[2010] HCA 3
Bryan v Lane Cove Council and Anor (2007) 158 LGERA 390
[2011] NSWLEC 83
Commonwealth v Tasmania (1983) 158 CLR 1
[1983] HCA 21
Dietrich v The Crown (1992) 177 CLR 292
[1992] HCA 57
Gartner v Kidman (1962) 108 CLR 12
Source
Original judgment source is linked above.
Catchwords
[2010] HCA 3
Bryan v Lane Cove Council and Anor (2007) 158 LGERA 390[2011] NSWLEC 83
Commonwealth v Tasmania (1983) 158 CLR 1[1983] HCA 21
Dietrich v The Crown (1992) 177 CLR 292[1992] HCA 57
Gartner v Kidman (1962) 108 CLR 12[1962] HCA 27
Great Lakes Council v LaniGreat Lakes Council v Lani and Lampo Pty Limited (2007) 158 LGERA 1[2008] NSWLEC 165
ICM Agriculture Pty Ltd v Commonwealth (2009) 240 CLR 140[2009] HCA 51
John Young and Company v The Bankier Distillery Company [1893] AC 691
Jones v Dunkel (1959) 101 CLR 298[1959] HCA 8
Katter v Melhem (2015) 90 NSWLR 164[2015] NSWCA 213
Khan v Minister for Immigration and Ethnic Affairs (1987) 14 ALD 291[1987] FCA 713
Lee v Commonwealth (2014) 229 FCR 431[2014] FCAFC 174
Manly Council v Byrne [2004] NSWCA 123
Mason v Hill (1833) 110 ER 692
Maxwell v Murphy (1957) 96 CLR 261[1957] HCA 7
Minister Administering the Water Management Act 2000 v Sharkey (2017) 226 LGERA 322[2017] NSWCA 319
Minister for Aboriginal Affairs v Peko-Wallsend Ltd (1986) 162 CLR 24[1986] HCA 40
Minister for Immigration and Citizenship v SZJSS (2010) CLR 164
[2010] HCA 48
Minister for Local Government v Blue Mountains City Council (2018) 229 LGERA 197
[2018] NSWCA 133
Mitchforce Pty Ltd v Industrial Relations Commission of NSW (2003) 57 NSWLR 212
[2003] NSWCA 151
Moorebank Recyclers Pty Ltd v Tanlane Pty Ltd [2017] NSWLEC 97
Morgan v Commonwealth (1947) 74 CLR 421
[1947] HCA 6
Mosman Municipal Council v IPM Pty Ltd (2016) 216 LGERA 252
[2005] NSWCA 10
NA&J Investments Pty Ltd v Minister Administering the Water Management Act 2000 (2011) 181 LGERA 166
[2011] NSWLEC 51
Nature Conservation Council of New South Wales Inc v Minister Administering the Water Management Act 2000 (2005) 137 LGERA 320
[2017] NSWLEC 185
Re Refugee Tribunal
Ex parte Aala (2000) 204 CLR 82
[1926] HCA 49
Sean Investments Pty Ltd v MacKellar (1981) 38 ALR 363
[2006] NSWLEC 133
Telstra Corporation Ltd v Australian Competition and Consumer Commission (2008) 171 FCR 174
[1955] HCA 10
Vanmeld Pty Ltd v Fairfield City Council (1999) 46 NSWLR 78
[1999] NSWCA 6
Woolworths Limited v Wyong Shire Council & Ors [2005] NSWLEC 400
Woolworths Ltd v Pallas Newco Pty Ltd (2004) 61 NSWLR 707
[2004] NSWCA 422
Yates Property Corporation Pty Ltd (In Liq) v Darling Harbour Authority (1991) 24 NSWLR 156
Yirrell v Yirrell [1939] HCA 33
(1939) 62 CLR 287
Yrttiaho v The Public Curator of Queensland (1971) 125 CLR 228
Judgment (129 paragraphs)
[1]
Background
The First Applicant is the owner of a property known as "Somerset Park", in the Murrumbidgee Irrigation Area in southern New South Wales. The Second Applicant is the occupier and manager of "Somerset Park". The property had been held by the Andrews family since 1974, when the Second Applicant's father, Mr Andrew Andrews, moved his olive oil enterprise from the Liverpool district to "Somerset Park".
It is the paddock known as the Lake Paddock on "Somerset Park" that takes 'centre stage' with respect to all the issues arising in these proceedings. Within the Lake Paddock, there had evidently been, from what might have been 'time immemorial' (certainly to the Andrews family), an ephemeral water body which had recurrently, in normal conditions been filled, flushed and then receded as the seasons and conditions changed. Variously referred to as the 'lagoon' or 'billabong', most probably it would be correctly defined as 'flood-out land'. Entering the Lake Paddock from its junction with Yanco Creek is a diversion channel referred to throughout the proceedings as the "unnamed watercourse".
The plan at Annexure A, which was Exhibit C tendered during the hearing, shows the location of Yanco Creek as it traverses "Somerset Park". The areas of inundation on Lake Paddock can be identified on the plan as generally comprising Lots 40, 41, 42, 50, 58 and 91 and portions of abutting lots. Importantly, the blue arrow points to the 'unnamed watercourse' entering Lake Paddock from its junction with Yanco Creek.
The factual history of the issues in these proceedings are complex in the extreme, extending back almost 40 years (a chronology of key events is at Annexure B to this judgment) with some of the material proving to be somewhat opaque. Given the complexity, and the reality that in this case "the devil is in the detail", rather than burdening the primary text of the judgment with a multiplicity of cross-referencing to the source of my summaries of the evidence and submissions analysing the material, I have adopted the course of placing much material in endnotes to the judgment. Although these endnotes provide sufficient reference to the key material I have relied upon in this judgment, they do not represent the complete body of material examined. It follows that all material exhibited during the proceedings and referenced in the course of submissions has been examined and thereby considered.
[2]
The 1986 Licence
On 23 April 1986, The First Applicant was granted licence number L45398 pursuant to the 1912 Act for "a diversion channel" for "water supply for irrigation" (1986 Licence). [1] The 1986 Licence was subject to 12 conditions including (relevantly):
1. Condition 7: "The licensee shall construct in the diversion channel near its point of offtake a timber or concrete regulator with a sill level fixed at not lower than 1.11 metres below the level of a benchmark established on a gum tree on the left bank of Yanco Creek near the works and particulars of which are retained in the office of the Water Resources Commission."
2. Condition 8: "Drop boards or some similar form of effective control maybe [sic] used over the sill of the regulator referred to in condition 7 to a height of not less than 0.6 metres below the bench mark referred to in condition 7 and shall be operated in accordance with conditions 9 and 10."
3. Condition 9: "Subject to condition 10 the drop boards or control device may only be operated to provide flows in the diversion channel with the permission of the Manager Murrumbidgee Division of the Water Resource Commission at Leeton - such permission could be expected to coincide during periods when surplus flows have been declared as being available in Yanco Creek from its offtake from the Murrumbidgee River to Morundah."
4. Condition 10: "Notwithstanding condition 9 the control device shall be operated so as to not cause any inundation by floodwaters."
The 1986 Licence has been renewed on a number of occasions in the intervening years namely, on 22 October 1991, 24 April 1996, 6 September 2002, 16 June 2008, and 24 August 2012. At some point between 22 October 2001 and 24 April 1996, the 1986 Licence was renumbered 40SL45398.
The Respondents asserted that: "A condition in substantially the same terms has attached to the first applicant's licence ever since [it was granted]". [2]
The parties agree that the regulator referred to in the aforementioned conditions was not built, and that the First Applicant has never used the water in the diversion channel or the Lake Paddock for irrigation. [3]
[3]
Communications between the First Applicant and the Department
Over the period since the granting of the 1986 Licence, there has been much correspondence between the First Applicant and the Department. This correspondence sequentially dealt with issues as they arose over the years particularly with respect to the 1986 Licence, and so has had to be examined in these proceedings being very material to the Court's determination of the issues.
By letter dated 15 December 1995, Mr Andrew Andrews (a director of the First Applicant, and Mr Paul Andrews' father) wrote to Mr Steve Webb of the (then) Department of Water Resources (Department, which will be used henceforth to refer to the department responsible for the administration of the Water Management Act, regardless of subsequent changes of name), and raised concerns with increased water levels in Yanco Creek:
As you are aware, the Department has substantially increased the level of water in the Yanco Creek. This was done without any prior consultation or advice to us.
This part of our property was an oasis which nurtured native flora and fauna. Where seasonal flood waters before were beneficial to grazing, the environment and ecology, these areas have now turned into permanent lakes.
Dead and dying trees large and small are the result of the department's policy.
Urgent action by the department is needed to remedy the situation. [4]
In a letter dated 8 January 1996, Mr Webb replied to Mr Andrews stating:
In 1986 the Department issued you with a license [sic] for a diversion channel and regulator specifically designed to preclude the regulated flows at that time but enabling storage of flood waters in the lagoon for irrigation purposes.
In recognition that flows have increased in the period 1986-1995 and following an inspection in February 1995, the conditions attaching to the licence relating to the height of the regulator were amended such that when the regulator is constructed current regulated flows would be precluded.
If the regulator subject to the license [sic] application were to be constructed as per the conditions specified, the concerns outlined in the letter would not exist.
The license [sic] was originally issued to allow storage of flood flows for irrigation. If this is no longer the case, then the licence would no longer be required.
If this is so and, given that the authorised works have not been installed in almost 10 years the Department is in a position to revoke the license [sic] or allow it to lapse as of 23rd April, 1996 when it is due for renewal.
If the license [sic] were to lapse then it may be prudent for the Department to block off the diversion to preclude regulated flows and halt the flooding related by you. The lapsed license [sic] would also exclude you from pumping from the lagoon for irrigation purposes. [5]
[4]
The 2012 proceedings
On 6 February 2012, the Department gave notice to the First Applicant of the proposed refusal of the application to renew the 1986 Licence. [20]
On 12 April 2012, the application was refused. [21] The First Applicant subsequently commenced proceedings in this Court to challenge that refusal. [22]
On 23 August 2012, the proceedings were settled, prior to a full hearing, with the Court making orders by consent allowing the First Applicant's appeal and requiring the First Respondent to renew the 1986 Licence (2012 Court Orders). [23] The Court also noted the parties' agreement that:
(a) Within fourteen … days the Applicant will apply and the Respondent will receive an application from the Applicant to vary the renewed licence by amending condition 13 and providing for a term containing a volumetric allocation of 1,000 megalitres,
(b) Within twenty eight … days of receipt of the Application the Respondent will grant the application including any linked modification,
(c) The parties agree that within three…months of granting the variation the Applicant will, after informing the Respondent, install the meter referred to in condition (1) and on any pump, and the regulator and sill referred to in condition (7).
On 24 August 2012, in accordance with the Court's orders the First Respondent renewed the 1986 Licence on its existing terms (including the zero allocation). [24]
By letter dated 28 August 2012, and received by the First Applicant on 3 September 2012, [25] Mr Webb of the Department set out his understanding that, within 14 days the First Applicant would make an application to modify the licence such that it:
1. authorises a pump on the lagoon/swamp in addition to the works currently authorised on Lots 40 and 42 in DP754548 and
2. provides for an unregulated volumetric allocation of 1000 ML.
Pursuant to that request, it is further understood that within 28 days the Water Administration Ministerial Corporation will make the appropriate modifications as agreed, by serving a notice under s 17A(2) of the Water Act 1912. [26]
On 29 August 2012, in accordance with notation (a) on the 2012 Court Orders the First Applicant applied to vary condition 13 "to reflect an allocation of 1,000 megalitres", [27] and, on 3 September 2012, the First Applicant applied for a modification of the licence, "to reflect that the licence authorizes a pump on the lagoon in addition to the works currently authorized …". [28]
[5]
The 2012 Unregulated WSP
On 3 October 2012, the Lieutenant-Governor of New South Wales made the Water Management (Application of Act to Certain Water Sources) Proclamation (No 2) 2012 (the Proclamation) under the Water Management Act.
On 4 October 2012, the Water Sharing Plan for the Murrumbidgee Unregulated and Alluvial Water Sources 2012 (2012 Unregulated WSP), made under s 50 of the Water Management Act, commenced operation. Impugned Decisions 4 and 5 (as set out at [9B] and [9C] of the SFAPOC) concern the making of the 2012 Unregulated WSP.
The making of the Proclamation resulted in Pts 2 and 3 of the Water Management Act being applied to the water sources to which the 2012 Unregulated WSP (purportedly, for the purposes of these proceedings with respect to the water body in the Lake Paddock) applied; and that pre‑existing licences held under the 1912 Act in respect of those water sources were converted into entitlements under the Water Management Act, by the operation of Schs 10 and 11 to the Water Management Act.
The Respondents explained the purported application of the 2012 Unregulated WSP to the water body in the Lake Paddock thusly:
The first applicant's [1986 Licence] was in respect of a water source (the "Murrumbidgee Western Water Source" or MWWS) to which the 2012 Unregulated WSP applied: see cl 4(1)(a)(xxvii) of the 2012 Unregulated WSP. The MWWS is a large geographic area set out on the Plan Map referred to in cl 4(2) - see the area shaded in light green on Exhibit 2. The MWWS includes all water "occurring naturally on the surface of the ground" within that geographic area (cl 4(3)(a)) as well as "rivers lakes and wetlands within that geographic area (cl 4(3)(b)). The water in the Lake Paddock is a "wetland" and thus the MWWS includes that water. [33]
The 2012 Unregulated WSP, having been purportedly made (noting that this is Decision 5 under review in these proceedings), and the water body within the Lake Paddock purportedly falling within it (Decision 4 under review in these proceedings), by operation of cl 3 of Sch 10 to the Water Management Act, the 1986 Licence was converted into two new instruments under the Water Management Act: [34]
1. Approval 40CA412879 (the Approval); [35] and
2. WAL 33313 (the WAL). [36]
With similar caveats as set out at [47] above, upon commencement of the 2012 Unregulated WSP, by the operation of cl 3 of Sch 10 to the Water Management Act, certain conditions of the 1986 Licence were converted into conditions of the Approval and the WAL. [37]
[6]
The 2016 Regulated WSP
On 19 May 2015, the Minister extended the Water Sharing Plan for the Murrumbidgee Regulated River Water Source 2003 (2003 Regulated WSP), which had been made under s 50 of the Water Management Act, until the earlier of the commencement of a replacement management plan or 1 July 2016. [40] Notification of this decision was published in the Government Gazette on 29 May 2015. [41] SFAPOC [9E] (hereafter referred to as Decision 7) relates to this decision.
On 1 July 2016, the Water Sharing Plan for the Murrumbidgee Regulated River Water Source 2016 (2016 Regulated WSP) replaced the 2003 Regulated WSP. SFAPOC [9F] (hereafter referred to as Decision 8) relates to this decision.
[7]
Procedural history
This matter has a somewhat tortured procedural history, including numerous amendments to the pleadings.
In the period spanning from 22 June 2015 (the commencement of the proceedings) to 4 August 2017, the final hearing of these proceedings has been delayed by a succession of procedural disputes between the parties. In this period, the matter came before the Court on no fewer than 15 occasions.
On 4 August 2017, more than two years after the commencement of the proceedings, the Court made orders fixing the matter for hearing on 27‑30 November 2017 and established an appropriate case management timetable leading up to that hearing. Orders for the filing and serving of all evidentiary material were made, with the final step to be concluded by 13 October 2017.
On 20 October 2017, in response to a request from the then single Applicant, the matter was listed for a directions hearing on 3 November 2017. A Notice of Motion filed by the Respondents to set aside, in part, a Notice to Produce from the First Applicant was concurrently listed on 3 November 2017. The Applicant sought leave to file in Court a Notice of Motion seeking to join WaterNSW as a party to the proceedings. Moreover, the Applicant sought to file in Court an (undated) affidavit of Mr John Andrews foreshadowing a request to file a "draft proposed Further Amended Summons." That proposed revised summons contained the following material proposed amendments:
1. the joinder of Mr Paul Andrew Andrews as an applicant in the proceedings;
2. the joinder of the Minister administering the Water Management Act as a respondent in the proceedings;
3. the joinder of WaterNSW as a respondent in the proceedings; and
4. the addition of a sought order, namely, an "[o]rder in the nature of a writ of prohibition and/or injunctive relief preventing the Respondents from directing high regulated flows into Yanco Creek contrary to its natural usage and so as to cause environmental and other damage to Yanco Creek and its dependent ecosystem in the Lake Paddock and its environs at 'Somerset Park' or alternatively by preventing the unreasonable use of the waters of Yanco Creek by the Respondents and each of them."
All these matters were heard on 8 November 2017 and determined in Randren House Pty Ltd v Water Administration Ministerial Corporation [2017] NSWLEC 151 (Randren House No 1).
[8]
The recusal application
The Applicants' recusal application was not commenced by way of a notice of motion (or any other document), so neither the Court nor the Respondents had prior knowledge that such an application would be made. Notwithstanding this irregularity, the Court heard, by consent, the Applicants' application that day (with some flexibility in the hearing schedule to ensure procedural fairness to the Respondents). The Applicants eventually filed a Notice of Motion seeking an "[o]rder recusing Molesworth AJ from the trial of the matter" later on 27 November 2017.
Putting to one side the first two arguments submitted as grounds for recusal (both related to my appointment as an Acting Justice of the Court), the Applicants' third ground was that my reasoning in Randren House No 1 (in particular, my reasoning dismissing the First Applicant's application to amend the extant Summons) might lead a fair-minded lay observer to reasonably apprehend that I might not bring an impartial mind to the resolution of the substantive proceedings.
The judgment in the recusal proceedings is Randren House Pty Ltd v Water Administration Ministerial Corporation (No 2) (2017) 228 LGERA 354; [2017] NSWLEC 185 (Randren House No 2). The Court dismissed the Applicants' recusal Notice of Motion and did so on the basis that the Applicants had not established that a fair‑minded lay observer might reasonably apprehend that I might not bring an impartial mind to the resolution of the questions in these proceedings. Of significance to the determination of the primary issues in these principal proceedings, I determined the pre-judging argument in the recusal proceedings at [85]-[90], as follows:
85. Thirdly, I consider that the alleged prejudgment matter raised by the Applicants could not lead a fair-minded lay observer to reasonably apprehend that I might not bring an impartial mind to the resolution of the proceedings. I will first consider the critical issue of prejudgment with respect to my reasoning at [64] of the interlocutory decision (which appeared to be the Applicants' focus).
86. The Applicants are correct that this impugned paragraph concerning the application to amend the extant Summons reveals a view of the Court as to the nature and ambit of the proceedings. However, the Applicants are not correct that the view of the Court revealed is essentially, a pronouncement from the Court that (in the Applicants' words) "we're only concerned with the legality of decisions". What is said is that "these judicial review proceedings do not centrally concern whether or not the Respondents have caused environmental damage and, if so, how they should be restrained" (emphasis added). This is then immediately followed by the statements that "[r]ather, these judicial review proceedings concern whether or not the Respondents have made particular decisions (which to be sure, may affect Yanco Creek and its surrounding environment) unlawfully by, for example, failing to have regard to mandatory relevant matters for consideration" and "[t]he proposed amendment, therefore, does not pertain to a real question raised or otherwise depending on the proceedings (emphasis added).
87. The question is not whether the impugned paragraph discloses a predisposition of the Court or view of the Court (capable of being changed). Instead, the question is does this paragraph rise so high such that it could indicate to a fair-minded lay person that my mind might not be open to being persuaded that these judicial review proceedings actually centrally concern something other than the legality of the particularised decisions or conduct et cetera? I am of the view that the answer to that question must be no.
88. Whilst these sentences speak for themselves, a conclusion cannot properly be drawn that the Court has prejudged the proceedings by confining the parameters of its future consideration of the issues in the proceedings to the legality of decisions. At most, the Court has expressed its "tendency of mind" or "predisposition" that these judicial review proceedings - as is traditionally the case with judicial review proceedings - centrally (but not exclusively) concern the legality of particular decisions. (I interpose here to note that the Applicants may well be correct that judicial review is not limited to decisions per se, however, the extant Summons in this case lists seven categories of "decisions" rather than, for example, conduct).
89 Nevertheless, the Applicants may persuade the Court during the substantive hearing that these judicial review proceedings (in this respect, the extant Summons is titled "Further Amended Summons (Judicial Review)" and describes the type of claim as "JUDICIAL REVIEW and ancillary relief") are actually not centrally about the legality of decisions but, in fact, proceedings which, for example, centrally concern whether or not the Respondents have caused, contrary to law, ongoing environmental damage to Yanco Creek or heritage impacts. Although the Court has not suggested that environmental damage is a "vestigial issue", even if that were so, it is not apparent from the interlocutory decision that I have any such crystallised, permanent view of this nature.
90 Critically, it cannot be correct that (acting) judges must decide interlocutory applications and proceed to trials with their minds as a blank slate as to the nature and ambit of the proceedings. However, what the Court cannot do is close its mind: Hills Shire Council v Mouawad (2014) 203 LGERA 233; [2014] NSWLEC 59 at [27]. For example, it could have been improper if I had said words to the effect of "environmental damage is not and will not be relevant at all [or must only be of peripheral/secondary relevance] to the determination of these judicial review proceedings because the Minister did not have an obligation to consider this matter in making any of the challenged decisions. On a fair and reasonable reading, that is not at all what is conveyed in the interlocutory decision and is certainly not what I intended to convey.
[9]
The request for making further submissions after close of hearing
On 21 August 2018, 19 days after the conclusion of the primary hearing, the Court was informed by the solicitor for the Respondents that they understood that the Applicants sought to put further written submissions before the Court. The Respondents noted that they did not consent to such submissions being placed before the Court, and that the parties proposed to exchange submissions as to admissibility, and provide me with submissions on that point to determine whether or not the Court would then receive the further, substantive, submissions.
The Court, by return e-mail that day, noted that it was not on notice of any proposal by the Applicants to put further submissions to the Court; that such submissions proposed after the conclusion of the hearing would not ordinarily be received, but that given the parties had devised a course of action to debate the issue between themselves they should exchange submissions and come to a conclusion between themselves. If a consent position was arrived at, the Court would then consider it.
By e-mailed letter of 5 September 2018, the solicitor for the Applicants, mischaracterising the Court's e-mail of 21 August 2018 as "consent directions for [sic] exchange submissions on the supplementary point regarding the construction of clause 4(1)(a) Schedule 10 Water Management Act 2000", attached a copy of a document entitled "Applicants' Reply" and "a fresh copy of the Applicants' Submission dated 9 August 2018 to which [the Respondents'] Submission responds".
By e-mail of 6 September 2018, the Respondents' solicitors then forwarded their Submissions in Reply, noting that those submissions dealt with the Respondents' objection to the receipt of further submissions as well as why the Applicants' submissions, even if received, should be rejected.
The Court was therefore in possession of:
1. a "Supplementary Submission in Reply" of the Applicants, dated 9 August 2018;
2. the Respondents' "Response to Applicants' Application for Leave to File Supplementary Submissions" dated 27 August 2018; and
3. a document titled "Applicants' Reply", dated 3 September 2018.
The Court noted that, given the Applicants' solicitor had taken the liberty of forwarding the submissions in issue to the Court on 5 September 2018, a step they should not have taken, and the Respondents' unsurprising response of providing submissions both as to admissibility and on the substantive point, it would reserve its decision on whether to admit the further submissions to be determined in the course of this judgment.
[10]
Applicants' submissions
Leave was sought by the Applicants to make a supplementary submission "on a point of construction" in relation to the meaning of the phrase "an entitlement with respect to a regulated river" in Sch 10, cl 4(1)(a) of the Water Management Act which, the Applicants submitted, arose from an argument raised in closing submissions regarding the application of the decision in Minister Administering the Water Management Act 2000 v Sharkey (2017) 226 LGERA 322; [2017] NSWCA 319 (Sharkey No 3); Sharkey v Minister Administering the Water Management Act 2000 [2017] NSWLEC 3 (Sharkey No 1) (deciding whether the issue should be a separate question for determination); and Sharkey v Minister Administering the Water Management Act 2000 [2017] NSWLEC 47 (Sharkey No 2) (being the decision on the separate question).
As recounted above, the Applicants, improperly, did not make submissions to the Court as to why supplementary submissions ought to be received by the Court nearly three weeks after the conclusion of the hearing, but rather simply provided those supplementary submissions to the Court. As such, the Court did not receive argument from the Applicants as to why supplementary submissions should be received after the close of the hearing.
[11]
Respondents' submissions
The Respondents submitted that leave to make the supplementary submissions should be refused, on a number of bases.
1. First, that the Applicants had already addressed the application of the relevant clause in oral submissions in reply, to which the Respondents made short oral submissions (to the effect that the matter had never been pleaded and in any event was wrong because the licence in question in these proceedings was an "entitlement with respect to an unregulated river", the diversion channel, within cl 4(1)(b)), to which the Applicants then made further oral submissions. The Respondents also noted that the Applicants had already mentioned cl 4 of Sch 10 of the Water Management Act in writing and had therefore had ample opportunity to address the issue.
2. Secondly, the Respondents argued, the Applicants' supplementary submissions are not only on "a point of construction", because their argument that theirs was an "entitlement with respect to a regulated river" depended upon factual matters such as the flows into the Lake Paddock, and whether it was a 'dependent ecosystem' of Yanco Creek, upon which, if the argument had been properly pleaded, the Respondents might have led further evidence.
3. Thirdly, the Respondents argued that it could not be said that the question of the application of cl 4 arose out of the Respondents' closing submissions about Sharkey No 3, which was raised simply to demonstrate that the Court of Appeal held that the source of the Minister's power to declare a regulated river was the definition of "regulated river". It was not raised, the Respondents said, with respect to cl 4. The cl 4 argument is, according to the Respondents, "part of the Applicants' positive case and it should have been pleaded, and addressed by the Applicants' submission-in-chief, not dressed up as a submission 'in reply'".
4. Finally, the Respondents submitted that the Applicants never pleaded that the 1986 Licence was by virtue of cl 4, converted to a "Regulated river (general security)" licence, from what is accurately defined as an "entitlement with respect to an irrigated river".
[12]
Decision on leave to file supplementary submissions
The Court has decided that leave will not be granted for the Applicants to file, and then rely upon, the supplementary submissions headed "Supplementary Submissions in Reply" dated 9 August 2018, nor the associated 'Reply' dated 3 September 2018. The Court found the Respondents' submissions summarised at [75] above were both persuasive and correct.
There can be no doubt that, in the course of the proceedings the distinction between regulated and unregulated rivers under the Water Management Act was examined, including the differential rights with respect thereto. The statutory regime was required to be examined, including the provisions in Sch 10 dealing with the conversion of former entitlements to access licences and approvals. Amongst the case law drawn to the Court's attention, albeit briefly, were the three Sharkey cases. There had been ample opportunity for the Applicants to address the issues that they sought to elaborate upon in the supplementary submissions and they had in fact done so in the course of the hearing, both in writing and orally, albeit with differing emphasis.
The Respondents' submissions in closing, submissions which were properly responding to aspects of the Applicants' arguments whilst addressing issues regarding regulated rivers and briefly mentioning the Sharkey decisions, did not trigger a justifiable basis for the Applicants to reagitate or add to aspects of their interpretation of the legislative regime. In circumstances where the hearing had finished, it was inappropriate for the Applicants' counsel to further reflect on how the Applicants' case had been argued and to then seek to expand upon, or nuance, what appeared to be an 'evolving argument'.
A further strong reason for disallowing the Applicants from reagitating and then extending the propositions they had earlier canvassed with respect to cl 4 of Sch 10 was the fact that their arguments in the supplementary submissions were now straying from and extending an argument they had not actually pleaded, despite the successive iterations of those pleadings. This was a case where there had already been tolerated multiple variations of key documents with the pleadings evolving to the SFAPOC which, on the second-last day of the hearing, had to be again edited throughout so as to properly identify the correct section and paragraph numbers in the legislation therein cited and relied upon. In this context, the core and critical objection of the Respondents to the Applicants being allowed to rely upon their proposed post-hearing submissions was that they, in effect, put forward a proposition that had never been pleaded: that the 1986 Licence was by virtue of cl 4, converted to a 'Regulated river (general security)' licence. Whether that proposition has any substance or not, such matters being raised so late in the proceedings is contrary to proper principles applicable to the management of proceedings.
[13]
The September 2018 Notice of Motion
Some six weeks following the close of the primary hearing and the reserving of judgment, by Notice of Motion filed on 14 September 2018, the Applicants sought to reopen the proceedings for the Court to receive further supplementary evidence from Mr Paul Andrews set out in a new affidavit sworn 3 September 2018, and a new affidavit of Mr James Purcell sworn 5 September 2018. The Respondents filed an answering affidavit of Mr Patrick Mullane, the solicitor having the carriage of the matter for the Respondents affirmed 27 September 2018. The Court heard the Motion on 28 September 2018, and reserved its decision.
In short, the affidavit of Mr Andrews recounted his attendance at a meeting on 8 August 2018, 16 days after the close of the primary hearing, arranged by the Yanco Creek and Tributaries Advisory Council. He had received word of the meeting from one of his neighbours during a telephone conversation four days earlier on 4 August 2018. He stated that at the meeting a proposal for Yanco Creek was discussed by a representative from the Murray Darling Basin Authority and officers of various State authorities. He reported that it was proposed that a regulator was to be built at the Yanco Creek offtake from the Murrumbidgee River to block or restrict flows down the Yanco Creek over the winter months which would provide more water to be sent down the Murrumbidgee for environmental flows. Mr Andrews went on to state at [9] that:
I say, as a result of hearing the proposal and the reasons given at the meeting referred to above, that the Respondents and the Commonwealth are proposing Yanco Creek water conservation measures which have the result of giving effect to the proposals of Mr Jim Purcell put to this Honourable Court to prevent inundation damage from high regulated flows at Somerset Park as set out in his reports lodged with the Court.
Mr Andrews confirmed that he was unaware of the Yanco Creek proposals before the meeting he attended on 8 August 2018. He requested the Court to consider this new material and Mr Purcell's analysis of it, concluding at [13]:
I respectfully say that the further evidence could not reasonably have been foreseen by the Applicants is relevant, and that it is not unfair to the Respondents for the Court to receive the evidence because, having regard to their position and responsibilities under Water Management Act 2000 they have at all material times since 2013 the date of the Alluvium Report referred to in evidence in this Court, have been aware of circumstances giving rise to the alleged duty to redress inundation damage by reason of high regulated flows along Yanco Creek, and the Applicants' claims in that regard.
[14]
Decision on the September Notice of Motion
The Court has decided not to grant leave to the Applicants to reopen the proceedings so as to accept the proposed new evidence set out in the Motion. The Court has concluded that it must be ever-mindful of the fact that the proceedings before me are a Class 4 judicial review. As counsel for the Respondents submitted: "insofar as the applicants challenged particular administrative decisions on judicial review grounds your Honour's role is to determine the validity of those decisions". For the Court to allow the proceedings to be reopened so that the Applicants can rely on new evidence, the Court must be satisfied that, in addition to relevance, there is probative value in the material in question being introduced after the close of the primary hearing. One test of both relevance and probity must be to determine whether there is a nexus between the new material the subject of the Motion and one or more of the decisions that are under review in the proceedings. If a nexus is identified, for instance it might be argued that the material would have been relevant to the Minister's consideration of one of the decisions in question, then there may be an arguable case to admit it (and so reopen the case). Without a relevant nexus being established, the probity of the material must be in serious doubt. The Court has concluded that a relevant nexus between the new material and the actual decisions under review has not been established by the Applicants.
Accepting Mr Mullane's evidence regarding the earliest dates which are identifiable with respect to the documents relating to the Yanco Creek Offtake Proposal, a 16 March 2017 date is identified. Logic demands that, with that date being for the publication (or public release) of the document, it must necessarily concurrently be the end-date of a process involving the document's creation that led to its release. Such a proposal would obviously have required some considerable time in the making. One can sensibly assume that work on formulating the proposal began in the course of 2016, with, perhaps, a decision to start the policy formulation in early to mid‑2016. It is in that context that it is relevant to note that the date of the latest decision being reviewed in these proceedings - Decision 8 - is 28 June 2016. So it is conceivable that the making of Decision 8 was contemporaneous with the commencement of the process which led, nine months later, to public release of the Yanco Creek Offtake Proposal. However, being merely 'conceivable' is insufficient, the Applicants must satisfy the Court that the new material was in existence and, importantly, should have been known to, and be required to be considered by, the decision-maker.
[15]
Relevant legislative provisions
Many of the questions in this matter turn on the proper interpretation of the Water Management Act, which governs the management of water sources in New South Wales. The objects of the Act are set out at s 3:
3 Objects
The objects of this Act are to provide for the sustainable and integrated management of the water sources of the State for the benefit of both present and future generations and, in particular:
(a) to apply the principles of ecologically sustainable development, and
(b) to protect, enhance and restore water sources their associated ecosystems ecological processes and biological diversity and their water quality, and
(c) to recognise and foster the significant social and economic benefits to the State that result from the sustainable and efficient use of water, including:
(i) benefits to the environment, and
(ii) benefits to urban communities agriculture, fisheries industry and recreation, and
(iii) benefits to culture and heritage, and
(iv) benefits to the Aboriginal people in relation to their spiritual, social, customary and economic use of land and water,
(d) to recognise the role of the community, as a partner with government, in resolving issues relating to the management of water sources,
(e) to provide for the orderly, efficient and equitable sharing of water from water sources,
(f) to integrate the management of water sources with the management of other aspects of the environment, including the land, its soil, its native vegetation and its native fauna,
(g) to encourage the sharing of responsibility for the sustainable and efficient use of water between the Government and water users,
(h) to encourage best practice in the management and use of water.
The Water Management Act, at s 5, provides for a number of "water management principles":
5 Water management principles
(1) The principles set out in this section are the water management principles of this Act.
(2) Generally:
(a) water sources floodplains and dependent ecosystems (including groundwater and wetlands) should be protected and restored and, where possible, land should not be degraded, and
(b) habitats animals and plants that benefit from water or are potentially affected by managed activities should be protected and (in the case of habitats) restored, and
(c) the water quality of all water sources should be protected and, wherever possible, enhanced, and
(d) the cumulative impacts of water management licences and approvals and other activities on water sources and their dependent ecosystems should be considered and minimised, and
(e) geographical and other features of Aboriginal significance should be protected, and
(f) geographical and other features of major cultural, heritage or spiritual significance should be protected, and
(g) the social and economic benefits to the community should be maximised, and
(h) the principles of adaptive management should be applied, which should be responsive to monitoring and improvements in understanding of ecological water requirements.
(3) In relation to water sharing:
(a) sharing of water from a water source must protect the water source and its dependent ecosystems and
(b) sharing of water from a water source must protect basic landholder rights and
(c) sharing or extraction of water under any other right must not prejudice the principles set out in paragraphs (a) and (b).
(4) In relation to water use:
(a) water use should avoid or minimise land degradation, including soil erosion, compaction, geomorphic instability, contamination, acidity, waterlogging, decline of native vegetation or, where appropriate, salinity and, where possible, land should be rehabilitated, and
(b) water use should be consistent with the maintenance of productivity of land in the long term and should maximise the social and economic benefits to the community, and
(c) the impacts of water use on other water users should be avoided or minimised.
(5) In relation to drainage management:
(a) drainage activities should avoid or minimise land degradation, including soil erosion, compaction, geomorphic instability, contamination, acidity, waterlogging, decline of native vegetation or, where appropriate, salinity and, where possible, land should be rehabilitated, and
(b) the impacts of drainage activities on other water users should be avoided or minimised.
(6) In relation to floodplain management:
(a) floodplain management must avoid or minimise land degradation, including soil erosion, compaction, geomorphic instability, contamination, acidity, waterlogging, decline of native vegetation or, where appropriate, salinity and, where possible, land must be rehabilitated, and
(b) the impacts of flood works on other water users should be avoided or minimised, and
(c) the existing and future risk to human life and property arising from occupation of floodplains must be minimised.
(7) In relation to controlled activities:
(a) the carrying out of controlled activities must avoid or minimise land degradation, including soil erosion, compaction, geomorphic instability, contamination, acidity, waterlogging, decline of native vegetation or, where appropriate, salinity and, where possible, land must be rehabilitated, and
(b) the impacts of the carrying out of controlled activities on other water users must be avoided or minimised.
(8) In relation to aquifer interference activities:
(a) the carrying out of aquifer interference activities must avoid or minimise land degradation, including soil erosion, compaction, geomorphic instability, contamination, acidity, waterlogging, decline of native vegetation or, where appropriate, salinity and, where possible, land must be rehabilitated, and
(b) the impacts of the carrying out of aquifer interference activities on other water users must be avoided or minimised.
[16]
Claims/impugned decisions
As foreshadowed above, the Applicants challenged a number of decisions said to have been made by the Respondents over the course of a number of years. These decisions were (broadly):
1. Decision 1: "Yanco Creek Works Decision" ([8A] and [8C] of the SFAPOC) (period since 1990);
2. Decision 2: "Yanco Creek Water Usage Decision" ([8B] and [8D] of the SFAPOC) (period since 1990);
3. Decision 3: "2012 Licence Decision" ([9A] of the SFAPOC) (alleged variation of the terms and conditions of the First Applicant's licence in September 2012);
4. Decision 4: "Water source decision" ([9B] of the SFAPOC) (alleged decision between August and October 2012 to place the billabong in the Lake Paddock into the proposed Murrumbidgee Western Water Source);
5. Decision 5: "2012 Plan decision" ([9C] of the SFAPOC) (the making of the 2012 Unregulated WSP);
6. Decision 6: "2015 Licence decision" ([9D] of the SFAPOC) (decision to impose mandatory conditions on the water access licence and the approval);
7. Decision 7: "2015 Water Plan Decision" ([9E] of the SFAPOC) (decision to extend the 2003 Regulated WSP); and
8. Decision 8: "2015 Replacement Plan Decision" ([9F] of the SFAPOC) (decision to replace the 2003 Regulated WSP with the 2016 Regulated WSP).
The Court notes that there is some question as to whether the alleged decisions above were, in fact, decisions. For the avoidance of doubt, the designations above are made for ease of reference only.
Finally, the Applicants alleged that, through the impugned decisions there has been an impairment "of the Applicants' rights as residents of the State of New South Wales to the reasonable use of the waters of Yanco Creek" in breach of s 100 of the Commonwealth Constitution.
While the Respondents addressed the impugned decisions and the constitutional claim sequentially, the Applicants claim tended to the broad, and non-specific; indeed, the approach adopted could be described as meandering. Much attention was paid to the impacts of increased flows down the Yanco Creek and inundation of the Lake Paddock, however, against the orthodox for a judicial review, little attention was paid by the Applicants to the specifics of the impugned decisions including the material taken into account by the relevant decision-maker in making the impugned decision.
As such, there is some disjunct between the submissions of the parties as will become apparent from the summaries of the respective arguments as set out below.
[17]
Relief sought
The Applicants in their SFAS, filed 25 July 2018, sought the following relief:
1. An order in the nature of a writ of prohibition against the Respondents from taking any steps to give effect to the Water Sharing Plan entitled Murrumbidgee Unregulated and Alluvial Water Sources as amended on or about 30 March 2015 with respect to WAL 33313 Ref: 40AL412878.
2. An order in the nature of a writ of Mandamus directing the First and or Second Respondents to consider whether or not the Lake Paddock water source adjoining Yanco Creek at 'Somerset Park' Narrandera connected by the channel and regulator is part of the Yanco Creek and the Murrumbidgee Regulated Water Source and is or should be included therein in accordance with Water Management Act 2000 Chapter 2 by amendment or making of a regulated source water sharing plan.
3. Declaration that the decision or decisions of the First and/or Second Respondents made on or about 30 March 2015 that the Lake Paddock water source adjoining Yanco Creek connected by the channel and regulator at 'Somerset Park' Narrandera is part of the Yanco Creek and the Murrumbidgee Regulated Water Source and is or should be included therein in accordance with Water Management Act 2000 Chapter 2.
4. An order in the nature of a writ of Mandamus requiring the Respondents to consider in the exercise of their water planning powers an amendment to Water Sharing Plan entitled Murrumbidgee Unregulated and Alluvial Water Sources 2012 and /or Water Sharing Plan for the Murrumbidgee Regulated Water Source 2003 to be further reviewed on or as from 30 June 2015 so as to include the Applicant's water source called the Lake Paddock as an allocation or regulated water source having access to or being part of a regulated flow for the Murrumbidgee regulated river water source.
4. A declaration that the Water Sharing Plan for Murrumbidgee Unregulated and Alluvial Water Source 2012, and the conditions notified on 30th March 2015 is invalid insofar as it extends to or relates to the Applicant's land and water source at Lake Paddock.
5A. A declaration that the Water Sharing Plan for the Murrumbidgee Regulated Water Source 2016 is invalid insofar as it excludes regulated water access in respect of the Lake Paddock adjacent to Yanco Creek on the Applicant's land and/or insofar as it has caused environmental damage to the Lake Paddock.
5B. A declaration that the conditions attaching to approval 40CA412879 and WAL 33313 notified on 30th March 2015 by letter dated 25th February 2015 from the New South Wales Office of Water to the solicitor for the Applicant are void and of no effect.
5C. Declaration that the decision of the Respondents made jointly or in consultation to change the operation of the Yanco Creek channel so as to run the system at a higher level and increase the watering of the Applicant's land and the billabong called Lake Paddock was unreasonable and void and of no effect.
6 An order that the Respondents take all reasonable steps to restore the natural heritage of the Lake Paddock as a water source and to maximise its natural heritage values.
7 Preliminary disclosure with respect to the making of the decisions listed under Details of Decisions herein, including reasons therefor and the nature and effect thereof.
7A. Further or alternatively an order modifying or varying the conditions of approval 40CA412879 and WAL 33313.
8. Such further or other orders as the Court thinks fit.
[18]
Evidence
In addition to the explanation I have provided earlier in [14] as to the approach I have taken in this judgment in referencing much of the evidence I have referred to in this judgment, I now clarify that this judgment will not provide:
an entire summary of the relevant body of oral and written evidence;
an entire separate summary and consideration of the relevant legal principles relating to the overarching legal issues; or
an entire history of events relevant to the issues arising with respect to the impugned decisions.
To attempt to undertake such an herculean task is simply not sensible and would probably be of limited utility and, even worse, prove distracting and confusing. The approach I have adopted has been endorsed in other cases as both sensible and acceptable: see, eg, Yates Property Corporation Pty Ltd (In Liq) v Darling Harbour Authority (1991) 24 NSWLR 156 at 171-172.
Instead, this judgment will provide a detailed summary of the competing positions of the parties which draws out the pertinent evidence that has been relied on by the parties. This does not mean that the Court has only considered the evidence expressly or implicitly relied upon by the parties. What it does mean is that the Court has focused on the key evidence relied upon by the parties to support their propositions. Moreover, given the scale of this judgment, the Court has staggered its consideration of the legal issues such that each summary of the competing positions of the parties is followed by the Court's determination of that issue.
Notwithstanding the above, in order to properly contextualise this judgment, it is necessary to briefly explain some pertinent aspects of the nature of the body of relevant evidence and briefly outline salient parts of the relevant statutory framework.
[19]
Applicants' evidentiary material
The Applicants relied on the following affidavit evidence:
1. Affidavits of Mr Paul Andrews dated 28 January 2016, 9 June 20016 and 1 November 2017;
2. Affidavit of Mr Timothy Hutchinson dated 6 June 2016;
3. Affidavit of Mr James Purcell dated 4 February 2016; and
4. Affidavits of Mr John Andrews dated 21 January 2016, 13 March 2017, 31 August 2017, 23 October 2017, 18 March 2018, and 27 June 2018.
The following persons were called upon by the Applicants to give oral evidence at the hearing:
1. Mr Timothy Hutchinson, water broker;
2. Mr Paul Andrews the Second Applicant;
3. Mr John Andrews in his capacity as director of the First Applicant; and
4. Mr James Purcell, water engineer.
The Court held, in Randren House No 3, that the expert evidence of Mr Purcell was admissible in these proceedings. As such, his affidavit of 4 February 2016, annexing an expert report (first Purcell Report), as well as expert reports annexed to the affidavits of Mr John Andrews dated 31 August 2017 (report dated August 2017, hereafter referred to as the second Purcell Report), 23 October 2017 (report dated 19 October 2017, hereafter referred to as the third Purcell Report), and 18 March 2018 (report dated 16 March 2018, hereafter referred to as the fourth Purcell Report), were admitted.
Attachment 1 to the fourth Purcell Report was a document entitled "Yanco Creek system environmental flows study", dated May 2013, by consultancy group Alluvium (hereafter referred to as the Alluvium Report), relied upon by Mr Purcell in that report and relied upon by the Applicants in their submissions.
Further, counsel for the Applicants handed up numerous unexhibited documents during the course of the hearing, including documents entitled:
1. "Unfortunate consequences of Act's planning scheme", which set out what it contended were the consequences of the Respondents interpretation of the Water Management Act and its subordinate instruments;
2. "Applicants' schedule of facts" which set out ten principal "factual issues" upon which the Applicants relied;
3. "Applicants' legal synopsis" which set out the Applicants' submissions with respect to Decision 8; and
4. "Reply of Applicants" responding to the Respondents' closing oral submissions.
It is not necessary for the Court to summarise all such documents here, and it notes for the avoidance of doubt, that all such material has been carefully considered and taken into account in the preparation of this decision.
[20]
Respondents' evidentiary material
The Respondents relied upon the evidence of Mr Neeraj Maini, a hydrologist and officer at the Department at the time of the making of the 2016 Regulated WSP, in an affidavit dated 28 September 2017.
The Respondents also relied upon the expert evidence of Mr James Warren, an environmental scientist, to comment upon the expert evidence of Mr Purcell. Mr Warren's evidence was contained in two expert reports annexed to his two affidavits (dated 3 October 2017 and 10 April 2018).
Both Mr Maini and Mr Warren were called upon to give oral evidence at the hearing.
An affidavit of Mr Steven Webb, dated 29 September 2017, was filed, but was not read and, as such, the Court has not had regard to it.
[21]
Applicants' submissions on "factual matters"
As noted above at [107], counsel for the Applicants directed the bulk of his submissions not to the decisions under review, as set out in the Applicants SFAPOC, but more broadly, including devoting considerable attention to questions of fact, including the alleged damage to the natural environment of the Lake Paddock and surrounds.
In his closing submissions counsel for the Applicants submitted that at the heart of the Applicants' case was whether "environmental damage" must "give way to extraction rights" (Transcript 415.46-48).
The Lake Paddock, the Applicants submitted, was a dependent ecosystem of Yanco Creek, which ecosystem was being damaged by irrigation flows down Yanco Creek (relying on the evidence of Mr Purcell).
The Applicants grounded their submissions in the following 10 "factual matters on which they said the matter turned:
1. the Lake Paddock "water source";
2. the flows in Yanco Creek;
3. the environmental damage and its causation;
4. the plan for remediation proposed by Mr Purcell;
5. the 1986 Licence "and its changing conditions";
6. whether condition 7 (to the original 1986 Licence) was "operative or breached" (see earlier at [15] for the terms of this condition);
7. the Applicants' "prioritisation of environment over extraction";
8. the cause of the alleged "exclusion" of the 1986 Licence;
9. the 2012 Court Orders "and their performance";
10. that the 1986 Licence was, in the Applicants' terms, "an orphan".
These matters are summarised briefly below.
[22]
"Fact 1" - The Lake Paddock
Key to the Applicants' case was that the water body in the Lake Paddock, the Applicants contended, is a "water source" for the purposes of the Water Management Act and, further, is a "dependent ecosystem" (pursuant to the Water Management Act) of Yanco Creek. [42]
The water body at the Lake Paddock is not, the Applicants submitted, "a puddle". Rather, it is "a significant wetland", taking up a large area [relying on the enlarged Exhibit C as handed up at Transcript 433.10-14] (although, it ought to be noted, the precise size of that water body was not drawn out from the evidence adduced) (as described earlier at [13], Exhibit C is incorporated into this judgment as Annexure A). Also material for the Applicants' purposes they submitted, was the location of the water body (being part of the Applicants' property and also being part of Reach 1 of the Yanco Creek system), as well as, the Applicants submitted, being connected to Yanco Creek by an unnamed water course.
Its location in Reach 1 of the Yanco Creek system was said to be significant because the Alluvium Report considered Reach 1. [43]
[23]
"Fact 2" - Flows
The Applicants submitted that high regulated flows with the knowledge of the Department, now inundate both the water body in the Lake Paddock and the unnamed water course.
In order to make good this proposition, the Applicants referred to a number of documents which they said evidenced increased regulated flows including (but not limited to):
1. cl 65 of the 2003 Regulated WSP and cl 43 of the 2016 Regulated WSP, which state that Yanco Creek has a "channel capacity constraint" of 1,400 megalitres per day (Transcript 450.19-451.6);
2. a Water Resources Commission memo dated 8 February 1983, with respect to a proposal by the First Respondent "to construct a block dam and regulator on an Unnamed Watercourse" which stated (amongst other things) "Current investigations by this branch into the future level of demand for irrigation in the Yanco, Colombo Billabong Creek System suggest that flows in Yanco Creek at Randren House during peak irrigation periods could range from 660 to 820 megalitres per day"; [44]
3. The Briefing memorandum from the Department to the Minister with respect to the replacement of three WSPs (including the 2003 Regulated WSP) dated 6 June 2016, which, at Attachment C1, stated (amongst other things) "OEH [the Office of Environment and Heritage] have sought change to channel capacity constraints in the Yanco Creek at the offtake to facilitate environmental watering … Office of Environment and Heritage requested increase in capacity constraints for Yanco Creek and Murrumbidgee River at Gundagai. OEH has agreed to persist with current Murrumbidgee River capacity constraint and in negotiation with DPI Water trial new constraints for Yanco Creek." [45]
The Applicants also pointed to the 28 January 2016 affidavit of Mr Paul Andrews wherein he asserted that the level of Yanco Creek "had to be significantly unnaturally raised by the New South Wales river authorities in order to be able to "supply these irrigators below Morundah". [46]
The Applicants asserted that the flows in Yanco Creek moved from a drying and wetting cycle, with no more than 250 megalitres per day, to the present day where, on the evidence, they said, of Mr Maini, flows are limited to 1,400 megalitres per day, with some exceptions (Transcript 448.24-29, 450.24). The Applicants pointed to the reconstruction of the Yanco Creek Weir offtake "just prior to 1995", which increased the capacity of the weir from 800 megalitres per day to over 1,400 megalitres per day (Transcript 448.41-43).
[24]
"Fact 3" - Damage
As to the damage said to have been caused to the Applicants' land, the Applicants' submissions thereon, and the Respondents' rebuttal, see [188]-[207] below.
[25]
"Fact 4" - Proposed 'solution'
The Applicants posited that the Respondents were required to remediate the damage to the Lake Paddock which it said arose from the impugned decisions.
The Applicants relied on the evidence of Mr Purcell as to the remediation works said to be required:
5.0 Solution for the Environmental Management of Lake Paddock
The solution to the environmental management of Lake Paddock requires two [sic] actions:
(i) Construction of a regulator structure with a bed level outlet on the unnamed watercourse leading from Yanco Creek to the Lake Paddock Wetland; and
(ii) Flexible operation of the Yanco Creek water levels by State Water to allow drainage of Lake Paddock before inundation periods exceed the threshold outlined in the Alluvium Report above;
(iii) Recognition by Water Managers going forward that the hydrology surrounding the Lake Paddock Lagoon has changed as a result of inundation of the Lake Paddock Lagoon by regulated flows with ongoing environmental damage to that water source, and that Lake Paddock Lagoon is an integral part of the ecology of Yanco Creek. [47]
The Applicants argued that "[r]emediation is practicable and possible by Orders proposed by Applicants". [48]
[26]
"Fact 5" - The 1986 Licence
The Applicants submitted that the 1986 Licence became part of the Yanco Creek volumetric water allocation scheme under the 1912 Act, and argued that the 1986 Licence was "different to other [special additional licences] because it licences [sic] the unnamed water course for diversion ie regulated water". [49]
The Applicants asserted that in 2004, volumetric water allocation schemes (such as that under which the 1986 License sat) became WSP schemes "for all licences except those with zero allocation", [50] and that when the 2003 Regulated WSP was made, "[a]s a result of zero mg irrigation usage licence was excluded from the [2003 Regulated WSP]".
The Applicants further noted the history of the 1986 Licence, including many of the matters set out at [13]-[50] above.
[27]
"Fact 6" - Condition 7 of the 1986 Licence
As to the Respondents' contention that, had the First Applicant complied with condition 7 (later 10) to the 1986 Licence, the Lake Paddock would not have been inundated by the increased flows down Yanco Creek, the Applicants denied that the First Applicant had breached that condition (citing s 17A(1)(d) of the 1912 Act and the "Licence Terms").
The Applicants submitted that compliance or otherwise with condition 7 was only relevant to a "discretionary defence" to Decision 1.
The Applicants further submitted that the Respondents "accept that whole of SL 389 was futile and unusable until 2012". [51] The reasons for this futility, the Applicants said, were because of the high regulated flows which would mean the water would not drain from the water body as it was said to have done under normal conditions. [52] That is, counsel for the Applicants posited, "whether you had a sill or not made no difference because your inundation would continue" (Transcript 543.35-36).
The Applicants asserted that, because the Respondents did not exercise cancellation powers under s 17A(1)(d) and (f) of the Water Management Act or under s 13F of the 1912 Act, there was "an agreed and assumed public interest" pursuant to s 14A(2) and (3). This argument is recited as put, but it is not clear which Act the Applicants were referring to, as the Water Management Act does not contain a 14A, and 14 deals with the functions of management committees where s 14A of the 1912 Act does not have any subsections and in any event deals only with licence fees - the only reference to "public benefit" being with regard to the Minister's power to issue and renew licences at nominal fees to public bodies.
[28]
"Fact 7" - the Applicants "prioritisation of environment over extraction"
The Applicants asserted that they had prioritised the environment over extraction, citing, by way of example, the affidavit of Mr Paul Andrews dated 1 November 2017, wherein he said:
8. I note that my father was reluctant to incorporate the block across the unnamed watercourse because he had observed that with higher flows from increased regulated water flows into the Lake Paddock from Yanco Creek that this had led to the dying of trees because the natural wetting and drying phases had ceased. I also refer to my own concerns in this regard set out in my earlier affidavit. I refer also to the internal note on Water Resources format dated 29 January 1997.
9. I recall Dad became more worried about the problems of inundation and loss of trees in the Lake Paddock as time went on throughout the later 1990s and into the first decade of the 21st century. I recall he complained about the problem to the State's water officers at Deniliquin and Leeton. He said to me in about 1997 at the time of making a complaint of the type to which I have referred word to the effect "The farm is losing the benefit of the natural winter flow and summer drainage. The high flows from Yanco Creek are killing our trees and pastures. I am reluctant to put in any blockage to take advantage of the licence. It could make matters worse." From my observations when I first went to the farm, that the summer periods when there was no water in the Creek and it dried out completely no longer existed. This was after the high regulated flows became more constant in the late 1980's and early 1990s and following years. We were both concerned to see the natural flows maintained when possible even if this meant less opportunity for the farm to use the licence. Nonetheless the State continued to renew the licence.
…
12. We wanted to irrigate in the summer season - however if we blocked it in or the Department blocked it in - it would not remain a natural flowing system. Our farm plan for the Lake Paddock was accordingly stymied by the high regulated flows in Yanco Creek and the resulting damage. [53]
[29]
"Fact 8" - the cause of the alleged "exclusion" of the 1986 Licence
The Applicants submitted that the 1986 Licence was "excluded" from the 2003 Regulated WSP and the 2016 Regulated WSP. This "Fact 8", the Respondents noted, correlated to the "water source decision" at [9B] of the SFAPOC (Transcript 429.30-31 and 43), that is "Decision 4" (commencing below at [348]).
[30]
"Fact 9" - the 2012 Court Orders "and their performance"
The submissions of the Applicants with respect to "Fact 9" are summarised, commencing at [321], at "Decision 3" below.
[31]
"Fact 10" - the "orphaned" 1986 Licence
"Fact 10" was the characterisation by the Applicants of the 1986 Licence as "an orphan".
The Applicants pointed to an internal departmental memorandum in which Mr Webb wrote (with respect to the 1986 Licence) that "I am of the opinion that this licence should never have been issued (but before my time)." [54]
The Applicants stated that the Respondents treated the 1986 Licence as "different" [55] and "futile" for the wrong reasons (but does not specify: a) what those "wrong" reasons are; and b) what correct reasons would be). [56]
The Applicants argued that the 2012 Court Orders gave the 1986 Licence a volumetric allocation which is still outstanding, that the 1986 Licence is not included in any WSP or Regulation, that it is omitted from planning instruments in September/October 2012, that it was not in the 2015 "extension plan", and was "disregarded" in the 2016 Regulated WSP.
[32]
Applicants' submissions on obligations under the Water Management Act
The Applicants' case, they said, "is that under the Water Management Act the State is the person to whom the Parliament has given the right to the control, flow and use of all water in New South Wales and is the person responsible under the [Water Management Act] for water management and mismanagement … and that if such management has caused loss and damage to [the First Respondent] then prima facie the State is responsible because ubi jus ibi remedium" ('where injustice is a remedy is to be found') (citing Royal Insurance Co Ltd v Myelius (1926) 38 CLR 477; [1926] HCA 49 per Isaacs J; Dietrich v The Crown (1992) 177 CLR 292; [1992] HCA 57 at [18] per Toohey J). [57]
Broadly, the Applicants asserted that the Respondents had breached a number of duties (described, in the Applicants' opening submissions as "obligations expressed in chapters 2 and 3, and 8 [of the Water Management Act]" [58] ) in their exercise of various functions under the Water Management Act. The contravention of these amorphous obligations was said to be:
a. failure to classify the water sources being the billabong and the linked ecosystem as at risk and treating it accordingly
b. refusal to admit that the environment of the Lake Paddock and Somerset Park were being damaged and adversely affected
c. constructing at least on its case a plug along the watercourse and making the inundation worse by locking water in the billabong so that it could not leave by the effluent
d. the management of the 2 critical water sources controlled and owned by the State by running high flows in Yanco Creek with a view to maximising its return hence maximising the environmental damage
e. saving expense to the loss of the Andrews and [the First Applicant] by taking alternative steps such as reducing water availability or adopting other diversion measures such as putting in an artificial channel instead of using Yanco Creek as a canal
f. avoiding its responsibilities at the time of making the 2012 WSP by cutting of the billabong in the Lake Paddock from Yanco Creek
g. making available excessive flows year round in Yanco Creek
f. other action and inaction causing loss and environmental damage. [59]
[33]
The Water Administration Ministerial Corporation (First Respondent)
The Applicants pointed to Ch 8 of the Water Management Act, which constitutes the First Respondent as a corporation (s 371(1)), sets out that the affairs of the First Respondent are to be managed by the Third Respondent (s 371(2)), and provides that any act, matter or thing done in the name of, or on behalf of, the First Respondent or the Third Respondent, or with the authority of the Third Respondent, is taken to be done by the First Respondent (s 371(3)). The Applicants submitted that s 371(3) means that acts, matters or things done by the Department of the Third Respondent are similarly imputed to the First Respondent.
The functions of the First Respondent are set out at s 372 (relevantly):
372 Functions of Ministerial Corporation
(1) The Ministerial Corporation has the following functions:
(a) to construct, maintain and operate water management works,
(a1) to construct, maintain and operate gauging stations and other monitoring equipment,
(b) to conduct research, collect information and develop technology in relation to water management,
(c) to acquire rights to water, whether within or beyond New South Wales,
(d) to do anything for the purpose of enabling the objects of this Act to be attained.
(1A) The Ministerial Corporation has such other functions as are conferred or imposed on it by or under this or any other Act or law.
…
(3) The Ministerial Corporation may exercise any of its functions and may otherwise act, in the name of the Department.
(4) It is the duty of the Ministerial Corporation to exercise its functions consistently with the principles of ecologically sustainable development.
…
The Applicants alleged that the Respondents in the circumstances of this matter have failed to protect and restore water sources and their dependent ecosystems. [60]
In exercising its functions the Applicants submitted, the First Respondent must (per s 372(4)) have regard to the principles of ecologically sustainable development (ESD), defined in the dictionary to the Water Management Act as "the principles of ecologically sustainable development described in section 6(2) of the Protection of the Environment Administration Act 1991". The principles of ESD include the precautionary principle, which, the Applicants argued, requires "the avoidance of serious damage to the environment". Such damage, the Applicants allege, has occurred in this matter.
[34]
Section 7 of the Water Management Act
The Applicants argued that s 7 of the Water Management Act (set out at [102] above), in conjunction with s 20, imposed on the State a duty to classify not every water body in the State, but "those water bodies from which water is extracted, that is regulated water" (Transcript 525.40-41), which, the Applicants asserted, had not been done: "[the Respondents] haven't classified any part of the Yanco System". The Applicants submitted that "the water source", in this instance, being "Yanco Creek and its dependent ecosystem in the Lake Paddock" were clearly at risk in both December 2000, when the Water Management Act came into force and in 2012 when, the Applicants said, "consideration was being given as into which plan, the Murrumbidgee surface WSP or the unregulated macro WSP, the bulk access regime was to be incorporated". [69] The Applicants' contentions here have been recited for completeness but they were not entirely clear.
[35]
Section 9 of the Water Management Act
Section 9 of the Water Management Act (set out at [100] above), the Applicants submitted, imposed on the Minister a duty, in making a water sharing plan, to do the things set out in s 9, including "to take all reasonable steps to [exercise functions under the Act] in accordance with, and so as to promote, the water management principles being those principles set out at s 5 of the Water Management Act (s 9(1)(a)) (citing, "generally", Onesteel Reinforcing Pty Ltd v Sutton [2012] NSWCA 282 at [79], Capital Airport Group Pty Ltd v Director-General of the NSW Department of Planning [2011] NSWLEC 22 at [4], Telstra Corporation Ltd v Australian Competition and Consumer Commission (2008) 171 FCR 174; [2008] FCA 1436 at [164]).
Having regard, the Applicants submitted, to s 9(1) and 5(2)(g) of the Water Management Act, there is "a statutory implication that it is mandatory for the Minister to have regard to the water management principles when making a plan" [70] (given that s5(2)(g) is the general water management principle dealing with "social and economic benefits to the community", the Court observes that the Applicants' counsel's contention here was opaque). By virtue of s 9, the Applicants submitted, the water management principles set out at s 5 are mandatory considerations when making or implementing any decision under the Water Management Act or undertaking any function provided for by it. [71]
The Minister, the Applicants posited, in undertaking a function under the Water Management Act, has a duty to take into account the matters which that Act states must be taken into account, and also matters which, by the subject matter, scope and purpose of the Act, are required to be taken into account (citing Minister for Aboriginal Affairs v Peko-Wallsend Ltd (1986) 162 CLR 24; [1986] HCA 40 (Peko-Wallsend) at 39-41, Capital Airport Group Pty Ltd v Director-General of the NSW Department of Planning (No 2) (2011) 210 LGERA 247; [2011] NSWLEC 83 at [100] and Arnold No 6 at [107]). [72]
However, the duty to take into account, the Applicants submitted, "does not mean a mere nod and a wink, or a mere reference", but to give proper, genuine and realistic consideration of the merits of the case (citing Minister for Immigration and Citizenship v SZJSS (2010) CLR 164; [2010] HCA 48 at [26]; Khan v Minister for Immigration and Ethnic Affairs (1987) 14 ALD 291; [1987] FCA 713, noting however the caution in Swift v SAS Trustee Corporation [2010] NSWCA 182 at [45] against "a slide into impermissible merits review"). [73]
[36]
Section 20 of the Water Management Act
The Applicants noted that s 20(1) is "directed to requirements for licences under the Plan and not the needs desires or intentions of landholders more generally" (citing Murrumbidgee Groundwater Preservation Association Inc v Minister for Natural Resources (2005) 138 LGERA 11; [2005] NSWCA 10 (Murrumbidgee Groundwater) at [103]-[108]), however asserted that "broader obligations intervene and do in the present case". [75]
[37]
Section 50 of the Water Management Act
Section 50 provides for Minister's plans relevantly (to the Applicants' submission):
50 Minister's plan
(1) The Minister may, by order published on the NSW legislation website, make a plan (a Minister's plan):
(a) for any part of the State that is not within a water management area, or
(b) for any water management area or water source, or part of a water management area or water source, for which a management plan is not in force, or
(c) for any water management area or water source, or part of a water management area or water source, for which a management plan is in force, but only so as to deal with matters not dealt with by the management plan.
…
(2) A Minister's plan must in general terms deal with any matters that a management plan is required to deal with, and may also deal with any other matters that a management plan is authorised to deal with, other than matters that are already dealt with by a management plan.
…
The Applicants noted s 50(2), and argued that it required "a plan" (it is not clear whether the Applicants referred here to a Minister's plan or a management plan which, by virtue of Pt 3 of the Water Management Act, includes a WSP) to deal with mandatory matters "at least in general terms". The Applicants submitted that, in the present case, "the decisions with respect to the surface plans (regulated and unregulated) do not address the critical issues at all either in the bulk access regime or in the water source" (presumably, although it is not clear, by "surface plans (regulated and unregulated)", the Applicants referred to the impugned WSPs). [76]
[38]
Water sharing plans
With respect to WSPs the Applicants noted that the Water Management Act is one of the rare statutes "where the mandatory obligations are most prescriptive" (Transcript 417.2-3), citing subs 5(3), and posited that this prescription required conservation, protection, and restoration of water sources and their dependent ecosystems (Transcript 417.23-25). The Applicants argued that, in this case, Mr Purcell's evidence was the only evidence before the Court "as to what measures should have been taken to protect and restore the dependent ecosystem which is the Lake Paddock" (Transcript 417.27-29).
The Applicants alleged that, on the evidence of Mr Maini, the Minister neglected the mandatory obligations under the Water Management Act by giving preference to the operation of the larger system to the environmental impact on the Lake Paddock (Transcript 417.38-43). The Applicants characterising the evidence of Mr Maini as making an "assertion that notwithstanding his actions and directions making available excessive water in the Creek, the Department and his colleagues made no decision or engaged in no conduct as to management of water usage or flows causing damage albeit in control of the waters of Yanco Creek", argued that such an assertion was "not an answer to the case because":
[i] excess water availability has caused or contributed to environmental damage;
[ii] it is inconsistent with the State's water rights andcorrespondent duties in respect of them and the evidence. The following decisions being part of the impermissible conduct alleged have been made with respect to water planning which have had an adverse and deleterious affect [sic] on [the First Applicant] and the land at Somerset Park:
a. the 2012 to 2015 WSP unregulated river decision
b. the 2015 mandatory conditions decision
c. the 2014, 2015 and 2016 amendment decisions with respect to the [2003 Regulated WSP]
d. the management conduct in permitting unauthorised use and control of and flows in Yanco Creek as a diversion or for irrigation. [77]
Counsel for the Applicants alleged failure "of the respondents to comply with the mandatory obligation in ss 5 and 9 of the Act in relation to making a water sharing plan to protect and restore that dependent ecosystem" (Transcript 416.19-21). For instance, the Applicants argued, s 5(2)(a), providing that the sharing of water from a water source must protect the water source. In this case, the Applicants posited, there were two water sources being the water body in the Lake Paddock, and Yanco Creek, which were "inextricably linked by natural circumstances making the billabong integral in any sharing arrangement, which did not happen". [78]
[39]
Common law analogies
Counsel for the Applicants posited that the common law provided relevant analogies to the present situation.
The Applicants pointed to Thorpes Ltd v Grant Pastoral Co Pty Ltd (1955) 92 CLR 317; [1955] HCA 10 (Thorpes), where, the Applicants said, "the High Court allowed a claim by riparian owners on the basis that property and occupation rights were affected, "giving them both standing to sue and the right to recover a remedy at common law against a neighbour inundating his land … notwithstanding the State's water rights". [81] The Applicants argued that here, the State (being the owner of the State's water rights), was a "neighbour having the control use and management of the flows of waters in Yanco Creek and in the billabong." [82] However, the Applicants also posited that "the State is not a neighbour affecting the inundation rather it is doing so as the owner of the flows of water in Yanco Creek causing the damage by the high inundation flows by mismanagement." [83]
The Applicants distinguished the present matter from that of Gartner where, the Applicants submitted "the inundation was caused by the blocking of an artificial drainage from a swamp on neighbouring land leading to a build-up of waters in the swamp and loss of pasturage, and where the owner of the swamp land had no natural servitude or riparian right to prevent the neighbour blocking the drain; in contrast to the present case". In this matter, the Applicants argued, the First Respondent "is not only causing the loss through inundation but has a statutory duty to provide for the sustainable and integrated management of those water sources in which its water is conserved and to protect and restore such water sources which it clearly has failed to do in this case". [84]
Counsel for the Applicants submitted that cases such as Gartner, Thorpes and Mason v Hill (1833) 110 ER 692 at p 701 per Denman CJ, demonstrated that "inundation of private land causing environmental damage by the unnatural and unreasonable flow of water demonstrates standing to sue for both Applicants in respect of judicial review of acts and decisions causing such loss and damage." [85]
Counsel for the Applicants also submitted that the common law was of assistance "in providing analogies of loss and reflecting the measure of impairment including of socio-economic values [protected under WMA eg ss 3, 5, 7, 9 and 18], and the failure of the Corporation to have regard to those principles both in the planning of the Yanco Creek measures and the implementation of the plan under chapters 2 and 3." [86]
[40]
Respondents' submissions on obligations under the Water Management Act
The Respondents structured their submissions in accordance with the impugned decisions as set out in the SFAPOC, and are summarised under each of the relevant subheadings below.
[41]
Alleged damage to the Applicants' land
As alleged in the SFAPOC, the Applicants submitted that:
As a result of the river management and works decisions of the Respondents their servants or agents complained of herein and the unnatural use by the Respondents their servants or agents of Yanco Creek as an irrigation canal between 1995 and the date hereof, the natural heritage, the pastures and the geography of Somerset Park have been damaged though excessive inundation of the wetlands including their dependent ecosystems known as the Billabong water source in the Lake Paddock at Somerset Park from artificially created overflows cause [sic] by river operations of the said Respondents and high flows in Yanco Creek with loss and impairment of the natural heritage of Somerset Park its trees native vegetation and pastures which loss and damage has been ongoing.
Particulars
[i] The water flows in Yanco Creek being part of an area of land controlled by the Respondents are part of the State's water rights;
[ii] The land slopes in the area of Somerset Park adjacent to Yanco Creek at the Lake Paddock to the east;
[iii] Yanco Creek flows are higher then [sic] the billabong and the Lake Paddock and as a result of excessive unnatural and high flows in Yanco Creek overflowing and breaking its banks the land and water sources of the Applicant have been damaged and ruined;
[iv] The loss and damage to the natural heritage of Somerset Park is irreplaceable - the area was a haven for native fauna and flora which is now destroyed; the pastures have become degraded; the 150 year old gums are all dead; including remediation costs of the land particulars of which are provided separately.
[42]
Applicants' submissions on the alleged damage to "Somerset Park"
The Applicants made a number of assertions as to environmental damage which, they submitted, were relevant to many of the grounds of review for many of the impugned decisions.
The Applicants submitted that, due to high artificial flows down Yanco Creek, their property, "Somerset Park", and in particular the Lake Paddock and the natural environment in and around it, had suffered damage.
The Applicants relied on the evidence of Mr Purcell, contained in four reports (a further report, as discussed at [80]-[97] above, which was sought to be admitted into evidence after the close of the hearing, was not allowed), and in his oral evidence. The crux of Mr Purcell's evidence was that, essentially, the increase in flows down Yanco Creek that have occurred post-development, and that in his opinion, "high water levels ... directly damaged the existing environment and productive capacity of SP." [87]
The Applicants criticised the evidence of the Respondents Mr Warren whose evidence, they said, was "limited by his instructions and that "[h]e did not inspect the property", nor did he "speak with the farmer" (Transcript 431.5-9).
The Applicants also relied on the evidence of Mr Paul Andrews as to damage said by the Applicants to be [attributable to the decisions of the Respondents/caused by the aforementioned higher flows in Yanco Creek]. The Court held that the evidence given by Mr Paul Andrews in relation to the damage to the Applicants' land was admissible on the basis that it was a lay opinion per s 78 of the Evidence Act 1995 (Transcript 98.11-100.40). Mr Andrews gave evidence that, in his opinion, "high regulated flows down Yanco Creek had resulted in:
1. damage to the banks of Yanco Creek, which affected tree life along the river;
2. damage to the mature red gums and other flora in Lake Paddock (evidence of which included photographs and video footage);
3. damage to the pasturage in the Lake Paddock, including by inundation, and associated damage to grazing opportunities; and
4. damage to native fauna living in the trees and Creek banks.
In response to the Respondents' criticism of Mr Paul Andrews evidence (see below at [204]), the Applicants argued that Mr Andrews had been frank with the Court about not living at "Somerset Park" for a period of about 10 years because he was looking after his mother and father in Sydney. The Applicants contended that Mr Andrews came across as "an honest witness who cared for his family and the environment" (Transcript 430.13-24).
[43]
Respondents' submissions on the alleged damage to "Somerset Park"
The Respondents submitted that, for the purposes of determining the challenges to the impugned decisions "nothing really turns upon the alleged damage to the Applicants' land".
As to the remediation sought by the Applicants in Prayer 6, the Respondents argued that, even were the Court to find an error of law in one of the decisions in question, the Court does not have the power in judicial review proceedings to order the remediation of the Applicants' land.
As summarised at [177] above, the Respondents noted that the Applicants "made a late attempt to characterise this as an order sought under s 336 of the Water Management Act", and submitted that "they should not be permitted to amend their pleadings in that way". [96]
The Respondents argued that the Applicants' claims with respect to a failure on the Respondents' part to have regard to particular impacts of the relevant decision on the Lake Paddock, regardless of whether or not those matters were mandatory considerations depends upon the proper construction of the relevant Act. Whether or not prospective impacts were taken into account, the Respondents submitted, is a question of fact to be determined on the material before the decision-maker. Evidence of the impacts of a particular decision at the present date, the Respondents said, has no bearing upon the validity of a decision made in the past (citing Arnold v Minister Administering the Water Management Act 2000 (2010) 240 CLR 242; [2010] HCA 3 (Arnold Appeal) at [125]-[127]). [97]
In any event, the Respondents submitted, evidence of alleged damage could only be relevant to the allegations with respect to Decisions 1 and 2, because Decisions 3 to 8 relate to whether the 1986 Licence should be a regulated or unregulated entitlement and therefore "are not capable of having any impact on the physical condition of the Lake Paddock", and the Applicants had failed to articulate how those decisions had "any affect at all on the protection of the environment". [98]
As to the alleged damage, the Respondents argued that the evidence did not establish "that the damage to the Lake Paddock is caused by inundation or that the inundation is in turn caused by an alleged decision to increase regulated flows on Yanco Creek". They submitted that Mr Paul Andrews "was very uncertain about when he first noticed the damage and when the levels of Yanco Creek were increased". The Respondents also submitted that Mr Purcell's opinion should be disregarded for a number of reasons including that:
1. he is not a qualified or practicing ecologist;
2. it was not clear what questions he was asked to opine upon;
3. he provided little reasoning for his conclusions or, with the exception of his third report, set out his assumptions;
4. his opinion was based on "factual assumptions provided by Mr Paul Andrews some of which "directly intruded on the very matter Mr Purcell was asked to opine about";
5. his opinion was also based on the Alluvium Report, which, the Respondents said, only allows for comparison between current flows and "pre-development flows". Such data, the Respondents argued, enable a conclusion about the impact of total development, but does not enable an assessment of the impact "of any particular development in the 1990s or any alleged decision to increase flows in the 1990s". [99]
[44]
Respondents' submissions on r 59.10
The Respondents submitted that in order to press their claims with respect to Decisions 1, 2, 3, 4 and 5, the Applicants required an extension of time pursuant to r 59.10 of the Uniform Civil Procedure Rules 2005 (UCPR), and argued that no such extension of time should be granted.
Rule 59.10 of the UCPR provides:
Part 59 Judicial review proceedings
…
59.10 Time for commencing proceedings
(1) Proceedings for judicial review of a decision must be commenced within 3 months of the date of the decision.
(2) The court may, at any time, extend the time for commencing proceedings fixed by subrule (1).
(3) In considering whether to extend time under subrule (2), the court should take account of such factors as are relevant in the circumstances of the particular case, including the following:
(a) any particular interest of the plaintiff in challenging the decision,
(b) possible prejudice to other persons caused by the passage of time, if the relief were to be granted, including but not limited to prejudice to parties to the proceedings
(c) the time at which the plaintiff became or, by exercising reasonable diligence, should have become aware of the decision,
(d) any relevant public interest.
(4) This rule does not apply to proceedings in which there is a statutory limitation period for commencing the proceedings.
(5) This rule does not apply to any proceedings in which the setting aside of a decision is not required.
With respect to the application of r 59.10, the Respondents noted r 59.1, which provides
Part 59 Judicial review proceedings
59.1 Application
(1) This Part applies to the following proceedings for judicial review:
(a) proceedings under section 65 and 69 of the Supreme Court Act 1970 and other proceedings in the supervisory jurisdiction of the Supreme Court, and
(b) proceedings for or in the nature of judicial review in the Class 4 or Class 8 jurisdiction of the Land and Environment Court.
(2) This Part does not apply to proceedings commenced before the commencement of this Part.
The Respondents citing r 59.1(2), argued that on its face r 59.1 means that Pt 59 applies only to any proceedings commenced after the commencement of the Part, being 15 March 2013 (regardless of whether or not the decision the subject of the proceedings was made prior to that date). [101]
While they accepted that Regional Express Holdings Ltd v Dubbo City Council (No 2) [2013] NSWLEC 113 (Regional Express) per Biscoe J (which was followed in Agricultural Equity Investments Pty Ltd v Westlime Pty Ltd [2013] NSWLEC 122 (Agricultural Equity) per Pepper J) found that r 59.10 did not apply to decisions made more than three years before it commenced, the Respondents submitted that such an interpretation was erroneous.
[45]
Applicants' submissions on r 59.10
The Applicants submitted that r 59.10 did not apply to decisions made prior to the commencement of that rule, and that an argument to the contrary was "unsupported by the terms of the rule, which with respect to impugned decisions made prior to the commencement of the provision is not expressed to be retrospective in operation" (citing Maxwell v Murphy (1957) 96 CLR 261; [1957] HCA 7). [105] The Applicants submitted that, in O'Connor, the argument as to the retrospectivity of r 59.10 was "never, in substance, considered or put", [106] but that, even if it were and N Adams J in that matter had decided that r 59.10 applied retrospectively, the Court ought to prefer Regional Express and Agricultural Equity to O'Connor. [107]
The Applicants, in their written submissions, stated that in any event, if it was necessary to seek an extension, such an extension was "sought in the action", that notice of this was given in the Applicants' "Reply to the Respondents' Points of Defence", filed 11 August 2018, and that such leave should be granted.
The Applicants further submitted that because "environmental damage", said to have been caused by the impugned decisions, is ongoing, those decisions are "being continued and made on an ongoing basis". [108]
Additionally, with respect to Decisions 4 and 5, the Applicants argued that those decisions did not take effect until "licence 33313" (referring to the Approval and the WAL) was issued on 30 March 2015, and that, therefore, the Summons in these proceedings having been filed on 22 June 2015 (within three months of 30 March 2015), there was no requirement for leave pursuant to r 59.10 (Transcript 535.9-12).
[46]
Decision on the time limitation issues based on r 59.10
The Court has carefully considered the competing submissions of the parties with respect to the issue whether r 59.10 precludes the Applicants seeking the review of a number of the decisions the subject of these proceedings without first seeking leave of the Court to exercise the discretion available in r 59.10(2) to allow an extension of time for the commencement of proceedings with respect to those decisions.
Applied in the normal circumstances r 59.10(1) requires an applicant to bring their proceedings for judicial review of a challenged decision within three months of the making of that decision. Brought within that three-month time limit, the judicial review proceedings may continue in the usual manner. However, if the decision in question is older than three months then proceedings seeking judicial review of that decision may not be brought unless an application is made to the court for it to exercise its discretion and grant leave for the proceedings to be commenced, thereby extending the time for commencing the proceedings beyond the three-month limitation period.
The Respondents' preferred contention is that five of the decisions being Decisions 1 to 5 inclusive, are out of time as the initial Summons in these proceedings was dated 22 June 2015 and the first five decisions were all made, if made at all, more than three months prior to the date of that first Summons. The Respondents accept that if r 59.10(1) applies then the Applicants may seek leave for their reviews of the decisions to be commenced out of time. In these circumstances with respect to each decision, the Respondents argue that, in the exercise of the Court's discretion, leave ought not be granted for the various reasons which are set out below with respect to each decision.
The Applicants' preferred interpretation is that r 59.10 has no retrospective operation, it being incapable of having regulatory effect prior to the rule coming into effect - the date of which was 15 March 2013. Rule 59 falls within Pt 59 of the UCPR and, by r 59.1(2), it is provided that "This Part does not apply to proceedings commenced before the commencement of this Part". If the Applicants' interpretation were to prevail, then there would be no basis for the Court, they argued, to prevent proceedings being commenced with respect to decisions made prior to 15 March 2013, irrespective of the age of those decisions. On this basis, the Applicants argue that all of the decisions the subject of the review proceedings before me can proceed to be reviewed, even though the decisions were made some years prior to the date of the initial Summons, thereby overcoming the r 59.10(1) time limit for bringing proceedings within three months of each decision. In short, the Applicants contend that I have no discretion to deny the review of the decisions they seek to be reviewed, irrespective of how old those decisions might be, as r 59.10 cannot be retrospectively applied to these old decisions.
[47]
Decision 1 - The Yanco Creek works decision (8A and 8C of the Second Further amended Points of Claim)
Decision 1, described by the Applicants as the "Yanco Creek works decision", was said by the Applicants to be a decision made by the First Respondent (being the Water Administration Ministerial Corporation) in about 1990, and affirmed and adopted in each water year since the commencement of the Water Management Act, from 1 January 2001 to the present, under s 372(1) "and other works provisions of the Water Management Act, by officers of the Department located at the Leeton office, to" (SFAPOC [8A]):
conduct works on Yanco Creek for the use of the natural creek and its bed as an intensive irrigation canal for irrigation by water flows from regulated water storages of the Respondents upstream of Somerset Park to irrigators downstream thereof as well as to Somerset Park itself and other surface water licence-holders on Yanco Creek, which decision has been implemented by the Respondents at Yanco Creek.
The particulars of this decision were said by the Applicants to be:
(i) to artificially deepen and widen Yanco Creek and raise the height of Yanco Creek's banks as the Creek progressed westward through Somerset Park;
(ii) To alter the effluent being the natural watercourse between Yanco Creek and the billabong in the Lake Paddock at Portions 39, 40,41, 49, 50. 55. 56. 58. 59. 60. 64. 65. 66, 67. 68, 69. 70. 71. 88. 89, 90. 91, 92, 99, 100 and 101 Parish of Cuddell County of Mitchell and Portion 154 Parish of Howell County Boyd;[however this allegation was not pressed by the Applicants]
(iii) To artificially enhance the effluent from Yanco Creek to the billabong in Lake Paddock by constructing and maintaining earthen walls along its length;
(iv) To place an artificial block in the effluent between Yanco Creek and the billabong in Lake Paddock in 2005 and again in 2007 preventing water going in and out of the wetland at different and natural levels [however this allegation was not pressed by the Applicants]
(v) To block off regulated water flows from Yanco Creek except for surplus flows to the Lake Paddock on Somerset Park; [however this allegation was not pressed by the Applicants]
(vi) To fail to undertake necessary or any works along the water effluent between Yanco Creek and the billabong to prevent inundation of Somerset Park by regulated water flows from the creek into the wetlands and dependent ecosystem in the Lake Paddock;
(vii) The decision to conduct the works was first made by the Yanco Creek water efficiency officer of the First Respondent in about 1990 at the Leeton Office of the Department whose name is unknown and since 1 January 2001 in each water year by Mr Beck, Mr Webb and Mr Parrett water efficiency officers in relation to Yanco Creek annually thereafter to date;
(viii) Rendering the drainage and effluent system in the Lake Paddock superfluous.
[48]
Applicants' submissions on Decision 1
The Applicants alleged that Decision 1 was invalid on a number of grounds namely (SFAPOC [8C]):
(i) Failure of the First Respondent by its servants or agents at the Leeton office in particular Mr Lindsay Beck, Mr Steve Webb and Mr Jim Parrett in making and implementing [Decision 1] to have regard to their duty to take all reasonable steps to protect and restore the wetland, being the billabong in the Lake Paddock the floodplain and the dependent ecosystem being the trees and natural heritage thereof, but instead promoted and preferred regulated water use in Yanco Creek in breach of the duty in [Water Management Act] section 9 (1) (a) and (b) and water management principle (2) (a) in section 5;
(ii) Having regard to irrelevant considerations namely maximising the regulated flows in Yanco Creek and/or causing major losses in the system of regulated water in preference to the prevention of degradation of the wetlands and dependent ecosystems on Somerset Park in breach of sections 9 (1) and 5(2) (a) of the [Water Management Act];
(iii) Preferring extraction rights of downstream irrigators and inundation of the wetlands and the dependent ecosystem in the Lake Paddock on Somerset Park over the protection of the water source and its dependent ecosystems in breach of [Water Management Act] sections 9(1)(b) and 5(3);
(iv) Failing to have regard to relevant considerations namely the minimisation of the cumulative impacts of water licences and approvals granted downstream of Somerset Park on the billabong wetland in the Lake Paddock on Somerset Park and its dependent ecosystems and its natural heritage in breach of [Water Management Act] sections 9(1)(a) and (b) and 5(2)(d) and (f);
(v) Failing to have regard to relevant considerations namely the minimisation of land degradation on Somerset Park being the banks of Yanco Creek by soil erosion, waterlogging and inundation of the Lake Paddock and its natural heritage and undermining the productivity of the land in Lake Paddock and its environs in breach of [Water Management Act] sections 9(1)(a) and 5(4) and (5);
(vi) Failure of the Respondent[s] by its servants or agents to have regard to the impact on the Lake Paddock water source of river planning decisions with respect to river management of the Murrumbidgee River and Yanco Creek affecting the water source;
(vii) Using the wetlands and the dependent ecosystem known as the Billabong in the Lake Paddock of the Applicant as a convenient dumping ground and repository for overflows and surplus or supplementary flows of regulated water flows in Yanco Creek without regard to the interests of the local environment or the protection of the at risk water source or the legitimate interests of the Applicant[s];
(viii) In the premises the Respondents its servants or agents failed to have regard to the duty not to abridge the right of each Applicant to the reasonable use of the waters of Yanco Creek for conservation or irrigation;
(ix) In the premises the Respondents by their servants or agents aforesaid exercised a power in making and implementing the Yanco Creek works decision without any environmental impact assessment or any geomorphological evidence that is so unreasonable that no reasonable person could have so exercised the power.
[49]
Respondents' submissions on Decision 1
The Respondents opened by noting that the Applicants had not sought any relief with respect to Decision 1, and that it was therefore unclear as to the utility of the Court determining the issues raised by the Applicants with respect to Decision 1. [110] The Respondents submitted that, even if this were not the case, the Applicants' challenge to Decision 1 ought to be dismissed on a number of bases.
[50]
Was there a "decision"?
First, the Respondents said, the Applicants had not established that the alleged decision or decisions had in fact been made. [111] Noting that Decision 1 was alleged to have been made in "about 1990", the Respondents argued that the Applicants had not provided any evidence of a decision in 1990 or thereafter by the First Respondent to conduct works on Yanco Creek for the use of the creek as "an intensive irrigation canal". The Respondents submitted that the affidavits relied upon by the Applicants did not evidence such a decision being taken by the unnamed departmental officer in "about 1990", or by the named departmental officers after the commencement of the Water Management Act.
The Respondents noted Mr Paul Andrews statement in his affidavit dated 28 January 2016, set out above at [133], regarding the "unnaturally raised" level of Yanco Creek, and submitted that the Court should place very little weight on Mr Andrews evidence as to the changes in Yanco Creek. This was because, the Respondents asserted, under cross-examination Mr Andrews was "very uncertain" about those changes being unable to give any quantitative indication of the raised water levels unable to say when the "raising" occurred, and unable to say who made the decisions. [112] Further, the Respondents pointed to inconsistencies between Mr Andrews' affidavits and evidence given under cross-examination. For instance, the Respondents said, in his first affidavit Mr Andrews said that he had lived at "Somerset Park" since 1974, but later said he had only lived there full-time since 1983, and then, under cross-examination, said from 2005 to 2015 he spent most of his time in Sydney. Even in the period 1983 to 1993, the Respondents said, Mr Andrews conceded that he did not take lead responsibility for managing "Somerset Park". The Respondents noted that Mr Andrews admitted that he is still not "fully acquainted" with the property and water licences. [113]
The Respondents argued that, beyond the opinions expressed by Mr Andrews, the Applicants did not file any other evidence of works to deepen or widen Yanco Creek or to raise the height of its banks. With respect to references made by the Applicants in cross-examination and submissions to the upgrade of the Yanco Weir before 1995 (at Transcript 433.1-5), the Respondents noted that such an upgrade was never pleaded to be part of Decision 1, and that, if it had been so pleaded, the Respondents may have been able to adduce evidence as to timing. [114]
[51]
No errors of law
Secondly, the Respondents posited, even if the Court were to conclude that Decision 1 had in fact been made, none of the alleged errors of law could be established.
Of the nine particulars set out at [8C] (and set out above at [246]), the Respondents submitted that only six particulars (8C-(v) and (ix)) constituted grounds of judicial review, being:
1. particulars (i), (iv) and (v), which alleged failure to take into account relevant considerations;
2. particular (ii), which alleged having regard to irrelevant considerations;
3. particular (iii), which alleged breach of statutory procedural requirements; and
4. particular (ix), which alleged unreasonableness.
The Respondents submitted that it was not clear whether or not particulars (vi) and (vii) alleged failure to take into account relevant considerations but, if they did, the Respondents said that these were not mandatory relevant considerations in relation to any such Decision 1.
[52]
Failure to take into account relevant considerations
As to the matters set out at [259(1)] above (particulars 8C, (iv) and (v) of the SFAPOC), the Respondents noted that the sections of the Water Management Act alleged to have been breached by the First Respondent (namely, ss 5(2)(a), (d), (f), 5(4), 5(5) and 9(1)(a)) have only applied since the commencement of the Water Management Act in 2001, and are therefore not relevant to the validity of decisions alleged to have been made from "about 1990" to 2001. [118]
The Respondent submitted that to the extent ss 5(2)(a), (d), (f), 5(4), 5(5) and 9(1)(a) were relied upon in respect of alleged decisions made since 2001, the Applicants had not proved that any such decisions had been made, and (because they could not prove what materials were before the decision‑maker), could not prove what was or was not taken into account in making the alleged decisions This the Respondents submitted, was fatal to the Applicants' challenge to Decision 1. [119]
Further, the Respondents submitted, the Applicants had not identified a statutory function (the exercise of which would be subject to s 9(1)(a) of the Water Management Act) said to have been exercised by the First Respondent in making the alleged Decision 1, "other than a general reference to s 372, which sets out the functions of the [First Respondent] generally". Nor, the Respondents submitted, had the Applicants attempted to establish that any of the water management principles in s 5 of the Water Management Act by themselves constituted mandatory relevant considerations (as identified in Peko-Wallsend Ltd at 39-41) in the making of the alleged Decision 1. [120]
The Applicants, the Respondents said, had not demonstrated that s 9 of the Water Management Act, when read with s 5, operated so as to require the consideration of the impacts on particular water bodies such as the water body in the Lake Paddock. [121]
Noting that most of the water management principles relied upon by the Applicants related to "water sources", the Respondents cited the dictionary to the Water Management Act which provides that "water source" means "the whole or any part of" "one or more rivers lakes or estuaries or "one or more places where water occurs on or below the surface of the ground …" (Respondents' emphasis). That is the Respondents submitted, a single water source could encompass a collection of rivers or a collection of places where water occurs on the ground. The Respondents argued that this was borne out in the way the Murrumbidgee Western Water Source (MWWS) was defined in the 2012 Unregulated WSP, being a large geographic area encompassing a number of different bodies of water. The result, the Respondents argued, was that there was a "breadth of latitude" in the consideration of any principles relating to water sources (citing NA&J Investments v Minister Administering the Water Management Act 2000 (2011) 181 LGERA 166; [2011] NSWLEC 51 (NA&J Investments) at [47] per Craig J, noting that this was in relation to s 5(2)(g)). [122]
[53]
Taking into account irrelevant considerations
As to the alleged taking into account of irrelevant considerations (particular 8C of the SFAPOC), the Respondents argued that the Applicants had not established that either of the two considerations said to be irrelevant ("maximising the regulated flows in Yanco Creek" and "causing major losses in the system of regulated water in preference to the prevention of degradation of … Somerset Park") were in fact taken into consideration in the making of any decision by the Respondents after 2001. [126]
The Respondents argued that the Applicants in 8C of the SFAPOC, misconstrued the principles in s 5(3) of the Water Management Act, which are concerned with sharing of water "from a water source". The Respondents contended that the only "water source" referred to in particular 8C was the alleged "water source" in the Lake Paddock, but that the Applicants did not allege that the Respondents in making the alleged Decision 1, had engaged in any statutory sharing of water from the water body in the Lake Paddock. In order for [8C] of the SFAPOC to be made out on the basis of particular (iii) to that paragraph, the Respondents argued, it would be necessary for the Applicants to establish that the Legislature intended a contravention of the water management principles in s 5(3) to lead to invalidity of the alleged Decision 1 (citing Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355; [1998] HCA 28 (Project Blue Sky) at [91], Nature Conservation Council of New South Wales Inc v Minister Administering the Water Management Act 2000 (2005) 137 LGERA 320; [2005] NSWCA 9 (Nature Conservation Council) at [90]), an exercise, the Respondents said, the Applicants did not attempt. [127]
In relation to 8C of the SFAPOC, in which the Applicants alleged that Decision 1 was unreasonable because it was made or implemented "without any environmental impact assessment or geomorphological evidence", the Respondents submitted that the Applicants did not identify the legal source of an obligation to either conduct an environmental impact assessment, or to obtain geomorphological evidence, for the purposes of the alleged Decision 1. [128]
[54]
Relief sought
The Respondents submitted that, with respect to Prayer 6 - an order that the Respondents take steps to remediate the Lake Paddock - the Court has no such power to grant such an order as relief in judicial review proceedings. Further, the Respondents contended that the Applicants had not proven any causal link between the alleged Decision 1 and the alleged damage to their land. [129]
[55]
Leave is required
The Respondents submitted that, as summarised at [209]-[217] above, in order to challenge any decisions made prior to 22 March 2015, the Applicants required an extension. The Respondents argued that no such extension should be granted "in circumstances where the challenge is without merit and given the Applicants have no real explanation for not challenging the decisions within time" (citing Transcript 158.10-17). [130]
[56]
No relief ought to be granted
Finally, the Respondents argued that even if the Court found against it and was minded to grant the relief sought in Prayer 6 (set out at [109] above), that it ought to decline to do so because of the Applicants' failure to comply with the conditions of its licence. [131]
[57]
The 1986 Licence required the construction of a regulator
The Respondents drew the Court's attention to conditions 7, 8, and 9, as set out above at [15(1)]-[15(3)], attached to the 1986 Licence when it was first granted on 23 April 1986. These conditions required the First Applicant to install in the diversion channel a regulator with a sill level fixed at a certain specified level, with dropboards or some other control device installed over the regulator, only to be operated to provide flows in the diversion channel with the permission of the Manager Murrumbidgee Division of the Water Resources Commission at Leeton, such permission being expected to coincide with periods of surplus flows being available in Yanco Creek. [132]
The Respondents argued that, if the regulator had been installed in accordance with the conditions of the 1986 Licence, it would have allowed the First Applicant to prevent or reduce the inflow of regulated water from Yanco Creek into the Lake Paddock (relying on the evidence of Mr Webb, [133] and the answers of Mr Andrews [134] and Mr Purcell [135] under cross‑examination). [136]
With respect to Mr Andrews' evidence [137] that he had constructed a "block bank" from earth "at least fifteen years ago" that had been "washed away by the high flows from Yanco Creek", the Respondents argued that this did not prove that the regulator required by the conditions of the 1986 Licence would not have been effective in 1986. They noted that, although Mr Maini gave some evidence about the effectiveness of a block bank, he was not asked whether a regulator would have been effective and in any event had not been to the property and could not speculate. [138]
The Respondents submitted that the regulator required by the 1986 Licence would have allowed the First Applicant to preclude or reduce the alleged inundation of Yanco Creek, and that although the licence always required the construction of such a regulator (such condition having been included at each renewal), it is common ground between the parties that the regulator was never constructed. [139]
As to the submission made by the Applicants in their closing submissions that the First Applicant was never required to install the regulator, because such a requirement was merely a "condition of use" and the First Applicant had not made use of its entitlement, [140] the Respondents contended that such a proposition was neither advanced in any of the contemporaneous correspondence, nor pleaded. [141] Further, the Respondent argued, condition 7 was framed in unconditional terms ("the licensee shall construct"), and was never expressed as being conditional upon use. However, even if the obligation was conditional upon use, the Respondents submitted that its argument still stands because the First Applicant "applied to install a regulator, was granted that authorisation and, despite the Department repeatedly stating that the First Applicant could alleviate the inundation by installing the regulator (or alternatively State Water would do so by installing a block bank), the First Applicant neither built the regulator nor consented to the Department blocking off the flows". [142]
[58]
Consideration of validity of Decision 1
There are a number of fundamental problems with the Applicants' case with respect to the alleged Decision 1. Some of these problems can be characterised as "threshold" issues which, together, weigh against the Applicants.
First, was there a decision or a series of related decisions? To answer that question, it is insufficient in judicial review proceedings to point to alleged impacts or consequences of alleged decision-making and assert that there had to have been a decision that brought about those consequences. Given the nature of a review of decisions it is essential to focus on the actual decision in order to determine whether it failed to meet the requirements of proper decision-making. To focus on the consequences in order to "second guess" the decision, fails to understand that - in administrative law - even though the consequences of a decision might be objectionable, they might have come about following a proper decision. A perfectly sound decision, made in full compliance with administrative law principles may nevertheless have poor outcomes, including unfortunate environmental consequences, but the decision remains, with respect to judicial review, unassailable. Even if the Court were to accept the proposition that there are poor environmental outcomes impacting upon the Lake Paddock, this does not assist in identifying an alleged decision and then determining whether the making of that decision was flawed.
Consequently, the Court does accept Mr Paul Andrews evidence that the flow level of Yanco Creek has been raised and that in his opinion that raised level has been due not to natural flow patterns but rather decisions that have caused the flow to increase, a fact which was corroborated by the Respondents' own witness Mr Maini, in evidence. The Court must ask: Was there a particular decision in relation to the raising of water levels in Yanco Creek? When was it made and by whom? And, most pertinently, was the decision, or decisions, made correctly? Too many uncertainties relate to the particulars of the decision or decisions for this Court to be capable of reviewing whatever the decision may or may not have been. Without any reflection upon the honesty of Mr Andrews, the criticism of his evidence by the Respondents, as summarised earlier at [253], is well-placed. It is not surprising that Mr Andrews was vague and uncertain given the decades he needed to traverse in his memory in order to provide his evidence. As a lay person not directly involved in the decision-making of government, it would be unrealistic to expect of any citizen a sufficient knowledge of actual decisions which caused changes in the physical state of a creek traversing his property. A better source for the required information, in order for the Applicants to establish that such a decision had been made, would have to be found elsewhere.
[59]
Decision 2 - 8B and 8D of the Second Further Amended Points of Claim - The Yanco Creek water usage decision
Decision 2 was said by the Applicants to have been a decision of the First Respondent, its servants or agents, under s 372(1) "and other works provisions of the Water Management Act, made in "about 1990", affirmed since, and adopted in each water year since the commencement of the Water Management Act "to date", by "officers of the Department located at its Leeton office", to:
send unnatural and unreasonably high water flows in each water year from its water storages upstream westward along Yanco Creek and through Somerset Park, which decision has been implemented by the Respondents at Yanco Creek.
The particulars of this decision were said by the Applicants to be (SFAPOC [8B]):
(i) To raise the height of water flows through Yanco Creek to unnatural levels for the purpose of selling water to irrigators downstream each water year;
(ii) To sacrifice the interests of Somerset Park its water sources natural heritage and pasturage to the commercial interests of the Respondents;
(iii) To cause the regulated flow to terminate at the end of the effluent channel inside Somerset Park and for overflows of regulated water to inundate the Applicant's land including the wetland and the dependent ecosystems known as the billabong water source in the Lake Paddock;
(iv) To cause high flood flows of regulated water from Yanco Creek to enter the billabong in the Lake Paddock especially during periods of supplementary water flows in Yanco Creek authorised and directed by the Manager Water Supple at Leeton employed by the Respondents;
(v) To cause regulated water flow along the effluent watercourse from Yanco Creek to the Billabong in the Lake Paddock.
[60]
Applicants' submissions on Decision 2
The grounds upon which Decision 2 was said to be invalid (SFAPOC [8D]) were:
(i) Failure of the First Respondent by its servants or agents at the Leeton office in particular Mr Lindsay Beck, Mr Steve Webb and Mr Jim Parrett in making and implementing the water Yanco Creek water usage decision to have regard to their duty to take all reasonable steps to protect and restore the wetland, being the billabong in the Lake Paddock the floodplain and the dependent ecosystem being the trees and natural heritage thereof, but instead promoted and preferred regulated water use in Yanco Creek in breach of the duty in Water Management Act 2000 ['WMA'] section 9(1)(a) and water management principle (2)(a) in section 5;
(ii) Having regard to irrelevant considerations namely maximising the regulated flows in Yanco Creek and/or causing major losses in the system of regulated water in preference to the prevention of degradation of the wetlands and dependent ecosystems on Somerset Park in breach of sections 9(1)(a) and 5(2)(a) of the WMA;
(iii) Preferring extraction rights of downstream irrigators and inundation of the wetlands and the dependent ecosystem in the Lake Paddock on Somerset Park over the protection of the water source and its dependent ecosystems in breach of WMA section s 9(1)(b) and 5(3);
(iv) Failing to have regard to relevant considerations namely the minimisation of the cumulative impacts of water licences and approvals granted downstream of Somerset Park on the billabong wetland in the Lake Paddock on Somerset Park and its dependent ecosystems and its natural heritage in breach of WMA sections 9(1)(a) and (b) and 5(2)(d) and (f);
(v) Failing to have regard to relevant considerations namely the minimisation of land degradation on Somerset Park being the banks of Yanco Creek by soil erosion, waterlogging and inundation of the Lake Paddock and its natural heritage and undermining the productivity of the land in Lake Paddock and its environs in breach of WMA sections 9(1)(a) and sections 5 (2), (4) and (5);
(vi) Failure of the Respondent by its servants or agents to have regard to the impact on the Lake Paddock water source of river planning decisions with respect to river management of the Murrumbidgee River and Yanco Creek affecting the water source.
(vii) In the premises the Respondents its servants or agents failed to have regard to the duty not to abridge the right of each Applicant to the reasonable use of the waters of Yanco Creek for conservation or irrigation;
(viii) Using the wetlands and the dependent ecosystem known as the Billabong in the Lake Paddock of the Applicant as a convenient dumping ground and repository for overflows and surplus or supplementary flows of regulated water flows in Yanco Creek without regard to the interests of the local environment or the protection of the at risk water source or the legitimate interests of the Applicant;
(ix) In the premises the Respondents by their servants or agents aforesaid exercised a power in making and implementing the Yanco Creek works decision without any environmental impact assessment or any geomorphological evidence that is so unreasonable that no reasonable person could have so exercised the power.
[61]
Respondents' submissions on Decision 2
The Respondents noted that, as with Decision 1, no relief had been sought by the Applicants with respect to the alleged Decision 2 and that in those circumstances it was doubtful whether any issues in relation to it required determination. Nevertheless, the Respondents argued that the challenge to Decision 2 should be dismissed for a number of reasons. [149]
[62]
No proof the decision was made, or by whom
First, the Respondents submitted that, as was the case with Decision 1, the Applicants had not proved that the alleged Decision 2 (or decisions) was ever made. [150] Decision 2 was alleged to have been a decision of the First Respondent, however, the Respondents contended, the Applicants had not established the making of such a decision annually since 2001 by the First Respondent, or even by the officers of the Department named in 8D of the SFAPOC. The Applicants, the Respondents argued, had proffered no evidence beyond the opinions expressed by Mr Paul Andrews in his affidavit (which the Respondents argued should be given little weight for the reasons summarised at [253] above) that a decision had been made to send "unnatural and unreasonably high water flows along Yanco Creek". [151]
As to the documents referred to by the Applicants which are said to be suggestive of an increase in regulated flows, the Respondents argued that even if the Applicants could prove that decisions were made to increase the flows in Yanco Creek, they were not decisions made by the First Respondent. The Respondent noted that the day-to-day water levels in Yanco Creek are not managed by the First Respondent or the Department, but by WaterNSW, the successor to the State Water Corporation, both being State-owned corporations pursuant to the State Owned Corporations Act 1989 and the Water NSW Act 2014. The Respondents noted that WaterNSW is not a party to the proceedings and that its conduct, as a State-owned corporation, is not attributable to the State (citing s 20F of the State Owned Corporations Act 1989). [152]
Secondly, the Respondents argued that, even if the Applicants had made out that the alleged decision had been made, and by whom, none of the alleged errors of law could be made out. [153] The particulars at [8D] of the SFAPOC setting out the grounds on which Decision 2 was alleged to be invalid were said by the Respondents to be identical to the particulars to [8C], although they noted that particular 8C is numbered 8D and 8C is reproduced as 8D. The Court notes, in addition, that 8D(v) alleges breach of s5(2) of the Water Management Act, whereas its counterpart, 8C(v), does not. Subsection (2) was added to s 5 in the SFAPOC, that is, during the hearing of the matter. The Respondents therefore, repeated their submissions as summarised at [258]-[271] above, but in relation to the alleged Decision 2. The Respondents further submitted that, with respect to , (ii), (iv) and (v) of the SFAPOC, no function under the Water Management Act was identified by the Applicants as having been said to trigger the operation of s 9(1)(a) of the Water Management Act in the making of Decision 2. [154]
[63]
Consideration of validity of Decision 2
First, with respect to the alleged Decision 2, many details required by the Court to determine the Applicants claim are imprecisely identified or are simply absent. The Court accepts the Respondents' submissions, summarised earlier at [304], that there is a question as to whether Decision 2 was ever made or, if a decision had been made, that it was repeatedly made annually thereafter. However, the Court can accept, from the circumstantial evidence of the contemporaneous correspondence, and from the evidence of Mr Andrews, albeit vague and elusive as to details, that the flow levels in Yanco Creek did significantly increase at some time and that, as distinct from Banjo Patterson's description of the natural rise in the level of the Murrumbidgee River caused by melting snow, the sustained higher flow levels suggest a regulatory management decision had been made. However, in the context of these judicial review proceedings how, I rhetorically ask: Can this Court focus on the usual administrative law tests to determine the validity of decisions unless greater particulars of the actual decisions being impugned are before it? As said at various points throughout this judgment, a perfectly valid decision may have been made, and repeatedly made, in accordance with all requirements but "unfortunate consequences" may, nonetheless, have resulted. Unfortunate consequences need not be indicative of an invalid decision.
However, the Court does accept as being beyond doubt that a decision was initially made, and similar decisions were subsequently made, to allow up to 1,400 megalitres per day to pass over the Yanco Creek Weir. Whether such a decision was made as early as 1990 is difficult to determine. Merely as an observation, it is to be noted that that flow rate does not mean that that 1,400 megalitres per day always flowed over the weir once that level was allowed. Flow conditions do change, however, the Court accepts that that flow level was set at a maximum and that it is to be expected that, at times the flow down Yanco Creek would have achieved that rate. So, in this respect, it appears as though a decision was made but, as for details of the decision‑making, the requisite details are largely absent.
Decision 2 is said to have first been made "in or about 1990'. If that was the case then the decision was made pursuant to the 1912 Act, in which case the water management principles, and the pleaded duties referred to in pleaded grounds (i) to (v), which were enacted pursuant to the Water Management Act, cannot apply to the years between 1990 and the coming into effect of the Act in 2001. However, the Applicants pleaded that the initial decision was affirmed and adopted in each water year since the commencement of the Water Management Act "to date". By extending the reach of Decision 2 to a remaking of it each year, the Applicants are clearly endeavouring to achieve two things: first, to overcome any statutory time bar to seeking judicial review (because three months will have passed since the making of the decision); secondly, to ensure that the duties and principles established by the Water Management Act are capable of being applied to the decision or decisions in question.
[64]
Decision 3 - 9A of the Second Further Amended Points of Claim - The 2012 licence decision - Alleged variation of the terms and conditions of the 1986 Licence in September 2012.
The third decision under review in these proceedings is said by the Applicants to be a decision of the First Respondent "between August 2012 and October 2012" to vary the terms and conditions of the 1986 Licence.
[65]
Applicants' submissions on Decision 3
The Applicants argued that this Decision 3 was "void and of no effect" on the following grounds:
(i) Breach of the rules of natural justice occurred in connection with the making of the decision namely the failure to afford to the Applicant which was a person interested a reasonable opportunity to be notified of the proposed alteration of the Applicant's licence and to make submissions there on in circumstances where the renewal and conditions of the licence had been agreed between the parties in proceedings in this Honourable Court on 23 August 2012;
(ii) Procedures that were required by law to be observed in connection with the making of the decision were not observed namely the forming of the opinion of the First Respondent by an authorised officer that it was necessary or expedient that Licence No 40SL 045398 issued in the name of the Applicant be suspended or modified, and in particular there were no circumstances which rendered it either necessary or expedient that any such suspension or modification occur;
(iii) The making of the decision was an improper exercise of the power conferred by Water Act 1912 section 17A in pursuance of which it was purported to be made in that the exercise of power was made to deny to the Applicant the benefit of the orders made by this Honourable Court on 22 August 2012 in proceedings No LEC of NSW 2012/30440, and in particular to deny the Applicant the benefit of a licence entitling it to 1000 MGs of volumetric allocation which was only capable of enjoyment by access to the regulated river system;
(iv) The First Respondent had no or no sufficient regard to the interests of the Applicant in the existing licence and its nature as a surplus flow licence with respect to Yanco Creek and/or treated the licence as of no value or benefit to the Applicant;
(v) The First Respondent had regard to an irrelevant consideration namely the Department's erroneous prior decision at its Leeton office that the billabong water source at Somerset Park be incorporated into the Murrumbidgee Western Water Source because it was of no value to the Applicant and without regard to the duty to protect that water source as abutting to or as an integral part of Yanco Creek under WMA sections 9(1), 5(2)(a) and 7(3)(4) and (5);
(vi) The exercise of the power by the First Respondent in section 17A(2) Water Act 1912 was in the circumstances alleged in sub-paragraphs [ii] & [iii] hereof for a purpose other than a purpose for which the power is conferred;
(vii) Having regard to the consent orders of the Court of 23 August 2012 the First Respondent by its authorised officer exercised the power in section 17A(2) Water Act 1912 in a manner and to the effect that such exercise was so unreasonable that no reasonable person could have so exercised the power;
(viii) Failing to have regard to a relevant consideration namely that the renewed Water Act 1912 licence was a regulated water surplus flow water licence also called a supplementary additional licence issued in respect of regulated water flows into and from a water source namely the billabong in the Lake Paddock being a wetland with dependent ecosystems abutting the existing regulated flows in Yanco Creek.
[66]
Respondents' submissions on Decision 3
The Respondents submitted that, although it is not clear from the SFAPOC, they understood the Applicants' concern to be with the variation to condition 13 (renumbered as condition 10), providing for the licensee to divert up to 1,000 megalitres of unregulated water for irrigation use in any one year, and that the Applicants considered themselves entitled to a licence to divert regulated water. [176]
The Respondents submitted that there was no error of law in the making of Decision 3 by the First Respondent for the following reasons. [177]
[67]
The First Applicant was put on notice
First, the Respondent said, the First Applicant was put on notice that the First Respondent would treat any modification application as being in relation to unregulated water. In support of this, the Respondent pointed to a letter dated 28 August 2012 in which Mr Webb of the Department set out his understanding that the First Applicant would make an application to modify the 1986 Licence so that it would provide "for an unregulated volumetric allocation of 1000 ML" (Respondents' emphasis). [178] This letter was received by the First Applicant on 3 September 2012 and, the Respondent posited, at no point between that date and 28 September 2012, when the condition was amended, did the Applicants take issue with Mr Webb's stated understanding that the application would be for an unregulated allocation. [179] The Respondents argued that the Applicants' submission, as set out at [330] above, that the Applicants had not been given an opportunity to make submissions on this point was, therefore, false. [180]
[68]
The licence has only ever allowed access to unregulated flows
Secondly, the Respondents submitted that the 2012 Court Orders plainly referred to an unregulated entitlement given the 1986 Licence "has only ever been a licence to access unregulated flows". [181]
The Respondents argued that particular (viii) of [9A], in alleging that the First Applicant's licence was a "regulated water surplus flow licence", ignores the terms of the licence, [182] and that the 1986 Licence entitled the First Applicant "to access flows in Yanco Creek only with the permission of a specified officer, such permission being expected to be given in period of declared surplus flows". [183] This, the Respondents said, was "essentially an entitlement to access unregulated flows". [184] The Respondents pointed to Mr Paul Andrews and Mr Purcell's acceptance, under cross-examination, that regulated rivers could nonetheless have unregulated flows in times of flood, [185] and to Mr Webb's advice to the First Applicant - which was not disputed at the time [186] - that the regulator required under the licence was to preclude "regulated flows". [187] Further to this, the Respondents posited, was the fact that the First Applicant's licence application was treated as one for a special additional licence. [188] Drawing on Mr Purcell's evidence that it was possible for a regulated licence-holder to also have a special additional licence to enable that person to access, in addition to the regulated flows, additional water in times of flood, [189] the Respondents argued that, in this matter, the First Applicant held a different licence in respect of Yanco Creek which entitled it to access regulated flows, [190] and so licence 40SL45398 was "additional" in the sense that it allowed it to access surplus flows (over and above regulated flows) in times of flood. [191]
The Respondents denied the Applicants' suggestion that Mr Hutchison's evidence contradicted this. [192] Mr Hutchison, the Respondents submitted, accepted that context was key, and that in this matter the relevant context was that the 1986 Licence "had only ever entitled the First Applicant to take unregulated waters from the diversion channel". [193]
With respect to the submission made by the Applicants and summarised above at [331], the Respondents argued that they had been misrepresented. The actual submission of the Respondents on this point, the Respondents said, was that the Minister has a power to declare a river a "regulated river", and that that power is found in the Dictionary to the Water Management Act. However, the Respondents said, there is no corresponding power to declare a river to be unregulated. The power exercised by Mr Webb was an entirely different power, being that to amend licence conditions pursuant to s 17A(2) of the 1912 Act. In amending the condition to provide for unregulated water, the Respondents submitted, "Mr Webb was only confirming what had always been clear from the terms of the licence - namely, that the First Applicant was entitled to access unregulated (or flood) flows. He was not purporting to exercise any power held by the Minister." [194]
[69]
No extension of time should be granted
Finally, the Respondents argued that, with respect to Decision 3, the Applicants required an extension of time pursuant to r 59.10 of the UCPR. The Respondents submitted that Decision 3 was made on 28 September 2012, [195] contrary to the Applicants' submission that it occurred on 30 March 2015. [196] The decision referred to by the Applicants was, the Respondents submitted, "an entirely different decision - namely a decision by the Minister to impose the Plan Conditions mandatory conditions across certain categories of licences". The Respondents argued that this interpretation is confirmed by the fact that Decision 6, being the decision challenged under [9D] of the SFAPOC, is the decision of 30 March 2015.
[70]
Consideration of validity of Decision 3
First, with Decision 3 said to have been made on 28 September 2012, the decision was some 33 months prior to the date of the initial Summons by which these proceedings were commenced. As held earlier at [236], UCPR r 59.10 applies to Decision 3 and so the Applicants require the leave of the Court to commence their judicial review of Decision 3 out of time.
The Court is satisfied that when the Applicants contended that Decision 3 was made on 30 March 2015, rather than the 28 September 2012, they were conflating decisions bringing the mandatory conditions "decision" (assuming, only for the purpose of this discussion, that the requirement to incorporate mandatory conditions into various categories of licences was a "decision") into Mr Webb's actions of 28 September 2012. The Respondents' submissions summarised earlier at [341] are accepted as an accurate summary of the situation.
Highlighting how unsustainable the Applicants' case is with respect to Decision 3, the Court does not agree with the Applicants that the 2012 Court Orders necessarily required the Department to issue a licence for 1,000 megalitres to the Applicants under the regulated water regime. The Orders simply addressed the issue of a licence for that volume of water, they being silent, on their face, as to from where the water was to be sourced. The Minutes of the Order confirm "a volumetric allocation of 1,000 ML". Whether the water is sourced from the regulated or unregulated system, it was still a volumetric allocation. Accordingly, the Court rejects the proposition that the 2012 Court Orders only regulated water on that analysis alone. Further, the Applicants' contentions were clearly erroneous given the fact that the 1986 Licence was only ever with respect to surplus flows. The reference to 'surplus flows' is accepted as being a reference to unregulated waters. Therefore, the context of the Court's Orders was knowledge that the prior licence was with respect to unregulated waters. In this regard, the Court accepts the Respondents' submissions as summarised above at [337]-[340].
By way of observation, the Court makes the following comments. Part of the arguments contended by the Applicants was that by virtue of their allocation of water coming via Yanco Creek, which was within the regulated water system, it necessarily meant that, reflecting the geomorphological and ecosystem reality (see [329(3)] above), the waters actually received were regulated waters. Therefore, the Applicants said, the allocation ought to be accepted as being within the regulated system. The Court considers this argument lacks merit and reflects a misunderstanding of how the water management system operates under the Water Management Act. Specifically, the physical pathway by which water passes from source to recipient does not set the licensing categorisation of the water so passing. Within a physical geographical area can coexist a regulated water system and an unregulated water system, hence, relevant to the location of "Somerset Park", there is the 2012 Unregulated WSP (for the Murrumbidgee Unregulated and Alluvial Water Sources) coexisting with the 2016 Regulated WSP (for the Murrumbidgee Regulated River Water Source). As explained below at [542], with respect to the 2016 Regulated WSP there is an Appendix 1 which lists the water sources within the regulated system, one of which is Yanco Creek (noted as (ap) in the Appendix). The water in the unregulated system will interact and most probably concurrently flow with water in the regulated system. The unregulated system often applies to surplus flows over and above regulated volumes of water. There are no bypass pipes ensuring that the waters in one system never interact with waters in the other system. The regulatory system is all about licensed allocations from available water sources but, as for the pathways by which the respective allocations might physically flow, it is to be accepted that there will be overlaps.
[71]
Decision 4 - 9B of the Second Further Amended Points of Claim - The water source decision - Alleged decision between August and October 2012 to place the water body in the Lake Paddock into the proposed Murrumbidgee Western Water Source
The fourth alleged decision challenged by the Applicants was said to be a decision of the First and Second Respondents made "on or prior to 4 October 2012 and after 23 August 2012", to:
place the Applicant's water source comprising the billabong in the Lake paddock ['the billabong water source'] into the proposed Murrumbidgee Western Water Source for the purposes of making by the Second Respondent an unregulated water sharing plan with respect to the billabong water source rather than amending the existing regulated water management. plan comprising Yanco Creek under WMA sections 45 and 46.
[72]
Applicants' submissions on Decision 4
Decision 4, the Applicants submitted, was void and of no effect on the following grounds:
(i) The Respondents failed to have regard to a relevant consideration ie that the existing SAL related to flows from Yanco Creek treating the billabong water source as a repository of regulated water additional to other surface water that the Applicant was entitled to take under the existing licence 40SL045398;
(ii) The Respondents failed to have regard to a relevant consideration ie to place the water source into an unregulated plan was inconsistent with the nature of the SAL and the previous treatment of the licence and the water source by the Respondents;
(iii) The Respondents failed to have regard to a relevant consideration ie the billabong water source geographically is or forms a part of the natural water system comprising Yanco Creek by an effluent being a natural watercourse from the Creek to the wetland comprising the billabong water source;
(iv) The Respondents failed to have regard to a relevant consideration ie the billabong water source was at all material times at risk and subject to stress within the meaning of WMA section 7(3)(a) and (b);
(v) The Respondents failed to have regard to a relevant consideration ie the SAL should have been included in the regulated river plan for Yanco Creek in 2003, by or under the Water Management (General) Regulation 2004 schedule 4;
(vi) The decision was not authorized by the enactment in pursuance of which it was purported to be made in that the SAL was a form of access licence which was required to be included in the 2003 water sharing plan and after the making of the Court orders on 23 8 2012 it was in the public interest or alternatively was required by WMA section 45 (1) (a) and (c) to be incorporated into the regulated river plan;
(vii) Failure to have any regard to the invalidity of the 2012 licence decision.
Counsel for the Applicants submitted that the crux of the challenges to Decisions 4 and 5 was that they were "decisions which we say were made, apparently, to allocate the billabong water source or the Lake Paddock as unregulated, even though it was the water for which the licence provided was regulated water, that's 9B, and allocate it to an unregulated plan, 9C" (Transcript 533.47-534.1).
As noted above at [147], the Applicants submitted that the 1986 Licence was "excluded" from the 2003 Regulated WSP and the 2016 Regulated WSP. As evidence of this purported exclusion, the Applicants pointed, for instance, to correspondence between the Department and the Applicants wherein Mr Webb of the Department stated that "[r]enewal of the licence is pointless it would seem", [197] "at the time you acknowledged the futility of renewal given that no real use may be made of the licence", [198] and "[y]ou must agree there is little use in maintaining this licence". [199]
[73]
Respondents' submissions on Decision 4
As with Decisions 1 and 2, the Respondents argued that the Applicants have not proved that Decision 4 was ever made [204] - that is, the Respondents challenged the proposition that the Minister made a conscious decision to include the Lake Paddock within the 2012 Unregulated WSP. The diversion channel, to which both the licence and approval relate, is located within the MWWS, to which the 2012 Unregulated WSP applied. The conversion of the 1986 Licence to the Approval and the WAL upon the commencement of the 2012 Unregulated WSP in October 2012, the Respondents submitted, was the automatic result of the operation of the Water Management Act, not the result of a decision by the Minister (or any of the other Respondents) to place the Lake Paddock into the MWWS. [205]
The Respondents argued that the allegation with respect to Decision 4 assumed that a decision was made between August and October 2012 in relation to the Lake Paddock, when in fact the conversion of the 1986 Licence to the Approval and the WAL was automatic, by operation of the Water Management Act. [206]
Further, the Respondents submitted, the Applicants had not identified the source of any legal requirement to classify the Lake Paddock "billabong water source" [207] as a separate water source (noting the discussion of the breadth of the term "water source", summarised at [265] above) or to treat it "as a repository of regulated water". [208] The Respondents pointed to s 7(4) of the Water Management Act, which it said was referred to at 9B of the SFAPOC [noting that 9B of the FAPOC referred to s 7(4), however, that the SFAPOC changed this to s 7(3)(a) and (b)], which provides that:
7 Classification of water sources
…
(4) It is the intention of Parliament that, within 12 months after the date of assent to this Act:
(a) the water sources of the State be classified in accordance with this section, and
(b) bulk access regimes be established for such of those water sources as are classified high risk, high stress or high conservation value.
…
The Respondents noted that s 7(4) "stops short of saying that this 'must' be done". Further, it is to be noted that in s 7(1) it is stated that "[t]he Minister may, by order published in the Gazette, classify water sources for the purposes of this Act" (emphasis added). It is also to be noted the high level at which "water sources are defined in the Water Management Act". Section 7(4) cannot, therefore, according to the Respondents, be read as an obligation separately to consider and classify every single body of water in New South Wales.
[74]
Consideration of validity of Decision 4
At [121] of Arnold No 6, Biscoe J usefully sets out the differing parameters of the judicial review of administrative decisions:
Judicial review of administrative decisions distinguishes between three steps in the decision-making process First, the existence of a fact that is a precondition to the exercise of the decision-making power (i.e. a jurisdictional fact). Secondly, general fact finding and reasoning in the course of decision-making. Thirdly, the decision itself. The court determines the lawfulness of the first step (jurisdictional fact) on the evidence before the court. The court determines the lawfulness of the second and third steps on, generally, the material before the decision-maker.
The consideration of those parameters is predicated on there being a decision to review. With respect to purported Decision 4, the Court has a threshold proposition to determine: the Respondents say there was never a decision, of the description contended by the Applicants, that was actually ever made. The Respondents argue that there is no evidence before the Court that such a decision was made. After analysing the evidence and considering the parties' respective submissions, the Court agrees with that proposition.
Obviously a decision requires a deliberative process, a mind being turned to a choice, to make it one way or another. To state the obvious, judicial review proceedings instituted to examine a decision require a reviewable decision to examine. In the absence of a decision, a failure to make a decision that should have been made might give rise to a claim of another kind, say, a failure to exercise a duty of care by turning one's mind to do or not to do something. But such a failure to make such a decision is not amenable to judicial review proceedings. Further, where a decision-maker has a positive duty to exercise their powers but fails to, this may be subject to an administrative law action. However, here, the Applicant has not sought to argue that there was a positive duty on the Minister to make a decision of the kind represented by the alleged Decision 4. Rather, they argue that Decision 4 was in fact made, and that it was flawed in material respects
The Court has decided that the Applicants have failed to establish that there was ever a decision, of the description identified as Decision 4 in this judgment, actually made by the Minister. If there was a decision that should have been made, but wasn't, that might be the subject of proceedings of another kind.
[75]
Challenge out of time - s 47 Water Management Act
Hypothetically, if I am wrong and there was a decision of the kind described by the Applicants as purported in Decision 4, then the Court agrees with the Respondents' submission that s 47 of the Water Management Act provides a time bar to the review sought to be agitated with respect to the purported decision. To understand the rationale for that conclusion, it is necessary to examine the elements of s 47. Surprisingly, it appears there has been no direct examination of s 47 in previous cases, a point made by the Respondents' counsel during the hearing (at Transcript 628.29). Section 47 of the Water Management Act provides (relevantly):
47 Validity of management plans and exercise of plan-making functions
(1) The validity of a management plan may not be challenged, reviewed, quashed or called into question before any court in any proceedings other than before the Land and Environment Court in proceedings commenced within the judicial review period.
(2) The judicial review period in respect of a management plan is:
(a) the period of 3 months after the date the plan was published on the NSW legislation website, except as provided by paragraph (b), or
(b) in relation to a provision of the plan that was inserted by an amendment of the plan (other than an amendment under section 45 (1) (c)), the period of 3 months after the date that the amendment was published on the NSW legislation website.
A judicial review period does not arise as a result of the extension of the duration of a management plan.
(3) The judicial review period cannot be extended by the Land and Environment Court or any other court, despite any other Act or law.
When considering the effect of the s 47 time bar, it is significant to consider UCPR r 59.10, as set out earlier at [210], which provides in 59.10(4) that where there is a statutory time limit then the discretion to extend the time for commencing proceedings is not available, as the rule does not apply.
[76]
Consideration of Decision 4 in the context of s 47
Further to my decision set out earlier at [369], wherein I concluded there was no apparent decision to review, given my acceptance of the Respondents' contention that there was no decision made of the kind described by the Applicants and identified in this judgment as Decision 4, I need only briefly mention my conclusions regarding the s 47 out-of-time issue. The alleged decision was made, it was said by the Applicants, "on or prior to 4 October 2012 and after 23 August 2012". First, given the 2012 year, the Water Management Act was in force and so s 47, prima facie, applies to the decision. Given that s 47 sets out a statutory time limit within which judicial review proceedings are to be brought, by reason of UCPR r 59.10(4) that rule does not apply, and s 47 prevails.
The prerequisite for the s 47 time limit to apply is that the decision in question must be one that relates to the 'validity of a management plan'. The alleged decision is said to be with respect to an unregulated water sharing plan, which, given the year, is clearly a reference to the 2012 Unregulated WSP. Shorn of the details, the basis upon which the Applicants bring their complaint about the 2012 Unregulated WSP is that Lake Paddock has been "placed" within the unregulated system within the MWWS rather than in the regulated system. The assertion is to the effect that the WSP is invalid with respect to that decision. Therefore, it constitutes a challenge to the validity of that component of the plan. That decision is "being called into question", to use the phrase in s 47(1), hence a review is sought so as to quash the decision in question. I have decided that all the necessary elements are present for s 47 to be applied to the alleged Decision 4, if such a decision was actually made at all.
Cognizant of the cases in which potential jurisdictional error has been examined in relation to statutory time bars, some of which are referred to below at [380], rendering such a time bar inoperative in preventing judicial review in some circumstances in which jurisdictional error is pleaded (noting however that s 47 has not been examined in that context), in the context of this case and so on the basis of the evidence before me, I find that such a contention does not arise. I see no basis for it to be argued that the statutory time bar in s 47 does not apply to the alleged Decision 4, especially in circumstances where the decision in question may well be hypothetical.
[77]
Respondents' submissions on s 47
The Respondents submitted that the Applicants were time-barred from bringing a challenge to Decisions 4, 5, and 7 by virtue of s 47 of the Water Management Act.
The Respondents submitted that, "[t]he challenge to that plan clearly falls outside the judicial review period, and of course the reason why I'm dealing with s 47 first is because r 59 says it doesn't apply where there's a statutory time limit. So if s 47 applies r 59 doesn't apply" (Transcript 628.24-27).
However, the Respondents properly, noted that in some instances provisions such as s 47 that provide time bars to judicial review of decisions are to give way where such decisions are affected by certain kinds of jurisdictional error (citing, by analogy, Bryan v Lane Cove Council and Anor (2007) 158 LGERA 390; [2007] NSWLEC 586 at [31]; Woolworths Limited v Wyong Shire Council & Ors [2005] NSWLEC 400 at [25]-[35]; Mitchforce Pty Ltd v Industrial Relations Commission of NSW (2003) 57 NSWLR 212; [2003] NSWCA 15 at 229-233; Vanmeld Pty Ltd v Fairfield City Council (1999) 46 NSWLR 78; [1999] NSWCA 6 at 106-112 Mosman Municipal Council v IPM Pty Ltd (2016) 216 LGERA 252; [2016] NSWLEC 26; Woolworths Ltd v Pallas Newco Pty Ltd (2004) 61 NSWLR 707; [2004] NSWCA 422) (Transcript 628.29-6.30.11). [212]
[78]
Applicants' submissions on s 47
The Applicants submitted that the challenges to Decisions 4, 5 and 7 were not time-barred by virtue of s 47.
At hearing, the Applicants asserted that:
Then, the next decision is the source decision, it's really 9B and 9C. These are the decisions which we say were made, apparently, to allocate the billabong water source or the Lake Paddock as unregulated, even though it was the water for which the licence provided was regulated water, that's 9B, and allocate it to an unregulated plan, 9C. Now, it's a little more complex than that, your Honour, because the reason we say this is an orphan licence is in truth, the respondents did absolutely nothing once the Court orders were made on 22 August 2012, except in response to persistent letters from my client, "Please give us the licence, so we can see what it is We finally get it, in 2015, three years later and then we commence the action, in time.
(Transcript 533.47-534.6)
Additionally, counsel for the Applicants contended:
We say that ultimately [Decisions 4 and 5] didn't take effect until the [the WAL and Approval were] issued on 30 March 2015, so that there is no delay point under UCPR 59.10 or as a matter of discretion. We have acted as soon as the licence was finalised, as soon as the water sharing plan was finalised, as indicated in the third paragraph of that letter of 25 February 2015.
(Transcript 535.9-14)
Although this was not made plain, presumably, the Applicants intended such an argument to relate not just to r 59.10 of the UCPR (which, the Court notes the Respondents did not argue with respect to Decisions 4 and 5 in any event), but also to the statutory time bar in s 47 of the Water Management Act.
In addition, although the Respondents had not submitted that the challenge to Decision 3 was subject to s 47, the Applicants, in an abundance of caution, nevertheless, argued that it was a decision under the 1912 Act, not the Water Management Act, and that therefore s 47 of the Water Management Act did not apply to it (Transcript 535.29-35).
[79]
Decision 5 - 9C of the Second Further Amended Points of Claim - The 2012 Plan Decision - Making of the 2012 Unregulated WSP
The fifth decision challenged by the Applicants in this matter was, the Applicants said, a decision of the Second Respondent, made "on or about" 4 October 2012:
to make an unregulated water sharing plan with respect to the Applicant's water source comprising the billabong in the Lake Paddock ['the billabong water source'] ['the 2012 plan decision'].
[80]
Applicants' submissions on Decision 5
The grounds upon which Decision 5 was said by the Applicants to be invalid were:
(i) Failure to have any or sufficient regard to the public interest in protecting the billabong water source;
(ii) Failure to have any or sufficient regard to the orders of this Court made 23 8 2012;
(iii) Failure to have any or sufficient regard to the requirements of WMA section 20;
(iv) Failure to have any or sufficient regard to the requirements of WMA section 7(3)(a),(b) and (c) and (4)(a) and (b);
(v) Failure of the Second Respondent by its servants or agents in the Department and at the Leeton office in particular Mr Lindsay Beck, Mr Steve Webb and Mr Jim Parrett in making and implementing the 2012 plan decision to have regard to their duty to take all reasonable steps to protect and restore the wetland, being the billabong in the Lake Paddock the floodplain and the dependent ecosystem being the trees and natural heritage thereof in breach of the duty in Water Management Act 2000 ['WMA'] section 9(1)(a) and (b) and water management principle (2)(a) in section 5;
(vi) Having regard to irrelevant considerations namely maximising the regulated flows in Yanco Creek and/or causing major losses in the system of regulated water in preference to the prevention of degradation of the wetlands and dependent ecosystems on Somerset Park in breach of WMA sections 9(1) and (2) and 5(2)(a) and sections 9(1)(b) and 5(3);
(vii) Failing to have regard to relevant considerations namely the minimisation of the cumulative impacts of water licences and approvals granted downstream of Somerset Park on the billabong wetland in the Lake Paddock on Somerset Park and its dependent ecosystems and its natural heritage in breach of WMA sections 9(1)(a) and (b) and 5(2)(d) and (f);
(viii) Failing to have regard to relevant considerations namely the minimisation of land degradation on Somerset Park being the banks of Yanco Creek by soil erosion, waterlogging and inundation of the Lake Paddock and its natural heritage and undermining the productivity of the land in Lake Paddock and its environs in breach of WMA sections 9(1)(a) and (b) and 5(4) and (5);
(ix) Failure of the Second Respondent by its servants or agents to have regard to the impact on the Lake Paddock water source of river planning decisions with respect to river management of the Murrumbidgee River and Yanco Creek affecting the water source;
(x) In the premises the Second Respondent its servants or agents failed to have regard to the duty not to abridge the right of each Applicant to the reasonable use of the waters of Yanco Creek for conservation or irrigation;
(xi) Failure to have any or due regard to the invalidity of the 2012 licence decision and/or the water source decision.
[81]
Respondents' submissions on Decision 5
The Respondents submitted that, contrary to 9C of the SFAPOC, the 2012 Unregulated WSP was made by the Third Respondent under s 50 of the Water Management Act, and dated 20 September 2012. [213]
[82]
Allegations with respect to relevant considerations
The Respondents submitted that, although it is not clear, the particulars set out at [9C] of the SFAPOC (i)-(v) and (vii)-(xi) are presumably asserted to be mandatory relevant considerations (noting that several of these were duplicated from [8C] of the SFAPOC).
Particular 9C, the Respondents said, is dependent on the Applicant making out the challenges to Decisions 1 and 2. However, the Respondents argued, even if Decisions 1 and 2 were held to be invalid, that invalidity could not have been a mandatory relevant consideration in relation to the making of the 2012 Unregulated WSP. [214]
The Respondents contended that allegations as to what the Third Respondent/Minister did or did not take into account must be determined as a factual matter by reference to the terms of the 2012 Unregulated WSP and the materials that were before the Minister. The Court notes that these materials were contained in the Respondents' tender bundle. [215]
The Respondents noted counsel for the Applicants' assertion, that Mr Maini was a delegate of the Minister in exercising this power (and that therefore a failure by Mr Maini to consider a matter could be imputed to the Minister), and cross-examination on this basis. However, the Respondents countered, this misunderstood Mr Maini's role, which was as part of a substantial team of people working on the WSP to provide technical advice as a hydrologist. Mr Maini did not, the Respondents said, draft the rules in the WSP, had no role in determining whether particular rivers should be declared "regulated rivers", nor in assessing "the ecological health" of particular rivers. Further, the Respondents posited, he did not even draft the briefing note that was signed by the Minister in the making of the 2012 Unregulated WSP. There is, the Respondents submitted, "absolutely no basis for imputing to the Minister any consideration or lack of consideration of certain matters by Mr Maini". [216]
The Respondents noted that (with the exception of (iii) and (iv)) the asserted mandatory relevant considerations are all specific to the First Applicant's property and its Lake Paddock. That is, the Respondents asserted, the Applicants "assume that there was an implied statutory requirement in making the 2012 Unregulated WSP for the Minister to take into consideration issues specific to the first applicant's property" (noting too that there was no indication that the Applicants had made a submission or sought to put material before the Minister in relation to the making of the 2012 Unregulated WSP). [217]
[83]
Particulars (iii) and (v)
The Respondents submitted that although particulars (iii) and (v) refer to a failure to consider ss 20 and 7(4) of the Water Management Act, they "do not articulate the particular aspects which the Minister is said to have failed to consider". The Respondents argued that the case as presented on this point by the Applicants in their opening submissions (and summarised above at [396]) "is another instance in which the applicants' case has departed from the SFAPOC". The Respondents contended that the Applicants had many opportunities over the three years since the matter was commenced "to articulate their case and should not be permitted to introduce new grounds on the first day of the hearing". [226]
The Respondents argued, even setting that aside, the Applicants' submission establishes no error of law, as s 7 of the Water Management Act does not impose an obligation to individually classify every body of water in New South Wales, having regard to the high level definition of "water source", a collection of rivers or bodies of water may be classified (as set out at [265] and [360]-[362] above). Further, the Respondents submitted, s 7 does not impose an obligation to classify water sources but rather says that the Minister "may" classify water sources. Even if such an obligation existed, the Respondents argued that a failure to so classify would be immaterial here, having regard to the purpose of classification being so that a bulk access regime could be made, and that, here, such a bulk access regime has in fact been made under the 2012 Unregulated WSP in relation to water sources including the MWWS. The Respondents argued that the bulk access regime "recognises and is consistent with the water management principles contained in section 5 of the Act", per cl 13(2)(f) of the 2012 Unregulated WSP. [227]
[84]
Particular (vi)
The Respondents submitted that there was no evidence that the Minister, in making the 2012 Unregulated WSP, took into consideration either of the matters said to be irrelevant considerations in particular (vi) to SFAPOC [9C]. [228]
[85]
The claim is time-barred
The Respondents contended that the claim with respect to Decision 5 was time-barred by virtue of s 47(1), (4) and (8) of the Water Management Act. Contrary to the Applicants' submission that the making of the 2012 Unregulated WSP was an "incomplete decision", the Respondents argued that the 2012 Unregulated WSP was in fact made and gazetted in 2012. [229]
[86]
Consideration of validity of Decision 5
Decision 5 is another decision in relation to which, if it is to be judicially reviewed, requires the Applicants to obtain leave, if it can be granted, to bring their review out of time. Decision 5 is a decision regarding the 2012 Unregulated WSP. As explained earlier in this judgment, reviews which challenge decisions in relation to water management plans must be brought within three months of the date the plan in question was published on the New South Wales legislation website (per s 47(2)(a) of the Water Management Act). Further, also as explained earlier, if the three-month period has lapsed, this Court cannot extend the judicial review period (per s 47(3)). Also, as earlier explained, where there is a statutory limitation period with respect to judicial review in the applicable legislation, as is the case here with the Water Management Act, leave cannot be granted pursuant to UCPR r 59.10 (per r 59.10(4)).
There can be no doubt Decision 5 is specifically focused on the decision to make the 2012 Unregulated WSP. The Applicants say it was made "on or about" 4 October 2012. It appears that 4 October 2012 is the date the gazettal notice appeared in the New South Wales legislation website, with the date the plan decision was made being 20 September 2012.
The Applicants sought to avoid the application of s 47 by submitting a curious argument that the decision with respect to the WSP was 'incomplete', as the decision regarding it and its implementation was not complete until the Applicants received a notice, allegedly on the 31 March 2015, regarding the conversion of their licence and the imposition of new conditions. [230] The Applicants' propositions and the Respondents' response were summarised earlier at [341]. As the Respondents submitted with respect to Decision 5, [231] this interpretation of the relevant date by the Applicants is unsupportable. Their Decision 5 is a challenge to the making of the 2012 Unregulated WSP, it is not with respect to the subsequent imposition of mandatory conditions to certain licence categories. That is a subsequent decision (also, incidentally, impugned in these proceedings). There is no validity to the argument that Decision 5 with respect to the 2012 Unregulated WSP was not completed until 31 March 2015.
I have concluded that the Applicants' attempted review of Decision 5 is statute-barred in that, by s 47(2)(a), the review had to be commenced within three months of the publication of the notice regarding the decision to approve the WSP. I am further of the view that s 47(3) precludes me from having the necessary jurisdiction to exercise discretion in favour of the Applications to grant them leave out of time. The Respondents' case in this regard is entirely sound.
[87]
Decision 6 - The 2015 Licence Decision (9D of the Second Further Amended Points of Claim) - Decision to impose mandatory conditions on the WAL and the Approval
The sixth decision under review was, the Applicants said, a decision of the Second Respondent, its servants or agents, "between August 2014 and March 2015", and notified to the Applicant on 30 March 2015, to:
impose conditions and/or not include discretionary conditions in respect of WAL 33313 … ['the 2015 licence decision']
[88]
Applicants' submissions on Decision 6
The grounds upon which Decision 6 was said by the Applicants to be "void and of no effect" were:
(i) The Second Respondent failed to have regard to a relevant consideration namely that the conditions of the licence be consistent with the former SAL conditions;
(ii) Failure to consider whether the licence being issued for the specific purpose of accessing surplus or supplementary flows in Yanco Creek imposed limitations which hindered or denied that result;
(iii) Failure to have regard to the public interest in the protection [sic] by issuing a licence with terms which did not prioritise the protection of the wetland and its dependent ecosystems;
(iv) Failure to have regard to the LEC decision dated 23 August 2012 between the parties;
(v) Failure to includes [sic] discretionary conditions required to give effect to the water management principles in WMA section 5(2)(a)(d)(f) and (h).
(vi) Failure to have due or any regard to the invalidity of the 2012 licence decision, the water source decision, the 2012 plan decision.
This decision was made in 2014 but notified to the Applicants on 25 February 2015. The Respondents did not dispute that the notice was not received until 30 March 2015. [232]
[89]
Respondents' submissions on Decision 6
The Respondents noted that the conditions to the WAL complained of were imposed pursuant to ss 66, 67 and 100 of the Water Management Act and Pt 11 of the 2012 Unregulated WSP. [233]
The Respondents submitted that the Applicants had not demonstrated how any of the matters identified in the particulars to SFAPOC [9D] are matters which the decision-maker was required to consider in exercising the relevant power. In particular, the Respondents said, the Applicants had not demonstrated why the exercise of a power to impose conditions on classes of licences and approvals required consideration of the impact upon a particular person's licence. [234]
With respect to particular (iii), the Respondents contended that it was not clear how the imposition of such conditions was capable of having any adverse environmental impact.
As to the claim in relation to a purported decision made by the Second Respondent not to impose discretionary conditions on the WAL and Approval between August 2014 and March 2015, the Respondents disputed that such a decision was ever made, and that the Applicants had not proved to the contrary. [235]
[90]
Consideration of validity of Decision 6
Decision 6 is not a decision which the Respondents say is time-barred due to being outside the three-month period within which judicial review of the decision should be brought. However, keeping in mind that the Summons initiating these proceedings was dated 22 June 2015, Decision 6 was said to have been made on 25 February 2015, strictly, just on four months before the Summons was filed. With respect to this one month overrun, in considering an application pursuant to r 59.10(2) to grant leave to commence proceedings out of time, r 59.10(3)(c) makes it clear that a relevant consideration is "the time at which the plaintiff became or, by exercising reasonable diligence, should have become aware of the decision". With respect to Decision 6, the Respondents conceded, and the Court accepts, that the notice of the decision was not received by the Applicants until 30 March 2015. In these circumstances, I accept that it is reasonable to grant leave for the Applicants to seek review of Decision 6.
In passing, the Court confirms that Decision 6 was not dealing with making of a water management plan. Accordingly, the decision is not an instance of a challenge to the validity of such a plan. Therefore the inflexible s 47 statutory bar in the Water Management Act to certain proceedings being commenced outside the requisite three-month period does not arise.
The Court rejects the Applicants' case with respect to Decision 6. With respect to those conditions which were mandatory, pursuant to the requirement of the Water Management Act (see above at [431]), there can be no complaint on the part of the Applicants that the Minister did not act in accordance with his statutory obligations. Being mandatory, once the conditions were formulated for general application, the imposition of the conditions on the First Applicant's Approval and WAL was simply an automatic occurrence.
With respect to the assertions regarding the failure to impose discretionary conditions, the Court agrees with the Respondents' contentions that the Applicants have failed to demonstrate why, with respect to the Lake Paddock and its associated unnamed watercourse, there was any obligation on the decision-maker to impose conditions which specifically alluded to the matters sought to be achieved by giving effect to the water management principles in s 5.
[91]
Decision 7 - The 2015 Water Plan Decision (9E of the Second Further Amended Points of Claim) - Decision to extend the 2003 Regulated WSP
In May 2015, the Minister extended the 2003 Regulated WSP. Paragraph 9E of the SFAPOC complains that this was done without amending the 2003 Regulated WSP to "include the Billabong water source".
The seventh decision challenged in these proceedings is, according to the Applicants, a decision of the Second Respondent in May 2015 to:
extend the existing regulated river plan for Yanco Creek without amending the existing regulated water management plan to include the Billabong water source ['the 2015 water plan decision'].
[92]
Applicants' submissions on Decision 7
Decision 7 was impugned by the Applicants on the following grounds:
(i) Failure to have any or sufficient regard to the public interest in protecting the billabong water source;
(ii) Failure to have any or sufficient regard to the orders of this Court made 23 8 2012;
(iii) Failure to have any or sufficient regard to the requirements of WMA section 20(1)(a),(b) and (e) and 20(2)(a),(b) and (e);
(iv) Failure to have any or sufficient regard to the requirements of WMA section 7(3)(a)(b) and (c) and (4)(a) and (b);
(v) Failure of the Second Respondent by its servants or agents in the Department and at the Leeton office in particular Mr Lindsay Beck, Mr Steve Webb and Mr Jim Parrett in making and implementing the 2012 plan decision to have regard to their duty to take all reasonable steps to protect and restore the wetland, being the billabong in the Lake Paddock the floodplain and the dependent ecosystem being the trees and natural heritage thereof in breach of the duty in Water Management Act 2000 ['WMA'] section 9(1)(a) and (b) and water management principle (a) in section 5(2) and (3);
(vi) Having regard to irrelevant considerations namely maximising the regulated flows in Yanco Creek and/or causing major losses in the system of regulated water in preference to the prevention of degradation of the wetlands and dependent ecosystems on Somerset Park in breach of WMA sections 9(1)(a) and 5(2)(a) and section s 9(1)(b) and 5(3);
(vii) Failing to have regard to relevant considerations namely the minimisation of the cumulative impacts of water licences and approvals granted downstream of Somerset Park on the billabong wetland in the Lake Paddock on Somerset Park and its dependent ecosystems and its natural heritage in breach of WMA sections 9(1)(a) and 5(2)(d) and (f);
(viii) Failing to have regard to relevant considerations namely the minimisation of land degradation on Somerset Park being the banks of Yanco Creek by soil erosion, waterlogging and inundation of the Lake Paddock and its natural heritage and undermining the productivity of the land in Lake Paddock and its environs in breach of WMA sections 9(1)(a) and 5(4) and (5);
(ix) Failure of the Second Respondent by its servants or agents to have regard to the impact on the Lake Paddock water source of river planning decisions with respect to river management of the Murrumbidgee River and Yanco Creek affecting the water source;
(x) In the premises the Second Respondent its servants or agents failed to have regard to the duty not to abridge the right of each Applicant to the reasonable use of the waters of Yanco Creek for conservation or irrigation;
(xi) Failure to have due or any regard to the invalidity of the 2012 licence decision, the water source decision, the 2012 plan decision and the 2015 licence decision.
[93]
Respondents' submissions on Decision 7
With respect to the source of the power to declare a regulated river, the Respondents noted that:
As at May 2015, the 2003 Regulated WSP applied to the Murrumbidgee Regulated River Water Source as shown on the Plan Map at Appendix 1: cl 4(1) and (2). That water source included all water between the banks of certain rivers "which at the date of commencement of this Plan, have been declared by the Minister to be regulated rivers cl 4(3)(a). While Appendix 3 lists the rivers that have been declared, the declaration is not made in the WSP itself. Rather, the declarations are made by the Minister and published in the Gazette (see the Note to cl 4(3)(a)). The source of power to make such a declaration is the definition of "regulated river" in the Dictionary to the Water Management Act. No mandatory, permissible or prohibited considerations are specified in respect of that power. [236]
[94]
No relief sought
First, the Respondents noted that the SFAS did not seek any relief in relation to the extension of the 2003 Regulated WSP, and questioned the utility of the Court determining any of the issues raised in relation to the making of the 2003 Regulated WSP. [237]
[95]
No decision to exclude the water body in the Lake Paddock
The Respondents submitted that the Applicants had not established, as a factual proposition, that Decision 7 (in the terms described in [9E] of the SFAPOC) was made. That is, they had "not proven that the Minister made a conscious decision to exclude the Lake Paddock from the scope of the 2003 Regulated WSP". [238] The Respondents denied that any such decision was made, and further noted that "the first applicant did not request that the Minister include the alleged 'Billabong water source' in the 2003 Regulated WSP at any time prior to the extension of that plan". [239]
The Respondents posited that "[i]n opening submissions the applicants suggested that their real complaint is that the Minister failed to declare the Lake Paddock a regulated river". This, the Respondents said, departed from the SFAPOC and ought not be permitted. [240]
The Respondents argued that, even setting this aside, that there was no obligation on the Minister to consider whether or not the Lake Paddock should be declared a regulated river. Although the Respondents noted that there is a power to declare rivers "regulated rivers", they posited that "there is no obligation anywhere in the Water Management Act to consider, in respect of each and every body of water in New South Wales whether or not it should be declared a regulated river". Further, the Respondents argued, the Applicants had not even attempted to prove there is such an obligation "as a matter of statutory construction". [241]
As for counsel for the Applicants' contention that other small watercourses on the Applicants' property have been declared rivers, the Respondents said:
The submission seems to be that because these small water courses have been declared regulated rivers the Minister should treat "like with like" and declare the Lake Paddock a regulated river. The submission might also be that since Yanco Creek has been declared a regulated river, all of its "dependent ecosystems should be declared regulated rivers. [242]
To which the Respondents submitted that: [243]
a. there is no obligation on the Minister under the Water Management Act to consider whether each and every body of water in NSW should be declared a regulated river;
b. the Minister has a broad power under the Water Management Act to declare regulated rivers The Act does not specify which features of a river might or might not justify a river being declared a "regulated river";
c. the SFAS does not seek any order requiring the Minister to declare the Lake Paddock a regulated river;
d. in any event, the applicant has not proven by way of evidence that the other small water courses that have been declared are, in all relevant respects the same as the diversion channel; and
e. the applicant has not proven by way of evidence that the Lake Paddock is a "dependent ecosystem" on Yanco Creek:
i. Such questions were put to Mr Maini, but he is not an ecologist and has no familiarity with the Lake Paddock.
ii. Mr Warren accepted that the water source in the Lake Paddock "appears to be" a dependent ecosystem of Yanco Creek, but has not been to the site.
iii. Mr Andrews says that, some time in the mid 1990s his neighbour told him the diversion channel was a "natural watercourse" which had been there "before us (ie some time prior to 1960). The basis for the neighbour's opinion is not explained. Mr Andrews is in no position to confirm or deny the neighbour's opinion - it is clear that the diversion channel was artificially enhanced at some point and Mr Andrews does not suggest that he studied the channel before that time (and it is unlikely he did so, having regard to his limited role at the property up until about 1993). Although Mr Andrews refers to seeing the channel "in its natural state", he does not say when this observation was made, and it may have been after the channel was artificially enhanced (thus was not in a "natural state"). Departmental documents tendered by the applicants also suggest that a previous owner cut a channel from the unnamed watercourse to the Lake Paddock.
iv. To the extent Mr Purcell gives any evidence about the historical nature of the channel, this can only be based on Mr Andrews's observations since Mr Purcell did not undertake any independent investigations.
[References omitted]
[96]
Particulars (v)-(x)
The Respondents noted that particulars (v)-(x) to Decision 7 repeated particulars (i), (ii), (iv)-(vi) and (viii) to Decision 1 (and all of the particulars to Decision 5, noting that particular (xi) to Decision 7 is more extensive than the equivalent particular to Decision 5).
The Respondents therefore repeated their submissions above in relation to the allegations concerning failure to take into consideration ss 5 and 9 of the Water Management Act (summarised above at [264]-[267]); and their submissions above concerning the alleged relevant/irrelevant considerations (summarised above at [403]-[413]), as applied to Decision 7. The Respondents noted that, as with the 2012 Unregulated WSP dealt with in Decision 5, the 2003 Regulated WSP "contains many provisions evidencing consideration of environmental concerns" (citing cl 9, cl 10, Pt 3 (dealing with environmental water), and Pt 5 (the bulk access regime) of the 2003 Regulated WSP). [244]
[97]
Particular (xi)
With respect to particular (xi), the Respondents argued that "there could be no obligation to have regard to the "invalidity" of the decisions referred to therein if (as the Respondents submit), none of those decisions were invalid; and in any event, their alleged invalidity was not a mandatory relevant consideration in relation to the extension of the 2003 Regulated WSP". [245]
[98]
The claim is time-barred
Finally, the Respondents submitted that the challenge to Decision 7 was time‑barred by virtue of s 47(2) of the Water Management Act, which provides that a judicial review period does not arise in respect of an extension of the duration of a management plan and therefore no judicial review period for the purposes of s 47(1) arose in relation to Decision 7. [246]
[99]
Consideration of validity of Decision 7
Decision 7 relates to the decision to extend the duration of the 2003 Regulated WSP. Pursuant to s 47(2) there is an absolute statutory bar to the judicial review of such an extension decision, as the section states: "A judicial review period does not arise as a result of the extension of the duration of a management plan". In short, unlike other decisions with respect to water management plans where a three-month period is set within which proceedings for judicial review may be commenced, the provision regarding the extension of the duration of plan does not allow for judicial review at all.
The Court does not interpret the provision as meaning, given the absence of a judicial review period, that there is unrestrained 'opportunity' to judicially review decisions regarding the extension of the duration of a plan, unlimited by any time constraint. Such an interpretation would be inconsistent with the intent of the legislation. With the Legislature prescribing a strict period for judicial review of the validity of a management plan, with the Court, pursuant to s 47(3), being unable to exercise a discretion to extend that three-month judicial review period, it would be entirely inconsistent with the tenor of legislation for there to be an unrestrained opportunity to review a mere extension of duration decision.
Accordingly, the Court has concluded that the Applicants' claim with respect to Decision 7 must be dismissed.
Hypothetically, even if the Applicants' claim challenging Decision 7 was legally capable of being considered, the Court would in any event dismiss it for the reasons which follow.
In passing, for the reasons expressed earlier in [316] in which I referred to Great Lakes Council with respect to Decision 2, although it is an undesirable mode of pleading for the Applicants to challenge the legality of a decision without seeking relief with respect that particular challenge, I disagree with the Respondents' submission, summarised at [446], that there is no utility in the Court determining the issues contended.
Particular (x) regarding Decision 7 raises the s 100 constitutional argument which is dismissed below at [576]-[580], requiring no further examination here.
Consistent with the Court's findings set out elsewhere in this judgment with respect to the other decisions sought to be impugned by the Applicants in these proceedings, as the Applicants have repetitively set out, in essence, the same grounds against Decision 7 as they did with respect to other decisions, it is unnecessary for the Court to again explain the rationale for its decisions rebutting identical assertions. Accordingly, as my summary of the Respondents' submissions at [447]-[454] effectively encapsulate the conclusions I have formulated elsewhere in this judgment, I simply adopt the Respondents' submissions as an accurate summation of reasons why the Applicants' case with respect to Decision 7 should be dismissed.
[100]
Decision 8 - The 2016 replacement plan decision (9F of the Second Further Amended Points of Claim) - Decision to replace the 2003 Regulated WSP with the 2016 Regulated WSP
The Respondents noted that the 2016 Regulated WSP was made by order of the Minister signed on 29 June 2016 and was published on the New South Wales legislation website on 1 July 2016. [247] The briefing materials provided to the Minister in respect of the making of the plan appear in the Respondent's Tender Bundle.
Paragraph [9F] of the SFAPOC challenged the "decision of the Second Respondent, its servants or agents, on 29 June 2016 to replace or re‑make the Plan for the regulated river plan including Yanco Creek without amending the existing regulated water management plan to include the Billabong water source".
[101]
Applicants' submissions on Decision 8
The grounds upon which the decision was challenged were (as amended during the hearing to identify, with greater specificity, the sections of the Water Management Act said to have been breached):
(i) Failure to have any or sufficient regard to the public interest in protecting the billabong water source;
(ii) Failure to have any or sufficient regard to the orders of this Court made 23 8 2012;
(iii) Failure to have any or sufficient regard to the requirements of WMA section 20(1)(a),(b) and (e) and (2)(a)(b) and (e);
(iv) Failure to have any or sufficient regard to the requirements of WMA section 7(3)(a),(b) and (c) (4)(a) and (b);
(v) Failure of the Second Respondent by its servants or agents in the Department and at the Leeton office in particular Mr Lindsay Beck, Mr Steve Webb and Mr Jim Parrett in making and implementing the 2016 plan decision to have regard to their duty to take all reasonable steps to protect and restore the wetland, being the billabong in the Lake Paddock the floodplain and the dependent ecosystem being the trees and natural heritage thereof in breach of the duty in Water Management Act 2000 ['WMA'] section 9(1)(a) and water management principle (a) in sections 5(2) and 5(3);
(vi) Having regard to irrelevant considerations namely maximising the regulated flows in Yanco Creek and/or causing major losses in the system of regulated water in preference to the prevention of degradation of the wetlands and dependent ecosystems on Somerset Park in breach of WMA sections 9(1)(a) and 5(2)(a) and sections 9(1)(b) and 5(3);
(vii) Failing to have regard to relevant considerations namely the minimisation of the cumulative impacts of water licences and approvals granted downstream of Somerset Park on the billabong wetland in the Lake Paddock on Somerset Park and its dependent ecosystems and its natural heritage in breach of WMA sections 9(1)(a) and 5(2)(d) and (f);
(viii) Failing to have regard to relevant considerations namely the minimisation of land degradation on Somerset Park being the banks of Yanco Creek by soil erosion, waterlogging and inundation of the Lake Paddock and its natural heritage and undermining the productivity of the land in Lake Paddock and its environs in breach of WMA sections 9(1)(a) and 5(2),(4) and (5);
(ix) Failure of the Second Respondent by its servants or agents to have regard to the impact on the Lake Paddock water source of river planning decisions with respect to river management of the Murrumbidgee River and Yanco Creek affecting the water source;
(x) In the premises the Second Respondent its servants or agents failed to have regard to the duty not to abridge the right of each Applicant to the reasonable use of the waters of Yanco Creek for conservation or irrigation; and
(xi) Failure to have due or any regard to the invalidity of the 2012 licence decision, the water source decision, the 2012 plan decision, the 2015 licence decision and the 2015 water plan decision.
[102]
Particulars (iii) and (iv) to Decision 8
The Applicants, at particular (iii) to Decision 8, alleged that the Minister failed to have any or sufficient regard to the requirements of ss 20(1)(a),(b) and (e) and (2)(a)(b) and (e). [251]
With respect to s 20(1)(e), the Applicants argued that there was a breach of mandatory obligations including that there had been a:
failure to make a bulk access regime conforming to s 7, because the Minister and those assisting him (his designated delegates and for whom the state is responsible) [sic] did not:
(i) classify the YC water source and the lake dependent ecosystem as at risk, subject to stress and the extent of its conservation value (see s7 (3), (4) (b) & (5); and
(ii) establish a bulk access regime for the extraction of water under access licences in respect of the YC water source and the Lake dependent ecosystem by means of the Minister's 2016 Plan (see s20 (1) (e) & 7 (4) (b) & (5);
(iii) establish a bulk access regime which recognised and was consistent with limits to the availability of water set in relation to Yanco Creek and the dependent ecosystem (see s20 (2) (a));
(iv) establish a bulk access regime consistent with the water management principles as to form or substance (see s20 (2) (f) & (5)). [252]
With respect to (iv) above, the Court presumes the reference to "& (5)" was in reference to s 7(5) of the Water Management Act.
The Applicants submitted that, on their proper construction, Ch 2, ss 7, 20 and 50 of the Water Management Act apply to Decision 8 (citing Minister for Local Government v Blue Mountains City Council (2018) 229 LGERA 197; [2018] NSWCA 133 per Leeming JA at [51], [58], [61], [71] and [90] and Key Issues in Public Law, ed Williams, 2017, at pages 102-103). [253]
The Applicants further argued that ss 7(5) and 7(4)(b) required that a bulk access regime be implemented where water sources are classified as high risk, high stress or high conservation value "to be established by means of a Minister's Plan", and sought to contrast this with what the Applicants said to be "the Minister's obligation to comply with Part 3 plan making function duties to do so in 'general terms' under s50(2)" (citing Nature Conservation Council at [92]). The Applicants further argued that critical to the application of the law "is the classification required in a Minister's plan to be made". [254]
[103]
Particulars (v) and (vi) to Decision 8
The Applicants further contended that the Respondents failed in the exercise of the plan-making functions in the making of the 2016 Regulated WSP, to give priority to the principles for water sharing set out in s 5(3), in the order in which they are set out in that subsection. In particular, the Applicants alleged, the Respondents did not prioritise protection of the environment in Yanco Creek and the water body in the Lake Paddock over extraction. This resulted in, the Applicants said, losses of regulated water, which caused degradation of the ecology and environment of Yanco Creek and the Lake Paddock.
The Applicants argued that their Facts 1, 2 and 3, and the principles of ESD made good the proposition that Yanco Creek and the water body in the Lake Paddock (as the Applicants asserted, a dependent ecosystem of Yanco Creek) have been degraded by high regulated flows. [257]
The Applicants submitted that Fact 4 and any reasonable enquiry (per Caldera Environment Centre Inc v Tweed Shire Council [1993] NSWLEC 102) would have made the Minister aware of the Alluvium Report, which the Applicants said supports the conclusions of Mr Purcell, "both as to the fact of and cause of the environmental and farming asset damage and the necessity for its remediation and restoration in the dependent ecosystem in this case at ["Somerset Park"] and the basic steps necessary to restore the degradation and damage". [258]
Further, the Applicants argued that the departmental file, which they said was constructively before the Minister (citing Peko-Wallsend), evidenced that prior to 29 June 2016, the Department:
1. was aware that high regulated flows in Yanco Creek were flowing in and out of the Lake Paddock, causing substantial damage; [259]
2. had prioritised the "irrigation perspective" over the protection and restoration of the dependent ecosystem at Lake Paddock in breach of ss 9 and 5(3) of the Water Management Act; [260]
3. was aware that the Applicants had "prioritised the environment rather than extraction and were being punished by the Respondents for doing so by exclusion from the volumetric water allocation system under [the Water Act] and exclusion from the [2003 Regulated WSP]"; and
4. had excluded the water body in the Lake Paddock "as an important ecosystem of Yanco Creek" from the Yanco System in Sch 4 [of the 2016 Regulated WSP] and its enhanced licence SL 398. [261]
[104]
The Minister failed to take all reasonable steps to promote and act in accordance with water management principle 5(2)(a)
The Applicants submitted that the Minister failed to take all reasonable steps in making the 2016 Regulated WSP to do so in accordance with, and so as to promote, the water management principle at s 5(2)(a). In particular, the Applicants said, the principle to protect and restore the Yanco Creek water source and the dependent ecosystem in the Lake Paddock, and not to degrade the land either generally or at all. In so doing, the Applicants argued, the Minister breached ss 9(1)(a) and 5(2)(a) of the Water Management Act. [271]
The Applicants contended that the factual history, as set out at Facts 1, 2, 3, 6, 7 and 8 (summarised above), was recorded in the Department file and was of degradation of Yanco Creek at "Somerset Park", the water body in the Lake Paddock, and the land forming part of the Lake Paddock ecosystem on "Somerset Park", and a failure to protect and restore the lake-dependent ecosystem. [272]
The Applicants asserted that the Minister was aware that the Department's management had led to that degradation, and environmental and "farm asset damage", said by the Applicants to be caused by high regulated flows. [273]
The Applicants further contended that:
doing nothing therefore ie merely making minimal changes to the [2013 Regulated WSP] was not an option: 'consultation fatigue' in relation to the 2016 Plan making function in that context is an admission of failure to take reasonable steps and a breach of s9(1)(a). [274]
Additionally, the Applicants argued that the fact that the Commonwealth may, in 2020, replace the 10-year 2016 Regulated WSP "with a resource plan under the Water Act 2007 (Cth) is not an excuse for failing to take any steps now". [275]
Accordingly, the Applicants said "a breach giving rise to [Water Management Act] s47 & s336 relief arises". [276]
[105]
Particulars (i) and (ii) to Decision 8
The Applicants contended that the Respondents breached s 20(1)(e) and (2) "with particular reference to" ss 7(5) and 45(1)(a) and (c) of the Water Management Act, "in failing to give effect to the Court's orders of 22 August 2012 a decision of this Court made by consent in the public interest, that the Applicants' water licence be renewed under [1912 Act] s 14(2) with a volumetric allocation of 1,000MGs". [277]
The Applicants submitted that the power exercised by the Court in making the 2012 Court Orders was under s 14(2) of the 1912 Act, and was "in the public interest". In other words, the Applicants said, the 1,000-megalitre volumetric allocation "recognised that the Applicants had conducted themselves appropriately and that it was in the public interest to renew [the 1986 Licence] as part of the [volumetric water allocation scheme] under [Pt 2 div 4B of the 1912 Act]". [278]
The Applicants noted that s 45(1)(a) of the Water Management Act "is also expressed to arise 'in the public interest'", and that s 7(6) of the Water Management Act "authorises the variation under s 45 of a bulk access regime".
Whilst the Respondents, the Applicants said, "could have and should have" amended the 2003 Regulated WSP:
the duty to do so to give effect to the Court's Orders and the agreement between the parties arose in the exercise of the plan making functions by the Minister and his assistants in the Department in making the replacement plan on 29.06.2016 and s46(1) and s87A(3)(b) and as put in the Applicants Submission by letter dated 21 6 2016. [279]
Further, the Applicants contended that ss 20(1) and (2) of the Water Management Act "make it clear" (consistent, they said, with the 2012 Court Orders) that the 1986 Licence:
provided for extraction of regulated flows ie from [Yanco Creek] and the [water body in the Lake Paddock] into and out of which it has flowed should have been included in the bulk access regime; also see Schedules 10 and 11.
The Applicants argued that the Respondents' submission that the 2012 Court Orders "are merely an agreement which, in spite of the evidence of Mr Hutchinson, the Respondents are not required to perform", ought to be rejected.
That Applicants further submitted that:
The result contended for by the Applicants meets the justice of the case and the requirements of the Act because:
Had the Applicants been able to rely on [the 1986 Licence] in 2004 they would have in the proper exercise of the [2003 Regulated WSP] making functions had a general security licence: see Schedule 10 clauses 3 and 4 and Schedule 11, WMA;
They retained their licence even though Mr Webb tried by various stratagems to terminate the licence;
The licence has not proved futile if it becomes part of the regulated Plan but is valueless and inutile if part of the macro Plan both from an environment and a farming asset viewpoint. [280]
[106]
Particular (vii) to Decision 8
The Applicants argued that the Respondents contravened ss 9(1)(a), 5(2)(d) and (f), "in respect of the duty of the Minister in exercising the plan making functions under Chapter 2". [282]
There is a duty, the Applicants argued, to take all reasonable steps to ensure generally that the cumulative impact of licences are considered and minimised and the natural heritage protected. [283] They contended that, "the 2016 Plan being a mere replication of the [2003 Regulated WSP] ignoring the Court Orders of 22.08.2012, the Alluvium Report, the history of damage to the LP ecosystem, and the difficulties of the Applicants dealing with NOW disclosed by the File" indicate that "no such reasonable steps have been taken". [284]
Further, the Applicants submitted:
The Minister refers to 'consultation fatigue' as the reason for lack of attention to these and other details That is not taking reasonable steps Mr Maini's evidence on this point on these issues should be rejected. A Jones v Dunkle [sic] inference arises against the Respondents on this point. [285]
Finally, the Applicants argued that the Respondents had breached ss 5(4)-(5) and 9(1)(a) of the Water Management Act.
[107]
Particular (viii) to decision 8
Finally, the Applicants argued that the Respondents had breached ss 5(4)-(5) and 9(1)(a) of the Water Management Act "in respect of the duty of the Minister in exercising the plan making functions under Chapter 2" of the Water Management Act. [286]
The Applicants made:
[t]he same submissions are made regarding land degradation, water logging and decline of native vegetation. Common Law parallel - case law relates to detailed attention to particular water sources by reference to accepted rules - it would be surprising if WMA left a vacuum in the protection of particular water sources land, and farming assets cf RS 47, 95 and 115. [287]
The Applicants submitted that the material before the Minister at the time of making the decision was the material in Exhibit 6(b) put forward by the Respondents as the material before the Minister, and, additionally "evidence of Facts 1 to 10". The Applicants contended that the Respondents' submission, summarised above at [403], ought to be rejected [288] because:
1. the water licence file relating to the 1986 Licence was discovered, and the Respondents did not object to it being tendered at hearing on the basis that it was relevant, in the proceedings before the Court that resulted in the 2012 Court Orders; [289]
2. Peko-Wallsend, the Applicants asserted, is not distinguishable on this point (citing Gibbs CJ at 31 and Mason J at 42-48); [290]
3. the Applicants said that the "Respondents admit at [91] that the Minister 'may' have constructive knowledge of WSP file, yet no such file has been discovered"; [291]
4. there is, the Applicants asserted, no evidence from the Minister or Mr Maini (who, the Applicants said, "was involved in the making of the two key WSPs the macro plan and the regulated water plan") "disputing the proposition or setting out what was before the Minister constructively or otherwise." [292]
The Applicants characterising the Respondents' stance regarding the State's water rights as "we can do what we like with the water because it belongs to us", argued that this was the "wrong view of the law". [293]
The Applicants argued that the water body in the Lake Paddock is a dependent ecosystem of Yanco Creek and that there was no pleading from the Respondents denying the proposition. [294]
[108]
Respondents' submissions on Decision 8
The Respondents observed that the particulars to Decision 8 repeated the particulars to Decision 7, with one addition to particular (xi), namely, a failure to have regard to the alleged invalidity of Decision 7. The Respondents therefore repeated their submissions (summarised at [264]-[267] above) in relation to the allegations concerning failure to take into consideration ss 5 and 9 of the Water Management Act, and their submissions (summarised above at [403]-[413]) in relation to the alleged relevant/irrelevant considerations both as applied to Decision 8. Like the other WSPs, the Respondents submitted, the provisions of 2016 Regulated WSP evidence consideration of environmental concerns including cll 7, 9, Pt 3 (the bulk access regime), and Pt 4 (planned environmental water). The Respondents contended that "[a]gain, the applicants real complaint seems to be that the Lake Paddock has not been declared a regulated river (which does not happen under the WSP, but under separate instruments)". The Respondents thus repeated their submissions, summarised at [448]-[451] above.
However, the Respondents noted that there was a factual matter that distinguished the claim with respect to Decision 8, namely, that the First Applicant made a submission to the Minister, on 21 June 2016 (after the Minister had signed the briefing note on 6 June 2016, but before the 2016 Regulated WSP was made on 29 June 2016). The Respondents noted that the SFAPOC does not however plead a failure to take into account that submission. Even if they had, the Respondents argued, the Applicants had not established, as a matter of statutory construction, that there was a legal obligation on the Minister to consider that letter or the issues raised in it. The Water Management Act, the Respondents submitted, "does not impose an obligation to consider the impacts of a WSP on each and every body of water in New South Wales. Additionally, the Respondents said, the submission of 21 June 2016 did not raise concerns about the environmental impact on the Lake Paddock, but merely asserted that the Applicants had a "tradeable water right" and should thus be included in the 2016 Regulated WSP.
[109]
Particular (xi) of Decision 8
As to particular (xi) to Decision 8, the Respondents submitted that there could be no obligation to have regard to the "invalidity" of the decisions referred to therein if (as the Respondents submitted) none of those decisions were invalid. Further, the Respondents contended, their alleged invalidity was not a mandatory relevant consideration in relation to the exercise of the Minister's power in s 50 of the Water Management Act to make the 2016 Regulated WSP.
[110]
Was the challenge to Decision 8 made within time?
In the case of the review of Decision 8, being a challenge to the Minister's decisions to replace the 2003 Regulated WSP with the 2016 Regulated WSP, the relevant date of the decision was the Ministerial Order signed on 29 June 2016, notification of which appeared on the New South Wales government website on 1 July 2016. As this was a decision dealing with a water sharing plan, s 47 of the Water Management Act applies and, accordingly, as the Applicants in these proceedings seek to review the Minister's decision they are thereby seeking to challenge the validity of a management plan. As examined earlier in this judgment, by s 47(2) of the Water Management Act, the judicial review period in respect of a management plan is the period of three months after the date the decision regarding the plan was published on the New South Wales legislation website. Accordingly, with respect to the review of Decision 8, the proceedings in relation to that Decision 8 must have been commenced by 1 October 2016.
Of particular note, with respect to the statutory time limit applicable to the review of a management plan, is the effect of s 47(3) wherein it is stated that "[t]he [3 month] judicial review period cannot be extended by the Land and Environment Court or any other court, despite any other Act or law". As such, there is no discretion available to this Court to extend the review period beyond the allowable three months. It is also to be recalled that, by reason of UCPR r 59.10(4), because there is a statutory limitation period prescribed in s 47 of the Water Management Act, r 59.10 does not apply to the proceedings (insofar as the proceedings relate to a decision to which s 47 of the Water Management Act applies). Accordingly, even if it were thought necessary that an extension of time was required in order to review Decision 8, the usual ability to exercise a discretion, pursuant to r 59.10(2), to allow proceedings to be commenced beyond the three-month limit, is unavailable.
It is therefore of critical importance to confirm whether the Applicants' review of Decision 8 was brought within the three-month statutory time limit pursuant to s 47(2)(b), given that the Court has no power to extend that time limit by virtue of s 47(3). If the review of Decision 8 was brought out of time, then this Court has no power to judicially review Decision 8.
[111]
The relevance of environmental damage
Earlier in this judgment at [295], when considering Decision 1, I quoted a passage at [179]-[180] from the judgment of Biscoe J in Arnold No 6 in which it was accepted that there is a statutory implication that it is mandatory for the Minister to have regard to the water management principles in s 5 of the Water Management Act when making a plan. In this judgment I have earlier firmly confirmed those duties identified in Arnold No 6. With Decision 8 the issue involves the Minister's decision to make the 2016 Regulated WSP, which, by that decision, replaced the 2003 Regulated WSP. At the 'stated' heart of the Applicants' challenge to Decision 8 was a contention that by failing to include the Lake Paddock and the unnamed watercourse/diversion channel (which links the Lake Paddock and Yanco Creek) in the 2016 Regulated WSP rather than leaving them in the 2012 Unregulated WSP, all manner of harmful consequences have occurred which can collectively be described as failing to protect the environmental values of a dependent ecosystem, being the Lake Paddock, in breach of many cited provisions of the Water Management Act.
A composite summary of the pleaded impacts or harmful consequences expressed in the form of extracted words from the grounds set out earlier at [466], confirm the tenor of the 'expressed' concerns of the Applicants regarding environmental impacts which they contend evidence a failure to adhere to the provisions of the Water Management Act:
(i) Failure … in protecting the billabong water source;
…
(v) Failure …to take all reasonable steps to protect and restore the wetland, being the billabong in the Lake Paddock the floodplain and the dependent ecosystem being the trees and natural heritage thereof …;
(vi) Having regard to irrelevant considerations … causing major losses in the system of regulated water in preference to the prevention of degradation of the wetlands and dependent ecosystems…;
(vii) Failing to have regard to ….cumulative impacts …. on the billabong wetland in the Lake Paddock of Somerset Park and its dependent ecosystems and its natural heritage …;
(viii) Failing to have regard to … the minimisation of land degradation on … the banks of Yanco Creek by soil erosion, waterlogging and inundation of the Lake Paddock and its natural heritage and undermining the productivity of the land in Lake Paddock and its environs …
…
[112]
Was Decision 8 subject to legal error?
The proceedings before me are a judicial review of the impugned decisions. Each decision must therefore be examined to determine whether the making of that decision was flawed in accordance with administrative law principles. The bar the Applicants must get over, to satisfy the onus that rests upon their shoulders, is to establish that an "unfortunate consequence" of decision‑making (to use the Applicants' term), say the inundation of Lake Paddock, is a consequence of a legally flawed decision. As I have repeatedly said earlier, a perfectly valid decision, complying with all legislative and administrative law requirements, may, nonetheless, give rise to "unfortunate" outcomes. For a litigant to prove that such a decision was invalid, however, proving those unfortunate outcomes alone is insufficient.
None of the provisions in the Water Management Act, the 2012 Unregulated WSP, or the 2016 Regulated WSP can guarantee that decision-making will always result in a positive environmental outcome, notwithstanding the objects of the Water Management Act. I accept the evidence that the Lake Paddock has been continually inundated and the River Red Gums growing within it are dead or dying, but those facts are not proof that Decision 8 was flawed in the administrative law sense.
The Court disagrees that Decision 8 can be said to have been made in disregard or without sufficient regard to the 2012 Court Orders. First, the 1,000-megalitre water access right remains with the Applicants, albeit sourced within the unregulated WSP system. Secondly, with those 2012 Court Orders ensuring the allocation of that water, the obligation to construct the regulator remained with the Applicants' entitlement. In essence, nothing had changed; the Applicants still had the opportunity (indeed the obligation) to stem the flow of waters from Yanco Creek in to the Lake Paddock by way of a regulator.
The Applicants have not demonstrated why the 2012 Court Orders were a relevant consideration to be taken into account when Decision 8 was made. However, even if the 2012 Court Orders were a relevant consideration, as the regulator obligation was carried forward into the licence issued following the 2012 Court Orders, the Minister could well be entitled to note the purpose of that regulator and presume due compliance would see it constructed. In the context of Decision 8, being a decision where, by s 5(3)(a) of the Water Management Act, it was required that the "sharing of water from a water source must protect the water source and its dependent ecosystem" and pursuant to cl 43(1)(b) of the 2016 Regulated WSP, in determining the channel capacities, the Minister is to take into account of "the effects of inundation on the floodplains and associated wetlands", the regulator obligation would be consistent with the Minister's decision. So even if the 2012 Court Orders were a relevant consideration, the assertion that there was a failure to have regard, or that insufficient regard was given, to the 2012 Court Orders could be taken to be rebuffed.
[113]
The constitutional claim
Section 100 of the Commonwealth Constitution provides:
100 Nor abridge right to use water
The Commonwealth shall not, by any law or regulation of trade or commerce abridge the right of a State or of the residents therein to the reasonable use of the waters of rivers for conservation or irrigation.
The Applicants alleged that the Respondents "impaired the constitutional guarantee of the Applicants contained in s 100 of the Commonwealth Constitution". This guarantee, the Applicants said:
applies to state laws and measures and the implementation thereof as alleged herein and have thereby abridge the right of the Applicants and each of them and all farmers holding land adjacent to Yanco Creek to the reasonable use of the waters of Yanco Creek for conservation or irrigation.
[114]
Applicants' submissions on constitutional claim
This was particularised as follows:
(i) In the premises in implementing the decisions complained of in paragraphs 8A and 8B the Respondents have unreasonably abridged the right of the Applicants to the use of Yanco Creek for conservation and for irrigation and to maintain its natural heritage values.
(ii) Each of the water works and water usage decisions and their adverse consequences and effect on "Somerset Park" in the implementation thereof as alleged herein failed to have regard to the obligation on the Respondents as owners of the water resources of NSW including in Yanco Creek not to abridge the reasonable use by the residents of the waters of rivers for irrigation and conservation and in not so doing each such decision is void and of no effect.
(iii) The Applicants will seek injunctive relief to prevent further impairment of their and the local environment at "Somerset Park" by reason of the decision or decisions complained of herein.
In their "summary of argument", filed before the commencement of the hearing, the Applicants argued that there had been:
an impairment by the unauthorised acts and decisions of the Applicants' rights as residents of the State of NSW to the reasonable use of the waters of Yanco Creek for conservation by adopting the high usage and flows in that Creek inundating the Applicants' land, which leads to the invalidity of any law that in its terms operation or effect impairs that right as has happened here. [295]
However, when questioned during the hearing as to whether the constitutional claim would be withdrawn, or whether it would be continued to be pressed, counsel for the Applicants reiterated that the constitutional claim was pressed, but declined to make submissions thereon (Transcript 554.42).
With counsel for the Applicants adopting this course, the Court's understanding of the Applicants' claim with respect to s 100 of the Constitution was not assisted. The Court was thereby limited to examining the pleadings and the "Notice of a Constitutional Matter" under s 78B of the Judiciary Act 1903, dated 19 December 2016. The s 78B Notice was Annexure A to the affidavit of John Andrew Andrews sworn 13 March 2017.
In the course of the hearing the Court expressed a tentative view that the constitutional claim of the Applicants was if not devoid of substance, weak, and invited the Applicants' counsel to withdraw their claim, or at least clarify their position, for example (at Transcript 207.33-34), "I really need to understand how you put that constitutional case, because I do see fundamental problems with it".
[115]
Respondents' submissions on constitutional claim
The Respondents denied that s 100 of the Constitution imposes a limitation on the legislative powers of the States. [296] Rather, the Respondents submitted, it is well established that s 100 relates to conduct by the Commonwealth (citing Morgan v Commonwealth (1947) 74 CLR 421; [1947] HCA 6 (Morgan) at 455, 458-459; passages in Arnold Appeal at [23], [53], [76], and [83], wherein it was decided that it was unnecessary to reconsider the correctness of Morgan; and Commonwealth v Tasmania (1983) 158 CLR 1; [1983] HCA 21).
The Respondents cited the decision of the Full Federal Court in Lee v Commonwealth (2014) 229 FCR 431; [2014] FCAFC 174 (Lee) at [87], [107]-[110], wherein that Court applied Morgan in holding that the primary judge was correct in summarily dismissing the appellant's case relying on s 100 of the Constitution and, further, held that s 100 did not create a private right, enforceable in an action for damages (at [185]).
Therefore, the Respondents submitted, the constitutional claim alleged in paragraph 12 of the SFAPOC should be dismissed.
Further, the Respondents argued that paragraph 12 of the SFAPOC should also be dismissed because:
a. s 100 is a restriction on legislative power, and the applicants have not identified any "law or regulation" which has restricted their reasonable use of waters and
b. there is no evidence that any law or regulation has restricted the applicants reasonable use of the waters of Yanco Creek. Under cross-examination Mr Paul Andrews was not able to explain [32] of his affidavit of 28 January 2016 (which alleges inter alia a loss of capability to irrigate). He accepted there was nothing stopping him from using the water in the Lake Paddock for irrigation, aside from financial reasons Mr Purcell purported to opine about the applicants reasonable use of waters but was in reality opining about the reasonable use of their land. [297]
[references omitted]
[116]
Consideration of the constitutional claim
The Court is satisfied that the Respondents have placed before it cogent reasons why the Applicants' s 100 constitutional contentions should be dismissed. The starting point is what I consider to be trite law that s 100 relates to Commonwealth decisions and actions and does not impose a limitation on the legislative powers of the States. As counsel for the Respondents submitted: "… the cases establish that (s 100 of the Constitution) only applies to restrict Commonwealth power, not State power" (Transcript 90.36-40). I consider that proposition to be patently clear on the face of s 100 and it is apparent that is how the provision was intended to operate. As held by the High Court in Morgan, at 455, s 100 is one of a group of sections that "should be read as applying only to laws which can be made under the power conferred upon the Commonwealth Parliament by s 51(i)".
Before leaving s 100, I should also note that, in addition to s 100 being focused on Commonwealth laws and regulations, those laws and regulations are to be in relation to trade or commerce. Although my finding that the absence of a requisite Commonwealth law in this case is fatal to the Applicants' case, the additional prerequisite that the law or regulation in question is to be with respect to trade or commerce, reinforces the rationale for dismissing the Applicants' s 100 constitutional claim. In this regard, I follow the judgment of the Full Court of the Federal Court in Lee wherein they dismissed a not dissimilar claim with respect to s 100, albeit the primary focus of that case was the operation of the Water Act 2007 (Cth). However, the conclusions of the Federal Court, as are apparent from the following passage, are nevertheless pertinent to the determination of similar arguments raised before me:
110 Consequently, we do not consider it can be said the primary judge erred in concluding that the s 100 case argued by the appellants on the basis of Morgan, had no reasonable prospects of success. No error is shown. If a different approach to the construction of s 100 is to be taken, it must be as a result of a considered re-opening of Morgan by the High Court, not by this Court.
111 In those circumstances the appellants press their alternative argument that the relevant parts of the Water Act that they impugn, can be characterised as a law relating to trade and commerce for the purposes of s 51(i), and so for the purposes of ss 99 and 100.
…
118 The appellants emphasise that it is the operation and effect of the relevant provisions of the water market created by the Water Act that must be focused on in determining the true nature and character of the impugned provisions. They contend that when that is done appropriately, and at least arguably for the purposes of a summary dismissal application, it can be seen that, while many of the provisions of the Water Act are, as the primary judge found, designed to protect the environment, they are also about interstate trade or commerce.
…
122 There are a number of stumbling blocks recognised by the primary judge, which, in our view, make the propositions pressed as a whole, untenable. In particular, the proposition, or assertion, that commercial irrigation is an activity in interstate trade and commerce, is put at a very high level of generality. It very much was put on the basis that water flowing down the river, which is diverted into commercial horticultural farms provided the interstate character of the law. The argument, put in this way, fails to appropriately engage with the machinery provisions of the Water Act and what they say and do.
123 The second proposition put, again at a high level of generality, was that because the Water Act had the effect, or potential effect, of reducing the quantity of water in the River Murray for irrigation or conservation purposes it therefore "cut" the appellants rights of commercial irrigation and conservation, so that the Water Act and its relevant parts was in substance or effect a law about trade and commerce among the States In so stating, the submission fails to explain how the law thereby becomes one of trade and commerce among the States.
[117]
Applicants' submissions on discretionary factors
The Applicants argued that the Respondents' submission, that the Court ought to decline to grant relief to the Applicants on the basis of delay and the Applicants' non-compliance with condition 7 (later condition 10) of the 1986 Licence, ought to be rejected because "the environmental damage is ongoing and can only be resolved by decisions and actions of the Respondents". [298]
[118]
Delay
The Applicants acknowledged that delay in commencing proceedings is a discretionary reason for a court to refuse relief, however pointed to Re Refugee Tribunal; Ex parte Aala (2000) 204 CLR 82; [2000] HCA 57, Yirrell v Yirrell [1939] HCA 33; (1939) 62 CLR 287, and Katter v Melhem (2015) 90 NSWLR 164; [2015] NSWCA 213, in which, the Applicants said, the relevant court granted relief notwithstanding a delay in the commencement of the proceedings. [299]
The Applicants argued that they commenced proceedings "within time after the mandatory conditions were imposed completing the relevant decision‑making process and finally settling the question as to what licence [the First Applicant] was entitled to under the proclamation commencing the Water Management Act 2000 section 55A and 88A with respect to the [1986 Licence]". [300]
Further, they submitted, "[i]f anyone should be criticised for delay it is the State, which knowing of the environmental damage being caused by its ongoing river operations simply ignored the problem". [301]
[119]
Compliance with conditions of 1986 Licence
With respect to the Respondents' submissions regarding condition 7 (later condition 10) of the 1986 Licence, the Applicants said:
We dispute any breach of condition 7. Indeed, we point out that the licence didn't even permit us to build a sill until 1996 and, after 2012, the Act simply says you can only be in breach if you fail to use a licence. But our second point is that the whole sill was ineffective by reason of the high regulated flows and the pressure on Yanco Creek and its dependent ecosystem, the Lake Paddock at "Somerset Park". And, of course, it's not just the Lake Paddock, it's the Yanco Creek itself and the banks of water which pass through them on my client's property. (Transcript 547.45-47)
[120]
Delay
The Respondents submitted that the Applicants' delay in commencing the proceedings, noting that the impugned decisions were allegedly made from 1990 onwards, was highly material to the Court's exercise of its discretion.
This delay, the Respondents submitted, was "a powerful factor weighing against the grant of relief sought in the present proceedings" in relation to Decisions 1 and 2 (to the extent those decisions were alleged to have been made between 1990 and 22 March 2015) and Decisions 3, 4 and 5. The Applicants, the Respondents said, have provided no real explanation for the delay in commencing proceedings. With respect to Decisions 1 and 2, the Respondents argued that the delay had resulted in prejudice to the Respondents because "the passage of time makes it difficult to answer allegations about what was and was not taken into account". [302]
With respect to the authorities relied upon by the Applicants', the Respondents contrasted the "25 year lapse of time between 1990 and the commencement of the present proceedings" and the "little more than 14 months in Katter v Melham". [303]
[121]
Compliance with conditions of 1986 Licence
The Respondents argued that the First Applicant's non-compliance with the conditions of its licence requiring the construction of a regulator also weighs against the grant of any relief against Decision 1 (noting, however, that no relief was sought). [304]
[122]
Change in flows
The Respondents further submitted that, to the extent the Applicants seek relief by way of a change to the flows in Yanco Creek, a further reason for the refusal of that relief was that it could have serious adverse impacts upon third parties and the environment (relying on the evidence of Mr Maini at Transcript 399.18-22 and the Alluvium Report at page 3). [305]
[123]
Consideration of discretionary factors
If the Court is incorrect with respect to any of its conclusions in relation to its review of the various decisions the subject of these proceedings and therefore has residual discretion to exercise with respect to the grant of relief, then the Court has concluded that, in any event, there are sound reasons why the Court should not exercise its discretion in favour of the Applicants and so not grant any of the relief sought.
The Court has decided that, with respect to the Respondents' arguments regarding discretion, being: (i) the Applicants delay in seeking relief; (ii) the Applicants non-compliance with licence conditions; and (iii) the implications for an unknown number of, but obviously numerous, landowners and water users downstream from "Somerset Park" of any orders made in these proceedings, in all three respects the arguments have merit.
Earlier in this judgment at [209]-[225], the Court examined the implications of the proceedings being out of time for the purposes of r 59.10 of the UCPR. In that discussion, the Court concluded that there remained a discretion within the hands of the Court whether or not to allow aspects of the Applicants' claim to proceed to determination. There is a distinction between the exercise of discretion to allow a claim to proceed, that is, to allow it to be argued and considered, and the exercise of discretion, after argument from both parties have been ventilated, whether to grant the relief sought in relation to any particular 'surviving' head of claim. Having allowed a number of the claims of the Applicants to proceed to argument, it is the implications of delay with respect to the latter aspect of discretion, that is, relief, which I am now considering.
[124]
Delay
Although modern society, characterised by information overload, can swamp the capacity of the ordinary citizen to deal with the many manifestations of bureaucracy of government and obfuscate an understanding of decision‑making, there are nevertheless many avenues available to verify the rights a citizen might have, and to ascertain whether those rights might have been infringed. These avenues include the proper application of diligence, savvy internet searching and, where necessary, early investigation via the assistance of freedom of information legislation to delve into the processes of decision-making. In this case, the Court considers there were many instances where the Applicants' concerns could have been pressed years earlier and maintained with greater diligence.
There were lapses of attention by the Applicants The Court heard, during the oral evidence of Mr Paul Andrews, that the 10-or-so years of the decline in health of his father, Mr Andrew Andrews, led to the family, effectively, withdrawing to the city, with "Somerset Park" being placed in caretaker mode. The cross-examination of Mr Paul Andrews (at Transcript 147-149) revealed that there hadn't been a full-time manager since about 1993, that cattle belonging to a neighbour have been agisted on the property for the last 15 to 20 years and that even the olive grove has not been harvested in recent years. In all respects Mr Andrews was vague on details. It seems that the family eye "was taken off the ball" after the earlier years of Mr Andrew Andrews pressing his concerns with respect to the inundation of the Lake Paddock. However, having "dropped the ball", the Court is of the opinion that the Applicants cannot complain that water management decision‑making by government proceeded (not unreasonably, given the catchment-wide responsibilities affecting hundreds, probably thousands, of other water users).
With the 1986 Licence being granted in 1986, it was not until December 1995 that there was correspondence between the First Applicant and the Department regarding the regulator. Five years passed with no regulator built, until mid-2001 when the Department pressed the issue of whether a licence renewal was required, in the context of the licence allocation not being used, and "losses of regulated water from the Yanco Creek system", and Mr Andrews stated concerns regarding inundation. Following the 2002 renewal, six years then passed before, in 2008, another renewal of the 1986 Licence occurred, with the conditions amended to provide for a zero allocation, in line with usage. Then in April 2012, after another four years, a refusal to renew the licence prompted the Applicants to commence proceedings before this Court. There followed, in August 2012, a 'resolution' achieved through negotiation resulting in the 2012 Court Orders. Three further years then passed before these proceedings were commenced by summons on 22 June 2015. With a multiplicity of directions hearings and numerous changes to the Applicants' pleadings, the primary hearing finally commenced over three years later, in July 2018. The Court concludes that, taken together, the many delays in this sorry saga weigh against the exercise of discretion in favour of the grant of relief.
[125]
Condition 7
A persuasive argument against the exercise of discretion in favour of the Applicants was their failure to comply with condition 7 of the 1986 Licence (which was subsequently renumbered condition 10). This was the condition which required the Applicants to construct a regulator on the diversion channel from Yanco Creek into the Lake Paddock. Read together, conditions 7-12 were clearly designed to, materially and critically, provide for the construction of a control device to be operated so as not to cause any inundation of land by floodwaters. The Court does not accept that there was any justification at any stage to delay the construction of the regulator, such as to 'seek more detail' of the design at the time of the April 1996 licence renewal (notably, 10 years after the initial requirement was breached and thereafter never complied with). Five years later in August 2001, in an exchange of correspondence between the First Applicant and the Department regarding concerns about tree deaths due to inundation, it is to be noted that the regulator was still not constructed.
The Court takes the view that the regulator should have been built, in compliance with the initial licence conditions and as subsequently required to be in compliance with each successive licence renewal. It does not matter that the Applicants may have had questions or even doubts about the practical value or function of the regulator as, once tried and tested, it could have been modified. However, with the regulator never having been built, there was never an opportunity to determine whether it would work or might require refinement. If, for instance, the initial design of the regulator failed to prevent inundation of Lake Paddock by floodwater, it would be at that stage appropriate to question its design and perhaps its sill level. The Court mentions the sill level as being rather quaintly described as "a sill level fixed at not more than 1.11 metres below the level of a bench mark established on a gum tree on the left bank of Yanco Creek near the work", it is conceivable that the height so specified might have been inadequate as waters in Yanco Creek rose, or, given the frequent mention of gum-tree death in the evidence, the specified gum tree might have toppled over. The point is this: whatever the questions there might have been about the functionality of the regulator in the face of inundating high creek flows, unless built and tested, the Applicants would never know. On this basis the Applicants' counsel's submission that "the whole sill was ineffective by reason of the high regulated flows and the pressure on Yanco Creek" is an entirely unsustainable proposition.
[126]
Orders
The Court orders:
Application regarding Supplementary Submissions in Reply
1. The Applicants' application for leave to file and rely upon 'Supplementary Submissions in Reply' dated 9 August 2018 and their associated 'Reply' dated 3 September 2018 is dismissed.
2. The Applicants' shall pay the Respondents' costs incurred as a consequence of the application for leave to file Supplementary Submissions in Reply.
Notice of Motion to reopen case to receive further evidence
1. The Applicants' Notice of Motion filed 14 September 2018 is dismissed, and so leave is not granted to the Applicants to reopen their case in order to rely upon supplementary evidence from Mr Paul Andrews via a further affidavit sworn 3 September 2018 and supplementary evidence from Mr James Purcell via a further affidavit sworn 5 September 2018.
2. The Applicants shall pay the Respondents' costs incurred on the Motion on the ordinary basis as agreed or assessed.
Notice of Motion seeking extension of time under r 59.10(2)
1. The Applicants' Notice of Motion filed 1 December 2017, seeking leave pursuant to r 59.10(2), is dismissed save for Decision 6 and so leave is not granted to the Applicants to seek judicial review of the other Decisions to which s 47 of the Water Management Act does not apply.
Dismissal of Applicants' case
1. The Applicants' claims with respect to all the impugned Decisions the subject of these proceedings are dismissed.
Constitutional claim
1. The Applicants' claim pursuant to [12] of the Second Further Amended Points of Claim and, to the extent necessary the related Ground 7 in the Second Further Amended Summons (Judicial Review), being the claim based on s 100 of the Commonwealth of Australia Constitution is dismissed.
Costs
1. Costs are reserved, with the parties having leave to confer for the purpose of proposing appropriate orders with respect to the making of submissions on the question of costs, including timing thereof.
[127]
Annexure A- Map of Yanco Ck (303 KB, pdf) Randren House
Annexure B - List of defined terms (52.7 KB, doc)
Randren House Annexure C- Chronology (19.3 KB, docx)
[128]
Endnotes
Exhibit O, pp 150-151
See conditions 7, 8 and 9 of licence L45398 as renewed on 22 October 1991 (Exhibit O, p 146); condition 7 of renumbered licence 40SL45398, as renewed on 24 April 1996 (Exhibit O, p 126), 6 September 2002 (Exhibit O, p 97), 16 June 2008 (Exhibit O, p 79) and 24 August 2012 (Exhibit O, p 54D(4)); Statement of Approval no 40CA412879, additional conditions NS18574 and NS18589 (Exhibit O, p 26)
Affidavit of Paul Andrews 28 January 2016, Transcript 185.1
Exhibit O, p 54D(1)
Exhibit O, p 54C
Exhibit O, p 54B
Exhibit O, pp 48-54.
Exhibit O, p 50
Exhibit O, p 32
Exhibit O, p 31
RCS, [22]
RCS, [23]
Exhibit 6(b), p 698
Exhibit 6(b), p 693
RCS, [24]
Exhibit 6(b), p 304
Exhibit O, p 11
Exhibit 6(b), pp 404, 406
Exhibit O, pp 8B(2)-(3)
Relying on the evidence of: second Purcell Report, p 57; third Purcell Report, [5]; Mr Maini at Transcript 322.38; Mr Warren at Transcript 287.50; Affidavit of Paul Andrews 1 November 2017, [11], [15]
Citing Alluvium Report pp 145-153
[129]
Amendments
26 February 2019 - Annexures A, B and C were omitted to be uploaded at the time of publishing. Those annexures have been uploaded on 26 February 2019.
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: 26 February 2019
Parties
Applicant/Plaintiff:
Randren House Pty Ltd
Respondent/Defendant:
Water Administration Ministerial Corporation
Legislation Cited (3)
(the 1912 Act or the Water Act). The Water Management Act 2000(NSW)
ani; Great Lakes Council v Lani and Lampo Pty Limited (2007) 158 LGERA 1; [2007] NSWLEC 681
Hanna v Commonwealth Director of Public Prosecutions [2016] NSWSC 325
Harvey and Tubbo v Minister Administering the Water Management Act 2000 (2008) 160 LGERA 50; [2008] NSWLEC 165
ICM Agriculture Pty Ltd v Commonwealth (2009) 240 CLR 140; [2009] HCA 51
John Young and Company v The Bankier Distillery Company [1893] AC 691
Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8
Katter v Melhem (2015) 90 NSWLR 164; [2015] NSWCA 213
Khan v Minister for Immigration and Ethnic Affairs (1987) 14 ALD 291; [1987] FCA 713
Lee v Commonwealth (2014) 229 FCR 431; [2014] FCAFC 174
Manly Council v Byrne [2004] NSWCA 123
Mason v Hill (1833) 110 ER 692
Maxwell v Murphy (1957) 96 CLR 261; [1957] HCA 7
Minister Administering the Water Management Act 2000 v Sharkey (2017) 226 LGERA 322; [2017] NSWCA 319
Minister for Aboriginal Affairs v Peko-Wallsend Ltd (1986) 162 CLR 24; [1986] HCA 40
Minister for Immigration and Citizenship v SZJSS (2010) CLR 164; [2010] HCA 48
Minister for Local Government v Blue Mountains City Council (2018) 229 LGERA 197; [2018] NSWCA 133
Mitchforce Pty Ltd v Industrial Relations Commission of NSW (2003) 57 NSWLR 212; [2003] NSWCA 151
Moorebank Recyclers Pty Ltd v Tanlane Pty Ltd [2017] NSWLEC 97
Morgan v Commonwealth (1947) 74 CLR 421; [1947] HCA 6
Mosman Municipal Council v IPM Pty Ltd (2016) 216 LGERA 252; [2016] NSWLEC 26
MSPR Pty Ltd v Advanced Breaking Technology [2013] NSWCA 416
Murrumbidgee Groundwater Preservation Association Inc v Minister for Natural Resources (2005) 138 LGERA 11; [2005] NSWCA 10
NA&J Investments Pty Ltd v Minister Administering the Water Management Act 2000 (2011) 181 LGERA 166; [2011] NSWLEC 51
Nature Conservation Council of New South Wales Inc v Minister Administering the Water Management Act 2000 (2005) 137 LGERA 320; [2005] NSWCA 9
O'Connor v New South Wales [2017] NSWSC 598
Onesteel Reinforcing Pty Ltd v Sutton [2012] NSWCA 282
Patsalis v Attorney General of NSW [2013] NSWCA 98
Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355; [1998] HCA 28
Randren House Pty Ltd v Water Administration Corporation (No 3) [2018] NSWLEC 106
Randren House Pty Ltd v Water Administration Ministerial Corporation [2017] NSWLEC 151
Randren House Pty Ltd v Water Administration Ministerial Corporation (No 2) (2017) 228 LGERA 354; [2017] NSWLEC 185
Re Refugee Tribunal; Ex parte Aala (2000) 204 CLR 82; [2000] HCA 57
Regional Express Holdings Ltd v Dubbo City Council (No 2) [2013] NSWLEC 113
Riva NSW Pty Ltd v Mark A Fraser and Christopher P Clancy trading as Fraser Clancy Lawyers (No 3) [2018] NSWCA 326
Royal Insurance Co Ltd v Myelius (1926) 38 CLR 477; [1926] HCA 49
Sean Investments Pty Ltd v MacKellar (1981) 38 ALR 363; [1981] FCA 191
Sharkey v Minister Administering the Water Management Act 2000 [2017] NSWLEC 3
Sharkey v Minister Administering the Water Management Act 2000 [2017] NSWLEC 47
Swift v SAS Trustee Corporation [2010] NSWCA 182
Telstra Corp Ltd v Hornsby Shire Council (2006) 67 NSWLR 256; [2006] NSWLEC 133
Telstra Corporation Ltd v Australian Competition and Consumer Commission (2008) 171 FCR 174; [2008] FCA 1436
The Movie Network Channels Pty Ltd v Optus Vision Pty Ltd [2009] NSWSC 132
Thorpes Ltd v Grant Pastoral Co Pty Ltd (1955) 92 CLR 317; [1955] HCA 10
Vanmeld Pty Ltd v Fairfield City Council (1999) 46 NSWLR 78; [1999] NSWCA 6
Woolworths Limited v Wyong Shire Council & Ors [2005] NSWLEC 400
Woolworths Ltd v Pallas Newco Pty Ltd (2004) 61 NSWLR 707; [2004] NSWCA 422
Yates Property Corporation Pty Ltd (In Liq) v Darling Harbour Authority (1991) 24 NSWLR 156
Yirrell v Yirrell [1939] HCA 33; (1939) 62 CLR 287
Yrttiaho v The Public Curator of Queensland (1971) 125 CLR 228; [1971] HCA 29
Texts Cited: A B Paterson, The Man From Snowy River and Other Verses (1st ed, 1895, Angus & Robertson)
Category: Principal judgment
Parties: Randren House Pty Ltd (First Applicant)
Mr Paul Andrew Andrews (Second Applicant)
Water Administration Ministerial Corporation (First Respondent)
State of New South Wales (Second Respondent)
Minister Administering the Water Management Act 2000 (Third Respondent)
Representation: Counsel:
Mr P E King and Ms F Sinclair (Applicants)
Ms Z Heger (Respondents)
Preamble
The Murrumbidgee River and its tributaries such as Yanco Creek, which is a key focus of these proceedings have been, from the earliest European colonial days in this State, emblematic of rural Australia, giving rise to stories poems and song which have, in picturesque bucolic images of pastoralism amidst a landscape of sweeping plains graced with majestic River Red Gums along meandering watercourses colourfully portrayed a pastoral life. This rural life, whether real or surreal, has been far removed, indeed detached, from the hustle and bustle of urban life in cities like Sydney. From time immemorial (prior to colonial days), the Dreamtime of the First Australians depicted the life-force of these rivers and creeks reinforcing the interrelationship and interdependency of all elements of Country. Natural cycles were expected and, to a degree, understood. As Banjo Paterson in "A Mountain Station" penned:
And sometimes under sunny skies,
Without an explanation,
The Murrumbidgee used to rise
And overflow the station.
But this was caused (as now I know)
When summer sunshine glowing,
Had melted all Kiandra's snow
And set the river going.
As the decades passed and competing interests put pressure on the State's natural water sources they increasingly and inexorably became resources simply for exploitation. The Legislature responded and regulatory regimes grew and evolved. At first, the focus was all on regulating competing exploitative extraction. So we see, in the Water Act 1912 (1912 Act), legislation relating to water rights water and drainage, drainage promotion and artesian wells. There was scant mention in those early days of the natural environment, let alone seeking its sustainable protection for its inherent values as we would understand concepts of environmental management today.
Biscoe J, in the opening paragraph of his judgment in Arnold v Minister Administering the Water Management Act 2000 (No 6) [2013] NSWLEC 73 (Arnold No 6) highlights the issue for all Australians with respect to water:
In Australia, water is a valuable, finite and fluctuating resource. Rights to use water are of critical importance not just to those who are interested in particular water entitlements but to society as a whole. Access to water requires sustainable and efficient management that balances environmental, economic and social considerations.
The enactment of the Water Management Act 2000 (Water Management Act), starting with its long title: "An Act to provide for the protection, conservation and ecologically sustainable development of the water sources of the State and for other purposes", is legislative confirmation of a shift in emphasis in what is now the State's primary instrument of water regulation. The objects of that Act (s 3) take this focus one step further, being to: "provide for the sustainable and integrated management of the water sources of the State for the benefit of both present and future generations". With such concepts now to the fore, particularly the intergenerational equity principle setting the context, the decision-making with respect to water now requires a holistic approach.
In a letter dated 5 February 1996, following an inspection of "Somerset Park" on 30 January 1996, Mr Webb again wrote to Mr Andrew Andrews and presented him with two options:
1. Maintain the 1986 Licence and comply with the conditions: Mr Webb noted that the conditions of the licence required the installation of a regulator in the diversion channel with a crest at such a height that would "preclude normal regulated flows that "the license was issued such that only flood flows could be stored and used for irrigation", and that if Mr Andrew Andrews desired "the lagoon to drain periodically, which is environmentally prudent, then you should install an outlet at bed level …"; or
2. Allow the 1986 Licence to lapse: Mr Webb noted that "if you are to derive a benefit via the license [sic] you are to bare [sic] the cost of installing the regulator. If no benefit is to be derived and the license [sic] is allowed to lapse, the Department will construct the works." [6]
By letter dated 29 April 1996, Mr John Andrews, the son of Mr Andrew Andrews, brother of Mr Paul Andrews and director of the First Applicant, (who is also the solicitor on the record acting for the Applicants in these proceedings), requested the Department provide "a schematic diagram or plan of construction" for the First Applicant to "advise our engineers of what is needed to comply with the department's requirements in relation to the regulator." [7]
On 29 May 1996, Mr Webb responded to this letter, enclosing "a schematic of what a regulator could look like", but noting that "it is up to you as to how the works are constituted … and the valves installed will be dependent on whether you wish to store water or ensure that high flows find their way back to Yanco Creek." [8]
On 24 April 2001, Mr Webb wrote to the First Applicant with respect to an application to renew the 1986 Licence to advise of "impending action proposed by the [D]epartment regarding the prevention of inundation from regulated supplies in Yanco Creek" and seeking to confirm, as the First Applicant had "not used the licence since it was issued and the renewal fee is $1473", that it still wished to maintain the licence. [9] A letter from the Department dated 3 July 2001 again requested clarification as to whether the First Applicant wished to maintain the 1986 Licence. [10]
On 22 August 2001, Mr Webb wrote to Mr A Andrews stating:
As mentioned in my previous letter dated 24/4/01, the department, through State Water, is endeavouring to ensure no regulated water is lost from the Yanco Creek system.
You have indicated that you do not wish tree destruction within the lagoon that is flooded via the unnamed watercourse, upon which your licence exists.
It is the department's intention to construct works to prevent regulated flows from flooding the lagoon as you suggested might be the case previously.
This being the case, your licence 40SL45398 would no longer be required.
There are three options available to discontinue the licence:
1. You formally request your renewal application be withdrawn. Your renewal fee of $1476 will be refunded. This is the quickest and least officious method.
2. The department formally refuses your application and returns your renewal fee. Any such refusal is subject to appeal to the Land and Environment Court.
3. The department cancels the licence. Under Section 13F of the Water Act, any licence may be cancelled if it has not been used for a period of three years. The privileges of this licence have never been used. The licence would need to be current prior to this action; hence you would not be entitled to any refund of the renewal fee.
I trust you can see the advantages of Option 1 and look forward to hearing from you." [11]
On 6 September 2001, the First Applicant replied to the 22 August 2001 letter, stating that it was considering the matter and would "advise the Department of its reply shortly". [12]
On 12 October 2001, the Department wrote to the First Applicant noting that "[i]f a formal request for withdrawal of the renewal is not received by 30 October 2001, the Department will, depending on legal advice, proceed with either Option 2 or Option 3" of the 22 August 2001 letter. [13] The First Applicant, through its solicitors acknowledged receipt of that letter on 30 October 2001.
On 9 November 2001, solicitors for the First Applicant wrote to the Department, and advised that the First Applicant did not agree to the cancellation of the 1986 Licence, and requested that the then extant application for renewal of that licence "be completed". [14]
Despite internal departmental advice to the contrary, [15] the 1986 Licence was again renewed on 6 September 2002.
In 2002 (by letter dated 26 July 2002) and 2007 (by letters dated 3 April and 5 July 2007), Mr Webb notified the First Applicant that the 1986 Licence was to be converted under the Water Management Act (which had come into force in 2001) and would receive an allocation based on "a history of use". [16] The First Applicant had never used the allocation in the 1986 Licence, and therefore the proposed allocation for the converted licence was zero.
On 16 June 2008, the 1986 Licence was again renewed, and the conditions were amended to provide for a zero allocation (condition 13). [17]
On a number of occasions in 2011 (both by letter and by telephone), when the 1986 Licence was due for renewal, the Department asked the First Applicant whether, in circumstances where it had a zero allocation, it wished to maintain the 1986 Licence. [18] There was no "substantive" response from the First Applicant to these repeated inquiries. [19]
On 28 September 2012, condition 13 of the 1986 Licence (renumbered, as of that date, as condition 10) was amended to provide for a "volume of 1000 megalitres of unregulated water for irrigation use". [29] This is one of the decisions under review in this matter (see [105] below) (the "linked modification" was also granted so that the 1986 Licence authorised a pump). [30]
On 3 July 2013, the Department sought to confirm the construction of the regulator and pump, as set out in notation (c) on the 2012 Court Orders. [31] It is not in dispute between the parties to these proceedings that the regulator was never constructed.
On 30 September 2013, the First Applicant, by its solicitors wrote to the Department, noting that it was consulting an irrigation consultant for the purposes of the installation of a meter, regulator, and sill, and sought to confirm "that upon meeting these requirements our client is entitled to both take water under the licence and to trade water including in relation to the regulated system comprising the Yanco Creek Lower Murrumbidgee in accordance with usual water entitlements". [32] The Court notes that the letter from the solicitor for the First Applicant was marked "without prejudice", but that in being produced by the First Applicant, as part of its Evidence Book (Exhibit O), the First Applicant has waived its privilege with respect to that piece of correspondence.
On 14 July 2014, the delegate of the Minister administering the Water Management Act determined to impose mandatory conditions (Plan Conditions) on the WAL and Approval, pursuant to ss 66, 67, and 100 of the Water Management Act. [38]
On 25 February 2015 (although not received, according to the Applicants until 30 March 2015), the Minister, by his delegate, wrote to the First Applicant notifying it of the imposition of the Plan Conditions. [39] The Plan Conditions came into effect upon the receipt of this notice, which was 30 March 2015. The Applicants in their SFAPOC at [9D] (hereafter referred to as Decision 6), challenge the imposition of these Plan Conditions.
In Randren House No 1, the Court observed at [18]:
Given the history and nature of these proceedings it could be said that there has already been a significant failure to realise the just, quick and cheap resolution of the real issues in the proceedings contrary to Div 1 of Pt 6 of the Civil Procedure Act 2005.
The judgment of the Court:
1. granted the Respondents' Notice of Motion to set aside, in part, the First Applicant's Notice to Produce to Court of 23 October 2017;
2. granted the First Applicant's informal applications of 3 November 2017 to join Mr Paul Andrew Andrews and the Minister Administering the Water Management Act 2000 as parties to the proceedings; and
3. dismissed the First Applicant's informal application of 3 November 2017 to amend the extant summons so as to include a proposed order in the nature of a writ of prohibition and/or injunctive relief.
The proposed joinder of WaterNSW was withdrawn, resolved with consent orders.
Relevantly, as it will be seen later in this judgment, with respect to the request to amend the then Summons so as allow the seeking of an order in the nature of a writ of prohibition and/or injunctive relief, the Court, at [63]-[66] in Randren House No 1, determined as follows:
63. The Applicant clearly proposes to make a significant amendment to the extant Summons. It seeks to include a sought order in the nature of a writ of prohibition and/or injunctive relief to prevent the Respondents from directing particular water flows into Yanco Creek or, alternatively, prevent unreasonable use of the waters of Yanco Creek. The Applicant's position is that this amendment is necessary and appropriate because it would protect against the alleged ongoing environmental damage to Yanco Creek.
64. However, these judicial review proceedings do not centrally concern whether or not the Respondents have caused environmental damage and, if so, how they should be restrained. Rather, these judicial review proceedings concern whether or not the Respondents have made particular decisions (which, to be sure, may affect Yanco Creek and its surrounding environment) unlawfully by, for example, failing to have regard to mandatory relevant matters for consideration. The proposed amendment, therefore, does not pertain to a real question raised or otherwise depending on the proceedings. Additionally, a decision not to permit the amendment would not result in any lack of finality to the ultimate resolution of the proceedings or a realistic risk of a multiplicity of proceedings. The critical questions of whether or not the challenged decisions are lawful cannot be dependent on what happens after the proceedings are resolved.
65. Moreover, the risk that separate proceedings may be commenced to address any ongoing environmental damage to Yanco Creek cannot be appropriately addressed by amending the Summons in the manner proposed by the Applicant. The question is whether or not the proceedings will result in finality as to the legality of the relevant decisions of the Respondents. The question is not whether the proceedings will result in finality as to the dispute between the Applicant and the Respondents as to the environmental condition of the Yanco Creek.
66. Additionally, it is of some significance that the application to amend was made informally by way of an attachment to a letter annexed to an undated affidavit on 4 August 2017 (or 8 August 2017). In circumstances where the initiating Summons was filed on 22 June 2015, this request for amendment 25 months later and after no less than 15 earlier interlocutory hearings in the matter, is (without a compelling explanation) entirely unacceptable and even more inappropriate just 12 working days from the commencement of the trial. In all of the circumstances I find that the Respondents would likely suffer prejudice if the amendment were to be allowed and that so to do would not be consistent with the overriding purpose of civil litigation: Aon Risk Services Australia Ltd v Australian National University.
On 13 November 2017, the Applicants filed an updated Further Amended Summons (Judicial Review) and a Further Amended Points of Claim.
In conformity with the Court orders of 4 August 2017, the first day of the substantive hearing in these proceedings commenced at 10.00 am on 27 November 2017. However, before the hearing commenced in the normal course, counsel for the Applicants informed the Court that the Applicants intended to make a recusal application.
It is therefore necessary for the Court to determine whether such post-hearing submissions, inappropriately placed before the Court before their admissibility was determined, should be read.
Mr Purcell in his 5 September 2018 affidavit exhibited a supplementary expert report dated 3 September 2018, in which at [1] he confirmed that his instructions were to review the proposal by "WaterNSW" and "DPI Water" titled "Improved Flow Management Works at the Murrumbidgee River - Yanco Creek Offtake" (Yanco Creek Offtake Proposal) which he had annexed to a further report annexed to his affidavit. He confirmed that he had been asked to provide his opinion regarding the potential effects of the proposal on the water body in the Lake Paddock at "Somerset Park". He then expressed the opinion that the Yanco Creek Offtake Proposal would "provide significant positive impacts on the inundation damage done at the lagoon/wetland at Lake Paddock". Quoting from the this further report, Mr Purcell opined as follows:
1. At page 1, paragraph 5:
I also reviewed the August 2015 Business Case for the proposed project (Attachment 4) prepared by the then NSW DPI Water. As detailed in Section 3.2 below, NSW DPI Water recognised in 2015 that the Yanco Creek system had "a number of significant wetland assets as well as a large number of smaller floodplain depressions and billabongs. NSW DPI Water also recognised in 2015 that the current flow regime of Yanco Creek has been significantly modified from pre-development and that this change has impacted the environmental assets of the system.
1. At page 2, paragraph 1:
This proposal, in my opinion, indicates that WaterNSW and DPI Water recognises that better control and management of flows down Yanco Creek is required for better environmental outcomes for Yanco Creek and its dependent wetlands/lagoons like Lake Paddock at Somerset Park.
1. At page 2, paragraph 2:
The proposal also allows for more efficient delivery of environmental flows along the Murrumbidgee River to the Mid-Murrumbidgee River Wetlands as uncontrolled flows down Yanco Creek during delivery of environmental flows could be prevented with the proposed Regulator Structure at the start of Yanco Creek.
1. At page 6, paragraph 3:
This proposal would allow, in my opinion, much better management of the Yanco Creek flows to better reflect the pre-development wetting/drying patterns. Such management flexibility would have significantly reduced the damage done to the lagoon/wetland in Lake Paddock at Somerset Park.
1. At page 8, paragraph 1:
In my opinion most, if not all, of the inundation damage done to the lagoon/wetland in Lake Paddock on Somerset Park could have been mitigated by better management of flows down Yanco Creek. The Regulator Structure at the start of Yanco Creek as currently proposed by WaterNSW would provide the infrastructure to allow such better management of flows in Yanco Creek.
1. At page 8, paragraph 2:
The Regulator Structure as proposed could have allowed Yanco Creek Flows to be stopped or at least reduced to sufficiently low flows and water levels at critical times to allow dependent lagoons/wetlands like Lake Paddock to drain. This would have reduced or prevented the damage done to the Lake Paddock lagoon due to the very long periods of inundation.
In response to the foregoing material, Mr Mullane, in his affidavit, set out a series of internet searches he had carried out to establish the commencement of the period that information was publicly available about the documents referred to by Mr Purcell in his 5 September 2018 affidavit and annexed report.
1. With respect to "WaterNSW Summary Document - Improved Flow Management Works at the Murrumbidgee River - Yanco Creek Offtake", which was Attachment 2 to Mr Purcell's affidavit, Mr Mullane's searches revealed that the earliest result for a document matching the description of Attachment 2 was 16 March 2017.
2. With respect to the "Murray Darling Basin Authority Register of Measures" being Attachment 3 to the affidavit of Mr Purcell, Mr Mullane's searches indicated that the document was current as at 17 November 2017.
3. Finally, with respect to the "NSW DPI Water Business Case for Project", being Attachment 4 to Mr Purcell's affidavit, Mr Mullane's searches revealed that the document had been tabled in the Senate on 27 June 2018.
4. It is to be noted that all the dates of these three documents preceded the commencement of the primary hearing on 2 July 2018.
Whilst examining the "Murray Darling Basin Authority Register of Measures" a document in table format, the Court noted, at p 7 of the table at item 24, that there was reference to the Yanco Creek Offtake Proposal. As the Court noted during an exchange with counsel during the hearing, this passage in the document states:
This proposal aims to return the Yanco Creek system closer to a pre‑development wetting/drying regime, while improving infrastructure that supplies irrigation and stock and domestic water. Upgrades to Yanco Weir on the Murrumbidgee River would result in more control over flows through the proposed Yanco Creek regulator. This may provide the Commonwealth Environmental Water Holder and the Office of Environment and Heritage with more flexibility in managing flows within the Murrumbidgee River system.
(Transcript 28.09.18, 2.20-31)
There are also important case management considerations that weigh against the Applicants on their Motion. Counsel for the Respondents took the Court to The Movie Network Channels Pty Ltd v Optus Vision Pty Ltd [2009] NSWSC 132 (Movie Network Channels).
In the Movie Network Channels decision, the Supreme Court usefully set out a comprehensive overview of the principles which have been established in many cases over the years.
4. In every case the overriding principle to be applied is whether the interests of justice are better served by allowing or rejecting the application to reopen [Inspector-General in Bankruptcy v Bradshaw [2006] FCA 22 at [24]; Urban Transport Authority of NSW v Nweiser (1992) 28 NSWLR 471 at 478]. An application to reopen is subject to various degrees of scrutiny depending on the stage of the proceedings when the application is made. The test of what is 'just' at this stage of the proceedings is akin to the considerations applicable where leave to rely on fresh evidence is sought on appeal. That is the evidence must be credible, highly probative and not previously obtainable by reasonable diligence [Jesseron Holdings Pty Ltd v Middle East Trading Consultants Pty Ltd (No 2) (1994) 122 ALR 717 at 719 per Young J; Ritchies at [51.51.50]; Australasian Meat Industry Employees Union (WA Branch); ex parte Ferguson (1986) 67 ALR 491 at 493 - 494 per Toohey J; Murray v Figge (1974) 4 ALR 612; Betts v Whittingslowe (No 1) [1944] SASR 163; Hughes v Hill [1937] SASR 285; Watson v Metropolitan (Perth) Passenger Transport Trust [1965] WAR 88].
5. Naturally the principles which inform the exercise of the discretion to reopen are to be read against the general background of the obvious public interest in the finality of litigation: cf Autodesk Inc v Dyason (No. 2) (1993) 176 CLR 300 per Mason CJ at 302-303.
6. In Inspector-General in Bankruptcy v Bradshaw [2006] FCA 22 Kenny J identified at [24] certain recognised classes of cases in which a court may grant leave to reopen as including where:
(a) Fresh evidence becomes available [Granitgard Pty Ltd v Termicide Pest Control Pty Ltd (No 3) [2009] FCA 82 (evidence from a 'whistle blower' became available after the conclusion of the hearing)];
(b) There is inadvertent error; [Telecom Vanuatu Ltd v Optus Networks Pty Ltd (No 2) [2009] NSWSC 33];
(c) There is a mistaken apprehension of the facts [Urban Transport Authority of NSW v Nweiser (1992) 28 NSWLR 471; Autodesk Inc]; or
(d) There is a mistaken apprehension of the law [Urban Transport Authority of NSW v Nweiser (1992) 28 NSWLR 471].
7 In Smith v NSW Bar Association (1992) 176 CLR 256 at 266 a majority of the High Court found that:
"If an application is made to reopen on the basis that new or additional evidence is available, it will be relevant, at that stage, to inquire why the evidence was not called at the hearing. If there was a deliberate decision not to call it, ordinarily that will tell decisively against the application." [See also: Barker v Furlong [1891] 2 Ch 172 at 184; Hughes v Hill [1937] SASR 285 at 287; Multicon Engineering Pty Ltd v Federal Airports Corporation (NSWSC, Cole J, 10 December 1993, unreported)].
8 In ASIC v Rich (2006) 235 ALR 587 at [18] per Austin J listed the factors that he agreed were relevant to the exercise of the discretion as follows:
i. The nature of the proceeding [See also Woolworth Ltd v Olson [2004] NSWSC 871];
ii. Whether the occasion for calling the further evidence ought reasonably to have been foreseen;
iii. The consideration of fairness that the defendant is entitled to know all of the evidence he has to meet in taking forensic decisions as to cross-examination and the nature and extent of the evidence he will himself adduce on the matters in question;
iv. The extent to which the plaintiff has embarked upon calling evidence on the issue in question in its case in chief;
v. The importance of the issue on which the further evidence is sought to be adduced to the pleaded issues in the case;
vi. The degree of relevance and the probative value of the further evidence sought to be adduced and its potential to involve an undue waste of time;
vii. The prejudice to the defendant in terms of delay in the completion of the proceeding and the consequential costs;
viii. The public interest in the conclusion of litigation [See also Hawthorn Glen Pty Ltd v Aconex Pty Limited (No 1) [2007] FCA 2010 at [48]]; and
ix. What explanation is offered by the plaintiff for not having called the evidence in chief.
On the basis of the foregoing principles set out in the many authorities referred to and embraced in Movie Network Channels, counsel for the Respondents made the following submissions:
1. At Transcript 28.09.18, 16.16-19:
… the onus is very much on the Applicant[s], and as the authorities that I'll take you to demonstrate, the question is not could this material be relevant? The question is: Is it credible, highly probative and not previously obtainable by reasonable diligence?
1. At Transcript 28.09.18, 16.29-37:
… there's a reference to "the interests of justice subject to various degrees of scrutiny, depending upon the stage of the proceedings when the application is made". Of course, here it [is] being made after the conclusion of evidence, submissions and your Honour reserving judgment, so, that is at a very late stage. "The test of what is just is akin to considerations applicable where leave to rely on fresh evidence is sought on appeal. The evidence must be credible, highly probative and not previously obtainable by reasonable diligence," and, of course, the Applicants bear the onus in respect of each of those limbs.
1. At Transcript 28.09.18, 17.3-6:
The question is not was it a discoverable by reasonable diligence by the Respondents. It's not the Respondents' case that was being advanced in the Second Further Amended Points of Claim. It was the Applicants' [case].
1. At Transcript 28.09.18, 17.13-18.21:
In my submission, for reasons I've already given, these aren't pertinent documents. I don't think I will [be] repeating myself if I try to elaborate upon that. The question is not … 'were these documents obtainable by the Respondents by reasonable diligence?' because, as I have already said, the documents are not relevant, weren't relevant to the pleaded case and, in any event, it's the Applicants' onus to prove their case.
Here I'm dealing with the motion to reopen and the authorities say that the applicant has to demonstrate [that] the material is highly probative and not previously obtainable by the applicant by reasonable diligence … [I]t's looking at, well: Why didn't the applicant adduce this earlier? That's the question that these authorities address. Why didn't the applicant adduce this … in circumstances where it's the applicant that wants to adduce it now? The question is: 'could the applicant have obtained the material by reasonable diligence in advance of the hearing?' Paragraph 5 [in Movie Network Channels], read against the background in the obvious public interest to the finality of litigation; [sets out] certain categories of case where leave to reopen may be granted. In my submission, none of those categories apply here. (A) the reference to fresh evidence, the authorities establish fresh evidence is evidence that is generated after the hearing, not evidence discovered after the hearing, but new evidence, so some event happens …
…
It's fresh in the sense that it didn't exist at the time, that evidence didn't exist at the time of the litigation.
…
There are authorities to that effect …. I'm not suggesting that you can only grant leave if it's fresh. I'm just saying that para (a) here [in Movie Network Channels] is addressed to that circumstance. (b) doesn't apply. There has not been any evidence of inadvertent error. (c) doesn't apply. (d) doesn't apply. [In paragraph] (7) "an application is made to reopen on the basis that new or additional evidence is available. It will be relevant to inquire why it was not called, if there was a deliberate decision not to call it," and I'm not suggesting that there was. There's no evidence about that.
…
Paragraph [8] [in Movie Network Channels], "Relevant factors nature of the proceeding, whether the occasion for calling evidence ought reasonably to have been foreseen; considerations of fairness. [In paragraph] (vi) "degree of relevance and the probative value of the further evidence to be adduced; prejudice to the defendant in terms of delay," and finally, "What explanation is offered by the plaintiff for not having called the evidence in chief?"
So, my submissions on the Applicants' motion are really three fold, first, that the evidence isn't relevant to their pleaded case. I've already made submissions about that and the question is not simply is it relevant? The evidence has to be highly probative. Secondly, the material could have been discovered with reasonable diligence by the applicant …
In addition to the foregoing, counsel for the Respondents submitted that a key question was whether the issues addressed in the documents sought to be admitted are relevant to the issues addressed in these proceedings and, in particular, raised by the pleadings (Transcript 28.09.18, 3.45-47). It was submitted that the question on the motion was whether the proceedings should be reopened so to allow the adducing of new evidence, and that this question was not simply whether the material is relevant. Rather, the question is the degree to which the evidence has probative value and whether it would be likely to have made any difference in the proceedings (Transcript 28.09.18, 4.11-15). That proposition of the Respondents' counsel is, in the Court's opinion, correct.
Addressing this probative value issue, counsel for the Respondents submitted:
… the short point is Mr Purcell's solution was to install a regulator at the junction of Yanco Creek and the unnamed watercourse. So a regulator directly at the junction where the unnamed watercourse leads. This proposal outlined in these documents … is up on the Yanco Creek offtake, where it diverged from the Murrumbidgee. In that sense, it's a very different proposal. It's at a different location for a start and involves the upgrade of the regulator that is already there. There is a regulator already there, as the documents establish, what the proposal is is to install a new regulator. So that's one important point. The second point is the purpose of this proposal involves a much broader range of considerations. So it is primarily intended to increase the flows down the remainder of the Murrumbidgee to ensure increased watering down the remainder of the Murrumbidgee.
(Transcript 28.09.18. 5.12-28)
… I accept that another consequence of the proposal, and the documents make this clear, is that it would have an effect on the flows down Yanco Creek and alter the wetting and drying pattern.
(Transcript 28.09.18. 5.32-34)
Reverting to the earlier discussion at [89]: whether the new material was relevant and had probative value, was it material that was in existence at the relevant time and should have been before the decision-maker as a mandatory relevant consideration? The onus remains with the Applicants to demonstrate those prerequisites. The Court has concluded that, in this respect, the Applicants have failed.
It may be that the water management issues raised in the new material, in particular, the environmental rationale for the Yanco Creek Offtake Proposal, appear, on their face, to be relevant in corroborating Mr Purcell's concerns expressed in his evidence. However, as said above, the critical question is whether the new material actually relates to the decisions under review. Is there a connection? The decisions under review are those that are said to specifically relate to the interests of the Applicants. The new material relates to high level project planning driven by broad regional objectives without specific application to "Somerset Park", let alone the Lake Paddock. Although Mr Purcell may now, after having become aware of the Yanco Creek Offtake Proposal very late in the piece, consider that the Yanco Creek Offtake Proposal would address the issues he identified in evidence as needing attention, with these being judicial review proceedings the Yanco Creek Offtake Proposal is irrelevant unless it relates to the decisions under review. Even if the rationale for the Yanco Creek Offtake Project indicated a concurrence of environmental concerns with those expressed by Mr Purcell, being judicial review proceedings the question must inevitably return to whether, with respect to the particular decisions under review, the Applicants have satisfied the Court that the decision-maker should have been aware of, and had before them, the material now sought to be put before the Court.
The Applicants have failed to convince the Court that the new material now sought to be admitted has the requisite probative value to allow it to be introduced weeks after the close of the primary hearing. Materially, counsel for the Respondents also submitted that:
… the option [the Yanco Creek Offtake Proposal] is still at the design stage, not to be implemented until 2024. So it's not as if this [option] has been finalised, [that] this is happening, [or] this is it - already been constructed. It's still at a relative stage of infancy". (Transcript 28 September 2018, 15.6-9).
Given those circumstances, further to the already expressed reasons, it would be unreasonable to expect that the Yanco Creek Offtake Proposal, at such a nascent stage, should have been expected to be before the decision-maker to be considered with respect to any of the decisions the subject of this judicial review.
Further, the evidence of Mr Mullane underlines the proposition that the onus rests with the Applicants to put their case properly before the Court in a timely fashion. 'Timely', in this instance, means whilst the proceedings are still on foot and in accordance with the direction the Court had given with respect to the provision of evidence. The Court has already stated, at [55] above, that all evidence in these proceedings had to be filed with the Court by 13 October 2017. The affidavit of Mr Mullane has confirmed that the primary document relating to the Yanco Creek Offtake Proposal (being Annexure 2 to Mr Purcell's September report) was publicly available by 16 March 2017, some six months prior to the formal close of evidence in these proceedings. However, relevantly, in the course of the eight months that followed prior to the commencement of the primary hearing, there was a further focus on the question of what evidence might be allowed to be filed. Materially, my third judgment in this matter, Randren House Pty Ltd v Water Administration Corporation (No 3) [2018] NSWLEC 106 (Randren House No 3), which was handed down on 5 July 2018, addressed the issue of evidence in the proceedings specifically whether the expert evidence of Mr Purcell ought be allowed. The Court, as is evident from the discussion thus far, allowed his evidence. The point to be made here is that some 16 months after the public availability of the Yanco Creek Offtake Proposal documents the Applicants were still focused on the preparation of its evidence and the Court, exercising tolerance, permitted such evidence to be filed on the very water management issues which are sought to be reagitated should the Court now allow the admission of this new evidence. In short, the Court accepts that the persons upon whom the Applicants were relying in the proceedings should have been capable of being aware of the material they now wish the Court to accept. This comment is particularly pertinent with respect to Mr Purcell.
On the basis of all of the foregoing reasons the Court dismisses the Applicants' Motion and so disallows the admission of the further affidavits from Mr Andrews and Mr Purcell.
The Water Management Act is to be administered in accordance with those principles:
9 Act to be administered in accordance with water management principles and State Water Management Outcomes Plan
(1) It is the duty of all persons exercising functions under this Act:
(a) to take all reasonable steps to do so in accordance with, and so as to promote, the water management principles of this Act, and
(b) as between the principles for water sharing set out in section 5 (3), to give priority to those principles in the order in which they are set out in that subsection.
(2) It is the duty of all persons involved in the administration of this Act to exercise their functions under this Act in a manner that gives effect to the State Water Management Outcomes Plan.
Crucially, for the purposes of this matter, it is emphasised that s 9(1)(b) of the Water Management Act provides that, in relation to the principles of water sharing set out at s 5(3), priority is to be given to the principles in the order in which they are listed, viz:
1. sharing of water from a water source must protect the water source and its dependent ecosystems; and
2. sharing of water from a water source must protect basic landholder rights; and
3. sharing or extraction of water under any other right must not prejudice the principles set out in paragraphs (a) and (b).
Section 7 of the Water Management Act provides for classification of water sources:
7 Classification of water sources
(1) The Minister may, by order published in the Gazette, classify water sources for the purposes of this Act.
(2) Such an order may only be made with the concurrence of the Minister for the Environment.
(3) Water sources are to be classified as follows:
(a) as to the extent to which they are at risk (that is the extent to which harm to the water source or its dependent ecosystems is likely to occur),
(b) as to the extent to which they are subject to stress (that is the extent to which harm to the water source or its dependent ecosystems has occurred or is occurring),
(c) as to the extent of their conservation value (that is the extent to which their intrinsic value merits protection from risk and stress).
(4) It is the intention of Parliament that, within 12 months after the date of assent to this Act:
(a) the water sources of the State be classified in accordance with this section, and
(b) bulk access regimes be established for such of those water sources as are classified high risk, high stress or high conservation value.
(5) A bulk access regime referred to in subsection (4) (b) is to be established by means of a Minister's plan made, in the case of a water source that is within a water management area for which a management committee has been established, in consultation with that committee.
(6) A bulk access regime referred to in subsection (4) (b) has effect for 10 years from the date on which it is established, but may be varied under section 45 as if it had been established by a management plan, in which case section 87 applies accordingly.
(7) The regulations may prescribe rules in accordance with which water sources are to be classified for the purposes of this Act.
Section 20 of the Water Management Act provides "core provisions" for WSPs:
20 Core provisions
(1) The water sharing provisions of a management plan for a water management area or water source must deal with the following matters:
(a) the establishment of environmental water rules for the area or water source,
(b) the identification of requirements for water within the area, or from the water source, to satisfy basic landholder rights,
(c) the identification of requirements for water for extraction under access licences,
(d) the establishment of access licence dealing rules for the area or water source,
(e) the establishment of a bulk access regime for the extraction of water under access licences having regard to the rules referred to in paragraphs (a) and (d) and the requirements referred to in paragraphs (b) and (c).
(2) The bulk access regime referred to in subsection (1) (e):
(a) must recognise and be consistent with any limits to the availability of water that are set (whether by the relevant management plan or otherwise) in relation to the water sources to which the regime relates and
(b) must establish rules according to which access licences are to be granted and managed and available water determinations to be made, and
(c) must recognise the effect of climatic variability on the availability of water, and
(d) may establish rules with respect to the priorities according to which water allocations are to be adjusted as a consequence of any reduction in the availability of water, and
(e) may contain provisions with respect to the conditions that must (as mandatory conditions) be imposed on access licences under section 66 (1), including conditions providing for the variation, from time to time, of the share and extraction components of access licences and
(f) must be consistent with the water management principles.
(3) The rules referred to in subsection (2) (d) must comply with the priorities established under section 58.
(4) The access licence dealing rules established under subsection (1) (d):
(a) must comply with the access licence dealing principles and
(b) must not deal with any matter for which the access licence dealing principles may make provision under section 71Z (2), and
(c) subject to paragraph (b) and the access licence dealing principles may regulate or prohibit any dealing under Division 4 of Part 2 of Chapter 3.
Section 45 of the Water Management Act provides for the amendment or repeal of management plans (including WSPs):
45 Minister may amend or repeal management plan
(1) The Minister may at any time, by order published on the NSW legislation website, amend a management plan:
(a) if satisfied it is in the public interest to do so, or
(b) in such circumstances in relation to such matters and to such extent as the plan so provides or
(c) if the amendment is required to give effect to a decision of the Land and Environment Court relating to the validity of the plan, or
(d) if satisfied that it is necessary to do so because of requirements arising under the Water Act 2007 of the Commonwealth.
(2) (Repealed)
(3) Before amending a management plan, the Minister must obtain the concurrence of the Minister for the Environment to the amendment.
(4) The date of commencement of a management plan may, but the duration of a management plan may not, be extended by an amendment of the plan under this section.
(5) The Minister may at any time, by order published on the NSW legislation website, repeal a management plan (other than a management plan that deals with water sharing).
(5A) The Minister may at any time, by order published on the NSW legislation website, repeal a management plan that deals with water sharing if satisfied that it is necessary to do so because of requirements arising under the Water Act 2007 of the Commonwealth.
(6) The amendment or repeal of a management plan under this section takes effect on the date the order is published on the NSW legislation website or on a later date specified in the order.
(7) An order under subsection (1) (a) varying a bulk access regime is not to be made in relation to a water management area for which a management committee for water sharing is constituted unless the Minister has consulted with the committee in relation to the proposed amendment.
(8) A provision of a management plan that authorises the amendment of the plan in accordance with section 42 (2) of this Act is to be construed as a reference to an amendment authorised by subsection (1) (b).
The Applicants submitted that the functions of the First Respondent "have included deepening and widening Yanco Creek and enhancing the water available over and above the natural flows in the water source that is the Creek". [61]
The Applicants submitted that, as described at Ch 9 of the Water Management Act, the Second Respondent "is the owner of the Crown's water rights of New South Wales which includes all title to the control, use and flow of water in the State", including, the Applicants said, "in Yanco Creek and the billabong in Lake Paddock". [62] The Applicants argued that this ownership and control had a correlative duty "to others including the residents of the State", which "gives rise to legal obligations at common law which themselves are relevant to the duties of the State under WMA inter alia ss 3, 5, 7, 9 and 20 and referred to in chapters 8 and 9". [63]
The Applicants submitted that:
1. Yanco Creek was and is a water source within the meaning of ''water source" in both the 1912 Act and the Water Management Act; [64]
2. the water body in the Lake Paddock is a water source; [65]
3. "the unnamed watercourse between the Yanco Creek and Lake Paddock billabong is a natural channel which over time possibly as early as 1900 has been artificially altered, although not in terms of its purpose changed, in connecting the Creek and billabong"; [66]
4. that the "billabong in the Lake Paddock being a branch or effluent of the Creek is an integral part of the 'river' that is Yanco Creek"; [67] and
5. "Yanco Creek has been deepened and widened by the Respondents to cause and permit higher flows of water on a year round basis". [68]
The Applicants argued, with respect to the unnamed watercourse/diversion channel, that the diversion channel is really a natural watercourse that has been lengthened and deepened which formerly permitted natural wetting and drying but is now the principal cause of the inundation from high flows in Yanco Creek in the Lake Paddock and, in particular, its billabong and its dependent ecosystem. They contended that this was "emphasised by the fact that it appears there is more than one watercourse between the Creek and the billabong in Lake Paddock depending on conditions".
Broadly speaking, the Applicants argued that "none of the water management principles nor the avoidance of environmental damage as alleged in [Decisions 3-7] were observed or considered by the State's water officers at each level of decision-making when the question of the classification of the water source that is Yanco Creek or the billabong in Lake Paddock arose or the allocation to a water management area of those water sources and their dependent ecosystems arose at any time". [74]
The Applicants argued that "it is simply incorrect, and your Honour will reject the evidence of Mr Maini based on the cross-examination, that it is not the purpose of the plans to review and protect particular water sources such as the Lake Paddock (Transcript 416.30-33).
Citing Peko-Wallsend, counsel for the Applicants submitted that the file with respect to the 1986 Licence, including correspondence such as the letter of 26 June 2016, [79] was constructively before the Minister in the making of the decision (being "the 2016 plan and the other decisions at which [the Applicants] complained") (Transcript 416.42-49, 457.27-28) and that the Minister "failed to refer to that material at peril of a valid decision" (Transcript 416.48-49). This file, the Applicants said, referred to the existence of the water body in the Lake Paddock, the increased flows down Yanco Creek, and the damage to the ecosystem of the water body in the Lake Paddock (Transcript 456.8-12).
In closing oral submissions, counsel for the Applicants sought "orders for restoration, by reason of breaches of this Act under s 336, reflecting what Mr Purcell has said, in accordance with paragraph 6 of our summons. We will be asking your Honour to declare invalid, to the extent that the 2016 plan fails to have regard to the principles to which I've referred, and to treat properly, as it should have, this water source and the linked licence to which it relates as part of that plan. That's the mandatory obligation, the mandamus we seek in the summons (Transcript 417.47-418.4).
It ought to be noted that the Respondents resisted this raising of s 336 of the Water Management Act, arguing that it was not properly pleaded, and was only raised in closing submissions depriving the Respondents of the opportunity to adduce evidence thereon. The Court returns to the Respondents' submissions in this respect at [201] below.
Relying on the affidavits of Mr Paul Andrews [80] (and citing Gartner v Kidman (1962) 108 CLR 12; [1962] HCA 27 (Gartner), per Windeyer J at 35, as to the admissibility of such evidence regarding historical works on a farmer's property not undertaken by the deponent) (Transcript 443.45-444.6), the Applicants argued that the unnamed watercourse linking Yanco Creek to the water body at the Lake Paddock was a natural watercourse which had been artificially enhanced, at some point in the past, by persons other than the Applicants (Transcript 444.8-10;31-34).
The Applicants relying on the evidence of Mr Purcell, Mr Warren, and Mr Maini, submitted that the water body in the Lake Paddock was a dependent ecosystem of Yanco Creek (beginning at Transcript 445.16). That is, the Applicants contended, the wetland system, which encompasses the water body in the Lake Paddock, is a dependent ecosystem for the purposes of s 5(3) of the Water Management Act. Further relevant, the Applicants said, are ss 3 and 7 of the Water Management Act (Transcript 448.5-10).
The Applicants placed reliance on correspondence between the Department and the First Applicant between December 2014 and March 2015:
1. In a letter dated 16 December 2014, [88] Mr J Andrews, on behalf of the First Applicant, wrote to an officer of the Department at the Leeton office, requesting details of applicable water trading rules notice as to details of the WAL and Approval (including conditions) and, relevantly for present purposes, the following:
Our client remains concerned also at the licence conditions regarding the regulator and the adverse environmental consequences of that provision inter alia because of the resulting damage to the lagoon and the continued loss of the large river gums in the natural lagoon due to what are considered to be mismanaged water level changes
1. By letter dated 25 February 2015 [89] (although received, the Applicants said, on 31 March 2015), the departmental officer responded to Mr Andrews letter, providing a copy of the Rules Summary Sheet for the MWWS, notifying the First Applicant of the finalisation of conditions for the 2012 Unregulated WSP, and attaching copies of the Approval and WAL (including conditions). Significant, according to the Applicants was that the departmental officer in that letter "apologised for the delay in replying to the letter and in dealing with the resolution of the [licence] issues and "did not take issue with the above assertions of fact" (referring to the paragraph quoted above at 193). [90]
The Applicants argued that, in the circumstances "the failure to contradict or deny the assertions as to damage should be viewed as evidence of an informal admission, in the sense that nothing that could be said by the State would assist its case" (citing s 81 of the Evidence Act 1995 (Evidence Act); Jones v Dunkel (1959) 101 CLR 298; [1959] HCA 8). [91]
The Applicants further argued that "that inundation damage causing loss to the flora and fauna is damage known to the law" (citing Thorpes). [92] The Applicants argued that the State's water rights "in accordance with classic legal reasoning import a duty, and not the immunity of the State or others in respect of the control, use and flow of waters in NSW" (citing Thorpes). [93]
The Applicants alleged that the purported loss and damage suffered by the Applicants is ongoing and "has been clearly caused by the use of Yanco Creek by high flows used and controlled by the State". [94]
This case, the Applicants submitted, turns on "what decisions and acts of the Respondents led to this loss and damage and does such conduct involve a breach of the law of New South Wales in respect of which loss and damage this Court can and should help to redress. The Applicants' counsel also submitted that "there is a helpful discussion of the issues generally in Australian Water Law, Stoekel and Ors at Ch 2; Wisdom's Law of Watercourses 6th ed and Environmental Planning Law in NSW Aster & Ors Ch 2,3,8 and 9", however the Court was not taken to particular passages in these texts. [95]
As to the Applicants' submission that Mr Warren's evidence be given little weight because he had not visited the Lake Paddock, the Respondents countered that Mr Warren was not instructed to form his own view as to the cause of the damage, but was retained to comment on Mr Purcell's findings.
The Respondents submitted that, contrary to the Applicants suggestion, there was not some obligation on the Respondents to undertake investigations of the site for the purposes of these proceedings - any damage, and its cause, was for the Applicants to prove on the balance of probabilities and the Respondents were entitled to take the approach of pointing to the deficiencies in that evidence rather than undertaking their own enquiries to confirm or contradict it.
The Respondents rejected the Applicants' submission that Mr Warren's approach was contrary to the precautionary principle. This principle, the Respondents posited, has two elements first, there must be a threat of serious or irreversible damage; and, secondly, there must be scientific uncertainty as to the nature and scope of the environmental damage (citing Telstra Corp Ltd v Hornsby Shire Council (2006) 67 NSWLR 256; [2006] NSWLEC 133 (Telstra) at [128], [140]) [100] . Satisfaction of both of these conditions means, the Respondents submitted, that a decision-maker must proceed on the basis that the threat of serious and irreversible environmental damage is no longer uncertain but is a reality.
The precautionary principle does not require, the Respondents said, that, in satisfying the first condition, the existence of the threat can simply be assumed. Further, they submitted:
[a]s observed in Telstra at [159], rationality dictates that the precautionary principle and any preventative measure cannot be based on a purely hypothetical approach to the risk, founded on mere conjecture which has not been scientifically verified. Rather, a preventative measure may be taken only if the risk, although the reality and extent of the risk have not been "fully" demonstrated by conclusive scientific evidence, appears nevertheless to be adequately backed up by the scientific data available at the time (at [159]). The point here is that Mr Purcell has not made any attempt to ascertain or analyse the available scientific data, and so the Court cannot be satisfied on the balance of probabilities that any damage to the Lake Paddock has been caused by high regulated flows down Yanco Creek.
The Respondents noted that in Regional Express Biscoe J alluded to r 59.1 but did not consider it determinative, and that the decision in that matter was rather based on the presumption against retrospectivity of statutes although acknowledging that "statutes merely affecting procedure are an exception" (at [13]) to such an assumption. His Honour found, at [14], that r 59.10 did not apply to the decision in question (made before 15 March 2013), and that the effect of r 59.10 in that instance "would be to deny completely the right of REX to proceed without an extension of time" (at [14]).
The Respondents argued that such a conclusion conflated the substantive right, to challenge a decision by way of judicial review, with a procedural limitation (being the requirement for leave). The Respondents submitted that r 59.10 did not erase the substantive right - that there is "still a proper opportunity to commence the action" under r 59.10, it is just that a procedural requirement for leave is imposed where the action is commenced more than three months after the impugned decision is made. Thus the Respondents posited, the effect of r 59.10 falls into the second category identified by his Honour, not the first, and that the imposition of the time limit in r 59.10 ought to be regarded as procedural rather than substantive. [102]
The Respondents argued that the analysis of the High Court in Yrttiaho v The Public Curator of Queensland (1971) 125 CLR 228; [1971] HCA 29 is applicable to the present circumstances. In that matter, the rules of the Supreme Court of Queensland were amended to provide that if a period of three years, rather than the previous six years, had passed since the last proceeding in a cause, the leave of the court was required for the taking of a fresh proceeding. Gibbs J, delivering the primary judgment of the majority, considered that such an amendment was purely procedural in its operation in that matter, and as such was given a retrospective operation in that case.
The Respondents noted that despite the Applicants' contention that such an extension was not required (on the basis that it does not apply to decisions made prior to its commencement), that on 1 December 2017 they filed such a motion pursuant to r 59.10(2). The Respondents submitted that such an extension ought not be granted.
In the alternative, the Respondents submitted that the Court ought to refuse to exercise its discretion in the Applicants' favour in respect of the Decisions 1-5, on the grounds of delay, particularly with respect to Decisions 1 and 2, which were made some time in the 1990s. [103]
With respect to the Applicants' argument, summarised at [223] below, the Respondents submitted that, first, the Court should not accept that proposition of ongoing environmental damage as a factual matter and, second, that it does not reflect matters that would be relevant to the application of r 59.10. [104]
The Respondents cited O'Connor v New South Wales [2017] NSWSC 598 (O'Connor) and Hanna v Commonwealth Director of Public Prosecutions [2016] NSWSC 325 as examples of the time limit imposed by r 59.10 of the UCPR being applied to decisions made prior to the commencement of that rule (acknowledging, however, that neither decision expressly considered an argument that r 59.10 should not apply to decisions made prior to 15 March 2013).
In Regional Express at [12]-[15], Biscoe J held as follows:
12 The threshold question is whether the time limit in r 59.10(1) applies retrospectively to the first decision. In Patsalis v Attorney General of NSW [2013] NSWCA 98 at [6] Basten JA said:
... Because the decision in question was handed down before the new Pt 59 of the UCPR commenced, it is by no means beyond doubt that the time limit in r 59.10 operates Even if it does although the decision was dated 20 November 2012, it was apparently not provided to the applicant until 8 December 2012. On that basis the three-month period would have expired about 11 days before the applicant provided to the Court and to the Crown Advocate his proposed application seeking to rely upon s 69 of the Supreme Court Act. In those circumstances were an extension of time necessary, it should be granted.
13 There is a presumption against retrospectivity of statutes to which statutes merely affecting procedure are an exception. Where a period for taking legal action is limited by statute, it is a rule of construction that the statute should not, unless it is clearly intended, be given a retrospective operation to deprive a person of the opportunity of instituting an action which is otherwise within time. If it were given a retrospective operation, it would operate so as to impair an existing substantive right - the right to bring a claim - and such an operation could not be said to be merely procedural. However, if there is still a proper opportunity to commence the action despite the coming into effect of the new limitation period, the operation of the statute will be regarded as procedural. This rule of construction is founded on the principle that no suitor has any right to complain of procedural changes provided no injustice is done. See Maxwell v Murphy [1957] HCA 7, (1957) 96 CLR 261 at 267, 270 per Dixon CJ, 277-278 per Williams J; Yrttiaho v Public Curator of Queensland [1971] HCA 29, (1971) 125 CLR 228 at 239-242 per Gibbs J (the rest of the Court agreeing, on this aspect); Egan v Cudgegong (Abattoir) County Council (1973) 1 NSWLR 222 (CA) at 226-227 per Jacobs P (Moffitt and Hope JJA agreeing); Yew Bon Tew v Kenderaan Bas Mara [1983] 1 AC 553 (PC); Rodway v The Queen [1990] HCA 19, (1990) 169 CLR 515, at 518-520 (joint judgment); Habib v Nationwide News Pty Ltd [2006] NSWCA 14, (2006) 65 NSWLR 264 at [7] per Spigelman CJ (Santow JA and Nicholas J agreeing).
14 In my opinion, in accordance with these principles r 59.10 does not apply retrospectively to the first decision, therefore an extension of time is not required. Otherwise its effect would be to deny completely the right of REX to proceed without an extension of time because the first decision was made more than three months before Part 59 commenced on 15 March 2013. Although r 59.1(2) provides that Part 59 does not apply to proceedings commenced before the commencement of Part 59, it does not follow that the r 59.10(1) time limit always applies to proceedings commenced afterwards the above principles apply to such proceedings.
15 If I am in error and an extension of time is required for judicial review of the first decision, I would grant an extension of time to the date of filing of the summons for the following reasons:
(a) It would be an injustice for the retroactive operation of r 59.10 to completely bar judicial review of the first decision, particularly as the summons was filed only about two months after Part 59 of the UCPR commenced. This is not a lengthy delay in the context of this legislative scheme. Otherwise REX will be in the invidious position of not being able to challenge the first decision to charge a fee to REX and will only be able to challenge the quantum of the fee under the second decision.
(b)- (e) [other discretionary factors were set out]
(emphasis added)
As stated earlier at [213], counsel for the Respondents respectfully submitted that Regional Express was wrongly decided. Given that Agricultural Equity followed Regional Express it follows that, with respect to the retrospectivity argument, I am also being asked to find that that decision was also wrongly decided. In the interests of judicial comity, it is essential that I proceed cautiously, especially as Basten JA in the Court of Appeal, in Patsalis v Attorney General of NSW [2013] NSWCA 98 (Patsalis) at [6], also mentioned the prospect that r 59.10 did not have retrospective application.
However, I must note that in both Regional Express and in Patsalis the Honourable Justices were both cognizant of there being an absence of absolute certainty that the r 58.10 had no retrospective application. The italicised words in the extract of Patsalis cited in Regional Express, and extracted above, confirms that a final conclusion on the question of retrospectivity had not been determined; rather, in the circumstances of the facts before each court, justice demanded that an extension of time be granted. Likewise, at [15] in Regional Express, Biscoe J conceded some doubt remained with the words "If I am wrong and an extension of time is required for judicial review of the first decision".
In each of these cases it is to be noted that the extent to which the subject decisions were out of time was a matter of a few months whereas in the circumstances before me, I am being asked to consider decisions made many years before the coming into effect of r 59.10 (although I am aware of the intriguing argument of counsel for the Applicants that by reason of the alleged impact of Decision 1, to cite just one decision, it should be accepted that the decision has in effect, been made and remade continuously right to the present day. This is a matter addressed later in the judgment).
The Court considers that submissions on this issue of retrospectivity from counsel for the Respondents were well-reasoned and persuasive. In particular, at [34]-[36] of the Respondents' closing submissions, counsel submitted:
34 Rule 59.1(1)(b) relevantly provides that Part 59 applies to proceedings for or in the nature of judicial review in the Class 4 jurisdiction of this Court. Rule 59.1(2) provides that Part 59 "does not apply to proceedings commenced before the commencement of this Part" (ie on 15 March 2013). Thus on the face of r 59.1, Part 59 applies to any proceedings commenced after 15 March 2013 (regardless of whether the decision the subject of the proceedings was made prior to that date).
35 Biscoe J noted r 59.1, but found it not determinative (at [14]). His decision was based on the "presumption against retrospectivity of statutes while acknowledging that statutes "merely affecting procedure are an exception" (at [13]). His Honour observed at [13]:
"Where a period for taking legal action is limited by statute, it is a rule of construction that the statute should not, unless it is clearly intended, be given a retrospective operation to deprive a person of the opportunity of instituting an action which is otherwise within time. If it were given a retrospective operation, it would operate so as to impair an existing substantive right - the right to bring a claim - and such an operation could not be said to be merely procedural. However, if there is still a proper opportunity to commence the action despite the coming into effect of the new limitation period, the operation of the statute will be regarded as procedural."
36 His Honour then concluded at [14] that r 59.10 did not apply to the decision in that case (made before 15 March 2013), otherwise "its effect would be to deny completely the right of REX to proceed without an extension of time". However, this was to elide the substantive right with the procedural limitation. The substantive right is to challenge a decision by way of judicial review. That substantive right remains despite the coming into force of r 59.10. There is "still a proper opportunity to commence the action" under 59.10, it is just that a procedural requirement for leave is imposed where the action is commenced more than three months after the impugned decision is made. Thus the effect of r 59.10 falls into the second category identified by his Honour - not the first. The imposition of the time limit in r 59.10 should be regarded as procedural rather than substantive.
I am of the opinion that the Respondents' submissions accurately identify the distinction between, on the one hand, the loss of a substantial right (such as would be the case if there were a total prohibition in relation to decisions made earlier than the three-month limitation period) and, on the other hand, the imposition of a procedural process. I am, respectfully, firmly of the view that r 59.10 does not have the effect of denying a litigant "a proper opportunity to commence [an] action despite the coming into effect of the new limitation period", to use Biscoe J's words. The operation of r 59.10 should be regarded as procedural. In my opinion, requiring an applicant to set out their case as to why discretion should be exercised in their favour in order to secure the grant of leave to commence judicial review of a decision older than the three months specified in the rule simply brings a desirable rigour to the process. With r 59.10 applying to older decisions made prior to the coming into effect of the rule, there is no lessening of the desirable application of the principles referred to by Biscoe J in [7] of his Regional Express judgment:
7 A judicial review court is concerned with maintenance of the rule of law in the conduct of public authorities but the rule of law is strengthened by provisions such as r 59.10 requiring the discipline of bringing proceedings within a reasonable time so that the proper business of government and the reasonable interests of third parties are not unjustly prejudiced. In considering whether to extend time, the factors listed in r 59.10(3) are not exhaustive. The weight to be given to relevant factors will depend on the circumstances of the particular case and may require the court to carry out a balancing exercise. As regards the factor referred to in r 59.10(3)(c), a claimant cannot fairly be criticised for failing to take action before he knew or, by exercising reasonable diligence, should have known that there was anything to take action about.
The critical question, as always is whether an injustice might occur if an applicant were denied the opportunity to have a decision reviewed. It is trite, but nevertheless true, to observe that the courts are well experienced in identifying a potential injustice.
Having found that the Respondents' interpretation of the application of r 59.10 is correct, it now falls to the Court to consider the Applicants' application pursuant to their Notice of Motion filed 1 December 2017. By that Motion the Court is being asked by the Applicants to exercise its discretion, pursuant to r 59.10(2), in their favour by granting leave so as to allow consideration of the first five decisions in these judicial review proceedings despite each of the decisions in question having been made some years prior to the commencement of these proceedings by the initial Summons.
In my earlier decision in Moorebank Recyclers Pty Ltd v Tanlane Pty Ltd [2017] NSWLEC 97 (Moorebank Recyclers), I had cause to examine the case law setting out the principles applicable to the exercise of discretion under r 59.10. Addressing the topic of the 'rule of law', at [57]-[58], I made the following observations:
57 As Biscoe J observed in Regional Express Holdings Ltd v Dubbo City Council (No 2) at [7], the rule of law is strengthened by rule 59.10 of the UCPR because it operates to require people to bring judicial review proceedings within a reasonable period of time. To this end, rule 59.10 stipulates that judicial review proceedings "must" be commenced within 3 months of the date of the decision. However, the rule of law is also strengthened by the allowance made by rule 59.10 for the reality that, having regard to all the relevant circumstances of a particular case, there will be compelling cases in which it is appropriate to extend the time for commencing such proceedings.
58 Clearly the promulgation of r 59.10 was intended to achieve two compatible objectives. First, with the starting point being evident in the use of the word "must", a clear underlying preference is being indicated that proceedings should be commenced within the stated three-month period, in the interests of facilitating just, quick and cheap resolutions. Secondly, by specifically providing for the Court to grant an extension of time beyond the three-month period, a safeguard is provided to protect against people being unduly denied access to justice, which is of paramount importance to the rule of law. If the circumstances warrant it, the objective of achieving justice is allowed to override the three month limitation. Frequently, justice will be thereby served with the concurrent provision for a quick and cheap resolution.
Earlier in Moorebank Recyclers at [13]-[14], I set out, with approval, the discretionary considerations which had been agreed between counsel in that case as being a fair summary of applicable considerations:
13 In essence, Moorebank and Tanlane agreed on the relevant legal principles which should guide the Court in determining whether or not to grant an extension of time in judicial review proceedings. The principles which were identified by both parties were as follows:
(1) In addition to considering the four factors set out in rule 59.10(3), the Court ought to also consider: the length of the delay, the reasons for the delay, and whether the applicant has a fairly arguable case: Bankstown City Council v Ramahi [2015] NSWLEC 74 at [74]; Dyason v Butterworth [2015] NSWCA 52 at [65]; and Tomko v Palasty (No 2) (2007) 71 NSWLR 61; [2007] NSWCA 369 at [55];
(2) The weight to be given to relevant factors will depend on the circumstances of the particular case and may require the Court to carry out a balancing exercise: Regional Express Holdings Ltd v Dubbo City Council (No 2) [2013] NSWLEC 113 at [7] and O'Connor v New South Wales [2017] NSWSC 598 at [66];
(3) The question of potential prejudice to a party caused by the delay is a significant consideration in all matters O'Connor v New South Wales at [66]; and
(4) The rule of law is strengthened by provisions such as r 59.10 requiring the discipline of bringing proceedings within a reasonable time so that the proper business of government and the reasonable interests of third parties are not unjustly prejudiced: Regional Express Holdings Ltd v Dubbo City Council (No 2) at [7].
14 In addition to these principles, Tanlane said that it is established that the applicant for the extension of time bears the onus and Moorebank emphasised that, in considering rule 59.10, it should be borne in mind that "a claimant cannot fairly be criticised for failing to take action before he knew or, by exercising reasonable diligence, should have known that there was anything to take action about": Regional Express Holdings Ltd v Dubbo City Council (No 2) at [7].
In deciding not to grant leave to extend time in O'Connor, N Adams J dealt with a decision that preceded the coming into effect of r 59.10 by 23 years. On the Applicants' argument in this case, O'Connor was wrongly decided. I disagree. Her Honour observed at [66]:
66 The question of whether an extension of time should be granted is not to be confined either to the significance of the delay or the question of whether the plaintiff has a fairly arguable case. Each application turns on its particular facts. In some cases an extension might be refused even though the delay is not significant on the basis that there is no fairly arguable case in any event. In other cases an extension might be granted where there is significant delay but where the error is easily identified. The question of potential prejudice to a party caused by the delay is a significant consideration in all matters.
It is also apparent that a key question in determining whether an extension of time should be granted, pursuant to r 59.10, is whether the refusing of an application would constitute an injustice. In Riva NSW Pty Ltd v Mark A Fraser and Christopher P Clancy trading as Fraser Clancy Lawyers (No 3) [2018] NSWCA 326, Leeming JA dismissed an application for extension of time, laying stress on the question of injustice. At [24]-[25] he held:
24 In Katter v Melhem (2015) 90 NSWLR 164; [2015] NSWCA 213, Campbell AJA applied the same criteria to an application for an extension of time pursuant to UCPR r 59.10 as would be applied to any other application to extend time: see at [122]-[123]. In Gallo v Dawson [1990] HCA 30; (1990) 64 ALJR 458 at 459, McHugh J had said:
It is also necessary to bear in mind in such an application that, upon the expiry of the time for appealing, the respondent has 'a vested right to retain the judgment' unless the application is granted …
It follows that, before the applicant can succeed in this application, there must be material upon which I can be satisfied that to refuse the application would constitute an injustice.
25 I am not persuaded that refusing Riva's application for an extension of time would constitute an injustice to it. None of the factors identified in r 59.10(3) persuade me that there should be an extension of time to permit Riva to challenge, once again, a decision of which it has long been aware.
As expressed below at [312], the Court considers there is no merit in the Applicants' counsel's proposition that because there is said to be ongoing environmental damage, the impugned decisions are ongoing, "being continued and made on an ongoing basis". This is an implausible argument as in the Court's opinion, a decision must be part of a deliberative process, a conscious choosing between options, for example, deciding to do or not do something. Simply because it might be shown that there is ongoing damage does not mean that the mind of the decision-maker is repeatedly remaking the original or a like decision, so long as the damage continues to occur. That would be an entirely artificial process, a device, to ensure an alleged decision is accepted as being 'fresh' or recent when, in fact, the decision was made some considerable time earlier.
As discretionary considerations need to be taken into account on a case‑by‑case basis, it will be seen below that the Court has determined whether leave should or should not be granted to extend the time allowed for judicial review on a decision by decision basis.
It is also to be noted that pursuant to r 59.10(4), it is provided that: "this rule does not apply to proceedings in which there is a statutory limitation period for commencing the proceedings". As will be seen later, with respect to Decisions 4, 5 and 7, the Respondents contended that the decisions sought to be reviewed in these proceedings, the statutory limitation period provided by s 47 of the Water Management Act applies. The parties' submissions regarding s 47 and my consideration of them commences at [349] below.
With respect to the particulars listed at [246] above, the Applicants (at Transcript 553.49-554.6):
1. pointed to a departmental memorandum of 2 April 2007 from Mr Parrett to Mr Steve Webb, [109] as evidence of the prioritisation of "the irrigation perspective" alleged at particular (i);
2. submitted that their Fact 2 (summarised above at [131]-[134]) supported particular (ii);
3. submitted that that Fact 7 (summarised above at [146]) supported particular (iii);
4. repeated their submissions from Decision 8 with respect to ss 9(1)(b) and 5(3) of the Water Management Act (as summarised below at [481] [492]); and
5. repeated their submissions from Decision 8 with respect to "failing to minimise the impacts of licences (as summarised below at [507]-[515]).
As to particular (vii), the Applicants argued that "in effect Lake Paddock has simply continued to be used as a regulated flow in and out without regard to the interests of the environment" (Transcript 554.15-17).
With respect to particular (viii), counsel for the Applicants said, "[t]he unreasonable use of Yanco Creek by the respondents has abridged our right as reflected in the constitutional guarantee s 100, but relevantly for present purposes we say that's reflected in the objects of the Act, ss 3(a) and (b). That is imported by s 372" (Transcript 554.25-28) and that "we say that abridging our right to reasonable use of water of Yanco Creek by the respondents whether for irrigation or conservation, leading to the damage that's occurred, in effect, is a breach of the Act, s 372" (Transcript 555.7-11). It ought to be noted that the Respondents objected to the latter point, as it was according to the Respondents not pleaded, and raised only in closing submissions (Transcript 555.15-21). The Applicants pressed the s 372 point, and additionally, argued that in any event particular (ix) "takes up the same issues (Transcript 555.34; 556.11-12).
With respect to the Respondents' contention that the Applicants have not established that the alleged decision was in fact made (see below at [252] ‑[257]), the Applicants said, first, that the evidence of Mr Paul Andrews and Mr Purcell, and "in the water sharing plan itself", was evidence of Decision 1 (Transcript 547.31-33). Secondly, the Applicants argued that judicial review is possible with respect to acts as well as decisions. That is, counsel for the Applicants submitted "if acts are impermissible in the breach of an Act, then a Court can restrain those acts as well as the decisions made in breach of the statute. Judicial review is not simply about a decision, it's about breach" (Transcript 547.29-31).
With respect to the particularised works that were said by the Applicants to be the relevant "works on Yanco Creek" (and are set out above at [245]), the Respondents argued that only the works set out at 8A of the SFAPOC are works on Yanco Creek. The Respondents submitted that the other particulars could not be relevant to Decision 1 as set out in [8A] of the SFAPOC because they concerned alleged conduct in relation to the diversion channel, not Yanco Creek itself. [115]
The Respondents further contended that, to the extent that Decision 1 was concerned with those works alleged to have been conducted by the First Respondent on or in the diversion channel, the particulars listed at [8A] of the SFAPOC were contradictory.
The Respondents noted that the First Respondent was alleged to have both "artificially enhance[d] the effluent from Yanco Creek to the billabong in Lake Paddock by constructing and maintaining earthen walls along its length" (SFAPOC 8A) and "blocked off regulated water flows from Yanco Creek except for surplus flows to the Lake Paddock on Somerset Park" (SFAPOC 8A) [however, the Court notes that this particular was not, in the end, pressed by the Applicants]. The Respondents submitted that the Applicants have not discharged their burden of establishing that either of the actions at 8A or 8A occurred, or that they constituted the making of the alleged Decision 1. Further, the Respondents submitted that, with respect to the former, there was evidence that a previous owner had cut a channel from the unnamed watercourse to the Lake Paddock. [116] With respect to the latter, the Respondents submitted that, at particulars to 8A of the Points of Defence, they had particularised the installation of a block bank in the diversion channel by either the Department or State Water in approximately 2005, but that Mr Paul Andrews evidence in his affidavit of 1 November 2017 was that he had installed a block bank "at least 15 years ago". [117]
The Respondents contended that, therefore, a decision-maker could comply with s 9(1)(a) read with s 5(2)(a) by taking reasonable steps to act in accordance with the principle that a group of rivers or water bodies should be protected, that the decision-maker need not consider the particular impacts on every body of water within that group. [123]
Further, the Respondents argued, the requirement in s 9 of the Water Management Act is not a requirement for a decision-maker, in exercising a statutory function, "to achieve any end to which the principles in s 5 are directed, "being principles that need to be balanced to some extent", as is "apparent from the language of 'take all reasonable steps' in s 9(1)(a) and the introductory word 'Generally' in s 5(2)" (citing Arnold No 6 at [180]). [124]
The Respondents therefore submitted that the Applicants had not made out any failure to take into account a relevant consideration for the purposes of Decision 1. [125]
With respect to the submission made by the Applicants that they did not need to build a regulator because Mr Webb told them that the Department would install a block bank to stop the flows, [143] the Respondents contended that this was misrepresenting Mr Webb. Mr Webb's position, the Respondents said, was that the First Applicant should install a regulator or, alternatively the Department (or later, State Water), would stop the flows by installing a block bank and regulator. The Respondents submitted that it was only once it became clear that the First Applicant was taking no action that Mr Webb referred to State Water's intention to install a block bank. [144]
As to the Applicants' submission that the Court should draw a Jones v Dunkel inference against the Respondents due to Mr Webb's absence from the hearing, the Respondents argued that there is no occasion for doing so and that, in any event, the requirements for drawing such an inference are not satisfied in this instance. The Respondents submitted that, unlike the principle in Jones v Dunkel, in this matter they (the Respondents) are not asking the Court to draw an inference from circumstantial evidence, but rather are asking the Court to accept, on the basis of evidence, that the regulator could have made a difference but was not constructed. [145]
The circumstances in which such an inference may be drawn, the Respondents noted (citing Manly Council v Byrne [2004] NSWCA 123 at [53]; and MSPR Pty Ltd v Advanced Breaking Technology [2013] NSWCA 416 at [53]), are:
1. the missing witness would reasonably have been expected to be called by that party;
2. the witness's evidence is relevant to a particular matter; and
3. the witness's absence is unexplained.
Mr Webb's absence, the Respondents posited, was not unexplained: "Mr Webb was not called because the matters that were addressed in his affidavit have been proven by other means including through the Applicants' witnesses". [146]
For the above reasons the Respondents submitted, even if the Applicants were able to establish that Decision 1 had in fact been made by the First Respondent, "the First Applicant's non-compliance with the terms of its licence requiring the construction of the regulator would weigh heavily against the making of any order in the nature of that sought in Prayer 6". [147]
Accordingly, the Court cannot identify from the material before it, despite the huge volume of material it has examined, a specific decision to deepen or widen Yanco Creek or to raise the height of its banks. Further, although there were oblique references in the course of the proceedings to decisions in 1995 to upgrade the Yanco Weir (presumably altering its holding capacity compared to its pre-upgrade state), all of 20 years prior to the initial Summons in these proceedings, the Respondents quite properly (above at [254]) complain that changes at the Yanco Weir were never pleaded to be part of Decision 1. The simple response to that point: It is quite unfair for reliance to be placed on unpleaded aspects of decisions or particulars such as that relating to the Yanco Weir, in circumstances where the Respondents were never given the opportunity to put evidence or argument before the Court regarding those unpleaded decisions or particulars. The Court will, accordingly, not allow the Applicants to place any reliance on decisions regarding the Yanco Weir.
In circumstances where the Court can only analyse a decision on proper evidence, the inconsistencies within the material before the Court, such as summarised earlier at [257], leave the Court in a quandary. Given the inconsistencies what was the truth of what happened with the Yanco Creek banks and channel works and when did those works, if at all, happen? Given such uncertainties, the consequence must be that the Court has no choice but to decide there is insufficient material before it to be able to identify, with any particularity, what decision or decisions it is that it is actually being asked to review. In these circumstances, the Court is unable to determine whether an error of law has occurred in the decision-making said to constitute Decision 1. As was summarised at [262], without having more information before the Court about the particular decision in question, the Court has no way of identifying what was before decision-maker or whether or not the decision was affected by legal error.
Despite reference to a multiplicity of the water management principles, such as, to focus on but one drawn out by the Applicants, s 5(2)(a) "water sources floodplains and dependent ecosystems … should be protected and restored and, where possible, land should not be degraded", how is the Court, I rhetorically ask, to discern whether a decision was made that carefully considered the implications of s 5(2)(a)? It may be the case that, together, Mr Paul Andrew and Mr Purcell have satisfied the Court that there is evidence of prolonged inundation of Lake Paddock and that a likely consequence of that inundation is the death of River Red Gums growing within the paddock. Objectively assessed, such inundation and the death of numerous River Red Gums could be identified as the degradation of land in terms of s 5(2)(a). However a consequence of a decision is not proof of a flawed decision-making process. Judicial review of decision-making does not require that every decision 'get it right' in the outcome. All a judge can do in reviewing a decision is to determine whether the decision was properly made. In short, as said earlier, a properly made decision can give rise to unfortunate consequences but that doesn't mean the decision-making was flawed.
The Court finds the reference by the Applicants to s 372 does nothing to alleviate its concerns True it may be that s 372(1) provides that one of the functions of the Ministerial Corporation, the First Respondent, is "to do anything for the purpose of enabling the objects of the Act to be attained" and that, in s 372(4), it is prescribed that "[i]t is the duty of the Ministerial Corporation to exercise its functions consistently with the principles of ecologically sustainable development". Even though the Applicants may assert that the death of the River Red Gums in the inundated Lake Paddock may be an instance of something occurring that is not ecologically sustainable, how is the Court to determine, it again rhetorically asks that what has occurred is the product of flawed decision-making? Whatever decisions that might have been made with respect to Yanco Creek may well have been entirely proper, correctly made having due regard to all the mandatory considerations but for a range of reasons some outcomes might have been unfortunate.
The uncertainties with respect to Decision 1 mean that it is not possible to determine with certainty how and if the water management principles in s 5 are to be applied. A critical stumbling block to the Applicants' case is when the said decision or decisions were said to have been made. It is pleaded that Decision 1 was made "about 1990" which is then fatal to the assertion that the water management principles are applicable to the decision as the Water Management Act (specifically ss 5 and 9) only came into operation on 1 January 2001.
The Court notes that the Water Management Act is unusual in the degree to which it is prescriptive, demonstrating at various points a clear intention on the part of the Legislature that a particular course be rigorously adopted by decision-makers under the Act. Pertinently, under the heading "Act to be administered in accordance with water management principles and State Water Management Outcomes Plan", s 9(1) states that:
[i]t is the duty of all persons exercising functions under this Act:
(a) to take all reasonable steps to do so in accordance with, and so as to promote, the water management principles of this Act".
All persons with functions include the Respondents. There then is found a prescriptive 'paramountcy' provision in (b):
as between the principles for water sharing set out in s 5(3), to give priority to those principles in the order in which they are set out in the subsection.
Earlier, at [99], the full s 5 was set out. Reviewing s 5(3) in the context of s 9(1)(b), it is to be seen that paramount consideration is to be given to (a) "sharing of water from a water source must protect the water source and its dependent ecosystems", it being the first in order to which priority is required to given over (b), which is "sharing of water from a water source must protect basic landholder rights". Then (c) reinforces the importance of (a) and (b) by, in effect reiterating, that "sharing of extraction of water under any other right must not prejudice the principles set out in paragraphs (a) and (b)".
Reviewing those provisions, it is instructive to note the clear directives as a consequence of the repeated use of the word "must". Further, an order of priority is set with protection of the water source and its dependent ecosystem being given paramount status. As to how those principles are to be applied, a clear duty is established in s 9(1) to "take all reasonable steps" and in taking those steps to do so "in accordance with" the principles and "so as to promote the principles". To act in accordance with the principles is a clear directive, essentially meaning there should be compliance with, or adherence to, the principles. The only qualitative variable in these provisions is the reference to reasonableness - to take all reasonable steps. Whereas a duty to take 'all' reasonable steps is stronger than just a duty to take reasonable steps, nevertheless, the pivotal test of proper adherence will always come back to what was reasonable in the relevant circumstances.
Confirmation of the strength of these provisions in the Water Management Act is found at [179]-[180] of Arnold No 6, wherein Biscoe J said:
179 The respondents submit that s 9 of the 2000 Act is only "exhortatory": Onesteel Reinforcing Pty Ltd v Sutton [2012] NSWCA 282 at [79] (Allsop P), Capital Airport Group Pty Ltd v Director-General of the NSW Department of Planning [2011] NSWLEC 22 at [4] (Biscoe J), and Telstra Corporation Ltd v Australian Competition and Consumer Commission [2008] FCA 1436, (2008) 171 FCR 174 at [164] (Lindgren J). I do not accept the respondents submission. The form of s 9 could hardly be clearer in imposing on the Minister, when making the Plan, a "duty" to do the things to which it refers including "take all reasonable steps to do so in accordance with, and so as to promote, the water management principles (in s 5) and to do so "in a manner that gives effect to" the SWMOP.
180 Having regard to s 9(1) and 5(2)(g) of the 2000 Act, I accept there is a statutory implication that it is mandatory for the Minister to have regard to the water management principles when making a plan. It is clear from the evidence and the terms of the Plan itself that the Minister did consider sustainable yield and recharge. However, the Minister is not bound to achieve any end to which the water management principles are directed, being principles that need to be balanced to some extent. That is apparent from the language of "take all reasonable steps in s 9(1)(a) and the introductory word "Generally" in s 5(2).
So in the context of these unambiguous and high order directives applicable to decision-makers under the Act, in circumstances where the Court has not been informed, with any particularity, of what Decision 1 was, by whom it was said to have been made, when it was said to have been made, and has no idea what material was or was not before the decision-maker, it is problematical in the extreme for the Court to determine with any certainty in any respect whether the decision-maker acted reasonably in accordance with the duty to be understood from the combined s 9 and s 5 provisions. In the circumstances, the Court finds that the Applicants have failed to establish a case with respect to Decision 1.
Further, the Applicants claimed (at [8E] of the SFAPOC) that: [148]
As a result of the river operations water usage and works decisions of the Respondents their servants of agents with respect to Yanco Creek complained of in paragraphs 8A and 8B and the resulting unnatural use by the Respondents their servants or agents of Yanco Creek as an irrigation canal and the implementation thereof the Applicants have suffered the loss and damage alleged in paragraph 3 herein, which loss is ongoing, and which loss and damage unless prevented by this Honourable Court will continue unabated.
The Applicants argued that each of the particulars to Decision 2 "are demonstrated by the file and facts 1-3 and facts 6, 7, and 8 in our facts sheet" (Fact 1 summarised at [128]-[130] above; Fact 2 summarised at [131]-[134] above; Fact 3 summarised at [135] above and [188]-[207] above; Fact 6 summarised at [142]-[145] above; Fact 7 summarised at [146] above; and Fact 8 summarised at [147] above). The Applicants, with respect to the file, repeated their contention (summarised at [176] above) that it was constructively before the Minister (relying on Peko-Wallsend).
The Applicants noted s 392 of the Water Management Act, setting out the State's water rights to the "control, use and flow of all waters in rivers lakes and aquifers". That is, the Applicants argued, it is the State (being the Second Respondent) "who, through the water sharing plan, is throwing 1400 megs and more a day across Yanco Weir, prioritising high regulated flows over conservation of the environment" (Transcript 556.45-47).
Thirdly, the Respondents submitted that, even if the Applicants had proved that Decision 2 had been made, by whom, and that it was tainted by error, no declaration has been sought in respect of Decision 2. The Respondents noted Prayer 6, seeking an order that the Respondents take steps to remediate the Lake Paddock, but submitted that, as at [274] above, the Court has no power to grant such relief in judicial review proceedings. The Respondents further submitted that the Applicants had not proved any causal link between Decision 2 and the alleged damage to the Applicants' land. [155]
Finally, the Respondents argued that, as summarised at [209]-[217] above, the Applicants required an extension of time pursuant to r 59.10 of the UCPR to challenge any decision made earlier than three months before the commencement of proceedings (that is, any decision made prior to 22 March 2015) and that no such extension should be granted. [156]
Elsewhere in this judgment, at [241], I examine the Applicants' proposition that a decision, once made, is repeatedly remade thereafter if, in effect, the consequences of that decision are still continuing. So it was contended that once "unnatural and unreasonably high" water flows were authorised, in the initial making of the decision, whilst there remains such high water flows in subsequent years it ought to be taken that there had been a repetition or remaking of that initial decision, to the effect that the high flows be maintained for each year in question. In essence, the Applicants were contending that having made the initial decision regarding flows then in each subsequent year there is then a decision: 'we will in this year maintain the flow levels down the Yanco Creek which we have previously approved'. In my examination of this proposition, I questioned that the Court should accept that there is proof by deduction that a decision is said to occur rather than being established on the evidence to have, in fact, occurred. However, in the context of Decision 2, it would seem reasonably likely that decisions regarding flow are made regularly by WaterNSW to reflect changed conditions at any particular point in time (say, in a drought year after a wet year). However, as said, such decisions are made by WaterNSW and so not one of the Respondents. In the instance of the "remaking" of Decision 2, by the time one reached the 2003 Regulated WSP, the 'capacity constraint' of a maximum 1,400 megalitres per day level for Yanco Creek was entrenched in its provisions.
I have decided that there is a clear basis to decide that review of Decision 2 is out of time and to not exercise my discretion to grant leave for the Applicants to bring their review. As I have held earlier at [236], UCPR r 59.10 applies to Decision 2 and it is therefore my task to determine whether discretion should be exercised. The initial making of Decision 2 was said to have been made "in or about 1990", that is some 25 years prior to the initial Summons being filed in these proceedings in June 2015. So the Decision 2 period covers some 10 years under the 2012 Act and some 15 years under the Water Management Act. When deciding whether an extension of time should be granted, pursuant to r 59.10(2), to allow the Applicants to commence their review with respect to Decision 2, the paramount consideration, in my view, is whether an injustice would be caused to the Applicants if I were to decide to decline an extension (see the discussion earlier at [240] regarding the injustice factor). There are also the discretionary factors to be considered which were summarised earlier at [238], when I cited my decision in Moorebank Recyclers which go to, inter alia, questions of unfairness to the Respondents.
This is a case where there has been extreme delay in challenging the decision to increase the water flow levels in Yanco Creek, being (it is alleged) some 25 years prior to the initiating Summons in the proceedings. On Mr Maini's evidence, the allowable flow level of 1,400 megalitres per day may have commenced in about 1995. That maximum capacity flow rate was confirmed in the 2003 Regulated WSP (see cl 65, note (d)) and in its replacement, the 2016 Regulated WSP (see cl 43, note (d)). To the extent that the Applicants' Decision 2 contentions are that the decision was remade each year that the high flow levels were confirmed or continued, although there was an absence of evidence of such annual decision-making, it can certainly be accepted by the Court that there was a decision to approve the 2003 Regulated WSP, as there was a decision to approve the 2016 Regulated WSP. However, deciding that there were decisions regarding WSPs and the setting of maximum flow capacity in Yanco Creek does not assist the Applicants' case. Given that the 2003 Regulated WSP was, and the 2016 Regulated WSP is, a management plan to which s 47 of the Water Management Act applies, the time to challenge the setting of the maximum flow capacity in each of those WSPs was within three months after the approval of each plan was published on the New South Wales legislation website - s 47(2)(a). Set out below at [519]-[528] is my decision regarding s 47 applying to the decision to approve the 2016 Regulated WSP. The arguments regarding s 47 and the 2003 Regulated WSP are even stronger, if that were possible, given the 2003 WSP was made 13 years earlier.
Consequently, given the strict terms of s 47, in particular s 47(3) which provides that the judicial review period cannot be extended by this Court 'or any other court, despite any other Act or law', I find that I have no discretion to extend the time to review the alleged annual repetition of the making of Decision 2 since the 2003 Regulated WSP set the channel capacity at 1,400 megalitres per day flow rate, noting that within that capacity it is WaterNSW that determines the flow rate. To the extent that Decision 2 was said to have been "remade" for the 2016 Regulated WSP, a similar prohibition against extending the time for review applies to that decision.
Lest there be a concern that the Applicants' case with respect to Decision 2 does not trigger the statutory time bar in s 47 because their pleading does not seek any relief with respect to Decision 2 and so cannot be taken to be that the validity of either of the WSPs is being 'challenged, reviewed, quashed or called into question", I reject that proposition. I am of the view that the Applicants' Decision 2 pleading cannot be read as anything other than a calling into question of the validity of the decision, incorporated into both WSPs to permit the high water flow level down Yanco Creek. Had the Applicants established their case in this respect, even without seeking specific relief, the Court would have been obliged to set out its findings and those findings would have had the persuasive effect, as described in Preston CJ's decision in Great Lakes Council v Lani; Great Lakes Council v Lani and Lampo Pty Limited (2007) 158 LGERA 1; [2007] NSWLEC 681 (Great Lakes Council) at [20]-[25]. Although there is some strength in the Respondents' submissions, at [303], with respect to the absence of relief sought, I do not have to decide the point they raise. However, that point is not the matter I am addressing here: with or without pleading the relief sought, the Applicants' case constitutes a 'calling into question' of the validity of the decisions. Accordingly, there is no difficulty in applying s 47 to the Applicants' case with respect to Decision 2, despite the flawed pleadings the Court has had to consider.
For the sake of completeness, even if I were to find that either s 47 didn't apply in the circumstances of Decision 2 or that there remained a discretion available to me to consider granting an extension, I would not do so. I am of the view that the decision of the Applicants, and earlier Mr Andrew Andrews, not to comply with the terms of the 1986 Licence (and all subsequent licences) by not installing the regulator at the offtake of the unnamed water course from Yanco Creek to the Lake Paddock, constitutes a fatal bar to the Applicants' submission that I should exercise my discretion in their favour. Had the regulator been installed, it could have been tested to determine whether it would do the job for which it was proposed - to control the flow of waters from Yanco Creek into Lake Paddock. If the regulator had failed to stem the rising flows in Yanco Creek, then it might have been capable of being modified, such as being raised, but no one will ever know, as it was never tested. In short, it is too late for the Applicants to complain decades later.
I now turn to the period before the decision to approve the 2003 Regulated WSP, at which point in time the statutory bar in s 47 overrides the ability of discretion to be exercised pursuant to r 59.10 (see above at [243]). Applying the discretionary factors to the decision I must make in response to the Applicants' Motion seeking leave to extend time pursuant to r 59.10, I am of the view there are multiple grounds to reject an extension. First, my observations expressed in the immediately preceding paragraph are just as apposite to the leave being sought pursuant to r 59.10. In short, the non-compliance with the regulator condition in the 1986 Licence (and, later, in the WAL) denies the Applicants any justification to have my discretion exercised in their favour. Secondly, given the passage of so many years since the alleged first making of Decision 2, it is unfair to expect the Respondents to respond to a challenge to decisions made in those in those years as forensically to establish what was or was not before the decision‑maker at the time is too difficult and is contrary to the proper conduct of judicial review proceedings. Accordingly, on the basis that I am able to consider the Applicants' Motion to extend the period for commencing the review of the earlier years when it is said that Decision 2 was made, I decline to exercise my discretion in favour of the Applicants.
For the sake of completeness the Court confirms the correctness of the Respondents' submissions summarised earlier at [305] with respect to differing responsibilities of the various government entities in making decisions regarding water management. In particular, since the creation of WaterNSW, that entity, which is not a party in to these proceedings (see earlier at [59]), is responsible for decisions regarding flow levels.
The Applicants argued that, on 28 September 2012, Mr Webb of the Department, purportedly in accordance with the 2012 Court Orders, made a decision to provide for a volumetric allocation on the 1986 Licence.
However, the Applicants contended, Mr Webb had "no power to determine that a water source is regulated or unregulated", which, the Applicants argued, was what Mr Webb purported to do (Transcript 536.36-39), and the purported amendment to the 1986 Licence was, therefore, invalid.
The Applicants argued that the purported amendment was also invalid on procedural fairness grounds, being that the Applicants were given no opportunity to consider and put their case with respect to the proposition that the 1,000 megalitres allocation would be for unregulated flows (Transcript 537.1-6). The Applicants argued that the letter of 28 August 2012 did not constitute sufficient notice.
As to the 2012 Court Orders, the Applicants argued that the agreement of the parties, as set out in the 2012 Court Orders, was on their understanding, and on a "trade understanding" (citing the evidence of Mr Hutchison), that the volumetric water allocation referred to in the 2012 Court Orders was a volumetric water allocation "under the existing volumetric water allocation scheme", which, the Applicants contended, meant "that it would be issued as part of the regulated plan, simply by force of the agreement and orders themselves and nothing more" (Transcript 537.32-37).
The Applicants further submitted that, in the purported making of Decision 3 under s 17A(2), Mr Webb:
didn't follow the procedures required by law as per (ii), he had an improper exercise of his power, because it was denied us the benefit of the licence entitling us to 1,000 megs we ended up with something of no value, unusable, relating to one water source only in a macro plan which permitted no trading of any value. He had sufficient regard to our interests and it was manifestly unreasonable, in the legal sense. (Transcript 537.47-538.2)
The Applicants argued that the reference to 1,000 megalitres in the 2012 Court Orders referred to regulated water, [157] and that therefore that "aspect of the [2012 Court Orders]" was "still not achieved", [158] and the 2012 Court Orders were "not given effect [because] volumetric allocation denied under [s 45(1)(a) and (c) of the Water Management Act]". [159] As such, the Applicants posited, the amendment to the licence on 28 September 2012 was "invalid", and that "modifications to [the] enhanced [1986 Licence]" were "not achieved until [30 March 2015]". [160]
Further, the Applicants contended, the water body in the Lake Paddock after 22 August 2012 did "receive water from the regulated part of the system" (citing Transcript 323.13-21) [161] [although it is unclear what is meant by this or the proposition they were intending to prove].
The Applicants submitted that:
1. the 1986 Licence conferred property rights on the First Applicant under the 1912 Act, and later the Water Management Act, in relation to Yanco Creek, and has been extended periodically since by the Respondents; [162]
2. by order of this Court made on 22 August 2012 the 1986 Licence "was converted with an enhanced entitlement for water allocation as replacement licence WAL No 33313"; [163]
3. by allowing the appeal and, it was said, "ordering the issue by the Respondents of a volumetric allocation of 1000 MLs in place of a zero allocation" by way of the 2012 Court Orders, "the Court confirmed that the [1986 Licence] gave rights in respect of the regulated river system, a situation which reflected the geomorphological and ecosystem reality, as well as the text and effect in terms of industry usage of the orders made"; [164]
4. instead of ensuring that the 1986 Licence, "with its enhanced entitlement, received a volumetric allocation of 1000 MLs and was treated as an integral part of the regulated water flow system" [165] , the Respondents
1. issued the 2012 Unregulated WSP, being a new plan for unregulated water; [166]
2. "converted" the 1986 Licence into the 2012 Unregulated WSP, "rather than into a regulated river plan"; [167]
3. "isolated the rights under the licence from the regulated river" [168] ;
4. "recorded an allocation in the 2012 Regulations linked to the WSP which effectively denuded the entitlement for trading and economic purposes"; [169]
5. "reduced the economic value of the licence to nil"; [170] and
6. "failed to give effect to the orders of the Court". [171]
The Applicants submitted that the condition was amended "without giving [the First Applicant] an opportunity to make any submissions about that." [172]
The Applicants noted that the decision to amend the 1986 Licence was made on 28 September 2012, "[p]urporting to give us the agreed volumetric allocation, as per the [2012 Court Orders]" (Transcript 535.40-41). In closing submissions the Applicants suggested that Mr Webb did not have the power to amend the condition to refer to "unregulated waters in the light of the Respondents (alleged) submission that only the Minister has the power under the Water Management Act "to define regulated or unregulated water". [173]
The Applicants have submitted that the amendment to the licence conditions, as contemplated by the 2012 Court Orders, did not occur until 30 March 2015. [174]
The Applicants placed great importance on correspondence between the Applicants and the Department, commencing with the 16 December 2014 letter summarised above at [194]. The Applicants argued that the response of the relevant departmental officer (of 25 February 2015, said by the Applicants not to have been received until 31 March 2015), having not taken issue with the allegations of adverse environmental consequences and "mismanaged water level changes in the 16 December 2014 letter, ought to "be viewed as evidence of an informal admission in the sense that nothing that could be said by the State would assist its case" (citing s 81 of the Evidence Act and Jones v Dunkel). [175]
With respect to the Applicants' contentions that they had no notice of the decision to issue the 1,000-megalitre water allowance via the unregulated system and, as a consequence, were deprived of their legal rights such as an entitlement to be heard on the so-called transition from the regulated category to the unregulated category of water, the Applicants' case is clearly rebutted by the evidence. The Court accepts the reality of what occurred as answered in the Respondents' submissions and summarised above at [336].
In conclusion, the Court accepts that Decision 3 was made on 28 September 2012. For the reasons given earlier in [317] for not agreeing to grant of leave to extend time for the judicial review of Decision 2, I consider that basis for refusing leave is just as apposite with respect to Decision 3. Further, an analysis of the evidence, including a proper characterisation of the 1986 Licence, I consider the Applicants have no prospect of success with respect to Decision 3 on a full examination of the facts. As set out earlier at [238], one of the discretionary factors to be examined, when considering whether to grant leave to bring a review out of time, is the question of whether the party concerned has a fairly arguable case. In my opinion, with respect to Decision 3, the Applicants have an entirely unsustainable case. Accordingly, the Court will not grant leave pursuant to r 59.10(2) for a review of the alleged Decision 3 to be reviewed.
The Applicants contended that the "real" reason for the purported exclusion was "high regulated flows causing damage in [Yanco Creek] and Lake in [the Lake Paddock]," and that "reducing losses of regulated flows was the priority of the Department" (citing the fourth Purcell Report at paragraph [1.8] - being a paragraph that does not exist).
The Applicants further argued that a "[f]urther contributing cause was failure of Respondents to include [Yanco Creek] and Lake in [Lake Paddock] in bulk access regime". The Court observes that it was unclear what was being alleged in this submission.
The Applicants argued that "no bulk access regime [was] done for [Yanco Creek]" in the 2016 Regulated WSP or the 2003 Regulated WSP. [200]
Further, the Applicants argued, in terms of the water management principles in s 5(2) and the "obligations" in s 3 the effect of incorporating the enhanced licence shortly after it was renewed in 2012 into an unregulated WSP [or not taking it out of that management area and placing it into the inextricably linked Murrumbidgee water management area] was to destroy and undermine, not protect and restore, the water sources comprising both Yanco Creek and the billabong in Lake Paddock. Further, the Applicants said: [201]
1. It degraded rather than enhanced the water quality.
2. It maximised the adverse effects of the impact of the water licences and approvals on water sources and their dependent ecosystems.
3. It failed to protect the geographical and natural heritage significance of the billabong in the Lake Paddock.
In doing so, the Applicants contended, the Respondents breached their duty as to water planning under ss 9 and 50(2) of the Water Management Act.
Further, the Applicants submitted that Decisions 4 and 5 did not have any or sufficient regard to the 2012 Court Orders, nor the enhanced licence, with respect to regulated or tradeable water arising from the volumetric allocation formally agreed to by the Respondents and ordered. [202]
Accordingly, the Applicants said, the Decisions 5 and 7 and the resulting plan and conditions were invalid or, having regard to the limitation provision in Acts Interpretation Act 1987, invalid insofar as it incorporated the above licences in the WSP and management plan. [203]
The Respondents noted ss 45 and 46 of the Water Management Act, referred to at [9B] and 9B of the SFAPOC, and posited that they merely conferred on the Minister a discretion to amend a management plan and provide for a statement that must be included in the event of such an amendment having specific results.
The Respondents submitted that there were several flaws to the Applicants' contention, raised for the first time, the Respondents said, in closing submissions, that s 45(1)(c) of the Water Management Act, in the light of the 2012 Court Orders, required the Minister to amend the regulated plan to ensure that First Applicant's allocation was incorporated into that regulated plan. The Respondents' first proposition was that s 45 provides a power, rather than imposing an obligation, to amend a WSP. Any obligation, the Respondents said, could only have been said to have arisen out of the 2012 Court Orders. However, the Respondents argued, the 2012 Court Orders did not order an amendment to the WSP, merely noted the agreement of the parties as to the amendment of the licence, and did not refer to a WSP. As the Minister, who holds the relevant power to amend a WSP, was not a party to those proceedings, the Respondents argued that the orders could not be reasonably construed as imposing any such obligation. [209] That s 45 confers a discretion rather than imposes an obligation, the Respondents submitted, was likewise an answer to the Applicants' contention.
Even if such a decision as alleged in [9B] of the SFAPOC had been made, the Respondents submitted, that decision would constitute a "plan-making function", as defined at s 47(8) of the Water Management Act, and the Applicants' challenge would therefore be time-barred by subs 47(2) and (4) of the Water Management Act, having been commenced more than three months after the publication of the 2012 Unregulated WSP. The Respondents argued that the Applicants' response to this, that the making of the 2012 Unregulated WSP constituted an ongoing or incomplete decision‑making process, [210] had not explained how this was the case. [211]
The Respondents' arguments above at [361], regarding the absence of a classification of the 'billabong water source', also has strength. Keeping in mind that the Dictionary to the Water Management Act defines 'water source' relevantly as, inter alia: "the whole or any part of … one or more places where water occurs on … the surface of the ground (including overland flow water flowing over or lying there for the time being)", a number of pertinent questions arise. First, given the breadth of the term 'water source', the Court rhetorically questions the extent to which any accumulation of water is required to be classified. Sense demands that any and every accumulation of water, such as a puddle, is not to be so classified.
The principle that seeks to avoid interpretations that lead to reductio ad absurdum situations adds credence to the Respondents' contentions. This was an issue that was returned to a number of times during the hearing (for example, at Transcript 419.4-33). It is inconceivable that it was the intention of the Legislature that every possible repository of water, including ephemeral ones such as the 'water body' within the Lake Paddock (which is what it appears to have been historically), was required to be classified. In 'real world' circumstances, a place where, on an ephemeral basis, water collected, especially an area that is not large or otherwise significant, might understandably never be front-of-mind. It is entirely conceivable that a conscious decision was never made with respect to the water body within the Lake Paddock or the unnamed watercourse leading to it. On this basis, the absence of evidence of such a decision being made, consciously focused on Lake Paddock, is fatal to the Applicants' assertions with respect to purported Decision 4.
It is also patently clear that s 7(4) does not say that the intention of Parliament was that all water sources were required to be classified in accordance with s 7 (emphasis added). In the context of the discussion at [371] above, it is obvious that there is no obligation to classify all water sources. Further, as the Respondents pointed out, s 7(1) says that the Minister "may" (not "must") classify water sources for the purposes of the Act. Again, it is entirely likely, indeed unsurprising, that the water body in the Lake Paddock was never specifically focused upon by anyone with a responsibility to advise the Minister on the classification of water bodies. It must be highly likely that there are thousands of small water bodies, particularly ephemeral ones, across the State that have never been, and are unlikely to ever be, classified. In such circumstances it is highly probable that there was never a decision of the kind purported to be Decision 4. The absence of evidence relating to such a non-decision is therefore hardly surprising.
The Applicants submitted that the water body in the Lake Paddock was placed within the 2012 Unregulated WSP by "default" (Transcript 534.8).
The Applicants noted cl 4(1)(a)(xxvii) of the 2012 Unregulated WSP, which provides that the 2012 Unregulated WSP applies, inter alia, to the Murrumbidgee Unregulated Water Sources, which include the MWWS. The MWWS, as noted above at [46], encompasses the Lake Paddock.
Clause 4.3 of the 2012 Unregulated WSP notes that:
(3) Subject to subclause (5), the Murrumbidgee Unregulated Water Sources include all water:
(a) occurring naturally on the surface of the ground within the boundaries of the Murrumbidgee Unregulated Water Sources shown on the Plan Map, and
(b) in rivers lakes and wetlands within the boundaries of the Murrumbidgee Unregulated Water Sources shown on the Plan Map.
However, the Applicants argued, "water that flows into Lake Paddock which is high regulated flows from Yanco Creek is not water naturally on the surface of the ground, it's water that is directed there by the effect of the unknown watercourse on the low paddock and the mismanagement of the regulated system" (Transcript 534.25-29).
The Applicants took the Court to cl 9 of the 2012 Unregulated WSP:
9 Vision statement
The vision for this Plan is to provide for healthy and enhanced water sources and water dependent ecosystems and for equitable water sharing among users in these water sources.
And argued that:
according to [the Respondents'] case, if the lake and the Lake Paddock is a water source, and we know from the evidence it's a water dependent ecosystem of Yanco Creek, it just simply doesn't naturally fall within that vision statement at all. There's no equitable sharing because there's no connectivity between Lake Paddock and anywhere else, except naturally across the flood plain. But the flood plain sources are all in the regulated plan. So, in truth, there's no provision in this plan for - there's no specific provision, as there is in the regulated plan, for other parts of the system, for example, the five other parts in the flood plain. There's no provision anywhere, of any specific character, which addresses any of the requirements of ss 20, 9, 5, 372 and 3, in the way that we've put in our submissions (Transcript 534.38-48)
The Applicant submitted that, therefore, "to the extent that [the Respondents] relied upon [Decision 5] as incorporating the lake water source, it is also invalid. Similarly, [Decision 4], for the same reasons" (Transcript 535.4-6).
The Applicants, relying on the evidence, they said, of Mr Maini, argued that (quoting the submission, as expressed):
making WSPs for unregulated rivers 'at the macro level' generally, in the manner explained by Mr Maini. This approach has been adopted in view of the scale of the areas required to be covered by WSPs and the impracticality of determining a separate WSP for each individual unregulated river.
The Applicants suggested that Mr Maini recanted on this evidence, and ultimately admitted that WSPs could descend into the detail that the 2012 Unregulated WSP fails to have regard to the water management principles under s 5 even "at a macro level".
In opening submissions it became clear that the Applicants were now contending that the Respondents had failed to comply with s 7(4) because the WSP fails to classify water sources as "at risk", "subject to stress" or of "conservation value" (see s 7(3)) and to make a "bulk access regime" for such water sources as are classified. It was also submitted that any bulk access regime fails to comply with s 20(2)(f) because it is not consistent with the water management principles in s 5.
The Respondents noted the Applicants' submission that the file, with respect to the First Applicant's licence was constructively before the Minister in making the various impugned decision, and contended that the Court ought not accept this. The Respondents submitted that the Minister may have constructive knowledge of the file relating to the relevant WSP, but "cannot be presumed to have constructive knowledge of every single file comprising the history of every single water license ever granted". [218]
Further, the Respondents contended that the Applicants "have not (and could not) identify any authority for the proposition that the Minister was required to consider impacts on the Lake Paddock", and were making an impermissible attempt to "make an exhaustive list of all the matters which the decision‑maker might conceivably regard as relevant and then attack the decision on the ground that a particular one of them was not specifically taken into account" (citing Sean Investments Pty Ltd v MacKellar (1981) 38 ALR 363; [1981] FCA 191 at 375 per Deane J). [219]
As to the Applicants' submission in relation to the express requirement in s 18 of the Water Management Act to take into account the socio-economic impacts of proposals considered for inclusion in a draft management plan, the Respondents posited that there is authority to the contrary. [220]
The Respondents noted the decision in Arnold No 6, wherein a submission that the Minister was required to have regard to socio-economic impacts of the making of a water management plan, at a farm-by-farm level, was rejected (at [204]-[229]) (citing Harvey and Tubbo v Minister Administering the Water Management Act 2000 (2008) 160 LGERA 50; [2008] NSWLEC 165 at [74]; NA & J Investments at [58]; and Murrumbidgee Groundwater at [103]‑[108]). [221] Relying on Arnold No 6, the Respondents submitted that:
Just as there is no requirement under the Water Management Act for the Minister to take into consideration farm by farm socio-economic impacts of proposals when making a water management plan, there is no requirement to take into consideration matters of the kind specific to the first applicant's property identified in the particulars to [9C] of the SFAPOC. [222]
Further, the Respondents noted that the SFAPOC does not challenge the legality of making WSPs for unregulated rivers "at the macro level" generally. With respect to the Applicants' assertions about the evidence of Mr Maini, summarised at [395] above, the Respondents argued that this mischaracterised Mr Maini's evidence of a "macro" approach, which was, the Respondents said, only with respect to unregulated WSPs. Mr Maini's "admission" under cross-examination was, the Respondents submitted, only in relation to regulated WSPs, [223] which was "obvious because the regulated water sharing plans apply only to those rivers that have been declared regulated rivers". [224]
With respect to the construction of ss 5 and 9 of the Water Management Act, the Respondents submitted that, although ss 5(2) and (3) refer to "water sources", the definition of "water source" is high level and "could not be read as requiring individual and separate consideration of every single body of water in NSW" (also discussed above at [265]-[266]).
Further, the Respondents said, it is unclear as to how the application of the 2012 Unregulated WSP to the Lake Paddock has any adverse environmental effect on the Lake Paddock. That is how the mere fact that the Lake Paddock falls within an unregulated (as opposed to regulated) system has any adverse impact on the environment. The Respondents noted that although, in his affidavit of 28 January 2016 at [5], Mr Paul Andrews claimed that the denial of a regulated entitlement would lead to environmental damage, he was unable to articulate under cross-examination how this was the case (see Transcript 163.38-164.14). [225]
The Respondents argued that, to the extent the Applicants submit that the 2012 Unregulated WSP fails to have regard to the water management principles under s 5, even at a macro level, this is not how the failure is pleaded in the SFAPOC and, the Respondents said, the Applicants should not be permitted to make that argument in closing. Further, the Respondents submitted, such an argument is contradicted by the terms of the 2012 Unregulated WSP, which:
expressly refers to the water management principles at cl 12(2)(f). It also repeatedly refers to environmental considerations at cl 9, 10(a), 10(b), 10(j), 12(e). The WSP also establishes "environmental water rules under Part 4 for the "commitment, identification, establishment and maintenance of planned environmental water": cl 15.
The Respondents went on to set out the definition of "Planned environmental water" at s 8(1)(a) of the Water Management Act, being:
water that is committed by management plans for fundamental ecosystem health or other specified environmental purposes either generally or at specified times or in specified circumstances and that cannot to the extent committed be taken or used for any other purpose.
Even if I did have discretion to extend the time by which proceedings could be brought to review Decision 5, I would not grant leave to the Applicants for them to do so. I consider the Applicants' case with respect to the decision to approve the 2012 Unregulated WSP is without merit and so, in the context of one of the discretionary factors being whether an applicant's case for leave has a prospect of success in this case, I am firmly of the view that their case has none. Most of the conclusions I have reached, that the Applicants' case with respect to Decision 5 is unsound, are similar to conclusions I have reached with respect to other Decisions sought to be challenged in these proceedings. Accordingly, where necessary for clarity, I have cross‑referenced to other passages in the judgment in which identical issues have been determined.
First, there is no evidence before me, applying the usual administrative law tests when a decision is to be scrutinised in a judicial review, that the Minister either failed to take into account mandatory relevant considerations or took into account irrelevant considerations.
Secondly, the evidence fails to indicate any rational basis for it to be concluded that there is any distinction (with respect to threats to, or safeguards for, for instance, a dependent ecosystem) between a water body, in particular the water body in the Lake Paddock, being placed within an unregulated WSP or within a regulated WSP. As my analysis at [529]-[548] below demonstrates, comparing the regulated system with the unregulated system does not indicate that there are fewer protective measures in one system compared to the other. In all respects the consideration of the water management principles and exercising functions in accordance with them in the priority set by the Act is just as necessary whether Lake Paddock is within the 2003 or 2016 Regulated WSP system or within the 2012 Unregulated WSP system.
Thirdly, as an extension of the last conclusion, there is no basis to assert that by reason of the Lake Paddock being within the 2012 Unregulated WSP that it is more likely to be waterlogged or inundated, or that its productivity would be more undermined, than had it been placed within the 2003 and then 2016 Regulated WSPs. The duties that arise by reason of the requirement to act in accordance with the s 5 water management principles do not mean that every water source must be classified according to the risk it might face, nor that every decision must equally protect and restore every dependent ecosystem. It is entirely conceivable that for the greater good, some water source and its dependent ecosystems might suffer, whilst the majority are protected. The duty in s 9 speaks of taking all reasonable steps in accordance with the water management principles. If all reasonable steps are taken, there is (unsurprisingly) no concurrently applicable statement regarding mandatory outcomes. In short, as is often the case with respect to environmental protection legislation, it is the process that is mandated, not the outcomes.
Fourthly, it follows from the foregoing, there is no basis for it be asserted that simply because the Lake Paddock, or for that matter the banks of Yanco Creek, have been degraded due to high flow rates that the decision approving the 2012 Unregulated WSP was deficient in some respect. Given the extensive area covered by the 2012 Unregulated WSPs and the number of water sources within that area, there is no basis to conclude that the making of plan did not comply with all the requirements of the Water Management Act. Every decision, however correctly made, cannot be expected to achieve perfect outcomes. An imperfect outcome is not an indication that the decision-making process was flawed.
Finally, as for the Applicants' argument, summarised earlier at [391], regarding cl 4.3 of the 2012 Unregulated WSP - that it only applies to water occurring naturally on the surface of the ground - and so, with respect to the Lake Paddock, it cannot apply as the waters that flow into it from Yanco Creek, by way of the unnamed watercourse, are not there naturally because of artificially high regulated flows and mismanagement of the regulated system. The Court dismisses this argument as being without merit. Apart from the unsupported proposition that the system is being mismanaged, a simple extrapolation of the argument highlights the nonsense in the proposition. In essence, if there was any validity to the proposition, then any alteration to natural systems by which rivers follow the course guided by gravity and landforms would have to likewise be classed as the creation of unnatural flow and so, if Mr King had his way, would be outside the scope of the WSP. If such an interpretation was correct, there would be no water covered by any WSP. Such a submission is another example of a reduction ad absurdum argument which logic demands be dismissed summarily.
As an overall summary, in addition to the submissions on the time-bar in s 47, I have found all the Respondents' arguments with respect to Decision 5, summarised earlier [397]-[413], entirely sound and so, to the extent necessary so as to address matters not already discussed above, I adopt the contentions put in answer to the Applicants' case on Decision 5.
The Court is also of the view that the Applicants have not established that the WAL, issued as it was, was contrary to the public interest or that the decision to so impose those conditions was made without regard to the public interest. In the context of the findings made by the Court set out elsewhere in this judgment that there was no obligation on the Minister to classify each and every water source in accordance with s 7 of the Water Management Act, nor an obligation to take other than 'all reasonable steps' to exercise their functions, pursuant to s 9, in accordance with the water management principles, there is no basis for the argument that the issue of the licence as a consequence of the Decision 6, failed to meet all the obligations that the decision-maker had to meet.
With respect to the assertion that there was a failure on the part of the decision-maker to have regard to the 2012 Court Orders, apart from it not being established why those orders were a mandatory relevant consideration, if they are to be so considered, then there is no evidence before the Court that the orders were not considered, nor any apparent reason why Decision 6 imposing conditions on the WAL might be considered inconsistent with either the 2012 Court Orders or the licence which followed in compliance with them.
In accordance with the foregoing paragraphs, the Court accepts the submissions of the Respondents that the Applicants' case with respect to Decision 6 should be dismissed.
The Applicants asked, rhetorically, "how does it come about that the flood plain on my client's land, their valuable land at Narrandera, on reach 1 of the Yanco Creek system. How does it come about that five unnamed watercourses and small creeks are all declared regulated rivers and protected by this plan, but the Lake Paddock is not?" (Transcript 416).
The Applicants emphasised that other small watercourses on the Applicants' property have been declared regulated rivers with the inference being that, because these other small water courses have been declared regulated rivers, the Minister should treat "like with like" and declare the Lake Paddock a regulated river.
There is one caveat to the Court embracing the submissions of the Respondents as a useful summation of the Court's conclusions on the Applicants' contentions. That caveat is that I do not accept paragraph (e) as set out in [451] above. Largely on the basis of the evidence of Mr Purcell, with which Mr Warren tentatively agreed, I have found that the Lake Paddock is a dependent ecosystem of Yanco Creek. Disagreeing with the Respondents' submissions in this regard does not weaken, in any sense, my conclusion that the Applicants' case with respect to Decision 7 should be dismissed, for the reasons I have explained.
With respect to the reference made by the Respondents, summarised below at [517], to the submission dated 21 June 2016 made by the Applicants to the Minister, the Applicants argued that such submission was relevant to the proceedings because:
1. the submission referred "to the very matter before this Court including the allegations regarding damage to the environment and the farm" (citing paragraphs [3] and [8C] of the SFAPOC) [248] ; and
2. in the present matter, the case is that "the Minister failed to consider the submission put to him and disregarded the Applicants legitimate interest in their licences ie 'the extent to which the Respondents would be detrimentally affected by' the exercise of the plan making function" [249] (citing Peko-Wallsend per Mason J at 34).
The Applicants alleged that the Minister (of whom Mr Maini was a "designated delegate", the Applicants claimed), in making the 2016 Regulated WSP (under ss 46 and 50 of the Water Management Act), being "a replacement plan of 10 years duration under WMA ss 46 and 50 replacing the [2003 Regulated WSP] for the Murrumbidgee including [Yanco Creek] system and its dependent ecosystem", was in excess of the power conferred on the Minister pursuant to Ch 2 of the Water Management Act, [250] on a number of grounds set out in the particulars to Decision 8.
The Applicants posited that a Minister's Plan has two roles:
1. it must satisfy the requirements of s 50 and Pt 3; and
2. if a bulk access regime is established, the Minister's Plan must also satisfy s 7, which places a requirement on the Minister where water sources or their dependent ecosystems are classified as high risk, high stress or high conservation value (Transcript 545.30-35).
That is, the Applicants submitted, in this respect there is "no leeway" in the Water Management Act (Transcript 545.46).
With respect to [474(2)] above, the Applicants contended that, although Yanco Creek and its dependent ecosystems (including its banks, bed, trees surrounding it, and the water body in the Lake Paddock) "are all high risk, high stress and high conservation value", that cl 12 of the 2016 Regulated WSP and cl 12 of the 2003 Regulated WSP "and the evidence before the Court indicates there's never been a classification" (Transcript 545.39-44).
Although it was unclear what the 'consideration' was that the Applicants were referring to, they contended that:
… no such consideration is found by the Respondents in this case even though it is clear from Facts 1,2 and 3 that both [Yanco Creek] as it passes through ["Somerset Park"] and its dependent ecosystem is each a high conservation value and at risk and a stressed water source. This is not disputed in substance by the Respondents in [Respondents closing submissions] whose case is that the Respondents only had a 'high level' obligation which did not descend to [Yanco Creek] or its dependent ecosystem, with the result that on the facts if the Applicants construction is accepted, the duty was breached - see [Respondents closing submissions] [84] and [98] which assumes this result; further ex facie the bulk access regime in clause 12 of the 2016 Plan does not even purport to classify the water source that is [Yanco Creek] or the Lake and see Facts 1,2 and 3. [255]
The Applicants sought to distinguish the present circumstances to those in Nature Conservation Council, where it was held that "Appendix 4 to the Gwydir WSP detailed indicators such that it did comply in substance with the Act's general requirements in s 35(1)(d) and the legislative intent as reflected in Blue Sky - and especially at [91]", but that nothing of that kind appears in the 2016 Regulated WSP "or any previous instrument of the Respondents including the [2003 Regulated WSP]". [256] For example, the Applicants said, there was no classification of the dependent ecosystem of Yanco Creek, being the water body in the Lake Paddock, or classification of Yanco Creek, as at risk or otherwise. The Applicants noted that, following the decision in Nature Conservation Council, the appellants sought and were given special leave to appeal from the High Court. However, the matter was subsequently settled "because the State then amended the Act". Counsel for the Applicants sought to draw an inference from the granting of special leave, and what counsel for the Applicants characterised as the Respondents in the matter "basically conced[ing] that special leave was appropriate" (Transcript 540.10‑11), and the subsequent insertions of ss 8B, 8C, and 8D into the Water Management Act "demonstrates the strength of [the Applicants'] argument, since then s 7 hasn't been amended …" (Transcript 540.16-18).
The Applicants argued that the Respondents' case was that there is a "high level" duty only, that there was no duty to consider and classify "every single body of water", and that such a case was "belied by Schedule 4 of the 2016 Plan which specifically identifies the Yanco System including several parts of the floodplain on ["Somerset Park"] as water sources and the Lake itself which is on the evidence a dependent ecosystem both of the floodplain and [Yanco Creek]". The Applicants contended that the "high level duty" interpretation is contrary to the purpose of the Water Management Act, including objects (a) and (b) (citing s 33 of the Interpretation Act 1987).
The Applicants argued that the Respondents' case was also inconsistent with the mandatory language in s 20(1)(e) (citing Nature Conservation Council at [63] and [67]). The Applicants argued that Nature Conservation Council at [90] was, however, distinguishable from the present matter because, whereas in Nature Conservation Council, in form, the Gwydir WSP did not comply with the requirements of s35(1)(d) of the Water Management Act, it was held that it did comply in substance because of Appendix 4, however, the Applicants contended here, neither in form nor substance, does the 2016 Regulated WSP comply with ss 20(1 )(e) and 7(4) and (5).
The Applicants contended that s 9(1)(b) of the Water Management Act obligated the Respondents, including the Minister, in the exercise of the plan‑making functions "as between the principles for water sharing set out in s 5(3) to give priority to those principles in the order they are set out in that subsection", and that s 5(3) provides, in relation to water sharing, that sharing of water "from a water source must protect the water source and its dependent ecosystems as the first priority. The Applicants argued that this was consistent with the objects set out at s 3(a) and (b) of the Water Management Act to protect, enhance and restore water sources and their associated ecosystems and to apply the principles of ESD, including, the Applicants posited, "the precautionary principle to avoid wherever practicable serious or irreversible damage to the environment [principle (a)] and conservation of ecological integrity [principle (c)]". [262]
It followed, the Applicants argued, that the Minister was aware when making the 2016 Regulated WSP that the 2003 Regulated WSP "had failed to prioritise the protection or restoration of any dependent ecosystem in relation to [Yanco Creek] or elsewhere in the [Yanco Creek] ecosystem" (citing Peko‑Wallsend). [263]
The Applicants submitted that, so far as any protection or restoration of the Yanco Creek ecosystem was concerned, as provided for in the 2016 Regulated WSP, only cl 72(2) "establishes the Yanco System", whilst Sch 4 specifies "the rivers that form part of the Yanco System" but, the Applicants said, "there is no recognition of the damage being done to [Yanco Creek] or Reach 1 or the Lake [Paddock] by high regulated flows and no relevant prioritisation as required by ss 9 and 5(3)". [264]
Further, the Applicants said:
there is no provision in these specific parts of the [2016 Regulated WSP] to reverse the Department policy known to the Minister which had done such damage under the same regime in the same [2003 Regulated WSP] and then to prioritise the statutory mandate. The Minister and Mr Maini explained this as 'consultation fatigue'. [265]
The Applicants noted, in relation to the Respondents' so-called "high level" argument, Sch 4 of the 2016 Regulated WSP, which the Applicants said specifies five parts of the flood plain on the Applicants' property but not the water body in the Lake Paddock which, the Applicants argued, forms part of the floodplain and is a dependent ecosystem of Yanco Creek. [266]
The Applicants argued that, insofar as the Respondents' case was that water body in the Lake Paddock "defaulted" into the 2012 Unregulated WSP, that WSP:
clearly failed and did not even recognise the Yanco system or the dependency of the lake upon it or that it was regulated water that was destroying the environment (not unregulated water). In other words on every aspect of the planning regime evidenced in this case the Respondents have failed to give effect to ss 9 and 5(3). [267]
The Applicants further argued that, apart from establishing "a Yanco dealing limit" in water trades the 2016 Regulated WSP makes no provision for protecting "the water source which is [Yanco Creek] and its dependent ecosystem that is in [the Lake Paddock]". In short, the Applicants said (citing Nature Conservation Council at [68]), the 2016 Regulated WSP "prioritises the principle of extraction over protecting the water source and its dependent ecosystem". [268] The Applicants noted cl 43 of the 2016 Regulated WSP and cl 65 of the 2003 Regulated WSP which, the Applicants said, "do refer to inundation (see the words "taking into account') but do not, contrary to the [WM] Act, prioritise protection of the water source and its dependent ecosystem over extraction" (citing Nature Conservation Council at [63]-[68]). [269]
In rebuttal to the Respondents' submissions (summarised at [404]-[412] below), the Applicants submitted:
i. "The high level construction contended for does not give operation to the mandatory words in ss 9 & 5 (3) (a) and the words in the definition "the whole or any part of....one or more.... lakes particularly having regard to the objects of the Act including the [principles of ESD]: see Interpretation Act s33.
ii. The mere fact that the water source may encompass a multiple of rivers does not excuse the obligation to focus on the particular and "protect the water source and its dependent ecosystems including that in YC and LP - the reference in AM&J [sic] Investments v Minister (2011) NSWLEC 51 at [47] is to a duty to the community generally in principle 5 (2) (g) not to a particular water source in 5 (3) (a): see Nature Conservation Council at [63] -[69] per Spigelman CJ.
iii. Moreover the decision in Arnold v Minister (2013) NSW LEC 73 at [180] is distinguishable because, it related to a ground water plan and the relevant duty here under discussion arises under s9 (1) (b) [not (a)] and s5(2) [not 5(3)].
iv. As the Respondents belatedly appear to accept in their RS, if the Respondents fail in their submission at [110 e.] that is fatal to their Defence on this aspect of their case because the Lake is degraded as the consequence of high regulated flows in the Murrumbidgee released from the Respondents dams upstream and going down YC past SP.
v. For the above reasons the Court should conclude that there has been a breach of s9 & s5 (3). [270]
For these reasons, the Applicants said, particulars (i) and (ii) to Decision 8 "should be upheld". [281]
The initial Summons in these proceedings was filed on 22 June 2015 and so, as it preceded the making of Decision 8 and the publication of the notice of that decision on 1 July 2016, that Summons obviously cannot relate to the review of Decision 8. The first revision of the initial Summons was an Amended Summons (Judicial Review) filed 15 September 2015, which also, by reason of its date, must be irrelevant with respect to Decision 8. The next further revision of the proceedings occurred via a Further Amended Summons (Judicial Review) filed on 13 November 2017, some 16 months after Decision 8 was made and notified. This Further Amended Summons (Judicial Review) was also silent with respect to Decision 8. Unless cloaked with the obscurity of the words in [6] of that document, the following is a vague reference to the Minister approving the 2016 Regulated WSP: "[d]ecision … preventing the Applicant from accessing or having an entitlement to the regulated waters of Yanco Creek". Absent further details or specific pleading identifying the linkage to the decision regarding the 2016 Regulated WSP, it is entirely unacceptable that the Court must try to second guess what is being pleaded. In the context of the strict prohibition in s 47(3) against the Court extending a review period, the Court must be wary of trying to read into a document words to create a review which otherwise had not been commenced within the requisite period. The brutal fact is that even if the Further Amended Summons (Judicial Review) of 13 November 2017 could be imaginatively recast, it was nevertheless 16 months after the expiry of the allowable statutory review period with respect to Decision 8.
The Applicants' Points of Claim filed 21 September 2016 at (d) sets out particulars, in somewhat vague terms, "[t]hat part of the decision or decisions made in or about June 2015 and in July 2016 by the Minister varying and extending the Water Sharing Plan for the Murrumbidgee River as respects Yanco Creek so as to exclude the Billabong water source which abuts or forms part of the Yanco Creek water source from the water sharing provisions of the Plan". As for the assertion that the Minister's decision was varying or extending the WSP, see below at [526]. It is to be noted that this Points of Claim was filed within the three months of Decision 8 but, nevertheless, in the absence of an amended summons actually pleading by some reference, any reference, to Decision 8, the Court is only left with an Amended Summons filed September 2015 that could not have addressed Decision 8 (preceding, as it did, that decision by nine months).
The Court has contemplated whether it was possible for it to have allowed an amendment to the Applicants' pleadings acting in accordance with the available powers in the UCPR to allow an amendment of an originating process after the expiry of a limitation period (r 65), on the basis that in the interest of justice a correction, a clarification of grounds should be allowed. Although the Court might have contemplated this course if it was simply a matter of deficient drafting or poor particularisation on the face of the requisite pleading, however, in this instance with respect to Decision 8, there was nothing on foot to amend. The Court did not have before it a summons within the relevant period, being 1 July 2016 to 1 October 2016, that, even by vague or insufficient drafting, sought to review Decision 8. In short, there was nothing relevant to allow to be amended. As said, the first conceivable raising of the review of Decision 8 is found cloaked in imprecise words in [6] of the third iteration of the then single Applicant's summons, the Further Amended Summons all of 16 months after the making of Decision 8. Being 16 months after the decision, the three-month statutory review period had obviously expired.
The Summons is the initiating document which constitutes the originating process in judicial review, whereas a points of claim is merely an explanatory document setting out an expansion of the grounds which are usually first set out in brief form in the initiating summons. A vague points of claim, as in this case, might be criticised, but amending such a document does not constitute a commencement of a review which had not otherwise been commenced by the proper process. Apart from ensuring there was no doubt that the statutory time period set by s 47(2) was being met, the filing of a more specific review document with a more focused pleading was clearly required in the interests of justice, so that the Respondents could properly defend, and the Court could properly consider, the challenge.
Even if it was thought that there was some merit in allowing the Points of Claim filed 21 September 2016 to be amended and concurrently somehow treat the document as being an originating process with respect to Decision 8, it is to be noted that [d] in the Points of Claim, although it alludes to a July 2016 decision of the Minister, nevertheless speaks of the varying and extending [of] 'the Water Sharing Plan'. In the context of Decision 8 being with respect to the Minister's decision to replace the 2003 Regulated WSP with an entirely new water management plan, the 2016 Regulated WSP, it stretches allowable tolerance to accept that 'varying or amending' an extant WSP is the same subject matter as the approval of an entirely new WSP, which was actually the decision of the Minister in June 2016.
In conclusion, the Court has decided that the Applicants have sought to commence a review of Decision 8 out of time and that by reason of s 47(3) of the Water Management Act, the Court has no jurisdiction to extend the review period. On this basis alone, the Applicants' claim with respect to Decision 8 should be struck out.
In circumstances where the Respondents challenged the Applicants' purported reviews of six of the other Decisions the subject of these proceedings (being Decisions 1-5 and 7) on the basis that they were out of time, the Court notes that the Respondents did not raise a timing issue with respect to the Applicants' review of Decision 8. This circumstance causes the Court to reflect that the Respondents must be of the view that there was a lawful within-time basis by which the Applicants could review Decision 8. In these circumstances, the Court states that, even if it is wrong with respect to the application of s 47 to Decision 8, the Court is of the view that the Applicants' case with respect to Decision 8 fails in any event on other grounds as the Court will now explain.
Reviewing the correspondence from Mr Andrew Andrews, the Second Applicant's father, suggests that he had a genuine interest in protecting the environment he evidently loved on "Somerset Park". He, from the outset, expressed concerns about the inundation of Lake Paddock, however, with respect to the control measure, the regulator, required by the initial 1986 Licence (and continually required through to the present day) one function of which was to prevent inundation of Lake Paddock, he saw fit to never install it. The consequences of that decision have had implications from that day through the decades, right through to my exercise of discretion in this judgment.
However, with respect to these proceedings before me, the Respondents' counsel suggested an alternative perspective, that (Transcript 558.3-24):
The only thing that's clear is that the applicant's licence falling within the regulated as opposed to unregulated system would lead to it being a more valuable licence. That also arises from Mr Hutchinson's evidence. He said regulated entitlements are much more valuable than unregulated entitlements.
That's the only real difference in approach that we can see. There's certainly no consequence for the environment, and that is illustrated by the applicant's letter of 21 June 2016 to the minister, to which Mr King has referred often. That's the letter at page 7 of the applicant's revised bundle, now exhibit O/R. I'll take your Honour to it briefly.
…
Yes addressed to the minister:
"We note that you are currently reviewing the extension or variation of renewal of the Water Sharing Plan for the Murrumbidgee Regulated System which includes the Yanco Creek which flows through our client's land. Yanco Creek is part of the regulated water source and [sic] which extends onto our client's land."
"As you know our client claims that it is entitled to a 1,000.00 Megalitre Volumetric Allocation under its licence consequential upon orders of the Land and Environment Court of 2012, instead of the water licence issued to it in October 2012 in an unregulated water source. It claims to have a legitimate expectation to a tradeable water right and not an insubstantial non-tradeable right as is the present case."
"We require that in your review of the new or extended plan, which is under way, that you include in the interests of justice that Volumetric Allocation in making the new plan in the proper exercise of your powers and in fulfilment of your undertaking referred to above."
No mention of environmental concerns whatsoever, your Honour. The concern underlying that letter is that they have an unregulated entitlement that they see as non-tradeable. Of course, it is tradeable, just under a much more restricted regime. The concern underlying that letter is that their licence is not as valuable as it might otherwise be. So, I make that general observation about the applicant's complaints in respect of all of these water sharing plans.
Then on the last day of the primary hearing, the Respondents' counsel returned to this issue (Transcript 633.24-32):
The only thing that really changed in that period, 1995 to the commencement of the proceedings was that the applicants realised they had an unregulated entitlement as opposed to a regulated entitlement. That seems to have been what precipitated the bringing of these proceedings in 2015, going through the chain of correspondence. And, of course, that's the issue that was raised with the minister when he was making the 2016 plan, in that 21 June 2016 letter, "We thought we had a tradeable water right, not a non-tradeable one." No mention of environmental issues.
The Applicants, in their reply submissions of 2 August 2018 (ARS), sought to address these assertions, however, in the Court's opinion, failed at the critical point. The Applicants repeated, throughout the ARS, that the Applicants' long-maintained concern was with respect to environmental harm to the dependent ecosystem, which the Court accepts on the evidence as including Lake Paddock. However, with the Court accepting the evidence of Mr Purcell (as it does) regarding the harmful consequences of continual inundation, and doing so after carefully considering submissions to the contrary from the Respondents, the mere fact that concern was expressed does not change a critical fact. As the Court finds it, whether the waters flowing along Yanco Creek are regulated or unregulated, or whether Lake Paddock is either within or outside the regulated system, there is no material differential when it comes to the environmental protection concerns expressed by the Applicants. Likewise, there is no material differential with respect to obligations applying to decision-makers under the Water Management Act whether the water source concerned is within a regulated or unregulated system.
In circumstances where there has been a failure, as the Court has found, on the part of the Applicants to establish that there is a differential, as far as the environment is concerned, between the extant circumstances of Lake Paddock being within the unregulated water management system as distinct from being placed within the supposedly more desirable regulated system, the Court has had cause to reflect whether there is in fact truth in the Respondents' suggestions, set out earlier at [532] and [533], that the underlying concern is more about securing a more valuable tradeable water right. At first the Court surmised that there was an "elephant in the room", the desire to have more tradeable water rights that was being adroitly avoided, however, with the Applicants' failure to demonstrate why, environmentally, there is a material distinction between the two systems, that elephant's presence is now palpably more obvious.
These proceedings have continually returned to the Lake Paddock and the impact upon it of inundation from Yanco Creek by high regulated flows being permitted flows which, Mr Maini confirmed in evidence, do pass at up to 1,400 megalitres per day (but not always at that rate) over the upgraded Yanco Creek Weir - with the intention that the approved channel capacity is not exceeded. So the Court accepts that the flow along Yanco Creek since 1995, 20 years prior to the commencement of these proceedings, has increased, but to express that concern in terms of whether the Lake Paddock was or was not within the regulated system fails to demonstrate that there would be a different approach or a different outcome as far as inundation is concerned or as far as the environment is concerned.
When considering these concerns, the Court is mindful of the approach adopted with respect to the Water Management Act by the Court of Appeal in Nature Conservation Council when considering the duties of the Minister (for which I extrapolate as being all decision-makers under the Act). At [90]-[95], the plurality held as follows:
90 Before determining that a failure to observe the requirements of a legislative scheme has the consequence that the exercise of a statutory power has failed and that the result of the purported exercise is invalid, it is necessary to ask whether there is a legislative purpose to invalidate the exercise of the statutory power by reason of the alleged failure. (Project Blue Sky Inc supra at [91].)
91 Textual indicators suggesting invalidity include:
• The objects of the Act specified in s3(a) and s3(b).
• The water management principles identified in s5(2)(a) and s5(2)(b).
• The priority given to protecting the water source and dependent ecosystems in relation to water sharing by s5(3) and s9(1)(b).
• The mandatory terms of s8(2) ("rules … are to be established") and of s20(1)(a) ("water sharing provisions … must deal with … the establishment or environmental water rules").
• The specification of an obligation to enforce the environmental water rules by s48.
92 One textual factor in the case of a Minister's Plan tending against a conclusion of invalidity, is s50(2) which requires a Minister to "deal with", relevantly, the s8(2) requirement that a Plan contain environmental water rules but to do so only "in general terms".
93 On balance these textual indications would support a conclusion of invalidity. It is however, my opinion that the factual context of the water source, rather than the textual context of the legislative scheme, is determinative in the present case.
94 As the Notes to cls 14(a), 14(b) and 30(1) indicate, the long term extraction of 388,000 mega litres is only 56 percent of the estimated long term average annual flow of 875,400 megalitres As a practical matter, if not in form, a substantial flow of water is in fact committed to fundamental ecosystem health. In my opinion, the application of the Project Blue Sky test does not, in the circumstances lead to a conclusion that the Plan is invalid.
95 The objects of the Act set out in s3(a) and s3(b), the water management principles set out in s5(2)(a)-(d) and 5(3)(a), together with the priority established by s9(1)(b) strongly suggest that the Parliament was concerned with matters of substance rather than form when it required the establishment of environmental water rules. On the face of the Plan, together with the analysis in the SWMOP set out in [29] above, and in the absence of any other relevant evidence, the Plan does as matter of substance, contain rules which identify, establish and maintain water that is committed for fundamental ecosystem health at all times and which may not be used for any other purpose.
It is in the context of considering matters of substance rather than form that I now turn to the 2012 Unregulated WSP, under which the Applicants complain that their Lake Paddock has been placed. I will compare the 2012 Unregulated WSP plan with the 2016 Regulated WSP, in relation to which the Applicants complain that high flow waters regulated by that plan inundate Lake Paddock. This is the plan that the Applicants want their Lake Paddock, and its associated unnamed watercourse, placed within (it is to be noted that, by examining the 2016 Regulated WSP, similar observations can be made with respect to 2003 Regulated WSP).
The starting point is to confirm that the 2016 Regulated WSP is a WSP for the Murrumbidgee Regulated River Water Source and that it was made pursuant to s 50 of the Water Management Act. The first note to cl 3 confirms that 2016 Regulated WSP replaced the 2003 Regulated WSP (see above at [51]‑[52]).
The 2016 Regulated WSP at cl 7 sets out the vision statement of that WSP which, inter alia, states that the 2016 Regulated WSP is to provide for, relevantly, (a), the health and enhancement of this water source and its water dependent ecosystems. Clause 9 then sets out environmental objectives, strategies and performance indicators. Given the focus of the Applicants' case with respect to Decision 8, relevantly, cl 9(1) states:
9 Environmental objectives strategies and performance indicators
(1) The environmental objectives of this Plan are to:
(a) maintain and enhance the ecological condition of this water source and its dependent ecosystems (instream, riparian and floodplain ecosystems) over the long term, and
…
(b) contribute to the maintenance and enhancement of downstream processes and habitats including in downstream water sources and
(c) contribute to the maintenance and enhancement of the water quality of this water source and downstream water sources.
By cl 12(1), the 2016 Regulated WSP establishes a bulk access regime for the extraction of water under access licences in the water source, having regard to, inter alia, environmental water rules established under the plan. Clause 12(2)(f) provides that the bulk access regime for the water source covered by the 2016 Regulated WSP "recognises and is consistent with the water management principles set out in s 5 of the [Water Management Act]". Keeping in mind the Applicants' contentions regarding the inundation of the Lake Paddock, it is to be noted that cl 43 sets out provisions regarding water delivery and channel capacity constraints. It is provided as follows:
43 Water delivery and channel capacity constraints
(1) Where necessary for determining numerical extraction rights managing water releases or providing water under access licences the maximum operating channel capacity in all or part of this water source will be determined and specified in accordance with procedures established by the Minister, taking into account:
(a) inundation of private land or interference with access and
(b) the effects of inundation on the floodplains and associated wetlands and
(c) the transmission losses expected to occur, and
(d) capacities of water management structures controlled by the Minister.
(2) The water supply system must be managed taking into account any channel capacity constraints specified by the Minister under subclause (1).
Note. The following capacities at the commencement of this Plan have been assessed as:
…
(d) 1,400 megalitres per day in Yanco Creek at the Offtake.
In Appendix 1 to the 2016 Regulated WSP there is set out a list of the rivers and lakes which are in the Regulated River Order, to which the plan relates. It is stated that the Regulated River Order is found in Government Gazette, No 1190, dated 1 July 2004, at page 5490. Materially, the water sources referred to in Appendix 1 include a number of sources within the near vicinity of or on "Somerset Park" as follows (with precise locational particulars omitted):
…
(b) Back Creek…,
…
(l) Cuddell Creek…,
…
(aj) Unnamed watercourse…,
…
(an) Washpen Creek…,
(ao) Woolshed Creek…,
(ap) Yanco Creek from its offtake from the Murrumbidgee River to its confluence with Billabong Creek,
As the Applicants' case stated, the Lake Paddock and its associated unnamed water channel linking it to Yanco Creek are not included in the Appendix 1 list, despite, it was suggested, some of these other water sources, being not too dissimilar to the Lake Paddock and its channel, being included.
With respect to the 2012 Unregulated WSP, by cl 4(1) it is confirmed that the plan applies to a list of water sources (thereafter listed) known as the Murrumbidgee Unregulated and Alluvial Area and Murray Water Management Area (also see above at [43]-[48]). Within the list, item (xxvii) is the MWWS which embraces the geographical area that includes "Somerset Park" and the Lake Paddock. By cl 4(5) it is confirmed that the 2012 Unregulated WSP does not include water contained in the Murrumbidgee Regulated River Water Source to which the 2003 Regulated WSP applied. With the 2016 Regulated WSP replacing the 2003 Regulated WSP, the 2012 Unregulated WSP does not apply to the waters covered by that 2016 plan.
Similarly to the position described above, at [540], with the 2016 Regulated WSP, the 2012 Unregulated WSP sets out, in cl 9, a vision statement: "The vision for this Plan is to provide for healthy and enhanced water sources and water dependent ecosystems and for equitable water sharing among users in these water sources." Clause 10 then sets out the plan's objectives which, together with seven other objectives relevantly, include:
(a) protect, preserve, maintain and enhance the important river flow dependent and high priority and high priority groundwater dependent ecosystems of these water sources,
…
(b) protect, preserve, maintain and enhance the Aboriginal, cultural and heritage values of these water sources,
(c) protect basic landholder rights,
…
By cl 13, the 2012 Unregulated WSP establishes a bulk access regime for the extraction of water under access licences in the water sources identified in the plan. Relevantly, cl 13(2)(f) provides that the bulk access regime for these water sources "recognises and is consistent with the water management principles in section 5 of the [Water Management Act]".
The multiplicity of grounds relied upon by the Applicants fail to satisfy the Court that they have made out their case. As said earlier in the judgment, there is no requirement in s 7 that each and every water source is to be classified to the extent they are at risk. The Minister may classify water sources but the provision, as explained earlier, must be interpreted in a real world practical sense. The Respondents referred to decisions at a high level, rather than at a lower order. Clearly, there will be a spectrum amongst water sources where size and significance, or some particular characteristic, might cause the consideration of a water source to come to the fore, to the attention of a decision-maker, but it is to be expected that many will not.
However, the operation of the 2012 Unregulated WSP provisions does, in a sense, render it a 'catch-all'. By not including the Lake Paddock in the 2016 Regulated WSP and leaving it in the 2012 Unregulated WSP the same environmental considerations apply, such as the s 5 water management principles. In short, whether or not the Lake Paddock is in the 2016 Regulated WSP or in the 2012 Unregulated WSP does not alter the environmental principles applicable: the directive in the legislation is the same - "sharing of water from a water source must protect the water source and its dependent ecosystems.
Nevertheless, the material before the Court is insufficient for the Applicants to meet the onus of proving that such considerations, if they were relevant considerations, were not before the decision-maker. Many components of the Applicants' case are largely founded on a repeated assertion that, for instance, the evident degradation of the ecology and environment of Yanco Creek and the Lake Paddock, must mean that there was a failure to give priority to the principles for water sharing set out in s 5(3) of the Water Management Act and, therefore, the decision in question must be flawed, having not, it is said, taken into account the principles. The Applicants, in effect, are asking the Court to presume that priority (in the order specified by s 9(1)(b)) was not given to the principles for water sharing. The Applicants have not taken the Court to evidence to confirm this proposition.
I consider it essential that it be kept in mind that, when determining compliance with the Act in the context of the 2016 Regulated WSP, the plan covers a vast area and seeks to manage a great number of water sources in accordance with the principles. Appendix 2 to the 2016 Regulated WSP is an 'Overview of the Plan Map' showing an area covered by the plan that appears to be about 700 kilometres long and about 250 kilometres wide. Appendix 1 lists the rivers and lakes in the Regulated River Order, which includes some 34 water sources, some of which are significantly large, like the Murrumbidgee River itself.
Given the emphasis in the legislation to apply the water management principles in the priority order in which they appear in s 5(3) of the Water Management Act, and the clear intent of the 2016 Regulated WSP to adhere to that same emphasis (see, for instance, Pt 2 of that WSP), when considering a decision in the context of that priority given to the water management principles, is the Court to accept that because one small water body (the water body in the Lake Paddock) and its unnamed linking channel have suffered from inundation, that the Minister's Decision 8 was flawed in an administrative law sense? No, is the answer. In short, the Court believes that decisions under the Act are made at a "high level' as a matter of necessity. Although the Applicants' counsel accused the Respondents of improperly asserting a "high level duty" approach to decision-making, which in fact was an overstatement of the Respondents' propositions which were restricted to the definition of "water source" under the Water Management Act, I am of the view that, for the legislation to function, of necessity many decisions under that Act have to made at a "high level", rather than at the closer detail level contended by Mr King for the Applicants.
Having said that many decisions under the Act must of necessity be made at a "high level", I do not wish to be misunderstood as saying that all decisions at all times are to be made at the high level. Where circumstances warrant it, there will be instances where the particular and special characteristics of an identified water body might be drawn to the attention of the decision-maker and, once drawn to their attention, warrant special provision, perhaps classification pursuant to s 7(3)(a) as being at high risk, and a decision to give absolute priority to protecting some particular feature of the ecosystem within the water course. I have in mind a water source that might be identified as warranting nomination for Ramsar Convention listing. In another instance, the significance might relate to cultural heritage. If such a feature with respect to a particular water source is drawn to a decision-maker's attention, and objective (say, scientific) evidence sustains the contention, then the obligations in the Water Management Act, such as with respect to the principles in s 5(3)(a), are indisputably prescriptive: "must protect the water source and its dependent ecosystems". In the circumstances I have hypothetically described, a clear duty applies to all persons exercising functions under the Act - under s 9(1) - to take all reasonable steps in accordance the principles and in the priority order prescribed by the legislation.
On the evidence before me in this case, although accepting the evidence of Mr Purcell that the Lake Paddock is a dependent ecosystem of Yanco Creek; that repeated or continual inundation has degraded that ecosystem; and that an instance of that degradation has been the necrosis of River Red Gums, I nevertheless do not accept that the circumstances fall within the hypothetical example explored in the previous paragraph. Inundated flood-out land on farms adjoining river courses in rural New South Wales is not uncommon, and farmland with majestic River Red Gums in proximity to the Murrumbidgee River is also not uncommon. Mr Purcell did not venture to suggest that the Lake Paddock had the characteristics of an ecosystem that was of rarity or of some particular significance. Accordingly, as said elsewhere in this judgment, the Court has concluded that it was not to be expected that the Minister, with knowledge of the departmental file before him, should have been required, in the instance of the Lake Paddock, to take any particular steps to protect it when making the decision with respect to the 2016 Regulated WSP in the interests of the WSP area as a whole, in accordance with the s 5 water management principles.
In a pragmatic sense, as I have said earlier in this judgment, I do not believe another approach can be accepted with respect to decision-making under the Water Management Act, unless special circumstances are known to the decision-maker and warrant a more exacting approach. Reflecting on the decision in Nature Conservation Council, using the language adopted by Spigelman CJ, it is compliance in 'substance' rather than 'form', following Project Blue Sky, which I believe the Legislature required when promulgating the Act. A consequence of this interpretation as to how the Act works may be that, for the majority of the time in the majority of places where water sources are, water sources and their dependent ecosystems are given the protection that the Act requires. However, it is to be conceded that there will be instances where the same desirable standard is not met. The exception does not make the rule or "one swallow does not make a summer". So in conclusion, despite what the Applicants contend, I do not accept that the Minister has failed to take all reasonable steps to promote and act in accordance with the water management principles insofar as the Lake Paddock and its associated unnamed watercourse is concerned.
With respect to the assertion that the Minister must have been aware of the past impacts on the Lake Paddock of inundation at the time of Decision 8 and so made the decision in the knowledge of the environmental and 'farm asset damage', the Court accepts that material in the possession of the Department (including, for instance, the departmental file) must be treated as being in the possession of the Minister (per Peko-Wallsend at 31). However, with that file 'in front' of the Minister, he would have then known that the Applicants had failed since 1986 to construct the control measure, the regulator, which, without being at least tested, could be taken by the Minister to be an appropriate inundation control measure. Further, it is conceivable that the Minister, even if informed of a likely environmental impact on Lake Paddock, made a decision in the greater good - that is ensuring that for the majority of the WSP area, the wider area would be benefiting from an adherence to the water management principles. The Act does not speak of 100% successful management over 100% of the WSP area. The duty is to "take all reasonable steps" to exercise functions in accordance with the principles" (per s 9(1)(a)). Although risks may have been identified, through constructive knowledge of the Department file, the Minister is not compelled to classify the extent to which each and every water body is at risk - he 'may' classify water sources according to their risk (s 7(1)).
In view of the decisions I have reached with respect to the arguments I have addressed thusfar, with respect to Decision 8 it is unnecessary for me to examine further matters raised by the parties with respect to Decision 8.
In particular, on the fourth day of the primary hearing, the Court delivered an interlocutory judgment on the admissibility of expert evidence in Randren House No 3. At [16] the Court observed:
I have chosen to put to one side and not address the third basis upon which the Applicants say the expert evidence is necessary, that being to assist the Court to understand how it might interpret, or perhaps apply, the words "reasonable use of rivers for conservation or irrigation" in s 100 of the Commonwealth Constitution. Although I am yet to hear full argument from either party regarding that aspect of the Applicants' case, at this point in the proceedings I remain at a loss to understand how there is any basis for the s 100 case to be put. I sought an explanation from counsel for the Applicants as to how the decisions in question in this case could give rise to the alleged constitutional infringement, specifically, how the decisions in question might be interpreted as actions (or perhaps inactions) of the Commonwealth. Counsel for the Applicants did not provide me with a sufficient answer to enlighten me. Considering Ground 7 of the Further Amended Summons and paragraph 12 in the Further Amended Points of Claim, in the context of the Respondents' brief response being paragraph 12 in their Points of Defence, I am presently of the view that this alleged Constitutional breach component of the Applicants' case is vulnerable to being justifiably struck out.
Endeavouring to understand the basis of the Applicants' case on the s 100 constitutional argument, the Court has endeavoured to piece together snippets of propositions scattered throughout other submissions, a highly undesirable, but unavoidable, approach made necessary in this case given the approach adopted by the Applicants' counsel.
1. At Transcript 19.19-21 it was said:
as the common law points out, and we say ultimately s 100 of the Constitution observes there needs to be a reasonable use, a reasonable sharing of water so that damage doesn't occur, particularly to the environment.
1. At Transcript 32.14-18:
…we've raised the question of a fallback case under s 100 of the Constitution … which guarantees the right to the reasonable use of the waters and rivers for conservation and irrigation …
1. Then at Transcript 32.33-37:
Any State law which reaches a different result … we say is invalid to the extent that it prevents us recovering, us claiming that a law of the State prevents us from exercising, or prevents us from preventing them from exercising the use of waters in an unreasonable way.
1. Then, at Transcript 195.9-15, the argument is fleshed out:
The word[s] "reasonable use of [the] waters [of] and [sic] rivers appears as a constitutional guarantee. We say it binds both Federal and State authorities. It's a constitutional guarantee of the conservation rights and irrigation rights of Australian farmers. Your Honour might think that's an unusual guarantee, but then again if one thinks about the freedom of political communication which the High Court has inferred from the constitution, that is a freedom which limits both State and Federal laws.
1. Further, commencing at Transcript 195.36-196.4:
Ms Heger says 'well we don't have to worry about s 100 because it doesn't apply'. … My answer to that, it does apply, and in order to ascertain how it applies your Honour need[s] to look at the facts as to whether or not the reasonable use of the waters of rivers is occurring or endorsed by State laws in this case - and that can only be done on evidence. The whole purpose of s 100 … Even if my friend's absolutely right about everything, I'm still entitled to get this evidence in because it goes to reasonable use. What is the reasonable use of Yanco Creek? Our case is not to run it as an irrigation canal. Instead of building one, as the State could have, resuming land, incurring the expense, all they did was they turned Yanco Creek from about 1996 into a massive irrigation canal.
Perhaps the most colourfully expressed contention from the Applicants' counsel appears at Transcript 651.23-31:
Can I just say this about s 100? It's the only section in the Constitution which actually refers to a right of the residents of the state to the reasonable use of waters for irrigation, a pretty specific right. Mr Deakin, the leaders of the early Australian communities, the yeomen farmers down at Mildura, they wanted that provision in the Constitution because they didn't want other people taking their water, [whether] they were down or higher up, they wanted a reasonable flow of water. It's a fundamental right, we say, it's one reflected at Common Law in the judgment of Lord Watson that I handed up. It's reflected in s 100.
The case and passage to which counsel referred was John Young and Company v The Bankier Distillery Company [1893] AC 691 (John Young) at 696 per Lord Watson, wherein his Lordship held:
The right of the upper heritor to send down, and the corresponding obligation of the lower heritor to receive, natural water, whether flowing in a definite channel or not, and whether upon or below the surface, are incidents of property arising from the relative levels of their respective lands and the strata below them. The lower heritor cannot object so long as the flow, whether above or below ground, is due to gravitation, unless it has been unduly and unreasonably increased by operations which are in æmulationem vicini. But he is under no legal obligation to receive foreign water brought to the surface of his neighbour's property by artificial means and I can see no distinction in principle between water raised from a mine below the level of the surface of either property, which is the case here, and water artificially conveyed from a distant stream.
The law of Scotland upon this point is the same with that of England. In Blair v. Hunter, Finlay & Co, Lord Gifford said: "Although there is a natural servitude on lower heritors to receive the natural or surface water from higher grounds the flow must not be increased by artificial means although reasonable drainage operations are permissible." The rule that the upper heritor cannot interfere with the gravitation of the water so as to make it more injurious to the land below is clearly stated by Erle, C.J., in Baird v. Williamson, which was rightly accepted by the First Division as establishing a principle conclusive of the present case.
[citations omitted]
The Court also agrees with the Respondents' contentions, summarised earlier at [575], that the Applicants' reasonable use of waters for either irrigation or conservation has not been "abridged".
With respect to the Applicants' reference to the Scottish common law principles explained in John Young, set out earlier at [571], which, it was asserted, were reflected in s 100 of the Australian Constitution, it is pertinent to note that in New South Wales common law riparian rights have been abolished. Section 393 of the Water Management Act provides:
393 Abolition of common law riparian rights
Any right that the owner of riparian land would, but for this section, have at common law with respect to the flow of any river, estuary or lake through or past the land, or to the taking or using of water from any such river, estuary or lake, is hereby abolished.
For all the reasons set out above, the Court has concluded that the constitutional claim set out in [12] of the SFAPOC should be dismissed.
It is also irrelevant to that conclusion that the Applicants did not want to avail themselves of irrigation waters. If it argued that the extent of inundation has rendered their use of waters nugatory, it must follow that any contributory circumstances must be brought into focus. Whereas the Court accepts that the apparent inundation of Lake Paddock has altered the Applicants' capacity to manage that area for its environmental values, it nevertheless considers that conclusion can never be divorced from the concurrent failure of the Applicants to take the measures available to them, indeed legally required of them, to regulate periods of high flow by constructing and managing the regulator that was required by condition 7 (later condition 10) of the 1986 Licence (which was carried forward and maintained as a condition for many, many years). Although the statutory regime in New South Wales renders the application of the Scottish common law, as examined in the John Young case, inapposite, nevertheless the vitiating conduct of "unduly and unreasonably increased [flow of water] by operations which are in aemulationem vicini", identified in that case, could not legitimately give grounds to a claim in this case in circumstances where the very mode of control of flow to be implemented has been ignored by the Applicants themselves. In this context, for the Applicants to complain about inundation over the many years of their dealing with the Department, whilst they never implemented the recommended measures, the Applicants' failure seriously undermines any claim they might have for relief, whatever the basis of their challenge to the decision-making under review. Such conduct certainly provides a strong basis against exercising the Court's discretion in favour of the Applicants on any of the grounds upon which their case was founded.
The Applicants did float an argument that the 1986 Licence, and its subsequent iterations, were for the purposes of enabling them to access waters for irrigation, presumably from an impounded water body on Lake Paddock the volume of which was to be controlled by the regulator, and because they didn't need irrigation waters the Licence (and so its conditions) was never 'activated'. Therefore, it was argued, because the irrigation licence was not activated, the obligations within it, including the construction of the regulator, did not crystalise. The Court considers this argument to be a furphy.
The Applicants pressed for the Licence and argued for its renewal. When faced with the prospect of the Licence being terminated, such as queried in the Department's letters in April and July 2001, they requested the Licence be maintained, such as on 9 November 2001. Subsequently, when faced with a refusal of a renewal of the Licence in February 2012, the Applicants then fought for its renewal before this Court, resulting in the 2012 Court Orders. In the context of a case based on a concern regarding the inundation of the Lake Paddock, it is quite irrelevant that the irrigation option was not taken up by the Applicants if the primary inundation control measures proposed - specifically proposed to protect Lake Paddock - came via an 'irrigation' licence - a licence which the Applicants fought for.
With respect to the Respondents third argument against the exercise of discretion in favour of the Respondents, being the consideration of the impacts on other water users in the Murrumbidgee Irrigation Area, specifically those downstream from "Somerset Park", although this argument has some merit, the Court would not base is refusal to exercise discretion in favour of the Applicants on this ground without further evidence of the foreshadowed impacts. If the Court had seen fit to grant any of the relief sought by the Applicants, it is conceivable that an outcome might have been a compromise recommendation of appropriate bypass or protection works such as some device akin to the original regulator required of the Applicants specifically directed at preventing the further inundation of Lake Paddock, without a broader 'upset' of the decision-making of wider compass affecting all or even many users in the irrigation area. The Court surmises that it is conceivable that the Applicants' primary complaint might have been capable of being addressed, focusing purely on Lake Paddock. If this is so, given the smallness of Lake Paddock, it must be probable that wider impacts downstream in the irrigation area could be avoided. In these circumstances, as said earlier, the Court would not rely on this third ground of the Respondents to prevent the exercise of discretion in favour of the Applicants.
Exhibit 6(a), p 69
Exhibit 6(b), p 428
Affidavit of Paul Andrews 28 January 2016, [8]
Fourth Purcell Report pp 8-9 [5.0], Annexure A to the Affidavit of John Andrews 19 March 2018
Applicants' Factual Synopsis (AFS) [4.3.1]
AFS [5.1.2]
AFS [5.1]
AFS [6.2]; Citing Exhibit O, pp 85, 86 and 100, and Transcript 543.23-25
Transcript 543.
Affidavit of Paul Andrews 1 November 2017 [8], [9], [12]
In Arnold No 6, at [18] and following, Biscoe J provides a comprehensive and useful overview of the history of water regulation in New South Wales, albeit with a primary focus on groundwater management. His Honour commenced his history as follows at [18]:
18. The history of restriction of access to and use of water in New South Wales was addressed in ICM Agriculture Pty Ltd v Commonwealth [2009] HCA 51, (2009) 240 CLR 140. French CJ, Gummow and Crennan JJ said at [3]:
Successive governments of the State of New South Wales (the State) have long monitored, regulated and restricted access to and use of both groundwater and surface water. Policies have been formulated and pursued so as to achieve equitable access among water users to mitigate adverse effects on the environment, and to ensure that water, as a finite and fluctuating natural resource, is able to be replenished for future use. The extraction and use of water has been regulated by statute since 1896, and, in particular, from 1912 principally by the Water Act 1912 (NSW) (the 1912 Act or the Water Act). The Water Management Act 2000 (NSW) (the 2000 Act) provided (s 401 and Sch 7) for the repeal of the 1912 Act. This litigation follows upon the replacement of the one statutory regime with the other.
This matter relates to an application for judicial review made by the First Applicant, Randren House Pty Ltd, and the Second Applicant, Mr Paul Andrews (together, the Applicants) against the Water Administration Ministerial Corporation, the State of New South Wales and the Minister Administering the Water Management Act 2000 (together, the Respondents) in relation to decisions made under the Water Management Act. The proceedings commenced by Summons dated 22 June 2015, with the pleadings subsequently undergoing numerous changes.
As in Arnold No 6 and ICM Agriculture Pty Ltd v Commonwealth (2009) 240 CLR 140; [2009] HCA 51, these proceedings raise issues which cross over the transition from the 1912 Act to the Water Management Act, as decisions both before and after the repeal of the 1912 Act are sought to be reviewed.
By their Second Further Amended Summons (SFAS), filed 23 July 2018, the Applicants set out a number of purported decisions of one or more of the Respondents that the Applicants sought to challenge. In brief, these were decisions:
to amend a water sharing plan (WSP);
not to provide regulated water access on a number of occasions;
to "notify plan conditions" with respect to a licence and an approval under the Water Management Act;
refusing to amend (or refusing to consider to amend) WSPs;
to change operational levels of the Yanco Creek, causing "significant environmental damage" at the First Applicant's property; and
to prevent the Applicants from accessing (or having an entitlement to) regulated waters.
The Applicants' Second Further Amended Points of Claim (SFAPOC) particularised these impugned decisions (eight in total), together with a pleaded constitutional claim, and pleaded a multitude of grounds upon which each decision was said to be invalid. Cognizant of the danger of over‑simplifying the Applicants' case, in essence, the Applicants assert that over many years a number of decisions were made by the Respondents regarding the waters from Yanco Creek which, it is said, resulted in unnatural inundation of the Lake Paddock, being a part of the Applicants' property, "Somerset Park", to such an extent that it caused environmental damage, including the death of large numbers of River Red Gum trees growing in the Lake Paddock. The inundation cannot be considered to be akin to a natural "overflow of the station", as Paterson so poetically described in "The Mountain Station", rather, it is said, it was a consequence of legally flawed decisions made contrary to the legislative regime at each point in time. It is asserted that if the complained-of decisions had not been made and, in lieu thereof, other decisions had been made, including the bringing of the water body within the Lake Paddock into the regulated licensing system rather than leaving it within the unregulated licensing system, then the alleged environmental harm from the inundating waters would not have occurred.
Bearing in mind that these proceedings have not been brought in tort alleging a claim based on nuisance or negligence, at all times the Court has found it necessary to restrict its examination of the decisions to the strict parameters of judicial review proceedings, despite a tendency on the part of the Applicants to stray into arguments more characteristic of proceedings of another kind.