Ground 3
89 As noted earlier, the applicant contended that, even if the respondent was entitled to have regard to information that was not in the referral, he was entitled to an opportunity to comment on this material, and the respondent had breached obligations of natural justice in failing to afford him this opportunity.
90 For present purposes, it may be accepted that, as the applicant submitted, if applicable, the hearing rule requires that a person likely to be affected by a decision be given an opportunity to "deal with adverse information that is credible, relevant and significant to the decision to be made": see Kioa v West (1985) 159 CLR 550 ("Kioa v West") at 628-629 (Brennan J). It was common ground that the Wahren article, the Groves report, the Taskforce report and the Heritage and Wildlife advice fell within this description. The applicant was not invited to comment on that information before the respondent made the challenged decision.
91 For the reasons stated hereafter, I would reject the applicant's contention that he was entitled to a separate opportunity to comment on the Wahren article, the Groves report, the Taskforce report and the Heritage and Wildlife advice before the respondent made the challenged decision. After making a referral, a proponent of a proposed action is not entitled to be heard before the Minister makes a decision under s 74B(1). This is because the procedure for notification in s 74C and reconsideration in s 74D of the EPBC Act is Parliament's statement of the procedural fairness required to be afforded in such a case.
92 As the High Court said in SZBEL v Minister for Immigration and Multicultural and Indigenous Affairs (2006) 228 CLR 152 at 160 [26], "the statutory framework within which a decision-maker exercises statutory power is of critical importance when considering what procedural fairness requires" (Gleeson CJ, Kirby, Hayne, Callinan and Heydon JJ). Further, it is well recognised that the existence of a statutory right of review or appeal may affect whether and in what way the rules of procedural fairness apply at an earlier level of decision-making, although "[t]here is no inflexible rule that the presence of a right of appeal or review excludes natural justice": Re Minister for Immigration and Multicultural Affairs; Ex parte Miah (2001) 206 CLR 57 ("Miah") at 99 [146] (McHugh J), also 70 [35] (Gleeson CJ and Hayne J); Ackroyd v Whitehouse (Director of National Parks & Wildlife Service) (1985) 2 NSWLR 239 ("Ackroyd v Whitehouse") at 250 (Kirby P), 256 (Samuels JA, with whom Mahoney JA agreed); Twist v The Council of the Municipality of Randwick (1976) 136 CLR 106 ("Twist") at 110 (Barwick CJ), 112, 116-117 (Mason J). In some circumstances, however, a statutory right of review may amount to a legislative statement of the applicable process rights, the result of which is to exclude a separate right to apply to a court for relief on the grounds of a breach of the rules of natural justice or procedural fairness in the initial decision-making.
93 In Miah at 99-102 [146], McHugh J described some of the factors that the courts have considered relevant in determining whether or not a statutory right of appeal or review excludes or limits natural justice requirements. In particular, his Honour referred to whether the initial decision was a preliminary or final decision; whether the initial decision was made in public or private; the formalities required for making the initial decision; the urgency of the initial decision; the nature of the appellate body; the breadth of the appeal; and the nature of the interest of the person concerned and the subject matter of the legislation.
94 When considered in the context of Division 1A of Part 7, a number of these factors militate against the applicant's basic contention.
95 In the context of the EPBC Act, the nature of a decision under s 74B(1) is significant. A decision under s 74B(1) is more akin to a preliminary than a final decision. This is because once the proponent of the action and the person who made the referral (if not also the proponent) have been notified of the Minister's s 74B(1) decision in accordance with s 74C(1)-(2), besides withdrawing the referral entirely, they may "withdraw the referral and refer a new proposal" or request a reconsideration: see s 74C(3). If either of the latter courses are adopted, the proponent may take steps to address relevant aspects of the Minister's decision under s 74B(1), either by referring a new proposal or by giving comments in the reconsideration process: see s 74D(2)(c). Both would be assisted by the fact that the Minister is obliged to set out the reasons for this decision in the s 74C(1) notice: see s 74C(2)(b).
96 Further, the terms of s 74D demonstrate the provisional nature of a decision under s 74B(1). As senior counsel for the respondent put it, once a reconsideration request is made and received, the decision under s 74B(1) undergoes a kind of metamorphosis in that, once a reconsideration request is made and received, a decision under s 74B(1) is described in s 74D, which deals with the procedure for reconsideration, as merely a proposed decision. Thus, if a reconsideration request is made and received, the Minister is obliged within 10 business days to publish: a notice that the Minister "proposes not to approve the taking of the action that is the subject of the referral"; the Minister's reasons; and an invitation for anyone to give the Secretary comments within 10 business days on the impacts of the action and "the Minister's proposal to refuse to approve the taking of the action" (emphasis added). The outcome of the reconsideration process is, moreover, described in different terms from those used to describe a decision under s 74B(1). A decision adverse to a proponent under s 74D(4) is described as a decision "to refuse to approve the taking of the action", whereas a decision adverse to a proponent under s 74B is described as a decision that Division 1A "should apply to the referral". As the respondent submitted, taking account of the entirety of Division 1A, the use of the word "should" indicates a provisional, rather than an ultimate, decision, which is subject to further consideration in the event that the proponent seeks further consideration.
97 The preliminary or provisional nature of a decision under s 74B(1) tells against the applicant's natural justice contention. This is not a case where, by reason of a public dimension, the initial decision would have an adverse effect on a person's reputation or the like. The applicant relied on the decision in Ackroyd v Whitehouse to support his contention that he was entitled to an opportunity to deal with the material in question before an adverse decision was made. Ackroyd v Whitehouse not only concerned a very different statutory scheme, it also concerned the summary cancellation of licences "of considerable importance to the person holding them" (at 258, per Mahoney JA). The present is not a case akin to cancellation of a licence, notwithstanding the applicant's contrary submissions, and is clearly distinguishable.
98 Other significant factors inherent in the very scheme that Division 1A establishes also militate against the applicant's submission. The scheme encompasses the formalities set down in the Division and the breadth of the reconsideration. The 2006 EM indicates that the formalities for which the Division provides should be considered as a whole. As already stated, the 2006 EM described Division 1A (at 30) as "establish[ing] a new process that allows the Minister to make a prompt refusal for an action that would have unacceptable impacts on a matter protected by Part 3 of the Act". The preliminary decision (under s 74B) is that Division 1A should apply, potentially culminating in the final decision under s 74D(4) to "refuse to approve the taking of the action". The formalities for which s 74C provides are as much part of the s 74D process as a product of the s 74B decision: whilst the giving of notice under s 74C(2) marks the end of the s 74B process, it also opens up the possibility of reconsideration.
99 Of course, s 74D is concerned with reconsideration by the Minister: it does not provide for independent merits review. In substance, the process for which s 74D expressly provides is more elaborate than the process contemplated under s 74B. Reconsideration under s 74D not only requires the Minister to make a decision de novo as to whether he considers "that it is clear that the action would have unacceptable impacts on matter protected by a provision of Part 3", but the reconsideration involves a more extensive process than the initial s 74B decision. These factors also tell against the applicant's argument on natural justice. Thus, where a reconsideration request is made and received under s 74C(3)(c), the Minister must comply with the publication requirements set out in s 74D(2)(a)-(b) and invite comment from "anyone" (which would include the proponent) in accordance with s 74D(2)(c): see [52] above. There is therefore provision in s 74D (in contrast to s 74B) for broad public notice and comment. Within 10 business days after the close of the public comment period, the Secretary to the Minister's department must "prepare a written report about the relevant impacts that the action … is likely to have", having regard to the comments that have been made under s 74D; and provide this report and the s 74D comments to the Minister: s 74D(3). These comments are therefore required to inform the report that goes to the Minister.
100 Whilst a decision under s 74B(1) is in the nature of a preliminary or provisional decision, a decision under s 74D(4) is not. Senior counsel for the respondent stated, correctly in my view, that in making a decision under s 74D(4)(a) - to refuse to approve the taking of the action - the Minister would be required to give the proponent an opportunity to address any new information that was credible, relevant and significant to the s 74D decision about to be made. It would not be open to the Minister to take into account new material that the proponent had not had an opportunity to address; and, if the Minister in fact did so, the proponent's remedy would lie in judicial review for failure to accord procedural fairness or natural justice: see, for example, Cooper v Wandsworth Board of Works (1863) 14 CB (NS) 180; 143 ER 414; and more recently Saeed v Minister for Immigration and Citizenship (2010) 241 CLR 252 at 258-259 [12]-[15]; and the note to s 74D(5). This is because a decision under s 74D(4)(a) is the ultimate decision that would preclude a proponent from taking the relevant action with the benefit of the relevant statutory defence: see, for example, ss 15B(8) and 15C(16).
101 The applicant's complaint - that he was not given an opportunity to deal with the Wahren article, the Groves report, the Taskforce report and the Heritage and Wildlife advice - is misconceived. If the applicant sought reconsideration, the applicant would have an opportunity to comment on the material, and the Minister would be obliged to give him an opportunity to address any new material that he had not had an opportunity to address.
102 A decision under s 74B is not necessarily urgent, in the sense to which McHugh J referred in Twist, but the 2006 EM and the time-limits prescribed in Division 1A indicate that timeliness is a significant consideration for the processes of the Division. This factor also militates against the applicant. Thus, a decision under s 74B(1) is supposed to be taken relatively speedily in that it must be within 20 business days after the Minister receives a referral, although a delay in decision-making does not of itself invalidate the decision: see ss 74B(1) and 518(1). Further, s 74B(2) expressly contemplates that a decision under s 74B(1) may be made without the Minister undertaking the consultation required by s 74, which would otherwise occur "[a]s soon as practicable" after the receipt of the referral: see also s 74D(6) and the attached note.
103 Finally, it is, of course, important to take account of the nature of a proponent's interest in relation to a decision under s 74B(1); and in this regard it is relevant to consider the options that are available to a proponent who has received an adverse notice under s 74C. The proponent's interest in a decision under s 74B is essentially an interest in a provisional decision. This also tells against the applicant's contention. As already noted, such a proponent has two options apart from withdrawing the referral and taking no further action. That is, in addition to having the right to request reconsideration, the proponent may submit a modified proposal under s 74C(3)(b). The existence of the s 74C(3)(b) option highlights the essentially preliminary or provisional nature of the decision under s 74B. As the 2006 EM explained (see [66] above), the amendments introducing Division 1A "allow the Minister to give a proponent an early indication if an action is not likely to receive approval under the Act"; and "gives the proponent the opportunity to modify or change a proposal and resubmit a referral for assessment and approval".
104 Whilst there is no question here of an appeal to a court or other independent body - a fact that may militate in favour of the applicant (Miah at 100 [146]) - when Division 1A is considered as a whole, it is apparent that it provides for a stepped decision-making process, in which the significance of each step must be considered having regard to the process as a whole. Having regard to the nature of Division 1A and the various factors referred to earlier, I would conclude that, in making an adverse decision under s 74D, the Minister would have a duty to give an opportunity to a proponent to deal with new information if it were credible, relevant and significant to the decision to be made, but the Minister has no such duty when making a decision under s 74B(1). The Parliament intended that sufficient procedural fairness in respect of a decision under s 74B(1) would be given to a proponent by the processes in ss 74C and 74D. Therefore, the applicant had no separate right under s 74B(1) to an opportunity to comment on the Wahren article, the Groves report, the Taskforce report and the Heritage and Wildlife advice.
105 For these reasons, I would reject the applicant's ground 3. I note, moreover, that the respondent agreed in argument that it remained open to the applicant to request a reconsideration under s 74C(3)(c) in respect of the referral.
106 Given this conclusion, it is unnecessary to deal with the respondent's alternative arguments in response to this ground, including the respondent's contention that "there was no unfairness because the views expressed and information conveyed in the reports and advice were well-known to the Secretary, and the Minister's likely reliance on the views and information ought reasonably to have been anticipated by the Secretary". This contention was directed to the Taskforce report, the Groves report and the Wahren article; and depended in part on the circumstances that the referral itself referred to the Taskforce report, which was a publication of the applicant's Department; and that the Taskforce report in turn referred at several places to the Wahren article and the Groves report, the latter having particular significance for the findings of the Taskforce report.
107 It suffices to note that this part of the respondent's argument was not without its difficulties. Amongst other things, as the applicant observed, a number of authorities indicate that procedural fairness requirements are not necessarily met merely by showing that an affected person was aware of the existence of the information; rather, that person must be given an opportunity to deal with that part of the information that the decision-maker proposes to take into account in arriving at an adverse decision: see Kioa v West at 628; Minister for Immigration and Multicultural and Indigenous Affairs v SZFDJ [2006] FCAFC 53 at [43]; Applicants S1266 of 2003 v Minister for Immigration and Multicultural Affairs [2006] FCA 1771 at [28]. Of course, these authorities concerned decisions under the Migration Act 1958 (Cth) and therefore decisions made in a very different statutory context from the present. They would not be determinative of the respondent's argument: as already stated, whether a decision is subject to procedural fairness requirements and, if so, the nature of these requirements, will always depend on the statutory context. These authorities do, however, indicate that this part of the respondent's argument required more careful analysis than it was in fact given at the hearing.