Unreasonableness and reasonable proportionality
25 It is convenient to begin the analysis with a brief discussion of the relevant cases dealing with unreasonableness and a lack of reasonable proportionality as grounds for holding that delegated legislation is invalid. The cases before The State of South Australia v Tanner (1989) 166 CLR 161 ("Tanner") deal principally, if not exclusively, with the unreasonableness ground of review.
26 In Widgee Shire Council v Bonney (1907) 4 CLR 977, a local government by-law was challenged on the ground, among others, that it was unreasonable. The challenge was rejected by the High Court. Griffith CJ referred (at 982) to the English decisions of Slattery v Naylor (1888) 13 App Cas 446 ("Slattery v Naylor") and Kruse v Johnson [1898] 2 QB 91 and formulated (at 983) the test of unreasonableness for delegated legislation in terms of "no reasonable man, exercising in good faith the powers conferred by the Statute, could under any circumstances pass such a by-law". Isaacs J referred with approval (at 986) to two statements in the advice of the Privy Council in Slattery v Naylor (at 452-453), namely, a by-law may be struck down as unreasonable where it is "a merely fantastic and capricious bye-law, such as reasonable men could not make in good faith" and a by-law will not "be treated as unreasonable merely because it does not contain qualifications which commend themselves to the minds of judges".
27 In Williams v The Mayor, Aldermen, Councillors and Citizens of the City of Melbourne (1933) 49 CLR 142("Williams v Melbourne Corporation"), a local government by-law dealing with the driving of cattle through public streets was challenged on the ground that it was unreasonable. Dixon J (as he then was) said (at 155) in a passage quoted many times since:
"To determine whether a by-law is an exercise of a power, it is not always enough to ascertain the subject matter of the power and consider whether the by-law appears on its face to relate to that subject. The true nature and purpose of the power must be determined, and it must often be necessary to examine the operation of the by-law in the local circumstances to which it is intended to apply. Notwithstanding that ex facie there seemed a sufficient connection between the subject of the power and that of the by-law, the true character of the by-law may then appear to be such that it could not reasonably have been adopted as a means of attaining the ends of the power. In such a case the by-law will be invalid, not because it is inexpedient or misguided, but because it is not a real exercise of the power. (Compare Widgee Shire Council v. Bonney.)"
(Citation omitted.)
A little later in his reasons, Dixon J referred (at 156) to the question of whether a restraint embodied in the by-law could be reasonably adopted for the purpose set out in the empowering provision.
28 In The Mayor, Councillors and the Citizens of the City of Brunswick v Stewart (1941) 65 CLR 88 ("Brunswick Corporation v Stewart"), a local government by-law dealing with the erection and construction of buildings was challenged on the ground, among others, that it was unreasonable. The challenge was rejected by the High Court. Williams J referred (at 99) to unreasonableness as involving "oppressive or gratuitous interference with the rights of those who are subject to it as could find no justification in the minds of reasonable men".
29 In Clements v Bull (1953) 88 CLR 572, a regulation made under the Melbourne Harbour Trust Act 1928 (Vic) was challenged, and one of the matters discussed by the High Court was the doctrine of unreasonableness. Williams ACJ and Kitto J made the point that a regulation may produce unreasonable results in certain circumstances and yet still be valid, providing it is really legislation for the purposes authorised. Their Honours also made the point that to say delegated legislation is invalid on the ground that no reasonable mind could justify it by reference to the purposes of the power is only another way of stating the conclusion that there is no real connection with the purposes of the power.
30 Although there appear to be differences between the Australian and English approaches to the doctrines of unreasonableness, certain observations of Diplock LJ in Mixnam's Properties Ltd v Chertsey Urban District Council [1964] 1 QB 214 at 237-238 have been referred to in the authorities in this country and are of assistance:
"The various special grounds upon which subordinate legislation has sometimes been said to be void - for example, because it is unreasonable; because it is uncertain; because it is repugnant to the general law or to some other statute - can, I think, today be properly regarded as being particular applications of the general rule that subordinate legislation, to be valid, must be shown to be within the powers conferred by the statute. Thus, the kind of unreasonableness which invalidates a by‑law is not the antonym of 'reasonableness' in the sense of which that expression is used in the common law, but such manifest arbitrariness, injustice or partiality that a court would say: 'Parliament never intended to give authority to make such rules; they are unreasonable and ultra vires'."
(Citation omitted.)
On appeal, these observations were apparently approved: Chertsey Urban District Council v Mixnam's Properties Ltd [1965] AC 735.
31 Tanner is the leading High Court case on the doctrine of reasonable proportionality in relation to delegated legislation. In that case it was held that delegated legislation will not be valid where it is not capable of being considered to be reasonably proportionate to the end to be achieved. It is not enough that the Court thinks the delegated legislation inexpedient or misguided. It must be so lacking in reasonable proportionality as not to be a real exercise of the power. The Court found support for the ground of review in the judgment of Dixon J in Williams v Melbourne Corporation.
32 In Minister for Primary Industries and Energy v Austral Fisheries Pty Ltd, a management plan under s 7B of the Fisheries Act 1952 (Cth) was challenged on the ground that it was a form of delegated legislation which was capricious and irrational. The plan contained a statistical fallacy which led to unfair catch allocations. The trial judge accepted the applicant's arguments and declared that the plan was void. His decision was upheld on appeal. In the course of his reasons on the appeal, Lockhart J considered the scope of the unreasonableness ground of review. His Honour said (at 382):
"Delegated legislation is not invalid on the ground of unreasonableness in the sense that the courts may form a different view as to what is reasonable. Unreasonableness in this branch of the law means unreasonable in the sense that 'a merely fantastic and capricious by-law, such as reasonable men could not make in good faith' is bad, because delegated legislation of this kind could not be regarded as an exercise of the power conferred upon the subordinate legislative body making the delegated legislation: Slattery v Naylor (1888) 13 App Cas 446 at 452."
A little later, his Honour said (at 384):
"Delegated legislation may be declared to be invalid on the ground of unreasonableness if it leads to manifest arbitrariness, injustice or partiality; but the underlying rationale is that legislation of this offending kind cannot be within the scope of what Parliament intended when authorising the subordinate legislative authority to enact laws."
(See also the joint judgment of Beaumont and Hill JJ at 400-401).
33 In Minister of State for Resources v Dover Fisheries Pty Ltd (1993) 43 FCR 565, Gummow J discussed the reasonable proportionality ground of review in relation to delegated legislation and the operation of the doctrine of reasonable proportionality in the area of federal constitutional law. The proportionality principle is "differently focused" in the former case:
"The fundamental question is whether the delegated legislation is within the scope of what the Parliament intended when enacting the statute which empowers the subordinate authority to make certain laws: see Austral Fisheries at 383-384, per Lockhart J".
(Citation omitted.)
34 In his reasons for judgment, Cooper J discussed (at 584-586) the relationship between the unreasonableness ground of review and the reasonable proportionality ground of review.
35 In summary, delegated legislation may be held invalid because it is an unreasonable exercise of the empowering provision or because the delegated legislation is not reasonably proportionate to the purposes of the empowering provision. There is considerable overlap between the two grounds of review (see De Silva v Minister for Immigration and Multicultural Affairs (1998) 89 FCR 502 at 510)("De Silva v Minister for Immigration and Multicultural Affairs"). As the Court does not have authority to conduct merits review, the test in the case of each ground of review is a very demanding one and, in the final analysis, involves a question of whether the delegated legislation represents a real exercise of the power in the empowering section. Cases in which delegated legislation has been held invalid on either ground of review are rare. Examples of cases in which regulations under the Act have been held invalid on the unreasonableness ground are Minister for Immigration and Multicultural Affairs v Singh (2000) 98 FCR 77 and Li v Minister for Immigration and Multicultural Affairs (1999) 94 FCR 219. Examples of cases in which delegated legislation has been held invalid on the reasonable proportionality ground of review are Re Gold Coast City Council By-laws [1994] 1 Qd R 130, Paradise Projects Pty Ltd v Gold Coast City Council [1994] 1 Qd R 314, Re Gold Coast City (Touting and Distribution of Printed Matter) Law 1994 (1995) 86 LGREA 288 and House v Forestry Tasmania (1995) 5 Tas R 169.
36 Before leaving this brief review of the cases, I refer to the illuminating discussions of the relevant principles in De Silva v Minister for Immigration and Multicultural Affairs and Vanstone v Clark (2005) 147 FCR 299 at 331-343 [99]-[160] per Weinberg J. See also Pearce D and Argument S, Delegated Legislation in Australia (3rd ed, LexisNexis Butterworths, 2005) at 253-267 [21.1]-[21.19]; Aronson M, Dyer B and Groves M, Judicial Review of Administrative Action (4th ed, Lawbook Co, 2009) at 378.
37 The appellant put his submission that cl 850.211 was invalid by reason of unreasonableness or a lack of reasonable proportionality on two grounds. Both grounds were put on the assumption (which I have found to be correct) that cl 850.211 is not inconsistent with the Act.
38 The first ground advanced by the appellant is that cl 850.211 is illogical or irrational because it contradicts s 48 and reg 2.12. This submission must be rejected. The regulations must be read as a whole. There is nothing irrational or illogical in the regulations providing that a sub-group of the group identified in s 48 be excluded from the group able to apply for the relevant visa.
39 The second ground invited the Court to consider the merits of the criteria in cl 850.211. At the relevant time, s 501 of the Act was in the following terms:
"(1) The Minister may refuse to grant a visa to a person, or may cancel a visa that has been granted to a person, if:
(a) subsection (2) applies to the person; or
(b) the Minister is satisfied that, if the person were allowed to enter or to remain in Australia, the person would:
(i) be likely to engage in criminal conduct in Australia; or
(ii) vilify a segment of the Australian community; or
(iii) incite discord in the Australian community or a segment of the community; or
(iv) represent a danger to the Australian community or to a segment of that community, whether by way of being liable to become involved in activities that are disruptive to, or violence threatening harm to, that community or segment, or in any other way.
(2) This subsection applies to a person if the Minister:
(a) having regard to:
(i) the person's past criminal conduct; or
(ii) the person's general conduct;
is satisfied that the person is not of good character; or
(b) is satisfied that the person is not of good character because of the person's association with another person, or with a group or organisation, who or that the Minister has reasonable grounds to believe has been or is involved in criminal conduct.
(3) The power under this section to refuse to grant a visa to a person, or to cancel a visa that has been granted to a person, is in addition to any other power under this Act, as in force from time to time, to refuse to grant a visa to a person, or to cancel a visa that has been granted to a person."
40 The appellant's submission was that a blanket prohibition of the type contained in cl 850.211 was inappropriate. An applicant's circumstances may have changed and there may be grounds to allow him or her to make an application despite a s 501 refusal or a s 501 cancellation. It was submitted that an appropriate criterion was one which gave the decision-maker a discretion to consider all the circumstances including, if appropriate, any change of circumstances. The appellant referred to cl 850.221 and public interest criteria 4001.
41 It is fair to assume that the purpose of s 48 of the Act was to prevent successive applications for a visa where there had been a refusal, or where a visa had been cancelled. There were, no doubt, cogent policy reasons for such an approach, including a desire to maintain and preserve administrative resources, just as there were, no doubt, cogent policy reasons to allow an application to be made in certain circumstances. In my opinion, the exclusion of those persons who have been the subject of a s 501 refusal or a s 501 cancellation from those able to apply for the relevant visa cannot be said to produce an oppressive or capricious result, or that the decision to exclude them is one that no reasonable man, acting in good faith, could reach. Clause 850.211 is not an unreasonable exercise of the empowering provision. Nor, in my opinion, can it be said that it was not reasonably proportionate to the purposes of the empowering provision. No doubt, arguments can be put for and against the result achieved by reg 2.12 and cl 850.211, but it cannot be said that the result is so lacking in reasonable proportionality as not to be a real exercise of the empowering provision.