9 The contemporary approach is as set out by Lord Diplock in Wentworth Securities v Jones [1980] AC 74 at 105-107:
'My Lords, I am not reluctant to adopt a purposive construction where to apply the literal meaning of the legislative language used would lead to results which would clearly defeat the purposes of the Act. But in doing so the task on which a court of justice is engaged remains one of construction; even where this involves reading into the Act words which are not expressly included in it. Kammins Ballrooms Co Ltd v Zenith Investments (Torquay) Ltd [1971] AC 850 provides an instance of this; but in that case the three conditions that must be fulfilled in order to justify this course were satisfied. First, it was possible to determine from a consideration of the provisions of the Act read as a whole precisely what the mischief was that it was the purpose of the Act to remedy; secondly, it was apparent that the draftsman and Parliament had by inadvertence overlooked, and so omitted to deal with, an eventuality that required to be dealt with if the purpose of the Act was to be achieved; and thirdly, it was possible to state with certainty what were the additional words that would have been inserted by the draftsman and approved by Parliament had their attention been drawn to the omission before the Bill passed into law. Unless this third condition is fulfilled any attempt by a court of justice to repair the omission in the Act cannot be justified as an exercise of its jurisdiction to determine what is the meaning of a written law which Parliament has passed. Such an attempt crosses the boundary between construction and legislation. It becomes a usurpation of a function which under the constitution of this country is vested in the legislature to the exclusion of the courts.'
10 The passage has been adopted and applied in this Court. … ." (citations of authorities omitted)
79 The Chief Justice referred at [17] to Cooper Brookes (Wollongong) Pty Ltd v Commissioner of Taxation (1981) 147 CLR 297 as "the basic Australian authority on legislative inadvertence", and explained why it was not a case of reading words into a statute but of reading down words of general application. The literal meaning of words, previously appropriate, was made "incongruous" (per Gibbs CJ at 305) or "capricious and irrational" (per Mason and Wilson JJ at 321) in particular circumstances by later amendment of a definitional provision. The amended provision was read down in its application in the circumstances.
80 In Inco Europe Ltd v First Choice Distribution (2000) 1 WLR 586 at 592 Lord Nicholls said succinctly, as part of a passage in accord with the approach of Lord Diplock in Wentworth Securities v Jones [1980] AC 74, that "[t]he courts are ever mindful that their constitutional role in this field is interpretative".
81 Until the abolition of the Compensation Court, there was no occasion to construe s 151A(3)(b) as if it contained additional words, or as if it did anything other than refer to the Compensation Court. Proceedings to recover permanent loss compensation could be commenced in the Compensation Court, whereby an election was made or was taken to have been made.
82 The words did not take on a new meaning upon the abolition of the Compensation Court. The reference to commencing proceedings in the Compensation Court to recover permanent loss compensation simply lost its subject-matter. The result at which the judge arrived was not one of construction or interpretation of s 151A(3)(b) as it was enacted. It was one of legislation subsequently to amend s 151A(3)(b). It required that the legislature had enacted, in the Compensation Court Repeal Act or elsewhere, that s 151A(3)(b) be amended either to add after the reference to the Compensation Court words such as "or such court as is exercising that Court's jurisdiction", or to delete the "Compensation Court" and replace it by "District Court". Amendment is the province of the legislature.
83 As explained by Beazley JA, it cannot be said with confidence that legislative attention to amendment of para (b) would have brought amendment in one or other of the ways described above. But in any event, it is not for the courts to amend legislation under the guise of construction. Nor, with respect, did the fact that the District Court had effectively become the Compensation Court for the purposes of the earlier claim make judicial amendment permissible. It was part of the problem, not the occasion for its solution.
84 It was not submitted that the earlier claim for permanent loss compensation was an election, as required by s 151A(2), outside the operation of s 151A(3), made by claiming permanent loss compensation regardless of the court in which proceedings were commenced.
85 I agree with the orders proposed by Beazley JA.
86 BASTEN JA: The short question raised by this appeal is whether a court can effect an amendment to legislation to make provision which the Parliament might have made, but did not, consequential upon the disestablishment of the Compensation Court.
87 The factual and procedural background, the relevant statutory provisions and the authorities have been more than adequately identified and explained by Beazley JA and require no further repetition. I agree with her Honour's conclusion that the appeal should be allowed.
88 This case explores the limits of the Court's powers with respect to statutory construction, in circumstances where the legislature appears to have made a mistake. McHugh JA, in Kingston v Keprose Pty Ltd (1987) 11 NSWLR 404 said at 424D:
"The days are gone when judges, having identified the purpose of a particular statutory provision, can legitimately say, as Lord Macmillan said in Inland Revenue Commissioners v Ayrshire Employers Mutual Insurance Association Ltd [1946] 1 All ER 637 at 641, of the means used to achieve the purpose: 'the legislature has plainly missed fire'. Lord Diplock in an extrajudicial comment on that decision has said, that 'if … the Courts can identify the target of Parliamentary legislation their proper function is to see that it is hit: not merely to record that it has been missed': 'The Courts as Legislators', The Lawyer and Justice (Sweet and Maxwell) (1978) at 274."
89 As Kirby J stated in James Hardie & Coy Ltd v Seltsam Pty Ltd [1998] HCA 78; 196 CLR 53 at [73], Lord Diplock's approach to statutory construction, as further identified in Jones v Wrotham Park Settled Estates [1980] AC 74 at 105, also prevails in Australia. However, as Jordan CJ pithily noted in another context, "there are mistakes and mistakes". Some mistakes are capable of correction by the courts, others are not. In Marshall v Watson [1972] HCA 27; 124 CLR 640 at 649, Stephen J stated:
"Granted that there may seem to be lacking in the legislation powers which it might be thought the Legislature would have done well to include, it is no power of the judicial function to fill gaps disclosed in legislation; as Lord Simonds said in Magor and St Mellons R D C v Newport Corporation (1952) AC 189, at p 191, 'If a gap is disclosed, the remedy lies in an amending Act' and not in a 'usurpation of the legislative function under the thin disguise of interpretation'."
90 The limits of the proper function of a court in such circumstances reflect the principle of the separation of powers. While the particular formulation of that principle to be derived from the Commonwealth Constitution does not in terms apply to the States, as reflected in the English case law, there is nevertheless a constitutional structure to be derived from the general law which institutionalises a degree of separation of powers: cf A Twomey, The Constitution of New South Wales (Fed Press, 2004) at 747; the Hon R S French, "Executive toys: Judges and non-judicial functions" (2009) 19 JJA 5 at 16. Thus, the limits of general law judicial review of administrative action reflect such a principle; Attorney-General (NSW) v Quin [1990] HCA 21; 170 CLR 1 at 36 (Brennan J). As with its Commonwealth counterpart, the Interpretation Act 1987 (NSW) requires that legislation be read so as not to exceed the legislative power of the State Parliament and so that a provision which would otherwise exceed power, shall be valid to the extent that it does not: s 31. Of the equivalent s 15A in the Acts Interpretation Act 1901 (Cth), Brennan J stated in Re Dingjan; Ex parte Wagner [1995] HCA 16; 183 CLR 323 at 339:
"But s 15A can save a provision that is literally in excess of legislative power only if two conditions are satisfied: first, that 'the law itself indicates a standard or test which may be applied for the purpose of limiting, and thereby preserving the validity of, the law' and, second, that the operation of the law upon the subjects within power is not changed by placing a limited construction upon the law."
91 A court exercising federal jurisdiction is not required by s 15A to legislate; "in no case can the Court be required to legislate nor should it do so": Strickland v Rocla Concrete Pipes Ltd [1971] HCA 40; 124 CLR 468 at 493 (Barwick CJ); see also Plaintiff S157/2002 v The Commonwealth [2003] HCA 2; 211 CLR 476 at [102] (Gaudron, McHugh, Gummow, Kirby and Hayne JJ). This approach should inform the limits of this Court in exercising powers of statutory construction, in cases where it is apparent that the legislature has made a mistake.
92 The tripartite test adopted by Lord Diplock in Jones v Wrotham Park should not be treated as a statutory formula, and is not always readily applicable in particular circumstances. Nevertheless, where some variation is sought of the statutory language, it is an essential precondition to any legitimate exercise of the power of statutory construction that it be "possible to state with certainty" what words would have been adopted by the drafter and approved by Parliament had their attention been drawn to the problem: [1980] AC 74 at 107; R v Young [1999] NSWCCA 166; 46 NSWLR 681 at [9]-[15] (Spigelman CJ).
93 The present case is one in which amending legislation has apparently fallen short of its broader purpose, by repealing the Act establishing the Compensation Court, but failing to replace a reference to the Compensation Court in s 151A(3)(b) of the Workers Compensation Act 1987 (NSW) as it continues to operate in relation to coal miners.
94 Reference to Cooper Brookes (Wollongong) Pty Ltd v Commissioner of Taxation [1981] HCA 26; 147 CLR 297 is understandable in this context, as it concerned amending legislation which, when applied literally, gave rise to consequences which were described by various epithets in the judgments in the High Court, indicating that "the legislature could not have intended such an operation and that an alternative interpretation must be preferred": at 321 (Mason and Wilson JJ). The issue there was, however, far removed from the present difficulty. Cooper Brookes concerned provisions in the Income Tax Assessment Act 1936 (Cth) identifying circumstances in which a company which was the subsidiary of a holding company could claim tax losses which accrued in past years. A precondition to such a claim required that there had not been changes of a specified kind to the beneficial ownership of shares in the company. In seeking to take account of changes in the beneficial ownership of a holding company or companies interposed between the holding company and the subsidiary, the drafting technique adopted was to define the term "company" to include reference to a holding company. That had the unfortunate effect of varying the meaning of company, not only when considering beneficial ownership, but also when identifying the debt. The High Court held that such a result should be avoided, either by reading the definitional amendment as applicable unless a contrary intention appeared, or simply by reading it down so that it did not operate except in relation to the beneficial ownership of shares. This did not involve disregarding the language of the amending Act, nor reading in additional terms; rather it was a construction of the extent of the operation of the provision which was "justified on the footing that it is a necessary implication to be deduced from the legislative scheme considered as a whole": at 322 (Mason and Wilson JJ). As Spigelman CJ noted in R v Young, Cooper Brookes was not "authority for reading words into a statute" but was "a case in which words of general application were read down": at [22]. As his Honour further noted, "there is no warrant for supplying omitted words, unless the result of some such recognised technique of construction can be so described": at [32].
95 It is usually the case that, in construing legislation which is ambiguous or obscure, a court will adopt language which departs from the words to be construed. However, it is rarely helpful to identify the permissible limits by reference to a particular mechanism, such as the inclusion of omitted words, or the disregarding of, or reading down of particular words. The exercise is legitimate if, by reference to purpose and context and, where appropriate, extrinsic material, it is possible to identify the intended meaning and, at least where the language adopted is not intractable, give effect to that meaning.
96 In the present case, the matter may be approached in one of a number of ways. One is to interpret the term "Compensation Court" in s 151A(3) as if it meant 'the Compensation Court or such other court as may be invested with jurisdiction to determine such claims'. Such an extended meaning (although unnecessary) could have been adopted at the time the section was enacted. Alternatively, it might have been adopted as the appropriate meaning when amending legislation abolished the Compensation Court without addressing the terms of s 151A(3) in its vestigial continued operation.
97 To recast the meaning as at the date of the enactment of s 151A is to infer that Parliament intended the provision to continue to operate in the event of then unenvisaged changes to the institutional structure of the courts. However, there is no warrant for imputing such an intention. There is a further difficulty in that such an intention must be presumed to have survived the repeal of the section, otherwise than in relation to claims by coal miners.
98 The alternative approach requires an implied intention which must arise at a later date. That suggestion, however, requires consideration of the statutory scheme within which s 151A(3) continued to operate.
99 The recent history of legislative provision in relation to workers' compensation and workplace injury damages claims is one of vacillation and revision. Much of that history was summarised by McColl JA in Humphreys v Mulco Tool & Engineering Pty Ltd [2006] NSWCA 355; 4 DDCR 389 at [15]-[41]. Relevantly for present purposes, significant changes were made on 27 November 2001, on the commencement of the Workers Compensation Legislation Further Amendment Act 2001 (NSW) (No 94) ("the 2001 Act No 94"). That Act replaced s 151A which provided deemed elections, with a preclusion of double recovery. The new provision envisaged that damages and compensation could be recovered in respect of an injury but provided for entitlements to compensation to cease and for repayment of weekly payments already made from the damages.
100 This provision (which might have been thought to be beneficial for workers) was part of a package of amendments to Pt 5 of the Workers Compensation Act. Other amendments imposed constraints on damages recoverable for workplace injuries. However, the Workers Compensation Legislation Amendment Act 2001 (NSW) (No 61) ("the 2001 Act No 61") also made significant amendments, including an amendment to s 151A. The bulk of the 2001 Act No 61 was devoted to the insertion of a new Ch 7 in the Workplace Injury Management and Workers Compensation Act 1998 (NSW), dealing with new claims procedures. Those procedures involved a new role for the Workers Compensation Commission. As a result, there were various consequential changes replacing references to the Compensation Court with "the Commission": Sch 6. One of the proposed amendments involved replacing s 151A(3)(b) with a provision in largely identical terms, but involving commencement of proceedings "in the Commission": Sch 6, [79].
101 As noted by Beazley JA, this provision was repealed before it took effect, by the omission and replacement of s 151A: see 2001 Act No 94, s 3(2) and Sch 1.1 [2].
102 The 2001 Act No 94 also inserted the savings and transitional provision excluding the operation of the 2001 amendments in respect of coal miners: see [22] above. The excluded amendments included those relating to common law damages, lump sum compensation, compensation for domestic assistance and commutation, together with all the (surviving) amendments made by the 2001 Act No 61. The effect (or intended effect) of this provision, so far as it affected s 151A, may have been quite limited. However, had the amendment to s 151A(3)(b) enacted in the 2001 Act No 61 taken effect, the transitional provision would have prevented the transfer of coal miner claims from the Compensation Court to the Commission. This appears to have been part of an on-going policy, because, when Pt 18C was added to Sch 6 of the Workers Compensation Act, dealing with provisions consequent on the enactment of 2001 amending Acts, it was expressly noted, for example, that transfer of claims from the Compensation Court to the Commission did not apply in respect of coal miner claims: see, cl 6A, Note.
103 There may be a basis for inferring that, if Parliament had turned its mind to the operation of s 151A in relation to coal miners, it would have substituted "District Court" for "Compensation Court". However, it is impossible to be sure about that. An alternative would have been to insert "Commission" (a reference to the New South Wales Workers Compensation Commission) as proposed by the amendment to s 151A in the 2001 Act No 61. Further, it could simply have abolished the requirement for an election in s 151A, which had the potential to work adversely against the interests of coal miners, as compared with other workers. That would have been consistent with the apparent policy in 2001 of treating coal miners more beneficially than other workers. A choice between these possibilities was a matter for the Parliament and not for the courts.
104 It follows that, in accordance with the principles enunciated in Jones v Wrotham Park, the approach taken by the District Court in this matter was not open. It is, therefore, unnecessary to decide whether if, in circumstances where a court could be certain that Parliament would have amended s 151A(3)(b) to replace "Compensation Court" with "District Court", it would be appropriate for the court to then construe the term "Compensation Court" to mean "District Court". That in itself would be a large question.