Grounds 4 and 5 - Suggested Failure to Have Regard to the Standard Non-Parole Periods for Counts 2 and 4
62The written submissions of the parties addressed these four grounds of appeal together and it is appropriate for this Court to take the same course.
Submissions
63As the sentences were imposed after trial, the Crown submitted that the standard non-parole period provisions had direct application on sentence in this case with respect to the second and fourth counts. The Crown submitted that it was necessary to assess the objective seriousness of these offences to determine whether each offence fell within the mid-range of objective seriousness for offences of the relevant kind.
64The Crown submitted that this is a basic rule of sentencing and is no idle formality: R v Green; R v Quinn [2010] NSWCCA 313 at [72]-[73].
65The Crown submitted that at no time prior to the announcement of the sentences, did the sentencing Judge assess the objective seriousness of these offences or state where in the relevant range they lay. It was only after his Honour had pronounced the sentences on the first and second counts and had already determined the sentence on the fourth count, and only after the Crown lawyer raised the issue with his Honour, that the sentencing Judge provided a reason for departing from the standard non-parole period with respect to the second count.
66It was submitted that his Honour gave no reasons at all for the finding with respect to the second count and that the reasons provided with respect to the fourth count were misguided. It was submitted that the Respondent's criminal history could not bear upon an assessment of the objective seriousness of the offence, nor could the fact that police had intercepted the supply of methylamphetamine involved in the fourth count before it was disseminated into the community.
67The Crown submitted that matters which rendered the second and fourth counts at least mid-range offences, if not higher, included the Respondent's role as the principal of a highly organised drug operation, the fact that he was not a drug user, and was supplying for commercial gain only, the fact that the quantity involved in the fourth count was 2.6 times the large commercial quantity and the fact that the offences were part of an ongoing drug operation. The Crown submitted that the Respondent's criminality was at the highest level for offences of this type: R v Green; R v Quinn at [82]ff.
68It was submitted that the greater the departure from the standard non-parole period, the greater is the requirement for reasons to be given to explain the departure. It was submitted here that there was, in reality, a massive discrepancy between the standard non-parole period for the second count (10 years) and the non-parole period imposed (four years) with no balance of term. With respect to the fourth count, the standard non-parole period was 15 years and the non-parole period imposed was five years.
69The Crown submitted that both the content of the remarks on sentence, and the actual non-parole periods imposed, revealed error as asserted by the Crown in Grounds 2, 3, 4 and 5.
70Mr Brady submitted that the sentencing Judge did advert to the standard non-parole periods with respect to the second and fourth counts, and did have regard to them in passing sentence.
71Concerning the second count, whilst acknowledging that the sentencing Judge gave no specific reasons for the assessment that the offence was less than the mid-range, Mr Brady submitted that his Honour was entitled to come to that view because, whilst the crime was organised, it was a "kind of bumbling exercise" , and by reference to the amount of drug involved in the second count and the fact that the offence involved an offer to supply only.
72With respect to the fourth count, Mr Brady accepted that the sentencing Judge did err in stating that the objective seriousness was reduced by the Respondent's lack of history for drug supply. He submitted, however, that the sentencing Judge was entitled to consider the fact that the drug was not actually supplied as a matter reducing its objective seriousness: Fahs v R [2007] NSWCCA 26 at [29]. He submitted, as well, that the amount of the drug lay at the bottom end of the range of large commercial quantity and that this served to reduce the objective seriousness as well.
73Mr Brady noted that the Crown submission in the District Court was that the fourth count was "above mid range but not substantially so" , and that the sentencing Judge had concluded that the offence was at the mid-range of seriousness. He pointed to the discussion during the sentencing hearing concerning the role of the standard non-parole periods.
74Mr Brady acknowledged that there was a radical departure from the standard non-parole periods in this case. He submitted that this must be considered in the light of all his Honour's reasons, which included an assessment of the seriousness of the offences, as well as an assessment of the Respondent's subjective circumstances.
75Whilst acknowledging that there was error demonstrated in taking into account the Respondent's past history in considering the objective seriousness of the fourth count, Mr Brady submitted that this was not such as would lead this Court to resentence the Respondent.
Decision
76As the Respondent had been convicted after trial, the standard non-parole periods with respect to the second and fourth counts had direct application by force of statute, and not merely as a guidepost on sentence following a plea of guilty: R v Way [2004] NSWCCA 131; 60 NSWLR 168 at 184 [68].
77When sentencing for offences for which Parliament has provided a standard non-parole period, it is necessary for Judges to specify where the offences lie on the range of objective seriousness for those crimes: R v Sellars [2010] NSWCCA 133 at [12]; R v McEvoy at [87].
78The sentencing Judge imposed non-parole periods for the second and fourth counts which were very significantly below the standard non-parole period for each offence. The further downwards the sentencing Judge moves from the standard non-parole, the greater the need for close examination of the findings, in particular concerning the objective seriousness of the offence: R v Knight [2007] NSWCCA 283; 176 A Crim R 338 at 341 [4]. There is, of course, a statutory obligation to give reasons for increasing or reducing the standard non-parole period: s.54B(4) Crimes (Sentencing Procedure) Act 1999 .
79With respect to the second count, a standard non-parole period of 10 years was prescribed. The sentencing Judge initially imposed a fixed term of imprisonment for four years. After the inability to make such an order had been raised by the Crown, his Honour stated that a non-parole period of four years would be fixed.
80In reality, his Honour set a fixed term of imprisonment, an approach which was contrary to statute: s.45(1) Crimes (Sentencing Procedure) Act 1999 ; Hristovski v R [2010] NSWCCA 129 at [7].
81Accordingly, error has been demonstrated concerning the sentence imposed on the second count. Further, I am satisfied that error has been demonstrated with respect to the reasons given by the sentencing Judge concerning the role of the standard non-parole period on sentence. His Honour explained why such a non-parole period (effectively a fixed term) was imposed because "this offence is significantly less substantial in terms of culpability than a mid range offence for such an offence" .
82The sentencing Judge had made no specific findings concerning the offence contained in the second count. As a result, this conclusion was opaque. Although Mr Brady made submissions by reference to the facts of the second count in support of a contention that this finding was open to the sentencing Judge, these were not findings made by his Honour and, in my view, do not leave reasonably open the conclusion expressed by his Honour to explain the sentence passed on this count. This error was compounded by the finding of "special circumstances" recorded on the back of the indictment, said to be because the criminality of the offence was "well below mid range of seriousness" . Such an approach involved a clear and impermissible double counting of this factor. More to the point, his Honour did not fix any balance of term. The sentence was, in reality, a fixed term.
83I am satisfied that error of process, and error in substance, has been demonstrated concerning the sentence passed on the second count.
84With respect to the fourth count, counsel for the Respondent conceded that one of the two factors referred to by the sentencing Judge did not bear upon the objective seriousness of the offence so that error was demonstrated in this respect. There was a live issue in the District Court as to whether the fourth count lay above the mid-range (the Crown submission) or below the mid-range (the defence submission). His Honour did not refer to this controversy or resolve it. An analysis of these submissions, in my view, could not place this offence below the mid-range.
85It is clear that the fact that the Respondent had "no history of drug supply" did not bear upon the objective seriousness of the fourth count.
86In any event, the statement was factually incorrect. By the time the Respondent committed the offence contained in the fourth count on 30 May 2006, he had committed offences on 7 March 2006 of supplying a prohibited drug (the first count) and supplying a commercial quantity of a prohibited drug (the second count).
87In relation to the fourth count, the sentencing Judge provided as one of the two reasons as to why he should not "set the objective seriousness of the offence as being mid range" was that the offence was "nipped in the bud" and there was no actual supply to members of the community. However, his Honour acknowledged that the offence itself was serious in the "grave potential danger it poses the community" .
88It was the case that the large commercial quantity of 2.6 kilograms of methylamphetamine was located in six individual resealable plastic bags in the garage of the Horsley Park premises. Mr Brady contended that the fact that the drug was not supplied, and would never reach the public (as any supply would be to an undercover police officer) reduced the objective seriousness of the offence. He relied upon Fahs v R in this respect.
89A number of decisions of this Court have considered the relevance of this factor on sentence for a drug supply offence.
90In R v Chan [1999] NSWCCA 103 at [21], Smart AJ (Sheller JA and Studdert J agreeing) said at [21]:
"In assessing the sentence to be imposed it is relevant to take into account that the prohibited drugs supplied to undercover agents will not be disseminated into the community. Of itself this is usually unlikely to lead to other than a very minor diminution of culpability. The offender had the intention to supply and in supplying knew and believed that the drugs would be likely to find their way into the community. The fact that they did not do so was not due to the offender."
91In R v Way , the Court (Spigelman CJ, Wood CJ at CL and Simpson J) said at 198-199 [172]:
"We also consider that it was appropriate for his Honour to have regarded the offence as one committed without regard for public safety (another s 21A(2) factor). The applicant was not to know that the buyer was an undercover operative and that the drugs would be seized and destroyed. What was relevant in this context was his motivation or understanding, so far as that went to an assessment of his moral culpability. He undertook the transaction expecting a considerable personal profit, and in the understanding that the drugs would be resold, heedless of the consequences to those who purchased and consumed them, or of the fact that users commonly resort to property offences to feed a habit, leaving other victims in their wake. The observations of Smart AJ in Regina v Chan [1999] NSWCCA 103 [at para 21] as to the limited relevance of the fact that drugs which are supplied to undercover agents will not reach the community, apply. As his Honour pointed out, that circumstance was not due to any act of the offender."
92Later in R v Way , the Court said at 200-201 [181]:
"We are not however persuaded that the applicant can properly suggest that his objective criminality was in any way reduced by reference to the conduct of the undercover officer. While the applicant could lawfully have been arrested after the first supply offence, there were very good reasons for the police to pursue the operation in order properly to investigate any suspected distribution network in Coffs Harbour and its supply sources. That could not be done without the undercover operative expressing a continuing interest to make further purchases, in a context where the applicant had indicated both a willingness, and a capacity, to oblige. The present case was distinguishable from the case of a reluctant offender who was encouraged to commit an offence, or 'pushed' to supply larger quantities of a drug which he would not have done absent pressure or persuasion from police, in which some mitigation of sentence would be warranted, as was the situation in R v Rahme (1991) 53 A Crim R 8."
93In R v Gao [2007] NSWCCA 343, Latham J (Basten JA agreeing) said at [22]:
"In Fahs v Regina [2007] NSWCCA 26, Howie J (with whom Simpson and Buddin JJ agreed) expressed the view at [29] that the fact that a commercial quantity of ecstasy did not reach the public, because of the supply of that quantity to an undercover police officer, reduced the objective gravity of the offence in that case below the mid-range. I do not understand his Honour to have been expressing any matter of principle. Clearly, there may be cases where a combination of factors, including a plea of guilty and supply to undercover operatives, will nonetheless justify a finding that the offence falls within the mid-range of objective gravity and warrants the imposition of a non parole period approaching the standard non parole period. That is, as I understand it, the Crown's argument in the instant case."
94Rothman J agreed with Latham J in R v Gao , and made the following additional comments, at [47]-[48], which are pertinent to this issue:
"47 No principle establishes as a general proposition that the fact, simpliciter, that the drugs are sold to undercover police and do not, therefore, reach the public, diminishes the culpability of the offending.
48 In such an undercover operation, it is beneficial to the community that the drugs are not able to be used. But that benefit is the result of the actions of law enforcement agencies, and not the result of any intention or action of the person charged. That there are no victims to such a sale may be a factor, like many others, that a sentencing judge takes into account, but for my own part, I would not generally consider it significant."
95In Ly v R [2008] NSWCCA 262. Hislop J (Beazley JA and Harrison J agreeing) said at [26]-[27]:
"26 That the drugs were not disseminated into the community is a relevant factor, the weight of which will vary from case to case: see R v Chan [1999] NSWCCA 103 at [21]; Fahs v R [2007] NSWCCA 26 at [29]; R v Gao at [22].
27 Whilst the drugs found in the applicant's possession were not actually disseminated by the applicant into the community, the applicant was to be sentenced for deemed supply in circumstances where it was clear that this was not an isolated occasion of the possession of drugs for the purpose of supply. In the circumstances, little, if any, weight can be attached to the fact that these drugs were not actually supplied."
96In Hristovski v R , with the concurrence of McClellan CJ at CL and Grove J, I said at [41]:
"The fact that the drugs actually supplied would not be disseminated to the community because the supply took place to an undercover police operative does not materially assist the Applicant. The Applicant fully intended that the drugs would be disseminated to the community, and it was no act of the Applicant which stood in the way of such dissemination: Ly v R [2008] NSWCCA 262 at [27]."
97These authorities make clear that, although the fact that drugs are not disseminated into the community may be a relevant factor on sentence, the weight to be given to that factor will vary from case to case. A primary consideration remains that an offender intended to supply the prohibited drug to members of the community, and that it was no act of an offender that resulted in this not happening.
98It is also relevant to consider whether the offence in question is an isolated occasion of possession of drugs for the purpose of supply, or was a supply made in the course of an established commercial activity: R v Way at 197 [163].
99I return to the facts of this case. The large commercial quantity of methylamphetamine, bagged in six separate packages, was located by police upon the execution of the search warrant in the garage of the Horsley Park premises. There is no doubt that the Respondent intended to supply this quantity of prohibited drug, through his distribution network, to ultimate end users in the community. It was no act of the Respondent that caused this dissemination not to happen. If any actual supply of this drug was to an undercover police officer, then it would not reach the public. However, the Respondent did not know this. He intended the drug to reach end users, and he planned and expected to make a substantial profit from this crime. Further, this was not an isolated offence on the Respondent's part. It was part of an established commercial activity.
100In my view, this factor was of very limited assistance, at best, to the Respondent on sentence. It was not reasonably open to the sentencing Judge to take this into account in a way that provided anything more than a modest reduction in the objective seriousness of the fourth count.
101The principal role of the Respondent, taken with the substantial quantity, the profit motive and the fact that the offence was part of an ongoing drug supply business, placed the fourth count at the mid-range for this type of offence.
102I am satisfied that the Crown has demonstrated error with respect to both factors which the sentencing Judge referred to as reducing the fourth count below the mid-range of objective seriousness.
103I am satisfied that the Crown has made good Grounds 2, 3, 4 and 5 and that the impact of these errors on sentence was significant in this case.