiciability, that the only approval of forestry operations is by the Ministers in the CIFOA (and subject to conditions). Condition 53 does not approve the carrying out of forestry operations, rather is a timing provision that relates only to when forestry operations may commence in an operational area. That is, FCNSW submitted, the operational plan must be approved prior to the commencement of forestry operations in each operational area.
[52]
Conclusions in relation to Ground 3
In relation to Ground 3, I find as follows:
1. As submitted by FCNSW, Ground 3 must fail because NEFA has failed to establish the fourth of its five propositions in relation to Ground 3, namely that the SSOC process applies to the approval of HHPs which authorise forestry operations.
2. It is true that I have found above at [179] that the Court has power to entertain an application to review the embedded decision of the FCNSW planning supervisor to approve each operational plan. However, it does not follow that there is a connection between condition 23 and condition 53 and that condition 53 relates to the process for FCNSW to seek SSOCs in specified circumstances, as submitted by FCNSW, subsequent to the grant of an approval by the Minister under Part 5B of the Forestry Act.
3. Condition 23.4 is specific. It relates to either:
1. a "specific site" at which there would be a "poor environmental outcome", being a site that is part only of the operational area otherwise the subject of the operational plan; or
2. a "specific and unique circumstance", again, a specific and unique circumstance that arises after the operational plan has authorised the commencement of forestry operations in the operational area as a whole and in all circumstances.
1. Condition 53, on the other hand, relates to the preparation by FCNSW of an operational plan for each operational area (53.1), the commencement of a forestry operation in an operation area only when an operational plan has been prepared (53.2), the documents required to be included in each operational plan (53.3), and the requirement that each operational plan (a) address the conditions of the approval, (b) contain operational requirements in sufficient detail to enable the person proposing to undertake the forestry operations to comply with the conditions of the approval, and (c) be approved and dated by a FCNSW planning supervisor (53.4).
2. I do not accept that condition 23 which contains specific conditions requiring a review of or amendment to the approval conditions restrains an exercise of the power in condition 53 to approve an operational plan and authorise the commencement of forestry operations in an operational area. It is only after an operational plan has been approved pursuant to condition 53 that a particular forestry operation at a specific site or in a specific and unique circumstance can trigger condition 23. These are distinct exercise of power.
3. Nor do I find that the two circumstances referred to in the chapeau to condition 23.4 are jurisdictional facts. Each of those circumstances, referred to by NEFA as the SSOC preconditions, involves a process of evaluation which the initial decision maker, in its original jurisdiction with the function of reviewing the decision of the repository of power, and not the court, is best placed to undertake.
4. Accordingly, Ground 3 must fail.
[53]
NEFA's submissions in relation to materiality
In relation to the threshold test of materiality, NEFA referred to the following authorities. In Hossain v Minister for Immigration and Border Protection, [56] the plurality (Kiefel CJ, Gageler and Keane J) said at [29]:
29. That a decision-maker "must proceed by reference to correct legal principles, correctly applied" is an ordinarily (although not universally) implied condition of a statutory conferral of decision-making authority. Ordinarily, a statute which impliedly requires that condition or another condition to be observed in the course of a decision-making process is not to be interpreted as denying legal force and effect to every decision that might be made in breach of the condition. The statute is ordinarily to be interpreted as incorporating a threshold of materiality in the event of noncompliance.
In MZAPC v Minister for Immigration and Border Protection, [57] the plurality (Kiefel CJ, Gageler, Keane and Gleeson JJ) said at [2]:
2. Materiality was subsequently explained in Minister for Immigration and Border Protection v SZMTA to involve a realistic possibility that the decision in fact made could have been different had the breach of the condition not occurred. Existence or non-existence of a realistic possibility that the decision could have been different was explained to be a question of fact in respect of which the plaintiff in an application for judicial review of the decision on the ground of jurisdictional error bears the onus of proof.
In Nathanson v Minister for Home Affairs, [58] the plurality (Kiefel CJ, Keane and Gleeson JJ) said at [33]:
33. There will generally be a realistic possibility that a decision-making process could have resulted in a different outcome if a party was denied an opportunity to present evidence or make submissions on an issue that required consideration. The standard of "reasonable conjecture" is undemanding. It recognises that a fundamental purpose of affording procedural fairness is to afford an opportunity to raise relevant matters which are not already obvious, or not liable to be advanced by the apparently persuasive "story" of the opposing party. Where a Tribunal errs by denying a party a reasonable opportunity to present their case, "reasonable conjecture" does not require demonstration of how that party might have taken advantage of that lost opportunity. Nothing said in MZAPC denies this. To the contrary, the standard of "reasonable conjecture", correctly applied, proceeds on assumptions that are derived from the rationale for procedural fairness, namely that, if given a fair opportunity to present their case, a party will take advantage of that opportunity and that, by doing so, the party could achieve a favourable outcome.
[54]
FCNSW's submissions in relation to materiality
FCNSW agreed with the submissions of NEFA in relation to the legal principles regarding materiality. It accepted that if NEFA succeeds on any of its grounds of challenge, the decisions to approve the operational plans will be found to have been affected by jurisdictional error.
[55]
Conclusions in relation to materiality
I have earlier stated my reasons for dismissing each of the grounds of challenge. There was no disagreement between the parties in relation to the legal principles concerning materiality. NEFA has not succeeded on any of its three grounds of challenge. I have not found the decisions of Mr Howat to approve the operational plans to be infected by jurisdictional error. Hence, considerations of materiality do not arise.
[56]
Conclusions
I have earlier summarised my reasons for concluding that NEFA has standing to bring the proceedings, that it is within the power of the Court to entertain each of NEFA's three grounds of challenge, and for dismissing each of the three grounds of challenge.
In dismissing NEFA's grounds of challenge, it has been necessary to keep in mind the constraints that apply to review of an administrative decision for illegality. The role of the Court in that regard is to declare and enforce the law: Attorney General (NSW) v Quin. [59] Merits review is not permitted: Haughton at [224].
As Craig J said in Haughton at [225], the position was well summarised by Jagot J in Drake-Brockman v Minister for Planning, [60] where her Honour said (at [124]):
124. The Land and Environment Court has separate merits and judicial review functions (Pt 3 of the Land and Environment Court Act 1979 (NSW)). In its merits review function the Court makes the decision it finds correct or preferable on the evidence, weighing up for itself the competing considerations. In its judicial review function, the Court may not trespass on the merits or impugn a decision made within the necessary legal boundaries. This distinction and consequential limitation in judicial review proceedings is to be "constantly borne in mind" (Peko-Wallsend at 40-41). It follows that care must be taken in applying observations about the level or extent of assessment of issues found to be appropriate in merits appeals to other contexts. Specifically, observations made by the Court in it merits jurisdiction cannot be understood as mandating a particular outcome in judicial review proceedings. This is evident from the emphasis on the particular factual context in the outcomes apparent from those decisions. As in Haughton, it is the judicial review function that I have been required to undertake in these proceedings.
[57]
Costs
The parties made no submissions in relation to costs. Unless an application is made by either party in relation to costs within 30 days of the date of this decision, I will make no order as to costs.
[58]
Orders
The Court makes the following orders:
1. The notice of motion filed by the respondent on Tuesday, 1 August 2023 is dismissed.
2. The amended summons filed by the applicant on Thursday, 7 September 2023 is dismissed.
3. Unless an application is made by either party in relation to costs within 30 days of the date of these orders, I will make no order as to costs.
ACF v Minister at 206 (Davies J); North Coast Environment Council Inc v Minister for Resources (No 2) (1994) 55 FCR 492 at 499 and 513; (1994) 85 LGERA 270 at 278 and 293 (Sackville J).
(1994) 55 FCR 492 at 513; (1994) 85 LGERA 270 at 293 (Sackville J).
North Coast at 513 (Sackville J).
(1997) 18 WAR 126 at 134; (1997) 94 LGERA 380 (Murray J).
[2000] QSC 172 (Chesterman J) at [24].
See North Coast at 513 (Sackville J).
(2021) 395 ALR 367; (2021) 248 LGERA 28; [2021] VSCA 195 at [78] (Niall, Emerton and Kennedy JJA).
ACF v Minister at 205 (Davies J).
Mark Aronson et al, Judicial Review of Administrative Action and Government Liability (7th ed, 2022, Thomson Reuters (Professional) Australia Limited) at [14.120] p 866.
Amendments
20 November 2023 - Amendment to Representation section in cover sheet.
DISCLAIMER - Every effort has been made to comply with suppression orders or statutory provisions prohibiting publication that may apply to this judgment or decision. The onus remains on any person using material in the judgment or decision to ensure that the intended use of that material does not breach any such order or provision. Further enquiries may be directed to the Registry of the Court or Tribunal in which it was generated.
Decision last updated: 20 November 2023
Parties
Applicant/Plaintiff:
North East Forest Alliance Incorporated (INC1601738)
The hearing of this matter took place between Monday, 14 and Tuesday, 15 August 2023. The proceedings were then stood over to enable the parties to file written closing submissions, and to appear before the Court on Thursday, 7 September 2023 to address the Court in closing.
On Thursday, 7 September 2023, NEFA was granted leave, with the consent of FCNSW, to file in court an amended summons.
On 13 December 2019, upon the request of the EPA, FCNSW ceased forestry operations in the CIFOA Region (as defined in condition 12 at [59] below). FCNSW and the State of NSW were "signatories to the majority of long-term hardwood supply contracts in coastal NSW", and enacted the force majeure provisions in those supply contracts across all hardwood coastal supply areas. According to a letter of 7 September 2020 from Mr Gary Barnes, secretary of the Department of Regional NSW and Mr Anshul Chaudhary, acting chief executive officer of FCNSW, to Ms Tracy Mackey, chief executive officer of the EPA (the 7 September 2020 letter), on 13 December 2019 the EPA requested of FCNSW that "forestry operations not occur in forest burnt since August 2019 until [there was agreement] on additional environmental controls".
On 14 May 2020, FCNSW approved Myrtle 010-016 post fire HHP 2020, plan ID HP_MYRTLE_10_11_12_13_14_15_16_2019 (2020 Myrtle HHP) for forestry operations in compartments 10 to 16 of the Myrtle State Forest. The 2020 Myrtle HHP made references throughout to SSOCs granted by the EPA. It was common ground that FCNSW ultimately did not proceed with the forestry operations pursuant to the 2020 Myrtle HHP.
Throughout 2020, FCNSW attempted to negotiate further SSOCs with the EPA but considered the negotiations to have "proven almost impossible". In or around September 2020, FCNSW withdrew its notice of force majeure on the contracts for timber supply and harvest and haulage in the CIFOA Region. In the 7 September 2020 letter, Mr Barnes of the Department of Regional NSW and Mr Chaudhary of FCNSW wrote to the EPA stating (emphasis added):
All involved in this process have acknowledged that developing and operating under the SSOC is challenging and time consuming and is providing neither a landscape approach to environmental protections as envisaged by the CIFOA, nor sufficient harvesting sites to meet industry requirements.
The restricted timber supply means significant impacts on the hardwood industry are now imminent, with only a few weeks remaining before job losses are expected. It is expected that 155 direct jobs are at risk of being lost over the next few months in the south coast and Eden regions. By the end of 2020, a further 460 direct hardwood industry jobs will be under threat on the north coast. The impact is expected to be two to three times greater accounting for indirect employment.
FCNSW and the State of NSW are signatories to the majority of long-term hardwood supply contracts in coastal NSW. The Force Majeure provisions in those contracts have been enacted across all hardwood coastal supply areas. However, when FCNSW is able to operate under and comply with the CIFOA it is legally obliged to do so in order to meet supply commitments.
There has now been substantial recovery post-fire in many coastal State forests. The key challenges that led to FCNSW seeking SSOC under the CIFOA have now largely dissipated. Forest ground cover has regenerated sufficiently to manage soil and water risks and overhead tree hazards have now stabilised enabling survey and mark-up to be safely undertaken. For that reason FCNSW intends to return to harvesting in September 2020, under the standard requirements of the CIFOA in fire-affected forests where SSOC have not yet been issued. This transition will occur progressively over the next few months.
In response to the 7 September 2020 letter, by letter of 22 September 2020, Ms Mackey of the EPA said:
It is the view of the EPA that the unprecedented fires of 2019/20 have significantly impacted the environmental values of the state forests of coastal NSW. Subsequent timber harvesting in areas impacted by fire pose a major environmental risk to the extent that ecologically sustainable forest management (ESFM), as required under the NSW Forestry Act 2012, is unlikely to be achievable under a business-as-usual approach. It is for this reason that the EPA has been working with FCNSW and NSW agencies to ensure forestry operations are subject to additional conditions to mitigate their impacts. As you note this has not been easy, but this does not mean it should be abandoned.
…
The EPA commissioned an independent report by Dr Andrew Smith, an experienced and well-respected forest ecologist, to examine the CIFOA and the site-specific operating conditions in the context of the environmental risks of harvesting timber in burnt landscapes. The report also considered the principles of ESFM and the precautionary principle.
…
The findings of Dr Smith's report, in conjunction with more current information used to support the development of site-specific prescriptions and operational advice from EPA officers working in areas affected by the bushfires has informed the EPA's position that a return to operating under the CIFOA alone in all areas of the State as you propose is not tenable at this time. The EPA is keen to ensure that the principles of ESFM are applied, including maintaining a range of forest values for future and present generations. The EPA is concerned that; your proposal may not achieve these principles.
The EPA is further concerned that your proposal does not adopt best-available knowledge and adaptive management practices and does not appear to be consistent with the precautionary principle, which has never been more relevant. The EPA has a statutory objective to protect, restore and enhance the quality of the environment in NSW having regard to the need to maintain ecologically sustainable development. In this context I am currently considering regulatory options to ensure the risk to the environment continues to be appropriately addressed.
In or around February 2021, FCNSW developed a set of voluntary conditions titled "FCNSW Rationale for short term operations under the CIFOA with additional environmental safeguards while the NRC charts a long-term pathway to return to the CIFOA" (the voluntary conditions). The voluntary conditions related to the South Coast region of NSW, and provided under the heading "Alternative FCNSW model - CIFOA with additional environmental safeguards for the short-term" as follows (emphasis added):
104. FCNSW has assessed the conditions proposed by the EPA in response to the Smith Report and determined that there are some that can be supported by relevant evidence and can be practically applied or adapted in the context of the FCNSW Report. FCNSW believes that these conditions can both uphold the requirements of the precautionary principle and still meet reasonable timber supply requirements during 2021.
105. Ongoing landscape-scale monitoring surveys undertaken by FCNSW staff are providing strong evidence of recovery in many forest areas, including survival and recovery of critical flora and fauna populations.
106. FCNSW has developed a robust alternative to the current SSOC process that applies as a basis the [sic] standard CIFOA, supplemented with additional precautionary conditions to mitigate potential impacts in the short term…
107. In order to meet the equally weighted statutory objectives of supplying timber to industry and supporting regional communities in an environmentally sustainable manner, FCNSW needs immediate certainty to plan under a framework that adequately reflects the post Bushfires environment and provides a guaranteed minimum level of timber supply for the industry to survive in the short term. Without immediate certainty it will not be possible to manage imminent small business closures and the flow-on effects in regional NSW communities already adversely affected by the Bushfires themselves. This would be an unacceptable outcome under the NSW RFAs and Forestry Act objectives.
108. A risk assessment and SWOT analysis for the options of remaining engaged in negotiations with the EPA towards SSOC or using a revised FCNSW model for CIFOA augmented by additional environmental safeguards, has been undertaken and is included in Attachment 1.
109. It is proposed that this model be applied across the Eden, south coast and Tumut sub regions. The existing EPA process of risk assessments and approval of SSOCs would not be required as the voluntary additional environmental safeguards would be applied to all operations in these areas as a precautionary measure.
…
116. FCNSW appreciates that the additional environmental safeguards are voluntary. However, adherence to these additional environmental safeguards can be enforced through FCNSW's contracts and licences with harvesting operators and FCNSW intends to gather data on their implementation and compliance and provide that to the EPA as it would with CIFOA requirements in the normal course…
117. This is an interim step which provides a framework for the timber industry to continue operating in the short term pending the NRC advice and the resultant pathway forward. FCNSW appreciates that this was the original intention of the SSOC process however the lack of emphasis on social and economic values of sustainable forest management outcomes; changing landscape of potential conditions; and lack of certainty on timeframes and deliverables has rendered this process unworkable…
After developing the voluntary conditions, FCNSW commenced forestry operations in Eden in March 2021 and the South Coast of the CIFOA Region in April 2021, "with additional environmental safeguards put in place in recognition of the impacts of the 2019-2020 bushfires".
By letter dated 17 March 2021, Ms Mackey of the EPA responded to FCNSW's decision to recommence logging operations under voluntary conditions in the following terms (emphasis added):
Although FCNSW proposes to apply a series of voluntary protection measures in addition to the CIFOA conditions, these measures are not enforceable, and the EPA will not endorse such an approach. The EPA maintains the position outlined in its letter of 15 February 2021 that site specific operating conditions (SSOC) are essential to ensuring harvesting activities in fire-impacted forests are carried out to meet ecologically sustainable forest management (ESFM), the legislative framework and relevant Regional Forest Agreements (RFA).
…
The EPA remains committed to the National Resources Commission (NRC) review approach, which will inform a longer-term decision on forestry operations. Until then, the EPA's expectation is that the precautionary principle is applied to forestry practices in NSW. The EPA reiterates its position that the combined impacts of fire and post-fire logging warrants careful management and that SSOC are the best way of ensuring ESFM.
In May 2021, FCNSW's timber supply to its contractors on the North Coast was "around 34,000 cubic metres below sawlog contracts". The supply source from hardwood plantations was "largely…exhausted with remaining plantations needing further time to grow to maturity".
FCNSW developed two further voluntary conditions:
1. the first in or around July 2021, titled "Addendum - Forestry Corporation Rationale for operations under the CIFOA with additional environmental safeguards" (addendum to voluntary conditions); and
2. the second in or around October 2021, titled "Post Fire Voluntary Environmental Safeguards ‐ Update to Rationale North Coast" (North Coast voluntary conditions). These North Coast voluntary conditions expressly addressed the North Coast of the CIFOA Region in which the Myrtle and Braemar State Forests are situated, and are referred to in each of the Myrtle and Braemar HHPs.
On 24 February 2023, NEFA wrote to the EPA in relation to proposed forestry operations in the Doubleduke State Forest, NSW and ecological risks to the forests in response to the 2019/2020 bushfires. On 27 March 2023, NEFA received a response from Mr Tony Chappel, chief executive officer of the EPA, as follows:
Site-specific operating conditions (SSOC's) under clause 23 of the Coastal Integrated Forestry Operations Approval (CIFOA) can only be issued by the EPA at the specific request of the Forestry Corporation of NSW (FCNSW). As you are aware, FCNSW elected to stop requesting SSOCs in late 2020 and return to operating under the CIFOA. All SSOCs including those issued by the EPA for Doubleduke State Forest have now lapsed.
On 29 March 2023, Mr Howat of FCNSW approved Braemar 006-007 post fire HHP 2023, plan ID 200002336 for forestry operations in compartments 6 and 7 of the Braemar State Forest (initial Braemar HHP).
On 16 May 2023, Mr Howat of FCNSW approved the Myrtle HHP for forestry operations in compartments 10 to 16 of the Myrtle State Forest. The Myrtle HHP included some of the North Coast voluntary conditions but did not make specific reference to any of the SSOCs previously granted by the EPA for forestry operations pursuant to the 2020 Myrtle HHP.
On 30 May 2023, Mr Howat approved a variation to the initial Braemar HHP, thereby making the Braemar HHP. The Braemar HHP included some of the North Coast voluntary conditions. The document varying the Braemar HHP, titled "Variation to Operational Plan", identified the following "[o]perational plan conditions / prescriptions to be amended":
1. Modify various sections of 5. Operational Responsibilities and 7. ESA & Other Sensitive Areas sections of plan to align with intention of ecology report and current mark-up requirements SOP.
2. Update riparian protection table to reflect correct requirements for protection of unmapped and class 1 drainage lines.
On 27 July 2023, NEFA commenced these Class 4 proceedings.
On 3 August 2023, the EPA updated its webpage "Bushfire-affected forestry operations" to provide, under the heading "EPA's current position on forestry operations in fire affected forests" as follows:
We continue to advocate that FCNSW obtain site-specific operating conditions in areas recovering from the 2019/20 wildfires. This approach will ensure that harvesting activities in fire-impacted forests are carried out in an ecologically sustainable manner, and therefore meet the requirements of the Forestry Act 2012, the CIFOA and relevant Regional Forest Agreements.
On 3 August 2023, the EPA also updated its webpage "Status of operations in bushfire-affected forests" to provide as follows:
We continue to advocate that FCNSW obtain site-specific operating conditions in areas recovering from the 2019-20 wildfires.
On 10 February 2021 Forestry Corporation of NSW (FCNSW) advised us that they would be returning to regular operations under the Coastal IFOA (CIFOA) in fire-impacted forests. They further advised that they may implement additional voluntary measures to the requirements of the CIFOA if they consider they are required. We are not aware of what these voluntary measures are, and we will not be able to regulate against them.
Section 69N provides further in relation to the granting of IFOAs:
69N Approvals to be granted jointly by relevant Ministers
(1) An integrated forestry operations approval may only be granted jointly by the Minister for the Environment and the Minister for Lands and Forestry.
(2) An integrated forestry operations approval is to be in writing signed by those Ministers.
(3) Before granting an integrated forestry operations approval, the Minister for the Environment and the Minister for Lands and Forestry are required to consult the Minister administering Part 7A of the Fisheries Management Act 1994.
Section 69L(1) provides as follows in relation to the purpose of IFOAs:
69L Purpose of integrated forestry operations approvals
(1) The purpose of this Part is to provide a framework for forestry operations to which this Part applies -
(a) that authorises the carrying out of those forestry operations in accordance with principles of ecologically sustainable forest management, and
(b) that integrates the regulatory regimes for environmental planning and assessment, for the protection of the environment and for threatened species conservation, including threatened species, populations and ecological communities under Part 7A of the Fisheries Management Act 1994.
Section 69L(2) proves the following definition of principles of ESFM:
principles of ecologically sustainable forest management means the following -
(a) maintaining forest values for future and present generations, including -
(i) forest biological diversity, and
(ii) the productive capacity and sustainability of forest ecosystems, and
(iii) the health and vitality of native forest ecosystems, and
(iv) soil and water quality, and
(v) the contribution of native forests to global geochemical cycles, and
(vi) the long term social and economic benefits of native forests, and
(vii) natural heritage values,
(b) ensuring public participation, provision of information, accountability and transparency in relation to the carrying out of forestry operations,
(c) providing incentives for voluntary compliance, capacity building and adoption of best-practice standards,
(d) applying best-available knowledge and adaptive management processes to deliver best-practice forest management,
(e) applying the precautionary principle (as referred to in section 6(2)(a) of the Protection of the Environment Administration Act 1991) in preventing environmental harm.
Section 69P provides in relation to the terms of an IFOA:
69P Terms of approval
(1) An integrated forestry operations approval is to describe the forestry operations covered by the approval, including a description of the area of the State to which it applies.
(2) An integrated forestry operations approval is -
(a) to make provision for or with respect to the carrying out of forestry operations covered by the approval, and
(b) to set out conditions subject to which those forestry operations are to be carried out, including conditions that may be imposed under any of the following -
(i) a biodiversity conservation licence under the Biodiversity Conservation Act 2016,
(ii) a licence under Part 7A of the Fisheries Management Act 1994,
(iii) an environment protection licence under the Protection of the Environment Operations Act 1997.
(3) An integrated forestry operations approval may apply or adopt protocols, codes, standards or other instruments that are publicly available and in force from time to time.
(4) Without limiting subsection (3), any such protocols may include those prepared by the Environment Protection Authority.
Section 69Q(1) provides that "[a]n [IFOA] has effect for the period (not exceeding 20 years) specified in it, unless sooner revoked".
Section 69R(1) provides that "[a]n [IFOA] may be amended, suspended or revoked at any time jointly by the Ministers authorised to grant the approval." Section 69RA(1) provides that "[b]efore an [IFOA] is amended or revoked, public consultation on the proposed amendment or revocation is to be undertaken."
Section 69SA(1) provides that "[a] person who contravenes a requirement imposed by an [IFOA] is guilty of an offence."
As to enforcement of IFOAs, s 69SB provides that "[t]he [EPA] has the function of monitoring the carrying out of forestry operations to which this Part applies and the function of enforcing compliance with the requirements of [IFOAs]."
Section 69ZA provides as follows in relation to the commencement of proceedings by third parties:
69ZA Application of statutory provisions relating to proceedings by third parties
(1) This section applies to the following statutory provisions -
(a) section 252 or 253 of the Protection of the Environment Operations Act 1997,
(b) a provision of an Act that gives any person a right to institute proceedings in a court to remedy or restrain a breach (or a threatened or apprehended breach) of the Act or an instrument made under the Act, whether or not any right of the person has been or may be infringed by or as a consequence of that breach,
(c) section 219 of the Protection of the Environment Operations Act 1997.
(2) Proceedings may not be brought under a statutory provision to which this section applies if the breach (or threatened or apprehended breach) to which the proceedings relate is as follows -
(a) a breach of this Part (including a breach of any forest agreement),
(b) a breach of an integrated forestry operations approval,
(c) a breach of an Act or law that arises because any defence provided by an integrated forestry operations approval is not available as a result of a breach of the approval,
(d) a breach of the Act that includes the statutory provision (including a breach of an instrument made under that Act) if the breach relates to forestry operations to which an integrated forestry operations approval applies.
(3) This section does not apply to any proceedings brought by -
(a) a Minister, or
(b) the Environment Protection Authority or a member of the staff of the Authority, or
(c) in the case of the provision of an Act referred to in subsection (1)(b) - a government agency or any government official engaged in the execution or administration of the Act.
Condition 12.1 identifies the area to which the CIFOA applies as follows:
12.1 The approval applies within the State of NSW to State Forest and other Crown-timber land within the Coastal IFOA Region subject to condition 12.2 below.
The "Coastal IFOA Region" is defined in Protocol 39 "Definitions" (which was approved by the EPA Chair and CEO on 31 October 2018) as "State Forest and other crown-timber lands to which the approval applies, and which is mapped in the 'Coastal IFOA Region' spatial dataset".
Condition 13.1 identifies the forestry operations covered by the CIFOA. The operations authorised by the CIFOA include "(a) harvesting operations that are… (i) selective harvesting for the production of timber".
Condition 14 specifies the general objectives of the CIFOA as follows:
14. General objectives of the approval
14.1 The overall objective of the approval is to authorise the carrying out of forestry operations set out in condition 13 above:
(a) in accordance with the principles of ecologically sustainable forest management;
(b) in a manner which integrates the regulatory regimes for:
(i) environmental planning and assessment;
(ii) the protection of the environment; and
(iii) threatened species conservation and biodiversity;
(c) in accordance with the conditions of this approval and the protocols, as applicable.
Condition 15 specifies specific objectives of the CIFOA. There are specific objectives in relation to threatened species (condition 15.1 and 15.3), including ensuring that practical measures are taken to protect the aquatic environment and waters from the impacts of water pollution caused by forestry operations (condition 15.2), and "ensuring the ongoing monitoring, evaluation, reporting and improvement of the approval so that it is effective in achieving the objectives of the approval and the relevant outcome statements" (condition 15.4).
Chapter 8 of the CIFOA concerns monitoring conditions. In accordance with condition 122.1, FCNSW is required to "participate in the work of the monitoring steering committee referred to in Protocol 38: Monitoring Program." As part of that program, condition 23.1 provides that:
23.1 FCNSW may request the EPA to review a condition, objective or outcome of the approval by way of written submission to the EPA demonstrating that in FCNSW's opinion:
(a) a condition, objective or outcome is not being consistently achieved when implementing the approval;
(b) the practical application or enforcement of a condition results in the consistent inability to effectively implement or regulate that condition;
(c) new information, or an alternative method, procedure, technique or approach to a condition would achieve an improved outcome; or
(d) the monitoring program under Chapter 8 of the approval identifies that the conditions are not effective or not delivering the intended objectives or outcomes of the approval.
The objectives of the CIFOA are set out in condition 14.1. Condition 23.2 provides that "[i]n consultation with FCNSW, the EPA will consider all relevant issues and, within six months or another timeframe approved by the EPA…(a) provide a report of the outcome of the review if the EPA determines that no changes are to be made to the approval; (b) amend the protocols to address the issues identified; or (c) recommend to the Ministers to amend the approval."
Division 4 of Chapter 1 concerns "specific biodiversity and environment protection conditions". Condition 16.1 provides that "FCNSW and any authorised person must not carry out any forestry operation that is likely to result in…(a) harm to any animal or plant" that is or is part of a "threatened species, extinct species, species extinct in the wild or threatened ecological community" and that is not listed in, or considered by Protocol 31 or identified as part of a threatened ecological community pursuant to Protocol 27. Under condition 17, except as expressly permitted by the CIFOA, a forestry operation must not pollute waters within the meaning of s 120 of the Protection of the Environment Operations Act 1997 (NSW) (POEO Act).
Division 5 of Chapter 1 concerns the general conditions of the CIFOA. Condition 18 requires that every forestry operation (defined in Protocol 39 as the "operations and activities authorised under the approval as set out in condition 13") "must be planned, implemented and conducted: (a) in accordance with the conditions of the approval; (b) in a competent manner; and (c) by a suitably qualified person."
Condition 19.1 provides:
19.1 Forestry operations covered by the approval must be carried out in accordance with the approval, including in accordance with any relevant operational plan, during and at completion of a forestry operation in an operational area.
Conditions 23.4 to 23.6 set out a process for FCNSW to seek SSOCs in circumstances where "applying a condition of the approval would result in a poor environmental outcome" or where "in a specific and unique circumstance FCNSW would not be able to comply with the conditions of the approval" (SSOC process). The SSOC process is as follows:
23.4 If applying a condition of the approval at a specific site would result in a poor environmental outcome, or if in a specific and unique circumstance FCNSW would not be able to comply with the conditions of the approval, then prior to commencing the relevant forestry operation:
(a) FCNSW may submit a report to the EPA in accordance with Protocol 5: Approvals for restricted activities; and
(b) the EPA may grant a site-specific operating condition in response to the report that specifies:
(i) the conditions of the approval that must be implemented at the specific site for the duration of the forestry operation; and
(ii) site-specific operating conditions that must be implemented at the specific site for the duration of the forestry operation in that area, or for another time period specified by the EPA.
23.5 Where the EPA has issued FCNSW with a site-specific operating condition:
(a) the relevant forestry operation must be carried out in accordance with the site- specific operating condition; and
(b) unless otherwise specified in the site-specific operating condition, all other conditions of the approval must be complied with.
23.6 At the completion of the forestry operation, subject to the site-specific operating condition, the site-specific operating condition ceases to operate, and any subsequent forestry operation in that area must be carried out in accordance with the conditions of the approval.
In Protocol 5 to the CIFOA (Approvals for restricted activities), condition 5.1(1) provides that "[t]his protocol supports various conditions of the approval which require approval of restricted activities." In particular, the restricted activity described in Table 1 to Protocol 5 as "[s]pecial provisions requiring a review or amendment to the approval at a specific site in a specific circumstance" refers to condition 23.4 of the CIFOA (that is, in relation to SSOCs) and identifies the EPA as the approval body.
Protocol 39 (Definitions) provides following definitions:
1. "approval" is defined as:
The approval granted to FCNSW under Part 5B of the Forestry Act 2012, which includes protocols.
Where there is a reference to a condition of the 'approval', it is a reference to a condition in the main body of the approval (Conditions 1-125).
In any other context, it takes the ordinary meaning.
1. "forestry operations" is defined as "the operations and activities authorised under the approval as set out in condition 13 of the approval";
2. "operational area" is defined as "[a]n area defined in the operational plan and operations register in which a forestry operation (excluding forest product and timber operations conducted under section 45 of the Forestry Act 2012) is occurring or will occur";
3. "operational plan" is defined as "[a] plan required to be prepared under condition 53 of the approval"; and
4. "operations register" is defined as: "[a] register required to be kept under condition 28 of the approval".
Condition 53 of the CIFOA relates to operational plans. Condition 53.1 provides:
53.1 FCNSW must prepare a separate operational plan for each forestry operation in each operational area (as defined in the operations register), excluding forest product and timber operations conducted under section 45 of the Forestry Act.
Condition 53.2 provides that "[a] forestry operation must not commence in an operational area unless an operational plan has been prepared for that forestry operation in that operational area."
Condition 53.3 provides that each operational plan must include the following documents for each forestry operation in each operational area prepared in accordance with Protocol 4: Operational Plans:
(a) general requirements for all operational plans;
(b) additional specific requirements for operational plans relating to harvesting operations, roading, burning operations, forest produce operations;
(c) a location map; and
(d) an operational map.
Condition 53.4 provides that each operational plan must:
(a) address the conditions of the approval;
(b) contain operational requirements in sufficient detail to enable the person proposing to undertake the forestry operation to comply with the conditions of the approval; and
(c) be approved and dated by a FCNSW planning supervisor.
Condition 53.3 refers to Protocol 4. In Protocol 4, condition 4.1(1) provides that condition 53 "requires the preparation of an operational plan, for a proposed forestry operation, in accordance with [Protocol 4]." Condition 4.2 specifies "general requirements" (4.2(2)) and "specific operational plan requirements for harvesting operations" (4.2(3)). Condition 4.1(3) provides that "[a]n operational plan must include all information required to be included by the protocols listed in conditions 43 and 54 of the approval to enable FCNSW or an authorised person conducting a forestry operation to comply with Chapter 4 [Operational Planning and Implementation] and Chapter 5 [Operating Conditions] of the approval."
Condition 89 provides as follows in relation to the commencement of forestry operations:
89.1 FCNSW must not commence a forestry operation until there is an approved and current operational plan for the forestry operation.
89.2 Prior to the commencement of the forestry operation, the approved operational plan must be:
(a) named, signed and dated by all persons involved in carrying out the forestry operation;
(b) kept at the site of the forestry operation at all times; and
(c) provided to the EPA upon request.
In the Phillips report, Dr Phillips provided his opinion in relation to a number of matters, including a decline in the reporting rate of koalas using habitat in the Myrtle and Braemar State Forests, the severity of the 2019/2020 bushfires to the Myrtle and Braemar State Forests, his reasons for rejecting FCNSW's BAHS approach, and FCNSW's proposed retention of koala browse trees, WHCs, TRCs and "hollow bearing trees".
Dr Phillips said his research also suggested that "koala population recovery from the impacts of fire can take as long as 10 to 15 years", having regard to a series of independent studies that he conducted in relation to the Port Macquarie area between 2002 and 2010 (Port Macquarie Study).
FCNSW objected to the admission of Dr Phillips' affidavits and the Phillips report into evidence on the ground of relevance. However, in the event that the Court finds Dr Phillips' evidence to be relevant and admissible, FCNSW relied on the report of Ms Elizabeth Ashby, professional ecologist and director and principal consultant at Keystone Ecological Pty Ltd, dated 10 August 2023 (Ashby report). Ms Ashby holds a Bachelor of Science and Master of Science (Preliminary) and has written publications in relation to forest conservation issues.
In her report, Ms Ashby opined on matters including the CIFOA conditions relevant to the koala and the effectiveness of those CIFOA conditions, as well as specific matters raised in the Phillips report. Ms Ashby considered that "the CIFOA if implemented [would] not result in a poor environmental outcome for the [k]oala". Contrary to Dr Phillips' opinion that the recovery of koala populations from the impacts of fire could take as long as 10 to 15 years, Ms Ashby opined that there was evidence of koalas returning to heavily burnt forest within one year post-fire, referring to the November 2022 NRC report. Ms Ashby said that the Port Macquarie study was distinguishable as the population in that area was "quite large compared with the low density population likely to be supported by the habitat in [the] Myrtle and Braemar State Forest[s]".
Dr Phillips and Ms Ashby gave evidence concurrently at the hearing on 14 and 15 August 2023.
However, NEFA accepted that the effect of the test stated in ACF v Commonwealth and subsequent decisions is that "a mere belief or concern, however genuine, does not itself constitute a sufficient locus standi", but submitted that once that belief or concern is converted into concrete action by a person or organisation to protect or uphold the particular interest involved, then standing will be established. That proposition is stronger when the interests of the person or organisation are closely connected to a particular geographical area or a particular type of environment, and to the subject matter of the relevant decision. The range of matters that the Court may take into account in determining whether the person or organisation has such an interest, it was submitted, is not closed and all aspects of the organisation and its activities are potentially relevant.
NEFA accepted that this Court is bound to find that there is an obligation to demonstrate locus standi by demonstrating a special interest in the sense that it will be "more particularly affected than other people". But in order to preserve the question for any later argument that might arise on appeal, NEFA submitted that no such standing test applies to actions to enforce laws enacted for the protection of the environment. That is because the decision in ACF v Commonwealth was influenced by the nature of the particular statutory provisions in play in that case. Those were variously described as being entirely concerned with administrative arrangements for the execution of public duties, or as being concerned with relations between public authorities. The direct challenge was to a decision taken under foreign exchange control regulations, not under environmental legislation.
NEFA noted for the record that if this case reaches a Court which is at liberty to depart from the existing authorities, it will be argued that none of the considerations that led to the Court's conclusion in ACF v Commonwealth applies to provisions such as those in the present case which are directly concerned with the protection of the Australian environment.
NEFA also referred to the High Court's decision in Onus v Alcoa of Australia Ltd (Onus) [9] where Stephen J cautioned that the special interest test did not contain a formula "capable of mechanical application", but instead required "in each case a curial assessment of the importance of the concern which a plaintiff has with particular subject matter and of the closeness of that plaintiff's relationship to that subject matter." In Bateman's Bay Local Aboriginal Land Council v Aboriginal Community Benefit Fund Pty Ltd, [10] the High Court endorsed the special interest test, but noted that it "is to be construed as an enabling, not a restrictive, procedural stipulation".
NEFA submitted that each of the following matters held to establish common law standing in previous cases establishes that it has a special interest in the preservation of the native forests in question beyond a mere intellectual or emotional concern, and that its interest is greater than that of the general public.
As to specific matters relied on by NEFA in relation to standing, FCNSW submitted as follows.
1. In ACF v Minister, the ACF established standing because it could demonstrate three matters: its special interest was in forests that are part of the National Estate; the ACF was established with government financial support to concern itself with issues the subject of the proceedings; and it was the pre-eminent body concerned with that issue. Here, neither the Braemar nor the Myrtle State Forest forms part of the National Estate. NEFA was not established with nor functions with the benefit of government financial support which was critical to Davies J's assessment of the importance of the ACF.
2. Contrary to NEFA's suggestion that Bridgetown is authority for the proposition that standing is not dependent on government funding or recognition, in that case Murray J simply expressed reservations as to whether such a rule firmly exists. His Honour acknowledged, however, that government funding and recognition has been used in many decisions as a factor for determining standing, and FCNSW contends that it is important here.
3. The question of "pre-eminence" arises in two different ways: first, the ACF was established with the support and funding of government to involve itself in environmental issues; second, Gibbs J observed in ACF v Commonwealth at 519 that the ACF had about 6,500 members. That was to be compared with NEFA which was formed in 1989 and incorporated in 2016, has 35 formal members (plus some volunteers and subscribers to its email list), receives no government funding and while it has apparently participated in some government processes, the engagement activities identified with specificity in the evidence are not recent.
In relation to the principles of ESFM in the Forestry Act, FCNSW submitted that: (1) ESFM is the mechanism adopted by Parliament to achieve a balance between managing and exploiting forest assets, whilst protecting the environment; (2) the scope of what constitutes ESFM under the Forestry Act has not yet been judicially considered; and (3) NEFA "appears to use the concept as synonymous with simply protecting ecological values (which it no doubt includes but is not limited to)" and seeks to demonstrate what the principles of ESFM are not, rather than "what it is with any specificity".
In relation to the matters raised by Mr Pugh in his affidavits of 27 July 2023 and 1 August 2023 in support of standing, FCNSW submitted that:
1. the carrying out of "audits" and the submission of those to the EPA does not demonstrate a special interest, and the koala assessments and "Scat surveys" fall into the same category;
2. participation in "public consultation" cannot give NEFA an interest different to that of any other person involved in such public consultation, and the "mere making of submissions" to the Premier, the Minister or the EPA "does not give rise to a special interest";
3. the historical commencement of proceedings does not assist, the proceedings to which Mr Pugh deposes having been commenced in this Court between 1989 and 1999 and having been brought by a member of NEFA rather than NEFA under the EPA Act which contains an open standing provision;
4. the "reference to a proposed 'Sandy Creek Koala Park' is to a proposal by NEFA", there being "no proposal by any relevant authority to create a koala park."
Generally, in relation to the question of standing, FCNSW submitted that NEFA is not akin to the ACF in terms of scale, pre-eminence, membership, government funding or government recognition. To the contrary, it is properly characterised, using the language of Davies J in ACF v Minister as a "mere association of individuals having like views". [22] Whilst this was "not to downplay the genuineness of the members of [NEFA] in their concerns or to dismiss their efforts", it was to say that NEFA's actions were not enough to establish standing. FCNSW also referred to the observation of Brennan J in Onus at 75 that in determining standing it is "also material to consider whether the plaintiff has shown so distinctive an interest that his actions to enforce the defendant's public duty is likely to avoid a multiplicity of actions". FCNSW submitted that if organisations such as NEFA are found to have reached the threshold for standing, then the consequence may well be a multiplicity of actions under the Forestry Act.
I do not accept FCNSW's submission in relation to standing that the proceedings are "in truth" proceedings to remedy or restrain apprehended breaches of the Forestry Act.
Whilst NEFA is undoubtedly not akin to the ACF (see ACF v Commonwealth) in terms of scale, pre-eminence, membership, government funding or government recognition, its interest goes well beyond that of a belief or concern. As FCNSW accepted, there is a connection between NEFA and the local environment, it has a history of involvement and influence and a connection with the subject matter of the proceedings. It is true that NEFA's recognition by State and federal government bodies and engagement with the local community is of a significantly lesser order than that of the ACF, however I do not consider that to be such as to disqualify it from demonstrating a special interest sufficient to establish standing: see Haughton at [95].
The matters raised by Mr Pugh in his affidavits, including in relation to the carrying out of audits and the submission of those to the EPA, koala assessments and "Scat" surveys, participation in public consultation, correspondence with the Minister, the commencement of proceedings and the making of submissions may not, in isolation establish a special interest. Cumulatively, however, I am satisfied that those actions are sufficient to establish a sufficiently special interest and support a justiciable controversy between NEFA and FCNSW within the meaning of ACF v Minister so as to attract standing to NEFA to engage the jurisdiction of the Court to determine whether the decisions of FCNSW (Mr Howat).
Nor is there any satisfactory submission to the effect that finding that NEFA has reached the threshold for standing would likely lead to a multiplicity of claims under the Forestry Act.
I am satisfied that NEFA has standing to bring these proceedings.
Further, NEFA submitted, the language of condition 53 indicates that operational plans are approvals as an operational plan and any amendments to it must be "approved and dated" by a FCNSW planning supervisor (conditions 53.4 and 53.6), and an amended operational plan "once approved…is taken to be the approved operational plan" (condition 53.7).
NEFA submitted that there is no other requirement in the CIFOA for FCNSW to address all conditions of the CIFOA. For example, FCNSW is required to prepare and submit to the EPA an annual plan under condition 32.1 and must do so "in the approved form in accordance with Protocol 2: Annual plans and reports". An annual plan is to set out, broadly, the type of operation, location and volume of timber to be logged, but at that point in time, there is no consideration of the specific operational planning and implementation of the conditions in chapter 4 of the CIFOA. It is only at the point in time when an operational plan is being prepared that FCNSW must consider and apply the specific operational requirements of the CIFOA to a site-specific operational area and specific operations. It is for these reasons, NEFA submitted, the approval of an operational plan is much more significant than merely, as FCNSW submitted, to indicate when a forestry operation is to commence.
Further, NEFA submitted, properly characterised, an approved operational plan is a separate approval that must be complied with. This was submitted to be evident from the requirement in condition 53.4(b) that operational requirements should be expressed in "sufficient detail to enable the person proposing to undertake the forestry operation to comply with the conditions of the approval". That suggests, NEFA submitted, that the operational plan is a "standalone" document that will be used to ensure compliance with the CIFOA when forestry operations are being undertaken. Such interpretation was submitted to be supported by condition 89.2(a)-(b) which requires that the approved operational plan be "named, signed and dated by all persons involved in carrying out the forestry operation" and "kept at the site of the forestry operation at all times". There is no similar requirement for persons to sign and keep copies of the CIFOA at site. NEFA submitted that this suggests that the operational plan is the approval from which forestry workers are working and with which they are required to comply, and not the general requirements of the CIFOA.
Macfarlan JA at [132] held that the exercise of the non-statutory power in that case was reviewable, stating:
132. [Hunter Valley Energy Coal Pty Ltd] submitted however that characterisation of the Secretary's power as executive rather than statutory would favour its construction of Condition 42. As I do not accept that this would in fact affect the construction of Condition 42, the distinction is not of present significance. I indicate however that my view is that the power is non-statutory because neither the EPA [Act] nor any other statute confers a power on the Secretary or any other relevant person to certify fulfilment of conditions of the [Modified Project Approval]. The EPA [Act] simply permits the imposition of the conditions. If a condition requires action by a government officer, that officer, in fulfilling the condition, will be acting pursuant to his or her executive powers, not any statutory power. I do not therefore agree with the contrary view that the primary judge expressed on this question (see [173]).
FCNSW submitted that it is for NEFA to establish not only that the Court has jurisdiction to dispose of the proceedings, but that which is being sought to be reviewed is properly characterised as the exercise of a function that is capable of review. FCNSW submitted that "the text and context of both the Forestry Act and the CIFOA make it clear that the operational plans are not authorising the carrying out of forestry operations in the relevant compartments of either the Braemar or the Myrtle State Forest", and that "the relevant authorisation of those operations occurred at the level of the Ministers granting the CIFOA". This was said to be plain from:
1. the language of s 69L(1)(a) and the framework for approvals set up by Part 5B of the Forestry Act that authorise the carrying out of forestry operations; and
2. other sections outside Part 5B that refer to such approvals, for example, under s 19(4) of the Forestry Act, "[a]n integrated forestry operations approval does not authorise the carrying out of any forestry operations in a special management zone that are prohibited by or under this section" (the corollary being that an approval does authorise the carrying out of forestry operations not in such zones).
FCNSW submitted that condition 53 of the CIFOA does not approve the carrying out of forestry operations. It is a timing provision that relates only to when forestry operations may commence in an operational area: see condition 53.2 which provides that: "A forestry operation must not commence in an operational area unless an operational plan has been prepared for that forestry operation in that operational area".
NEFA submitted that the critical question in relation to the identification of a jurisdictional fact remains that set out by Spigelman CJ in Woolworths Ltd v Pallas Newco Pty Ltd (Pallas Newco) at [6]: [29]
6. The issue is one of statutory construction. What is required is a careful analysis of the statute which confers the jurisdiction. Consideration must be given to the language of the power under consideration and to the total context of the legislative scheme in which the power is conferred, including the scope and nature of the jurisdiction and the facts said to be jurisdictional.
NEFA referred to High Court's recent decision in Stanley v Director of Public Prosecutions (NSW) (Stanley v DPP) at [78] to [82]. [30] The plurality there determined that a failure to undertake an assessment required by a provision of the Crimes (Sentencing Procedure) Act 1999 (NSW) was a failure to undertake a task "mandated for the purpose of deciding [the question in issue]", such error tending "to defeat the evident statutory aim". [31] At [81], the plurality (Gordon, Edelman, Steward and Gleeson JJ) described the task as "integral to the function" of choosing the appropriate sentence, and rejected the proposition that a failure to undertake the relevant assessment was an error within jurisdiction. [32]
NEFA also referred to the decisions of the Court of Appeal in Ross v Lane [33] (Ross v Lane) and El Khouri v Gemaveld Pty Limited [34] as applications of "that approach" to the question of jurisdictional facts, whilst emphasising the "significant difference between the current case and one critical aspect of those two decisions". In Ross v Lane, Macfarlan JA, forming part of the majority with Basten AJA, said that a key consideration against the matter contended for being a jurisdictional fact was that such a finding would "render Council consents more readily open to challenge" which "could be seen as detrimental to the public interest where the point in issue, being a subjective one of planning and development, was one upon which the Council would be well equipped to opine and (subject to conventional judicial review challenge) reach a final conclusion". [35] NEFA submitted that in contrast here, there is no gatekeeper or neutral decision-maker. A corporation with a statutory obligation to maximise its profit determines an approval under condition 53.4 for itself. The public interest identified by Macfarlan JA in Ross v Lane is absent here. In fact, the public interest is in ensuring that there is potential for the Court in a proper case to review the decision of the planning supervisor that a particular operation will comply with ESFM principles.
Likewise, NEFA submitted, in Ross v Lane Basten JA in discussing the inconvenience of the issue there being treated as a jurisdictional fact emphasised that the decision-maker was a court, and pointed to the inconvenience of a court's conclusions being treated as subject to review other than by appeal. A court was submitted to share with a council on a development application the "character of being independent of the parties who contend before it for a particular outcome". This was to be contrasted with a commercial party approving its own profit-making or at least profit-seeking activities.
In relation to Ground 3, FCNSW submitted that Dr Phillips' evidence does not "state a conclusion regarding whether the application of a particular condition of the CIFOA would result in a 'poor environmental outcome' at a specific site for the purpose of condition 23.4." Nor does Dr Phillips' evidence "conclude that in a specific or unique circumstance that compliance with the CIFOA would not be able to be achieved, which is the second trigger for the operation of condition 23.4".
I have found, contrary to FCNSW's submissions, that NEFA's grounds of challenge properly seek judicial review of the embedded decisions of FCNSW (Mr Howat) to approve the Braemer HHP and the Myrtle HHP. However, the evidence of Dr Phillips and Ms Ashby is not relevant to and does not assist in the determination of the grounds of review.
I find that the expert evidence is not relevant to either Ground 1 or Ground 3 in the sense of being evidence which could rationally effect (directly or indirectly) the assessment of the probability of a jurisdictional fact in the proceedings.
Further, NEFA submitted, the language of s 69L supports such interpretation of s 69M for the following reasons:
1. The purpose of Part 5B of the Forestry Act is to "provide a framework for forestry operations": s 69L(1). The expression "framework" emphasises that "the Ministers are free", within that framework, to select the scheme for "implementation that seems to them appropriate and best fitted to achieve the objects" of the Forestry Act. This does not suggest that the approval "must do all of the work, once and for all, of determining what operations may proceed and on what terms".
2. Section 69L applies the principles of ESFM to "forestry operations", and not to "forestry approvals". It is the individual operation that must be scrutinised for its capacity to comply with ESFM principles, and not just the integrated forestry operations approval. That scrutiny can occur at the condition 53.4 approval stage.
The "primary focus of attention", NEFA submitted, must be on condition 53 which is "expressed in peremptory language, with the word 'must' used in every sub-condition". The effect is that an operational plan that does not comply with each of those sub-conditions must not be approved, the FCNSW planning supervisor having no power to waive or vary any of the requirements. NEFA submitted that the "importance of the Condition 53 planning process supports the conclusion that satisfaction of each element of Condition 53.4 is mandatory". Without public input or third-party supervision, FCNSW can authorise itself to conduct what would otherwise be unlawful operations. The interrelation of public consultation with the limits of the power to approve was discussed by the Court of Appeal in Timbarra Protection Coalition v Ross Mining (Timbarra). [40] Spigelman CJ there contrasted two sets of cases: (1) those in which "a feature of the statutory scheme…was that the decision could only be made after a process of public consultation", [41] citing Australian Heritage Commission v Mount Isa Mines (Australian Heritage Commission) [42] which told against a finding of jurisdictional fact; and (2) those in which the result of the decision, for example, as to whether or not a species impact statement was required, "enables the decision-making process of the consent authority to be better informed…both directly, by the supply of additional detailed information to the decision-maker" and "indirectly, by making such information available to those who may be minded to make submissions to the consent authority", which was found to be "more likely that the legislature intended the circumstances which lead to the requirement to prepare a species impact statement, to be both objectively ascertained and essential". [43]
NEFA submitted that the present case is more closely related to the latter set of cases referred to in Timbarra. In accordance with condition 53.5, the operational plan must be made public prior to its implementation. Although there is no formal mechanism for public input after publication, the making of the plan available is the only means by which either the EPA or the public is informed of what has occurred. Section 69L of the Forestry Act provides that one of the principles of ESFM is "ensuring public participation, provision of information, accountability and transparency in relation to the carrying out of forestry operations". That is achieved, NEFA submitted, by, in part, publishing the plan and permitting the public to question whether the principles of ESFM have been taken into account. Where there can be no scrutiny of the consistency of the operational plan with ESFM principles except through the approval process in condition 53, the "likelihood that compliance with those principles is a precondition to the exercise of power is much stronger".
Here, NEFA submitted, the element of objectivity discussed in Timbarra is provided by the "elaborate definition" of the principles of ESFM in s 69L. [44] Further, there are other aspects of the CIFOA which make clear that in other contexts FCNSW is required to give active consideration to environmental factors in the implementation of the CIFOA "and not merely or mechanically to apply the conditions". One example was submitted to be the annual plan required to be produced each year in accordance with condition 32 and Protocol 2 to the CIFOA (see [146] above).
It follows, NEFA submitted, that operational planning by FCNSW "must involve positive consideration of environmental impacts of forestry operations, including the contribution that each individual forestry operation will make to the cumulative effect of the total". Likewise, there are provisions of the CIFOA which provide minimum standards, such as the koala feed tree and browse tree retention standards in Protocol 31. The provision of a minimum standard, it was submitted, necessarily implies that a person applying the standard is to consider whether in the particular case the minimum is sufficient and has the ability to vary upwards from it. Further, the following factors made it "inherently unlikely that the two Ministers intended that by setting conditions and protocols which address some aspects of environmental harm", they were determining the question of compliance with the principles of ESFM "once and for all":
1. Condition 11.2 of the CIFOA which came into effect on 16 November 2018 sets out the duration of the approval, being 20 years unless otherwise revoked. While "not entirely immune to change during that time", the means of permanent change and of site - or time - specific variation are limited. FCNSW's emphasis in opening submissions in relation to the "living document" greatly overstates the degree of flexibility. Whilst s 69G of the Forestry Act provides a framework for review of forestry agreements and integrated forestry operations approvals, it "does not positively require the update or amendment of an IFOA following the review at the end of the 5-year period".
2. Whilst s 69R provides that "[a]n IFOA may be amended, suspended or revoked at any time jointly by the Ministers authorised to grant the approval", this does not convert the approval into a "flexible tool for amendment", permitting "the Ministers to draft a short-term response to altered environmental conditions".
Similarly, NEFA submitted, the capacity to alter the operation of the CIFOA through the adoption of new protocols is limited to matters addressed by protocols, and not by conditions. Nonetheless, accepting that if a new protocol is made that is more stringent in operation than the existing conditions, and the more stringent provision would apply (condition 7.2), many operational matters are dealt with exclusively by conditions, and in other cases protocols are only called into play when a condition specifically refers to them. For that reason, NEFA submitted, "protocol amendments do not provide a convenient means for the CIFOA to address site specific variations or variations arising from specific and unique circumstances". Again, that was said to be "consistent with the authors of the CIFOA having intended the detailed application of ESFM principles to individual sites and that individual operations would take place at least in part at the operational planning stage".
This analysis was said to be contrasted with each of the HHPs which applies specifically to an operational area. Condition 4.2(2)(a) of Protocol 4 provides that an operation plan must include certain details of the "operational area", including "(iv) each State Forest name and compartment number" and "(vi) local landscape area identifier" (LLA). An operational area, NEFA submitted, is "significantly more targeted than the total area covered by the CIFOA", and an operational plan can be amended or varied in accordance with conditions 53.6 to 53.8. Accordingly, both the size of the areas to be covered by operational plans and the "relative informality" of the procedure for their amendment were to be contrasted with the CIFOA, thus indicating that the "operational plans are more appropriately capable of adaptation to achieve the principles of ESFM in changing environmental conditions".
NEFA further submitted that the Court, accepting that condition 53 requires an operational plan to address the conditions of the approval, should also accept that condition 14 is one that must be taken into account for the following reasons:
1. Under the Forestry Act, the Ministers can only approve an IFOA if consistent with the principles of ESFM. The objects of FCNSW in s 10 of the Forestry Act include compliance with the principles of ecologically sustainable development which include principles of ESFM such as the precautionary principle and the principle to conserve biological and ecological diversity.
2. The CIFOA in conditions 4.1 and 123.1 addresses the issue of which provisions are and which are not operative. Both conditions omit reference to the general objects of the approval and to condition 14. The division within condition 14.1 of sub-pars (a) and (c) strongly supports the proposition that consideration of the principles of ESFM is independent of and in addition to consideration of compliance with the conditions of the approval and the protocols.
It followed, NEFA submitted, that the Braemar and Myrtle HHPs are invalid because contrary to condition 53.4, they do not address condition 14.1 which requires forestry operations to be carried out in accordance with the principles of ESFM; and/or they do not enable persons seeking to conduct operations in accordance with the HHPs to comply with the principles of ESFM under condition 14.1. This was submitted to be for reasons including the following.
In relation to the principles of ESFM in s 69L(2)(a), (d) and (e) of the Forestry Act, namely "maintaining forest values for future and present generations", "applying best-available knowledge and adaptive management processes to deliver best-practice forest management", and "applying the precautionary principle...in preventing environmental harm", NEFA submitted:
1. The HHPs include a voluntary condition to adopt an LLA Offset Exclusion Zone comprising a minimum of 50% of the gross area of the LLA under FCNSW's North Coast voluntary conditions. This voluntary condition is not enforceable and has not been developed or approved as a SSOC by the EPA as a condition that adequately responds to the post-bushfire context to maintain forest values. The HHPs provide in relation to the Braemar HHP "Other Sensitive Area Exclusion Zones" that the area to be offset is to be "lowest severity fire, recovered forest and other priority habitat". The Braemar HHP provides for two different prescriptions for the LLA Offset Zone. Under "Forest Health", the plan provides that the "Majority of areas mapped as high fire intensity will be LLA fire offset exclusions during this operation" and under "Other Sensitive Area Exclusion Zones", that the "lowest severity fire, recovered forest and other priority habitat" is to be retained.
2. The two HHPs do not maintain forest values because they do not rely on sufficient data to properly identify and understand the impacts of the 2019/2020 bushfires in relation to listed threatened species and other forest values, and do not therefore provide adequate prescriptions to maintain forest values. For example, in relation to koalas, no targeted fauna surveys were conducted prior to the approval of the HHPs. Accordingly, FCNSW did not "adequately understand" the impacts of the 2019/2020 bushfires on koalas and their extent and location in the relevant State Forests. Without such information, the HHPs could not address the ESFM principle (in s 69L(2)(a)) to "maintain forest values" for present and future generations, the HHPs enabling FCNSW to remove suitable koala habitat used by surviving koala populations in the State Forests.
3. The two HHPs require additional "temporary koala browse tree clumps" to be retained in relevant compartments in addition to those required to be retained under condition 65, "Koala browse prescription 2" (KBP2), in accordance with the North Coast voluntary conditions. This voluntary condition "is not enforceable and has not been developed or approved as a SSOC by the EPA as a condition that adequately responds to the 2019-20 post bushfire context." Nor does the voluntary condition require suitable koala habitat be retained for koalas.
In relation to the principle of ESFM in s 69L(2)(b) and (c) of the Forestry Act, namely "ensuring public participation, provision of information, accountability and transparency in relation to the carrying out of forestry operations" and "providing incentives for voluntary compliance, capacity building and adoption of best-practice standards", NEFA submitted that FCNSW did not seek SSOCs in circumstances where applying conditions of the CIFOA would result in a poor environmental outcome and/or it could not comply with the conditions of the CIFOA, the North Coast voluntary conditions are not enforceable.
FCNSW also referred to Trives where Basten JA with whom Macfarlan and Meagher JJA agreed said at [9] to [11]:
9. The language of 'jurisdictional fact' is commonly used as a basis for review of administrative decisions. A 'jurisdictional fact' describes a fact which is an essential precondition to the exercise of a power. For a person to seek to exercise the power absent such a fact is to act without legal authority.
10. Preconditions to the engagement of a power come in different forms. One common form is a requirement that the repository of the power be 'satisfied' as to the existence of a particular matter. Perhaps unhelpfully, the existence or absence of such an opinion is itself referred to as a 'jurisdictional fact'.
11. For legal purposes, facts do not exist, or not exist, in the ether. The existence or otherwise of a fact depends on a body with authority to do so making a finding as to the existence of the fact. To describe a fact as jurisdictional is to say that its existence or otherwise may depend upon a finding, not by the repository of the power, but by a court with the function of reviewing the repository's decision. As a practical matter, a party challenging the existence of such a fact will be entitled to call evidence and, in effect, carry out a trial in the original jurisdiction of the court, to the extent necessary for the court to determine the fact." (Footnote omitted.)
That passage was referred to by Basten AJA in Ross v Lane at [74], with his Honour going on to say at [75]:
75. There is no precise test which can be applied as a rule to determine whether in a particular circumstance a criterion of engagement of a power is to be determined by the court in the exercise of its original jurisdiction, or whether it is to be determined by the decision-maker, subject to judicial review. Rather, there are a number of considerations which may be taken into account in deciding that issue: Reysson Pty Ltd v Minister Administering the Environmental Planning and Assessment Act 1979 [2020] NSWCA 281; 247 LGERA 277 at [55] (Payne JA, Bell P and Gleeson JA agreeing). What is not in doubt is that "[t]he issue is one of statutory construction": Woolworths Ltd v Pallas Newco Pty Ltd (2004) 61 NSWLR 707; [2004] NSWCA 422 at [6] (Spigelman CJ; Mason P, Handley JA, Sheller JA and Cripps AJA agreeing).
More recently, in Stanley v DPP the plurality (Gordon, Edelman, Steward and Gleeson JJ) observed at [78] that whether a statutory provision imposes a condition or limit upon the power of a decision maker or affects the nature or function to be performed by the decision maker is a matter of statutory construction.
FCNSW submitted that while there is no precise test to be applied, a useful framework for analysis is that applied by Spigelman CJ in Pallas Newco and summarised by Basten JA in Trives at [37] as follows:
37. The structure of the Chief Justice's reasons involved the following steps, having acknowledged that the issue was one of statutory construction. First, the broad legislative scheme was identified; secondly, "indicators of jurisdictional fact" were identified; thirdly, "indicators against jurisdictional fact" were identified…Finally, a conclusion was expressed that a balancing of the factors in favour of and against "characterisation" of a proposed development as jurisdictional, led to the conclusion that it was.
FCNSW submitted that applying the framework in Pallas Newco, the Court ought to conclude that there is no jurisdictional fact or condition on the exercise of power by the FCNSW planning supervisor to approve an operational plan that arises from the Forestry Act or the CIFOA, properly construed. That is because each of the "indicators" of jurisdictional fact relied upon by NEFA is not in fact such an indicator, and "there are several indicators against a finding of jurisdictional fact which tip the balance firmly in favour of the conclusion that there is no jurisdictional fact as alleged in Ground 1".
FCNSW submitted that the legislative scheme created by the Forestry Act "does not indicate that the principles of ESFM are required to be separately considered and applied at the level of an operational plan." An "operational plan" is not a statutory phrase, "rather a construct of the CIFOA." There is no implication from s 69L of the Forestry Act that the time for application of the principles of ESFM is the time of the approval of the operational plan "which merely permits already approved forestry operations to commence".
In relation to what FCNSW apprehended to be NEFA's submission that it was open to the Ministers to defer at least partly the achievement of the obligation in s 69L of the Forestry Act to comply with the principles of ESFM to the operational planning stage, rather than attempting to address them entirely in the making of the CIFOA, FCNSW submitted that such submission "is to skirt over" s 69M(1) which affords the Ministers the power to grant approvals and provides that approval for the carrying out of forestry operations to which Part 5B applies may be granted under Part 5B. It is an approval that authorises the carrying out of forestry operations, and it is at the time of authorisation that the principles of ESFM are applied.
Further, FCNSW submitted that the CIFOA "carefully applies" the principles of ESFM through its conditions and protocols which can be adapted depending on the environmental landscape. It was not FCNSW's case that the planning supervisor has power to approve an operational plan that wholly ignores the principles of ESFM, rather that the planning supervisor is not required separately and independently to consider and apply the principles at the time of approving an operational plan. It is sufficient that the operational plan contains the necessary content and is approved in accordance with condition 53.4(c).
To the extent NEFA contends that it is difficult to amend the CIFOA such that it could not have been Parliament's intention that the principles of ESFM are "addressed once and for all in the making of the IFOA", FCNSW submitted that any such contention ignores the fact that there are mechanisms within the CIFOA itself which allow for the instrument, "in particular the protocols (which carry the same force as the conditions), to be amended and adapted according to the prevailing environmental conditions." This is made clear by s 69P(3) and (4) of the Forestry Act which provide that an IFOA may apply or adopt protocols, codes, standards or other instruments that are publicly available and in force from time to time, and that without limiting subs (3), any such protocols may include those prepared by the EPA. It is the EPA together with the monitoring steering committee established by the CIFOA that are better placed to determine whether an approval, once granted continues to achieve the principles of ESFM.
Further, FCNSW submitted that the "principles of ESFM are largely expressed in general, somewhat aspirational terms, requiring evaluative and policy decisions to be made." Whilst the FCNSW planning supervisor would not be incapable of determining whether the forestry operations the subject of an operational plan achieve those principles, the function is better suited to performance by a person with knowledge and expertise in relation the environmental matters comprising the principles of ESFM. [45] At the time an integrated forestry operations approval is granted, the persons best placed are the Ministers granting the approval having consulted with the Minister administering Part 7A of the Fisheries Management Act (s 69N(3)); after the public consultation process prescribed by s 69NA is undertaken; and after "the Ministers have adopted a highly detailed approval with conditions and protocols" which include protocols prepared by the EPA (s 69P(3) and (4)). Once the approval is granted, ongoing monitoring of compliance with the principles of ESFM is done by the EPA and the monitoring steering committee established under Chapter 8 of the CIFOA. Condition 23 permits the EPA, upon request by FCNSW (condition 23.1) or of its own initiative (condition 23.3) to review a condition, objective or outcome of the approval for the reasons in condition 23.1(a) to (d). Once such review is undertaken, the EPA considers all relevant issues, which having regard to the matters referred to in subparagraphs (a) to (d) of condition 23.1 include the principles of ESFM, and within six months or another timeframe approved by the EPA provides a report detailing the outcome of the review if it determines that no changes are to be made to the approval; amends the protocols to address the issues identified; or recommends to the Minister to amend the approval.
FCNSW submitted that the power of the EPA to amend the protocols pursuant to condition 23.2(b) of the CIFOA and s 69P(3) and (4) of the Forestry Act "significantly undermines" NEFA's submission that the principles of ESFM were "at least partly deferred until the time of the making of an operational plan because the CIFOA is a static instrument that can only be amended under the less-versatile statutory processes prescribed by s 69R". That certain of the protocols have been amended since the commencement of the CIFOA was apparent on their face, for example, Protocols 8, 23, and 40 were identified as "Version 2" and the date approved by the EPA chief executive officer. Likewise, NEFA's submission was submitted to be undermined by the terms of Chapter 8 of the CIFOA and Protocol 38. Under condition 122.1, FCNSW is required to participate in the work of the monitoring steering committee referred to in Protocol 38 in relation to the design, implementation, review and adaptive management of the monitoring program. Pursuant to condition 122.2, that monitoring program is to be jointly approved by the Chief Environment Regulator of the EPA and the Deputy Director General of the Department of Primary Industries, and once that monitoring program has been so approved, FCNSW is required to:
(a) implement and comply with the monitoring program in accordance with the approval and Protocol 38: Monitoring program; and
(b) contribute to any necessary adaptive management of the approval in response to relevant findings of the monitoring program and the recommendations of the monitoring steering committee; and
(c) participate in public consultation processes associated with the monitoring program.
Further, under Protocol 38, FCNSW is required to participate in the monitoring steering committee which is composed of, inter alia, a minimum of four independent and suitably qualified scientists with expertise in the principles of ESFM: (condition 38.2(1)(a)(iii)). The monitoring program must be designed to meet those principles (condition 38.3(1)(f)). Under condition 38.4, the monitoring program must incorporate reviews and public reporting of results and progress. FCNSW submitted that "those matters undermine a submission that the Court must find an implicit requirement for the achievement of the principles of ESFM at the time of the approval of the operational plan because the approval does not otherwise have the ability to at least nimbly deal with the adaptive principles of ESFM". Contrary to NEFA's submissions, "it is not FCNSW's case that every conceivable consideration of ESFM is considered once and for all by the Ministers in granting the CIFOA"; rather, the Ministers built into the CIFOA itself specific mechanisms requiring the EPA and the monitoring steering committee to address the ongoing ability of the CIFOA to meet the principles of ESFM as those principles evolve. Specifically, FCNSW referred to "in-built mechanisms" in the CIFOA to address changing environmental conditions such as the "up listing" of certain species, such as the koala, as follows:
1. the expression "threatened species" adopts the definition as it appears in the Biodiversity Conversation Act 2016 (NSW) (BC Act);
2. under condition 16.1(a), FCNSW and any authorised person must not carry out any forestry operation that is likely to result in harm to any animal or plant;
3. under condition 21.1(a)(ii), a forestry operation must not commence in an operational area, or if already commenced must immediately cease, if before or during a forestry operation any species for which a preliminary determination has been made under Part 4, Division 3 of the BC Act to support a proposal to list the species as a threatened species (referred as "up listing") is identified or recorded within 100 metres of the boundary of an operational area; and
4. The CIFOA accommodates such "up listing" as if condition 21.1(a)(i) is engaged, under the condition 21.3 the forestry operation must not commence, or recommence, in the operational area until the EPA has provided FCNSW with a "site-specific biodiversity condition" or has otherwise authorised the commencement or recommencement in writing.
Further, FCNSW submitted that the jurisdictional fact contended for by NEFA depends on it establishing that an operational plan cannot be approved under condition 53.4(c) unless it contains operational requirements to enable the person proposing to carry out forestry operations to undertake those operations in accordance with the principles of ESFM. FCNSW submitted that that contention elides the language of condition 14; condition 14.1 providing that "the overall objective of the approval" was to authorise the carrying out of forestry operations set out in condition 13 in accordance with the principles of ESFM. It is the CIFOA which has the function of authorising the relevant forestry operations, and the objective of the CIFOA was for such operations authorised to be carried out in accordance with the principles of ESFM. NEFA's contention that if compliance with ESFM was not intended to be a precondition to the approval of an operational plan, then condition 14.1(c) would be all that is necessary involves a strained construction of the condition. Read as a whole, the condition is "speaking of the general objectives of the CIFOA". The high-level objectives set out in condition 14 are not enforceable requirements of the approval, but assist in its understanding and implementation.
While the language of condition 14 indicates that it is not an operative condition, a textual analysis of the whole of the approval makes that "even more plain". The objectives of the approval are in two parts, in condition 14 the "general objectives of the approval", and in condition 15 the "specific objectives of the approval". For example, condition 14.1(b)(1) provides that:
The overall objective of the approval is to authorise the carrying out of forestry operations set out in condition 13 above:
(a) …
(b) in a manner which integrates the regulatory regimes for:
(i) environmental planning and assessment;
(ii) the protection of the environment; and
(iii) threatened species conservation and biodiversity.
It is not possible, FCNSW submitted, to read that objective as an otherwise operative condition as to "do so would set at nought the detailed approval role - granted solely to the two Ministers - under Part 5B of the Forestry Act." If condition 14 were an independent operative condition, then every time a decision was to be made under the CIFOA requiring compliance with the approval, there would need to be, on NEFA's case, an independent consideration of whether there was appropriate integration with environmental planning and assessment, the protection of the environment, threatened species conservation and biodiversity, as well as the principles of ESFM.
NEFA's construction, FCNSW submitted, is one which fails to read the conditions of the CIFOA harmoniously. FCNSW referred to the general requirement in condition 7 that "FCNSW must comply with the conditions of the approval…", and to numerous conditions that require compliance with the conditions of the approval: for example, condition 18 which requires that every forestry operation must be planned, implemented and conducted "in accordance with the conditions of the approval". To similar effect, condition 29.1 provides that "FCNSW must keep and maintain a register of every incident and non-compliance with the conditions of the approval…"; and condition 7.1, the effect of which is that in carrying out forestry operations pursuant to the approval, FCNSW must comply with the conditions of the approval. It follows, FCNSW submitted, that neither the general nor the specific objectives of the approval are "conditions" of the approval with an operative effect. If some substantive or operative effect were to be given to the objectives, that would be apparent either from the objective condition itself or some other provision. Nothing in either condition 14 or 15 gives substantive effect to those objectives. Likewise, none of the other conditions requires expressly or impliedly that in the carrying out of the steps under the CIFOA that substantive effect be given to those objectives.
In relation to the structure of the CIFOA, FCNSW referred to condition 23.1 which provides that FCNSW may request the EPA to review a condition, objective or outcome of the approval by way of written submissions to the EPA demonstrating that in FCNSW's opinion: (a) a condition, objective or outcome is not being consistently achieved when implementing the approval. FCNSW also referred to condition 23.1(d) which requires consideration of whether "the monitoring program under Chapter 8 of the approval identifies that the conditions are not effective or not delivering the intended objectives or outcomes of the approval." It followed, FCNSW submitted, that "the outcomes expressly do not form part of the approval and are not enforceable on their own".
The approach adopted by NEFA, FCNSW submitted, is at odds with the regime for amendment provided for in the CIFOA, suggesting "that if the relevant officer forming an opinion to approve the operational plan decides that applying the conditions of the approval will not address the objectives", then that officer, "without consultation with any regulatory authority, may simply vary the conditions of the CIFOA so as to conform with that officer's interpretation of the principles of, for example, ESFM". In FCNSW's submission, that is plainly an incorrect approach to the interpretation and application of the CIFOA: if such "drastic" power were to be given to an officer for the purposes of the approval of an operational plan, such conferral would need to be express. Such an approach would be inconsistent with the regime established by Part 5B of the Forestry Act, with the principles of ESFM having been considered by the two Ministers prior to their approval of the CIFOA, and the approval being given only after the consideration of submissions from the public and relevant stakeholders.
To the extent that the principles of ESFM might require changes to the conditions of an approval or the way in which forestry operations are carried out having regard to the fact the CIFOA is a "living document", the potential ways in which an integrated forestry operations approval can be varied to react to changes, whether in the approach to the principles of ESFM or in the relevant science, were submitted by FCNSW to include the following:
1. the Ministers can amend, suspend or revoke the CIFOA: s 69R of the Forestry Act;
2. the conditions of the approval must be implemented in accordance with the relevant protocols, which can be changed by the EPA, as "in force from time to time": s 69P(3) of the Forestry Act;
3. where there is a conflict between a condition and a protocol (including a revised protocol) the most stringent requirement applies: condition 7.2;
4. if FCNSW is concerned that an objective, for example the implementation of the principles of ESFM is not being consistently achieved, it may request a variation to the conditions (or the objective): condition 23.1;
5. if the EPA is of the same view, it may initiate a review: condition 23.3;
6. if there is not a general concern (giving rise to a 23.1 or 23.3 review) but rather a site specific, or specific and unique circumstance, that gives rise to a concern about an inability to comply with conditions which might not therefore achieve the objectives, FCNSW can seek site specific operating conditions for that specific site, or that specific and unique circumstance: condition 23.4;
7. if a species or community is either for the first time listed or is up listed after the making of the CIFOA, the requirements of the CIFOA automatically apply to those new or varied listings: condition 21; and
8. the CIFOA is under constant review pursuant to the monitoring program provided for in condition 122.
Finally, in relation to Ground 1, FCNSW submitted that conditions 14.1(a) and (b) are reflective of the language of s 69L(1) of the Forestry Act which provides that the purpose of Part 5B is to provide a framework for forestry operations to which the Part applies (a) that authorises the carrying out of those forestry operations in accordance with principles of ecologically sustainable forest management; and (b) that integrates the regulatory regimes for environmental planning and assessment, for the protection of the environment and for threatened species conservation, including threatened species, populations and ecological communities under Part 7A of the Fisheries Management Act.
In all the circumstances, I am not satisfied that "achievement" of the principles of ESFM in operational plans is a jurisdictional fact. Nor am I satisfied that the sufficiency of detail in relation to operational requirements so as to enable the person undertaking forestry operations to comply with the conditions of the CIFOA is a jurisdictional fact.
In relation to Ground 1, if I be wrong in my construction of the Forestry Act and the CIFOA and the question of whether "satisfaction" of condition 14 is a jurisdictional fact with the consequence that compliance with it is a mandatory precondition to the valid approval of an operational plan, it arises to consider whether the two operational plans here "achieve" compliance with that condition. NEFA bears the onus of establishing that if satisfaction of condition 14 is a jurisdictional fact requiring the principles of "ESFM to be achieved prior" to approving an operational plan.
On the evidence before the Court, NEFA has not discharged its onus of establishing how the principles of ESFM have not been achieved in the approval of the two operational plans or of establishing that the operational plans lack sufficient detail to enable the person proposing to undertake the forestry operation to conduct such operation in accordance with the principles of ESFM. The evidence of Dr Phillips (which I have determined not to admit on the basis of relevance) does not refer to the principles of ESFM, rather focusses on the potential impact of forestry operations on the koala in the Braemar and Myrtle State Forests. Implicit in the way NEFA has framed its case is the assumption that any potential impact on the koala cannot be in accordance with the principles of ESFM.
Accordingly, Ground 1 must fail.
In those circumstances, FCNSW submitted, the Court would not conclude that the FCNSW planning supervisor who approved the operational plans was "mandated" to separately consider whether the operational plans complied with the principles of ESFM. Those principles were taken into account in the approval of the CIFOA, the conditions of which are addressed by the operational plans which were prepared in accordance with Protocol 4.
In the alternative, NEFA submitted that if the Court does not find that the SSOC preconditions are objective jurisdictional facts, the SSOC preconditions are "subjective jurisdictional facts", and FCNSW's own conduct demonstrates that it was satisfied that one or both preconditions were met in relation to the Braemar and Myrtle State Forests. NEFA submitted that "[a] subjective jurisdictional fact may exist where the relevant statutory construction of a provision indicates that there is a criterion that, if in the opinion of a relevant body has been satisfied, enlivens the power of the decision maker to exercise a discretion". NEFA submitted that the language of the chapeau to condition 23.4 indicates that the SSOC preconditions are a criterion of a preliminary nature that must be determined prior to FCNSW exercising its power to seek SSOCs under condition 23.4(a), thus indicating that the SSOC preconditions are jurisdictional facts.
NEFA submitted other indications that the SSOC preconditions are "subjective jurisdictional facts" are that:
1. the SSOCs preconditions relate to the conducting of forestry operations that would otherwise be prohibited under the CIFOA and FCNSW has an interest in determining whether the SSOC process is enlivened;
2. while FCNSW can seek to obtain SSOCs, it does not have the "authoritative power to grant and enforce the SSOCs"; and
3. if the Court finds that the SSOC preconditions are jurisdictional facts, only a distinct class of persons can seek review of those decisions within a strict timeframe of 3 months.
Further, NEFA submitted that condition 65 does not achieve the retention of suitable koala habitat because some of the species that are listed as koala browse trees in Protocol 39 are not preferentially used by koalas and will not therefore be suitable habitat for koalas, for example, the Narrow Leaved Red Gum which is a species of Red Gum. Protocol 23.2(4)(c) provides that when applying condition 65, Tallowwood, Swamp Mahogany and Red Gums must be prioritised for retention and make up to at least 50% of the retained koala browse trees. By applying condition 65, FCNSW may reduce the biological diversity of koala browse trees, this being "significant because the reduction of biologically diverse koala browse trees could result in local koala populations having limited, to no, suitable habitat available should any of the retained species in the compartments have a poor tolerance to climatic uncertainty".
In relation to the impact of removing suitable koala browse trees, NEFA submitted that the application of condition 65 will result in a poor environmental outcome because it does not ensure that suitable koala habitat will be retained. In particular:
1. The removal of suitable koala habitat (being particular species of koala browse trees greater than 30 centimetres DBH) in the relevant compartments "will significantly compound the impacts of the 2019-20 bushfires on surviving individuals and local populations of koalas in these areas".
2. It can take approximately 20 years for a 20 centimetre DBH koala browse tree to become a 30 centimetre DBH koala browse tree. When koala browse trees are logged, there is created an ecological time deficit for local koala populations, losing koala browse food trees and delaying the ability of the populations to consolidate and recover from the impacts of the 2019/2020 bushfire events which impacts include social dissolution, injury and/or death from misadventure and heightened risks of predation. This risk is especially heightened in the Myrtle State Forest where koala browse trees are sparsely distributed and surviving koalas are required to already travel long distances to access individual browse tree species greater than 30 centimetre DBH.
3. There "is a very real risk that the logging operations could irreparably impact the survival of koalas in the local landscape and lead to local extinction", being "particularly the case where the location of surviving koala individuals and local populations is not properly understood".
In relation to condition 75, which provides that "[i]f a koala is located in a tree, an exclusion zone with a radius of 25 metres or greater must be retained around the tree" but that "[t]he exclusion zone may be removed once the koala moves from that tree", NEFA submitted that applying condition 75 will result in a poor environmental outcome in the post bushfire context in the Myrtle and Braemar State Forests as koala browse trees that are being actively utilised by koalas are able to be logged once a koala leaves an area.
NEFA submitted that only undertaking targeted flora surveys in the Myrtle and Braemar State Forests will have a poor environmental outcome as in the post bushfire context: "targeted fauna surveys are required in severely fire affected forests to supplement pre-bushfire records of listed threatened species because those records do not show the extent and location of habitat being actively used by surviving listed threatened species and how those species have been impacted by the 2019/2020 bushfires". NEFA submitted:
1. Condition 56.1 provides that "a forestry operation…must not be conducted in any part of an operational area, unless a targeted flora survey and/or targeted fauna survey has been undertaken…". Protocol 20.4 outlines when targeted fauna surveys must be conducted, including in relation to koalas. Protocol 20.4(9) prescribes targeted fauna surveys for koalas in the Southern Subregion or Eden Subregion, as defined in the CIFOA, but not for any other CIFOA regions. No systematic survey has been conducted for koalas in the Myrtle and Braemar State Forests.
2. Targeted surveys enable FCNSW to identify listed threatened species in operational areas and prescribe relevant protections under the CIFOA in HHPs to accommodate those listed threatened species. Operational maps which are part of an operational plan under condition 53.3 of the CIFOA must also include information that relates to the presence of listed threatened species such as known Environmentally Sensitive Areas (ESAs), [53] any other area, retained tree or habitat feature required to be protected under the approval, [54] and the location and extent of areas in the Upper North East Subregion where KBP2 applies. [55]
3. There was no evidence of systematic surveys having been undertaken in either the Braemar or the Myrtle State Forest to record accurately the presence of local koala populations and their habitat within the operational areas and the immediately adjoining areas of habitat.
NEFA also submitted that the CIFOA survey prescriptions for koalas in the North East NSW forests can be contrasted with those in the Southern Subregion and Eden Subregion where targeted koala surveys are required under the CIFOA, referring to condition 20.4(a) of Protocol 20. Under condition 20.4(9) of Protocol 20, a "RGbSAT survey", which is not defined in the CIFOA, can be conducted. The requirements of a RGbSAT survey are identified in condition 20.4(9)(c) of Protocol 20 and were submitted to be "rigorous". NEFA submitted that the RGbSAT surveys must inter alia (1) be undertaken at regular intervals identified by a one-kilometre grid; (2) identify at each survey grid point a "centre tree" which is considered to be among the most suitable trees in the area for koala use and must be a koala browse tree where available; (3) have the centre tree located within 100 metres from the identified grid point in order to avoid cleared areas, boundaries or habitat disturbances and to maximise the inclusion of the most suitable trees in the area for koala use, prioritising koala browse trees in the sample; (4) record the spatial location of the centre tree; (5) ensure that the centre tree and a minimum of 29 surrounding trees (which must not be a palm, cycad, fern or Xanthorrhea spp) with a minimum DBH of 100 millimetres, be marked in the field, the tree species and diameter recorded and the tree sampled for koala use applying a specified methodology; and (6) at each survey grid point, assess and record eight different features including soil fertility, groundcover percentage, and overstorey description. NEFA submitted that without conducting such targeted surveys, harvesting operations in the Myrtle and Braemar State Forests will lead to a poor environmental outcome.
Further, NEFA submitted that the application of conditions in the CIFOA relating to the retention of WHC (condition 50), TRC (condition 63) and koala browse tree retention (KBTR) (condition 65) will result in the post 2019/2020 bushfire context in a poor environmental outcome because the prescriptions have not been developed to respond to severely fire affected landscapes, such as the Braemar and Myrtle State Forests. That is because, NEFA submitted, the relevant conditions apply to environmental conditions prior to the 2019/2020 bushfires, and do not address the significant impact of the 2019/2020 bushfires on the forest values in the Myrtle and Braemar State Forests. Broadly, it was submitted, prescriptions relating to WHCs, TRCs and KBTR seek to ensure that habitat is retained for listed threatened species in areas that are to be logged and to ensure connectivity of habitat. The Outcome Statement for Chapter 4, Division 3 - Retained Trees, which relates to TRCs and KBTR, provides that: "Important trees are to be retained and protected for shelter and food resources for native species, and to support their persistence". The "Outcome statement" in Chapter 3, Division 3 which relates to WHCs and ESAs provides that: "Habitat and environmental features are identified and retained to provide refuge, connectivity and to support forest regeneration". The prescriptions, NEFA submitted, do not specify (1) how areas should be selected for retention where habitat features have been severely impacted by the 2019/2020 bushfires; (2) which areas will be of greatest ecological value and will meet the objectives of the CIFOA if they are retained; (3) what approach FCNSW should adopt where there is a high density of unburnt areas in one LLA and another LLA has been subject to intense fire severity; and (4) whether additional or alternative WHC areas or TRCs should be retained to meet the objectives of the CIFOA prescriptions in circumstances where the areas to be retained have been severely burned and/or do not contain the habitat features that are required to be included in the retained areas.
On the CIFOA prescriptions alone, NEFA submitted, "it is entirely possible that severely burnt areas with limited ecological value could be retained, or that there are no areas of suitable ecological value to retain".
Again, as in relation to Ground 1, NEFA submitted in the alternative that if the Court does not find that the SSOC preconditions are objective jurisdictional facts, it is evident that FCNSW "formed the view that the application of conditions of the CIFOA would result in a poor environmental outcome because it developed and adopted the North Coast voluntary conditions, and (mostly) applied those conditions to the Myrtle and Braemar State Forests". Each voluntary condition was said to be supplemented by a rationale which indicates that FCNSW formed the view that applying the CIFOA conditions would result in a poor environmental outcome.
NEFA identified examples of the FCNSW's North Coast voluntary conditions as those excluding 50% of the gross LLA from harvesting; amending condition 64.2(c) to require the retention of "hollow bearing trees" where they exist and add up to 8 "Recruitment" trees where hollow bearing trees do not exist; amending condition 65 to provide additional prescription in relation to "koala browse trees" (the voluntary condition stating "an additional 5% base net area (BNA) (at compartment scale) identified as koala temporary tree retention clumps in LLAs with contemporary koala records"); and a requirement for additional operational surveys with a traverse of 1km/100ha and applying the "normal clump methodology" to be undertaken by drone where appropriate.
Further or in the alternative, NEFA submitted that FCNSW would not be able to comply with conditions of the CIFOA "in a specific and unique circumstance as [a] matter of fact", and that FCNSW "also formed this opinion in preparing the HHPs". NEFA submitted that the 2019/2020 bushfires constituted a "specific and unique circumstance" because the bushfires were unprecedented in their size, intensity and scale. Due to the impacts of the 2019/2020 bushfires, FCNSW could not comply with or in the alternative formed the view that it could not comply with the following CIFOA conditions: (1) condition 57 requiring BAHS to be conducted, both HHPs providing that "[a]s a result of the 2019-20 wildfires there may be some areas where [BAHS] and mark-up cannot safely occur due to overhead hazards," and that no harvesting is to occur in areas where BAHS and mark up has not occurred; (2) condition 65 requiring the retention of koala browse trees, both HHPs referring to an additional 5% of the BNA of each compartment being managed as temporary feed tree clumps, and providing that "clumps will be prioritised to include primary and secondary koala browse tree species where they exist"; and (3) condition 14.1 (see above at [61]).
FCNSW referred to numerous other "commencement requirements and also stop points in the CIFOA", as well as provisions that "automatically read to changing circumstances". Some examples were identified, including condition 21.1 (specific site biodiversity conditions); condition 21.2 and 21.3 (specific site biodiversity conditions); condition 28.2 (operations register); condition 44.1 (LLA); and condition 84.2 (species management plans). FCNSW identified condition 23.4 as a particular example of a commencement requirement. After the operational plan has approved the commencement of forestry operations in the relevant operational area, condition 23.4 has continuing effect. That is because although the operational plan relates to the commencement of forestry operations in the operational area, the effect of condition 23.4 is much more specific. It relates to either:
1. a specific site at which there would be a poor environmental outcome, being a site that is part only of the operational area otherwise the subject of the operational plan; or
2. a specific and unique circumstance, again, a specific and unique circumstance that arises after the operational plan has authorised the commencement of forestry operations in the operational area as a whole and in all circumstances.
In particular, FCNSW submitted that Ground 3 requires NEFA to establish a connection between condition 23 and condition 53, and to demonstrate that condition 23 which contains special provisions requiring a review or amendment to the approval can somehow affect the power in condition 53 to approve the operational plan. There is, FCNSW submitted, no such connection: condition 53 authorises the commencement of operations within an operational area, and it is only after an operational plan has been approved for that operational area, that a particular forestry operation at a specific site or in a specific and unique circumstance may trigger condition 23. Even if NEFA were able to demonstrate that the conditions in the chapeau to condition 23.4 are met, that could not affect the validity of the already approved operational plan. Rather, what NEFA seeks to argue is that in commencing and carrying out forestry operations pursuant to the operational plan, NEFA anticipates that there will be a breach of condition 23. Because of the operation of s 69ZA of the Forestry Act (concerning the application of statutory proceedings by third parties), NEFA cannot seek to restrain any such alleged anticipated breach.
FCNSW submitted that the error in NEFA's approach arises because it has sought to construe condition 23.4 in light of the particular facts it says apply to the Braemar and Myrtle State Forests where the operational areas are fire affected. On NEFA's case, the entirety of the forestry operations would be subject to SSOCs. Rather, the words of condition 23.4 must be read on their own in the context in which they appear first and then applied to particular facts. The absence of any correlation between the operation of condition 23.4 and the approval, at a preliminary stage, of an operational plan for an operational area, pursuant to condition 53, was sufficient to cause NEFA to fail on Ground 3.
In relation to NEFA's other four propositions, FCNSW submitted as follows. It referred to and repeated its submissions in relation to the identification of jurisdictional facts made in relation to Ground 1, and submitted that the Court would reject NEFA's submission that the two limbs in the chapeau to condition 23.4 are jurisdictional facts. Again, this was said to be because condition 23 facilitates variation to the conditions of the approval by the means of SSOCs in two different circumstance: the first being where if applying a condition of the approval (as defined in Protocol 39) at a specific site would result in a poor environmental outcome; the second being if in a specific and unique circumstance, FCNSW would not be able to comply with the conditions of the approval. Each of these circumstances, referred to by NEFA as the SSOC preconditions, requires an evaluative process. In order to determine whether there is a "poor" environmental outcome necessarily involves a degree of evaluation, as does the determination of whether a circumstance is "unique". FCNSW submitted that these textual indicators suggest that the initial decision maker is likely to be best placed to undertake the evaluation, and that their findings should not be reviewable. Further, FCNSW repeated that NEFA's analysis of condition 23.4 and whether the SSOC preconditions are objective jurisdictional facts suffers from the problem that NEFA uses the facts of the present matter to inform the construction of the CIFOA for which it contends. There is no textual or contextual support in either the Forestry Act or the CIFOA for the conclusion that because of FCNSW's application of voluntary conditions without the input of the EPA, SSOC preconditions are objective jurisdictional facts.
FCNSW identified a further, particular problem in NEFA's framing of the third of the five propositions in relation to Ground 3, namely an assumption that the operation of the chapeau to condition 23 is binary - that is, if either of the SSOC preconditions is met, FCNSW has only two choices: either (1) it does not carry out the forestry operation at the specific site or in the specific and unique circumstance; or (2) it applies for a site-specific operating condition. FCNSW submitted that on a proper construction of the CIFOA, condition 23 is not binary, rather there is a third alternative. Different conditions of the approval are expressed in different ways. Some are expressed in minimums: for example, minimum buffer zones, minimum areas or minimum number of retained. Others are expressed as maximums: for example maximum timber volumes (condition 13.1(b)), maximum annual harvest limits (13.1(b)), maximum area that can be subject to intensive harvesting (condition 45.2) and maximum size of a coupe (condition 45.3). The third possibility is that FCNSW may decide not merely to comply with minimums or seek to achieve the maximums. It might decide to take a more conservative approach than is provided for by the CIFOA, and nevertheless remain compliant with it.
That, FCNSW submitted, is precisely what occurred in the approval of the Braemar HHP and the Myrtle HHP. As can be seen from the statements of reasons provided by FCNSW in relation to each of the HHPs, by application of an internal FCNSW document titled "Post-Fire Standard Operating Procedure" issued in October 2021 and without the necessity to form an opinion as to whether or not the chapeau to condition 23 had been triggered, "FCNSW decided to follow its voluntary conditions"; that is to apply the conditions of the CIFOA, but without necessarily providing only for the minimums or achieving the maximums. Accordingly, even if consideration of the chapeau is a question of fact susceptible to review and NEFA can "satisfy either of those factual requirements, that does not mandate the binary result of either cessation of forestry operations or applying for a SSOC".
Next, FCNSW submitted that Ground 3 as pleaded appears to suggest that if either of the requirements of the chapeau to condition 23 is met, there arises "some automatic connection between condition 23.4, Protocol 5 and the power to approve an operational plan". There are, FCNSW submitted, a number of difficulties with those assumptions. Protocol 5 (Approvals for restricted activities) provides some additional requirements in relation to restricted activities. Relevantly, Table 1 to Protocol 5 specifies those restricted activities, Item 6 being the restricted activity referred to in condition 23.4 of the CIFOA. Properly understood, the "restricted activity" referred to in Protocol 5 is an activity to be carried out in accordance with the site-specific operating conditions. Where the operations do not trigger either of the requirements of the chapeau to condition 23, and/or the operations are carried out in accordance with the voluntary conditions such that 23.4 is not triggered at all, then those forestry operations do not become a restricted activity.
FCNSW noted in relation to the final matter to be addressed in relation to the second of the five propositions advanced by NEFA, namely that as a fact the SSOC preconditions would be met in the Braemar and Myrtle State Forests, that NEFA's submissions set out a great deal of detail about the evidence of Dr Phillips, and NEFA proceeded on an assumption that any potential impact on the koala or its habitat would automatically lead to the conclusion either that the application of the CIFOA leads to a poor environmental outcome or that FCNSW cannot comply with conditions of the CIFOA. Neither conclusion, FCNSW submitted, would be true. That is because NEFA does not grapple with what constitutes a "poor environmental outcome" in the context of condition 23.4.
FCNSW referred to three conditions of the CIFOA with which NEFA said FCNSW could not comply so as to trigger the second of the SSOC preconditions. In relation to the first of those conditions, relevantly condition 57, NEFA did not "identify a non-compliance". FCNSW submitted that if a BAHS cannot be completed, no harvesting can occur, and that it is not a breach of the CIFOA to not harvest: "If it were proposed that harvesting continue in the absence of BAHS that would be a different story. But that is not the case here".
Nor, FCNSW submitted, did the second condition with which NEFA said FCNSW could not comply, condition 65, "identify a non-compliance". Rather, FCNSW submitted, NEFA "simply assume[d]" that FCNSW may not be able to meet tree retention requirements in some areas. There was "no evidence that harvesting [wa]s proposed to occur notwithstanding an inability to retain the minimum number of trees". In the absence of a proposal to harvest, there could be no non-compliance.
Likewise, in relation to the third condition on which NEFA relied, condition 14.1, NEFA did not "identify a non-compliance": first, as submitted previously by FCNSW, condition 14.1 is not an operational condition; secondly, NEFA's evidence fell "well short of establishing any prospective breach of the principles of ESFM".
As to the fifth of NEFA's five propositions in relation to Ground 3 (namely, that FCNSW's failure to seek either or both of the SSOCs results in invalidity), FCNSW submitted that that proposition is "not a standalone criterion", rather "a consequence of the other four propositions" each of which fails. The failure of any one of the first four propositions must mean that Ground 3 fails.
Gageler J agreed with the plurality, emphasising at [46] to [47] and [55] that establishing the threshold of materiality is "not onerous". Gordon J held at [76] to [81] that a "serious denial of procedural fairness" falls within the category of error that is "so egregious that it will be jurisdictional regardless of the effect the error may have had on the conclusion of the decision-maker". Edelman J at [93] referred to the onus to prove materiality as "almost nothing" and a "quadruple might".
NEFA submitted that here both the Myrtle and Braemar State Forests in which FCNSW seeks to conduct forestry operations were subject to high or extreme fire damage. The fundamental assumptions upon which the CIFOA prescriptions such as the forest values were based in 2018 have therefore been altered. While the CIFOA applies to forestry operations across the CIFOA region, it requires FCNSW to develop and approve operational plans for each individual forestry operation, having regard to the specific characteristics of the environment in which it proposes to operate. FCNSW was therefore required to "properly understand how the forest values of the State Forests have been impacted by the 2019/2020 bushfires and to adaptively manage its forestry operations to accommodate the post bushfire context". Conditions 14.1 and 23.4 mandate such an approach.
With respect to Grounds 1 and 2, NEFA submitted that had FCNSW considered whether the forestry operations could be carried out consistently with ESFM principles, it would have undertaken further ecological surveys to fully understand the impact of the 2019/2020 bushfires on forests values in the severely fire affected State Forests and adapted its forestry operations to those conditions. NEFA also submitted that had FCNSW considered the principles of ESFM, there was a "realistic possibility" that its decision to approve the Braemar and Myrtle HHPs would have been different.
With respect to Ground 3, NEFA submitted that FCNSW did not pursue fresh SSOCs from the EPA for the Myrtle and Braemar State Forests and did not continue to engage in the SSOC process required by condition 23.4 "as it had previously done following the 2019-2020 bushfires". Rather, it developed its own "voluntary" conditions which departed from the CIFOA, were not developed by the EPA and were less onerous than SSOCs, and not enforceable by the EPA, "in essence adopting a business as usual approach". Had FCNSW sought fresh SSOCs, NEFA submitted that there was a "realistic possibility" that, similar to the 2020 Myrtle HHP, FCNSW would have approved the Braemar and Myrtle HHPs in a different form. This would have incorporated special conditions adapted to the significant impacts of the 2019/2020 bushfires on the Myrtle and Braemar State Forests, avoided poor environmental outcomes, and enabled FCNSW to comply with the conditions of the CIFOA, including the principles of ESFM.
(2023) 407 ALR 222; [2023] HCA 3 at [78] to [82] (Gordon, Edelman, Steward and Gleeson JJ).
Stanley v DPP at [80] (Gordon, Edelman, Steward and Gleeson JJ).
Stanley v DPP at [81] (Gordon, Edelman, Steward and Gleeson JJ).
(2011) 189 LGERA 348; [2011] NSWCA 195 at [35] (Giles JA, Campbell JA agreeing).
Citing Caldera Environment Centre Incorporated v Tweed Shire Council [1993] NSWLEC 102 (Talbot J).
Mundine (Duggan J) at [52].
Muswellbrook Shire Council v Hunter Valley Energy Coal Pty Ltd [2017] NSWLEC 184 at [41] (Preston CJ) citing Arnold v Minister Administering the Water Management Act 2000 (No 6) [2013] NSWLEC 73 at [123].
(1999) 46 NSWLR 55; [1999] NSWCA 8 at [73] to [76] (Spigelman CJ).
See Hunter Valley Energy at [31] to [32] (Basten JA), [137] and [144] (Macfarlan JA) and [203] (Leeming JA).
Cited in Timbarra at [75] (Spigelman CJ).
Pallas Newco at [6] (Spigelman CJ).
(1986) 162 CLR 24 at 39 to 40; [1986] HCA 40 (Mason J).
(1976) 135 CLR 110 at 118; [1976] HCA 24; see also Minister for Immigration and Citizenship v Li (2013) 249 CLR 332; [2013] HCA 18 at [71] (Hayne, Kiefel and Bell JJ).
Peko-Wallsend at 39 to 40 (Mason J); Lo v Chief Commissioner of State Revenue (2013) 85 NSWLR 86; [2013] NSWCA 180 at [9] (Basten JA, Beazley P agreeing).
Anvil Hill Project Watch Association Inc v Minister for Environment and Water Resources (2008) 166 FCR 54; [2008] FCAFC 3 at [21] (Tamberlin, Finn, Mansfield JJ).