Interaction of section 333-20 and section 33(3)
52 Second, section 333-20 empowers the Minister to make (inter alia) the provisions in the Prostheses Rules providing for matters:
(a) required or permitted by the corresponding Chapter, Part or section specified in the third column of the table to be provided; or
(b) necessary or convenient to be provided in order to carry out or give effect to that Chapter, Part or section.
53 In this case the relevant Chapter is Chapter 3 of the Private Health Insurance Act, and in particular Part 3-3 which deals with Complying Health Insurance Products.
54 Terms similar to those found in section 333-20 are ubiquitous in statute. While broad, they do not confer unlimited power. As explained by Barwick CJ in Esmonds Motors Pty Ltd v Commonwealth (1970) 120 CLR 463 at 466-467 in relation to an Ordinance of the Australian Capital Territory containing similar provision:
Among the questions raised in this appeal is the important question whether the Minister for the Interior is authorized by s. 38 of the Ordinance to make a regulation appointing himself to be the prescribed authority within and for the purposes of s. 25(1) of that Ordinance. If the Minister is not so authorized, there was no valid reappraisement of the unimproved value of the land leased to the appellant to satisfy the terms of s. 25(1) and the terms of what is referred to in the learned primary judge's judgment as "the substituted lease" to the applicant bearing the date of 10th March 1957. The further consequence would be that the appellant is entitled to the first three declarations which it has sought of the Supreme Court, the first declaration being limited to the situation existing at the date of the determination of these proceedings.
The answer to the question whether the Minister is so authorized is to be found upon a full consideration of the Ordinance read as a whole with the object of finding in its expressions the intention with which it was made and, in particular, the intended extent of the regulation making-power given to the Minister: and an examination of the ambit of the regulations considered in relation to the scope and purpose of the Ordinance so ascertained: see Morton v Union Steamship Co. of New Zealand Ltd (1951) 83 CLR 402 . (at p466)
The regulation-making power given by s. 38 is so far as presently concerned a power to make regulations not inconsistent with the Ordinance, prescribing all matters which are required or permitted to be prescribed, or which are necessary or convenient to be prescribed for carrying out or giving effect to the Ordinance. The regulations must be not merely consistent with the provisions of the Ordinance but must in their substance be also such as are by the Ordinance upon its true construction required or permitted to be made or be, again, in their substance, such as may reasonably be thought to be necessary or convenient for carrying out or giving effect to the Ordinance. The nature and purpose of the Ordinance and of its substantial provisions thus set the limits to the Minister's power to make regulations. The power is limited to making regulations which, in their substance, are capable of being regarded as required or necessary or convenient for giving effect to or carrying out the Ordinance. Consequently in the present case it is necessary to relate the nomination of the Minister as prescribed authority to the Ordinance and the effectuation of its purposes.
(emphasis added.)
55 In Morton v Union Steamship Company of New Zealand Ltd (1951) 83 CLR 402 at 410 the Full Bench of the High Court observed:
There is no provision in the Act prescribing any matter or expressly permitting any matter to be prescribed to which the regulation would be relevant. The validity of the regulation, therefore, depends upon the words "all matters . . . as may be necessary or convenient to be prescribed for giving effect to this Act or for the conduct of any business relating to the Excise". A statutory power of this description has been considered by this Court in Carbines v. Powell (1925) 36 CLR 88; Gibson v. Mitchell (1928) 41 CLR 275; Broadcasting Co. of Australia Pty. Ltd. v. The Commonwealth (1935) 52 CLR 52.
A power expressed in such terms to make regulations enables the Governor-General in Council to make regulations incidental to the administration of the Act. Regulations may be adopted for the more effective administration of the provisions actually contained in the Act, but not regulations which vary or depart from the positive provisions made by the Act or regulations which go outside the field of operation which the Act marks out for itself. The ambit of the power must be ascertained by the character of the statute and the nature of the provisions it contains. An important consideration is the degree to which the legislature has disclosed an intention of dealing with the subject with which the statute is concerned.
In an Act of Parliament which lays down only the main outlines of policy and indicates an intention of leaving it to the Governor-General to work out that policy by specific regulation, a power to make regulations may have a wide ambit. Its ambit may be very different in an Act of Parliament which deals specifically and in detail with the subject matter to which the statute is addressed. In the case of a statute of the latter kind an incidental power of the description contained in s. 164 cannot be supposed to express an intention that the Governor-General should deal with the same matters in another way.
56 Importantly, in Carbines v Powell (1925) 36 CLR 88 Isaac J observed:
To "carry out" the Act means to enforce its provisions. To "give effect" to an Act is to enable its provisions to be effectively administered. There is little, if any, difference between the two expressions. They both connote that the Governor-General's regulations are to be confined to the same field of operations as that marked out by the Act itself. It cannot be supposed that Parliament gave permission to the Executive to enlarge legislatively that field at discretion.
57 Orthotech does not dispute that section 33(3) permits the variation of the Prostheses Rules, but submits that the power granted by section 33(3) operates only within the limits provided by section 333-20, and that this did not include the Decision to remove the listing of the Device following approval by the delegate on 5 January 2011 pursuant to section 72-10. Orthotech submitted that a contrary intention was clear from the Private Health Insurance Act, and relied on section 13(1) and (2) of the Legislative Instruments Act 2003 (Cth) to this effect.
58 In my view, however, on construction of the Private Health Insurance Act as a whole, Orthotech's submission cannot be sustained. I do not consider a contrary intention as submitted by Orthotech is manifested on construction of the Private Health Insurance Act. I take this view for the following reasons:
1. Necessarily, the power under section 333-20 will be exercised from time to time as is required, permitted or necessary under Part 3-3 of the Private Health Insurance Act: section 33(1).
2. While the Guide does not have the force of statute, it includes a statement that:
The arrangements for including products on the Prostheses List help to ensure that benefits paid by insurers are relative to clinical effectiveness (section 1.1).
In my view this statement reflects a clear intention of the Private Health Insurance Act in relation to the power of the Minister to make rules listing prostheses which are within the scope of operation of that Act - namely to ensure that prostheses which are approved by the Minister are clinically effective and safe. To the extent that Orthotech submits that this is not a purpose of the Private Health Insurance Act, I reject that submission. The purpose of Part 3-3 of the Private Health Insurance Act is to set out the requirements that a private health insurance policy must meet in order to be a complying health insurance policy (section 60-1). More fundamentally, it is clear from section 3-1 that the intention of Parliament is that the Act regulate private health insurance in Australia and provide incentives to members of the public to contribute to private health (section 3-1). While the statute deals specifically with the machinery of the private health insurance system, there is an important balance to be struck between premiums, benefits payable to insureds, and the quality of products provided under private health insurance. Public policy and the health concerns of patients are entwined with the exercise of the Minister's power under section 333-20 to make rules relating to the listing of prostheses (including the approval of the Minister to prostheses to be listed in the Prostheses Rules). In this respect, there is a strong policy dynamic in ensuring that the Minister has power to revoke or rescind decisions concerning prostheses on the Prostheses List. In my view any proposition to the contrary poses a risk that the Minister would be forced to continue to list outdated prostheses, resulting in potential harm to both patients and insurers, and ineffective administration of the private health insurance system under the legislation. I do not consider such a proposition is supported by the structure of the Private Health Insurance Act.
3. I am not persuaded by the submission of Orthotech that the mandatory requirement in section 72-10, that the Prostheses Rules must only list a prosthesis if an application has been made and the Minister has granted the application, are distinguishable from other provisions of the Private Health Insurance Act which specifically provide that the relevant rules may specify criteria and which rules may be (inter alia) revoked. In my view this approach is based on an unduly narrow interpretation of the power of the Minister in section 72-10. It is clear that the Minister is not required to approve an application for listing of a prosthesis in the Prostheses Rules. The proper construction of the Private Health Insurance Act, is that it is only once the Minister has approved an application for listing that a prosthesis can be listed in the Prostheses List (section 72-10(1)).
4. As I have already noted, it is not in dispute that, from time to time, the Prostheses Rules will be varied by the addition of prostheses previously unlisted. Indeed this is specifically contemplated by section 72-10, and the fact that both subsections 72-10(2) and 72-10(4) anticipate applications to be made from time to time by sponsors of prostheses for the approval of relevant prostheses, and the addition of those prostheses to the Prostheses List. The fact that the Prostheses List (and Rules) can and do change following such an application refutes any suggestion of entrenchment of the Prostheses List or fetter on the Minister in respect of the alteration of the Prostheses Rules. The fact that the Prostheses List is, in fact, dynamic, supports a finding that the legislation contemplates extensive powers in the Minister to both add and remove prostheses from the relevant rules.
5. While Orthotech concedes that the Prostheses Rules and List can be varied by the addition of a prostheses following approval of an application by the Minister, Orthotech argued persuasively that the scheme of the legislation dictates finality in a decision of the Minister approving a prosthesis. This is because a proper construction of the legislation dictates the importance of certainty for prostheses sponsors, insurers, health providers and private patients. While there is force to this submission, in my view a proper interpretation of the legislation is that the power of the Minister in relation to a decision approving a prosthesis is not spent when a decision is made. So, for example, it is clear from the terms of section 72-10(5) that the Minister will from time to time "vary" the Prostheses Rules. "Vary" is distinguished from "make" in terms of that section, and presumably includes a variation to the details of currently listed prostheses. I accept the submission of Ms Brennan for the respondents that, on Orthotech's case, if the power or functions of the Minister under section 72-10 were to be spent on the initial exercise there would be no power to vary any details of a listed prosthesis, including setting minimum and maximum benefits, and that this restriction would be inconsistent with section 72-10 and with the nature of the Prostheses Rules as a legislative instrument subject to parliamentary control.
6. Further to this point, a power conferred on a Minister by statute for the exercise of a public discretion cannot, as a general proposition, be the subject of any form of estoppel to preclude the Minister or any successor to the office from exercising it at all, or in a particular way, in the future: Ansett Transport Industries (Operations) Pty Ltd v Commonwealth (1977) 139 CLR 54 at 74, Minister for Immigration and Ethnic Affairs v Kurtovic (1990) 21 FCR 193 at 200, 215. While the more likely context for judicial consideration of this principle is the circumstance where an act of the office holder appears to fetter the exercise of his or her discretion, the general principle that the exercise of a public duty cannot be the subject of administrative estoppel is relevant in this context.
7. By way of analogy I note the decision of the Court of Appeal of Queensland in Pfeiffer v Stevens (2000) 106 LGERA 461; [2000] QCA 090, affirmed by the High Court in Pfeiffer v Stevens (2001) 209 CLR 57, in which the Court of Appeal upheld a decision of the relevant Minister to, on multiple occasions, extend a "sunset provision" dictating expiry of a local law under the Local Government Act 1993 (Qld). The empowering provision was section 860 of the Local Government Act 1993 (Qld) which provided:
(2) The proposed local law must include a sunset provision stating the law will expire
(a) 6 months after its commencement; or
(b) at the end of a longer period gazetted by the Minister.
The applicant in Pfeiffer submitted that the relevant local law had included a sunset provision identified pursuant to section 860(2)(a) as six months from 14 March to 14 September 1997, and that once the method contemplated in s860(1)(a) was adopted, there was no power to resort to the alternative of a longer period contemplated in s860(1)(b). The Court observed:
The essence of the applicant's submission is, however, directed to another point altogether. It is that the power, if any, of the Minister to extend the interim local law is limited to doing so on one occasion, and does not contemplate its being exercised by means of what the applicant described as "multiple gazettals". This, however, is to ignore the impact of s23(1) of the Acts Interpretation Act 1954, which provides:
23(1). If an Act confers a function or power on a person or body, the function may be performed, or the power may be exercised, as occasion requires.
The Court of Appeal concluded that the Local Government Act read with the Acts Interpretation Act permitted the Minister to extend the date on which the local law was due to expire and that the Acts Interpretation Act 1954 (Qld) permitted the relevant power to be exercised "as occasion required".
In affirming the decision of the Court of Appeal the majority of the High Court dismissed the contention that the power of the Minister to extend the expiry of the local law "an indefinite number" of times was incongruous. Gleeson CJ and Hayne J at 64-65 accepted that there could be reasons why a further extension of the time could be desired, and that this was the intention of Parliament in enacting the legislation. McHugh J specifically found that section 23(1) of the Acts Interpretation Act 1954 (Qld) authorised the Minister to extend the sunset period of a local law beyond six months whenever the circumstances of the case required it to be done provided the Minister did so for the purpose of carrying out the objects of the legislation (at 66, 74).
In my view section 33(1), being in the same terms as section 23(1) of the Acts Interpretation Act 1954 (Qld), when read with section 72-10, is equally applicable to negate the implication of finality of decision-making urged on the Court by Orthotech in this case, and to permit the Minister to reconsider approvals given in relation to prostheses "from time to time as occasion requires".
8. In submitting that the Minister is functus officio once the decision is made to approve an application for the listing of a prosthesis, Orthotech relies on the decision of the Full Court in Minister for Immigration and Indigenous Affairs v Watson (2005) 145 FCR 542. In that case the Minister had cancelled Mr Watson's visa on character grounds pursuant to section 501(2) of the Migration Act 1958 (Cth) ("Migration Act"), but then wrote informing him that the Minister had revoked that decision. Mr Watson sought (inter alia) a declaration that the Minister had made a decision revoking the cancellation of his visa. In the Full Court the Minister submitted that there was no power under section 501(2) of the Migration Act to revoke a decision to cancel a person's visa. Section 501(2) provided:
The Minister may cancel a visa that has been granted to a person if:
(a) the Minister reasonably suspects that the person does not pass the character test; and
(b) the person does not satisfy the Minister that the person passes the character test.
Lander J, with whom Dowsett and Hely JJ agreed, found that an intention was expressed in the Migration Act contrary to the proposition that the Minister might revoke her own decision under section 501(2). In particular, his Honour referred to section 501F of the Migration Act, which provided, inter alia, that a decision of the Minister to cancel a visa was not reviewable (section 501F(5)). Further, and critically, Lander J observed at 563:
However there are other reasons for concluding that a contrary intention to that expressed in s 33(1) appears. The effect of s 501F is to deal with all applications and all visas as they exist at the time that the Minister makes his or her decision under s 501(1) or 501(2). A person is not allowed to bring another application where the Minister has made a decision under s 501 to refuse to grant a visa to the person or to cancel a visa that has been granted to the person: s 501E(1). The exception in s 501E(2) is not relevant for the purpose of construing the section. That shows that the purpose of the legislation is that the power given the Minister in the sections mentioned will only be exercised once. In those circumstances, the occasion for the exercise of the power on more than one occasion will never arise.
Because of the provisions of 501E, no further application for the grant of a visa can be made by the person affected. Because the person cannot thereafter obtain a visa, that person's status has been determined for all time. That person is an unlawful non-citizen liable to detention and removal from Australia.
All the provisions of the Act to which I have referred indicate a contrary intention to that expressed in s 33 of the Acts Interpretation Act.
Placing to one side the fact that different legislation from that before me was under consideration, the situation in Watson is clearly distinguishable from that in this proceeding. Notwithstanding the removal of the Device from the Prostheses List, there is no embargo in the legislation on Orthotech applying for approval of the Device under section 72-10 in the future. The Decision of the Delegate is not, in the context explained in Watson, "final". To that extent, the statutory construction of the Migration Act identified by the Full Court in Watson is not applicable to the legislative provisions under consideration in this case.
9. Section 72-15 specifically contemplates removal of a prosthesis in circumstances where the ongoing listing fee is not paid by the prosthesis sponsor. I am not satisfied on construction of the legislation that the mere payment of a fee is the sole determinant of listing of a prosthesis in the Prostheses List, particularly in light of the important policy considerations to which I have already adverted in this judgment.