Construction and application of s 38
43In my opinion, the power to issue a direction to carry out specified work under s 38(1) of the Native Vegetation Act is subject to the limitations as to the types of work in s 38(2): Slack-Smith v Director-General, Department of Land and Water Conservation [2003] NSWLEC 189, (2003) 132 LGERA 1 at [81]- [82] (Talbot J); followed in Holmes v Director-General of the Department of Infrastructure Planning and Natural Resources [2005] NSWLEC 264, (2005) 139 LGERA 102 at [25] - [28] (Lloyd J), and in Joly Pty Ltd v Director-General of the Department of Environment, Climate Change and Water [2009] NSWLEC 217 at [79] (Pain J) upheld on appeal in Joly Pty Ltd v Director-General, Deptartment of Environment, Climate Change and Water [2012] NSWCA 133, (2012) 187 LGERA 82.
44The first construction issue concerning s 38(2)(a) and (b) is whether they authorise a direction to clear non-native vegetation, remove stock and fence the Remediation Area, given that a large part of it was not unlawfully cleared of threatened species. The applicant contends that they do not. The applicant's argument has three strands. First, the Direction "offsets" the damage or affectation on the 18 parts of the Land that were unlawfully cleared of threatened species, by requiring the clearing of non-native vegetation in large parts of the Remediation Area that were undamaged by the unlawful clearing. Secondly, although such offsetting might assist the recovery of threatened species, it is not authorised by s 38(2). Thirdly, s 38 may be contrasted with the wider remediation directions provisions in Division 3 of Part 6A of the National Parks and Wildlife Act 1974, introduced in 2010 after the Plath v Rawson decision under which the Direction could have been made. As to the last point, I do not think that s 38 should be construed by reference to subsequent amendments to another statute.
45The s 38(1)(b) criterion for the enlivenment of the power is that the Director-General is satisfied that "the clearing of native vegetation on any land has caused, or is likely to cause, on or in the vicinity of the land, any soil erosion, land degradation or siltation of any river or lake, or any adverse effect on the environment". This is part of the context of s 38(2). It is a useful pointer to the conclusion that "any damage" in s 38(2)(a) means any damage of the type contemplated by s 38(1)(b), which plainly extends far beyond physical damage to individual trees that might have been cut down. Textually, s 38(2)(a) authorises a direction to carry out work to repair "any damage" caused by the clearing": the quoted words could hardly be wider. The purpose of s 38 is remediation. In my opinion, having regard to context, text and purpose, "any damage" in s 38(2)(a) is not limited to physical impacts on a particular threatened plant viewed in isolation from the population of the threatened species of which it is part, and includes any damage to the populations of threatened species on the Land. For example, in the present case 75 per cent of the macadamia nut threatened species population on the Land was destroyed by the unlawful clearing. Clearly, in my opinion, this population was damaged. So were the populations of the other unlawfully cleared species on the Land.
46The next statutory construction issue is whether the facts referred to in s 38(2) are (as the applicant submits) objective jurisdictional facts that the Court may determine on the evidence before it, or (as the respondent submits) subjective facts for determination by the decision-maker having regard to the material before the decision-maker when the Direction was issued.
47Generally, the expression "jurisdictional fact" is used to identify a factual criterion the satisfaction of which enlivens the exercise of a statutory power or discretion. If the criterion be not satisfied then the decision purportedly made in the exercise of the power or discretion will have been made without authority: Corporation of the City of Enfield v Development Assessment Commission [2000] HCA 5, 199 (2000) CLR 135 at [28]; Gedeon v Commissioner of the New South Wales Crime Commission [2008] HCA 43, (2008) 236 CLR 120 at [43]; Plaintiff M70/2011 v Minister for Immigration and Citizenship [Malaysian Declaration Case] [2011] HCA 32, (2011) 244 CLR 144 at [57], [107].
48It is a question of statutory construction whether a jurisdictional fact criterion is objective or subjective. If the criterion is objective, on judicial review the Court may determine the existence or non-existence of the fact on the evidence before the Court: Timbarra Protection Coalition Inc v Ross Mining NL [1999] NSWCA 8, (1999) 46 NSWLR 55 at [36]. A subjective criterion is one that is conditioned upon the formation of a state of mind by the decision-maker, for instance an opinion or state of satisfaction: Malaysian Declaration Case at [57], [106] - [109], Timbarra at [39] - [42] and Woolworths Ltd v Pallas Newco Pty Ltd [2004] NSWCA 422, (2004) 61 NSWLR 707 at [5] per Spigelman CJ. The Court may subject that state of mind to judicial review, for example as to whether it was manifestly unreasonable, but cannot itself determine the existence or non-existence of the facts to which the state of mind relates: Woolworths at [25]. If the criterion is subjective, the decision-maker is required to form an evaluative judgment in good faith, within the scope and purpose of the Act, as to the matters referred to in the statutory provision, properly construed: Malaysian Declaration Case at [57] - [59], [108] - [109]. Expert evidence post-dating a decision is generally inadmissible except in limited circumstances in relation to the manifest unreasonableness ground of review: Arnold v Minister Administering the Water Management Act 2000 (No 6) [2013] NSWLEC 73 at [123]-139] per Biscoe J. If a factual question requires the formation of a value judgment on matters of considerable complexity, that is an indicator (though not necessarily conclusive) against an objective jurisdictional fact: Woolworths at [58]; Timbara at [89]; Huntlee Pty Ltd v Silverwater Action Group Inc [2011] NSWCA 378, (2011) 185 LGERA 429 at [118]; Walter Construction Group Ltd v Fair Trading Administration Corp [2005] NSWCA 65 at [77], [82]; Australian Education Union v Lawler [2008] FCAFC 135, (2008) FCR 327 at [212]. A reference to a factual matter is more likely to be construed as specifying an objective criterion if it specifies a preliminary requirement to the exercise of the power, as distinct from being an element in the formulation of the power to be exercised by the decision-maker: Timbarra at [44], Huntlee at [119].
49In my opinion, the state of satisfaction expressly referred to in the chapeau of s 38(1) is a subjective jurisdictional fact. Are the facts referred to in s 38(2) jurisdictional facts, and, if so, are they objective or subjective? In Gedeon the High Court unanimously considered that a statutory provision which "delimits the scope" for any exercise of power, ie which contracts the content of what would otherwise be the power, stands rather differently and is not within the general concept of a jurisdictional fact: at [46]. Section 38(2) likewise delimits the scope of, ie contracts the content of what would otherwise be, the power under s 38(1). This distinction is difficult to reconcile with the analysis in Timbarra at [44] and Huntlee at [119] albeit it was said in those cases that a factual condition that does not enliven the power is unlikely to be an objective jurisdictional fact. The Gedeon distinction seems to be only semantic because even if the label "jurisdictional fact" does not apply to a provision such as s 38(2), the same issue of statutory construction arises on judicial review, namely, whether the facts referred to in s 38(2) are objective facts that the Court may determine on the evidence before the Court, or are subjective facts for assessment by the decision-maker.
50In Gedeon, legislation empowered a public officer to authorise a law enforcement officer to conduct a certain operation but stipulated that the authority "must not be granted" if it would involve any participant in the operation engaging in conduct that is likely to seriously endanger the health or safety of the participant or anyone else: at [33]. The High Court held that "a reasonable person in the position of the defendant would have foreseen" that the conduct of the operation would involve a risk of seriously endangering the health of certain persons and that this was sufficient to attract the statutory prohibition: at [57]. This language of "a reasonable person in the position of the defendant" suggests that the facts referred to in the prohibition were to be subjectively assessed by the decision-maker subject to the requirement that the assessment be that of a reasonable person in the position of the decision-maker. This is similar to, if not the same as, the test for the manifest unreasonableness ground of judicial review of a decision-maker's exercise of a subjective statutory power.
51In the Malaysian Declaration Case, s 198A(1) of the Migration Act 1958 (Cth) empowered an officer to take persons seeking asylum in Australia to another country, in respect of which a declaration was in force under s 198A(3), for determination of their refugee status. Section 198A(3)(a) empowered the Minister to declare in writing that a specified country (i) provided access, for persons seeking asylum, to effective procedures for assessing their need for protection; and (ii) provided protection for persons seeking asylum, pending determination of their refugee status; and (iii) provided protection to persons who were given refugee status, pending their voluntary repatriation to their country of origin or resettlement in another country; and (iv) met relevant human rights standards in providing that protection. The plurality in the High Court held that s 198A(3)(a) could be satisfied only if the country was under a legal obligation to provide the access and protections to which s 198A(3)(a) refers: at [116]; similarly at [245] per Kiefel J; see also at [66] per French CJ. The plurality considered that the matters in s 198A(3)(a) were objective jurisdictional facts: at [109]. French CJ considered that they were for subjective evaluation by the Minister, but that the Minister had misconstrued the provision because in fact the legal protection was not afforded: at [58]-[59], [66]. As Malaysia was not under such a legal obligation, the High Court made a declaration that the Minister's s 198A(3) declaration was made without power and was invalid and injuncted the Minister and his officers from taking the plaintiff from Australia to Malaysia: at [259].
52What was at issue in Woolworths was whether the characterisation of a proposed development in an environmental planning instrument under the Environmental Planning and Assessment Act 1979 as a "drive-in take-away establishment" was an objective jurisdictional fact, such that unless the proposed development was accurately characterised, any purported consent based on that characterisation would be invalid. The Court of Appeal unanimously concluded that it was an objective jurisdictional fact. Spigelman CJ identified indicators for and against this conclusion: at 715-720.
53There are competing indicators as to whether the facts in s 38(2) of the Native Vegetation Act should be classified as objective or subjective. Indicators that they are objective include the following:
(a)Section 38(2) is not expressed in subjective terms whereas the jurisdictional fact in s 38(1) is.
(b)Breach of a direction has serious potential consequences, namely, criminal sanctions and forced entry to the recipient's land by another to carry out the work at the recipient's cost: s 38(4), (5), (6).
(c)A landholder who is the recipient of a s 38 direction does not have to have breached the law and may be a victim of the offence of clearing.
(d)A s 38 direction involves an invasion of the recipient's rights by obliging the recipient to do work that otherwise it would have no obligation to perform.
54Indicators that the s 38(2) facts are subjective include the following:
(a)The facts contemplated by s 38(2) of the Act do not enliven the power. That is done by the facts contemplated in 38(1)(a) or (b). The facts contemplated by s 38(2) are concerned with the manner in which the power granted by s 38(1) is exercised.
(b)There is an evaluative element and some complexity in resolving the facts contemplated by s 38(2), on which reasonable expert minds may differ, as to the impact that clearing activities have had upon land, the damage caused, and the works that may repair the damage or rehabilitate the land.
55I have also considered other indicators suggested by the parties but have not found them to be weighty.
56Weighing the competing indicators, I conclude that the facts in s 38(2) are subjective facts that, on judicial review, the court may not determine for itself.
57If the facts in s 38(2)(a) and (b) are subjective, as I think they are, it is necessary to address the applicant's submission that the decision-maker misconstrued those provisions, alternatively that it was not reasonably open to the decision-maker to make the Direction, and alternatively that the Direction was not a reasonable and proportionate response to the unlawful clearing.
58As I have found that s 38(2)(a) extends to damage to populations of threatened species on the Land and the Direction is aimed at repairing that damage, I cannot see that the decision-maker misconstrued that provision in making the Direction.
59Nor do I accept that the Direction was unreasonable in the sense of satisfying the stringent and rarely successful test of manifest unreasonableness that no reasonable decision-maker could have made it: Minister for Immigration and Citizenship v Li [2013] HCA 18, (2013) 297 ALR 225 at [108], [111], [113]; Minister for Immigration and Multicultural Affairs v Eshetu [1999] HCA 21, (1999) 197 CLR 611 at [44]; Marrickville Metro Shopping Centre Pty Ltd v Marrickville Council [2010] NSWCA 145, (2010) 174 LGERA 67 at [105]. If it is relevant to take into account post-Direction expert evidence, then I take into account that the experts agreed in their first joint report that the Direction's requirement to remove all non-native plants from the Remediation Area was not consistent with best practice: above at [33(b)]. That does not mean it will not bring about remedial benefit. Dr McDonald and Ms James both opined that it will, including by promoting the survival of specimens and germination of new specimens within the Remediation Area: above at [34(3) - (5)]. Even Dr Clements acknowledged that the populations benefited from Mr Rawson's removal of camphor laurel: above at [34(1)].
60Manifest unreasonableness is almost unarguable given that the applicant, by its solicitors, proposed the Remediation Area to the respondent in a pre-Direction letter which represented correspondence and represented that it had been formulated by the applicant's flora consultants who had advised that it provided a much higher standard of connectivity for the rehabilitated areas which will produce a superior long term environmental outcome: above at [22]. The applicant submits that this letter is insignificant by characterising its position as one who is asked by a gunman whether he would like to be shot in the head or the foot. The metaphor is colourful but unpersuasive.
61It is unnecessary to go further but Dr McDonald's report, which was available to the decision-maker when the Direction was made, concerning the significance of and damage to threatened species populations on the Land reinforces the conclusion that manifest unreasonableness has not been established. For example, the unlawful clearing removed approximately 75 per cent of the important population of the threatened macadamia species on the Land. It seems obvious that removing competition from non-native vegetation is likely to result in an enhanced recovery of the macadamia population.
62I accept that the Direction had to be a reasonable and proportionate response to the unlawful clearing of the threatened species, but I do not consider that the Direction offended this requirement. In Precision Products (NSW) Pty Ltd v Hawkesbury City Council [2008] NSWCA 278, (2008) 74 NSWLR 102 (a case of alleged negligent exercise of statutory power by a council), a clean-up notice issued under s 91(1) of the Protection of the Environment Operations Act 1997 (POEO Act) effectively required the appellant to close its business on the land. The NSW Court of Appeal held that the notice was beyond power because it was not a reasonable and proportionate response to pollution incidents on the appellant's land in connection with its chemical business. Allsop P (Beazley and McColl JJA agreeing) held:
[159] As to the reach of the notice, once again, the matter has to be analysed from both the perspective of validity and reasonable care. In my view, the notice issued went beyond what was reasonably required to deal with the four pollution incidents recognised by Ms Tierney in her evidence. The terms of the notice went beyond dealing with those four incidents and in effect required the closing down of the appellant's business. Implicit within any notice within s 91 is a reasonable degree of proportional relationship between the pollution incidents which are reasonably suspected as having occurred or occurring and the clean-up action required by the notice. This is made clear by the definition of clean-up action to which I have referred which is hinged upon the relationship to a pollution incident. That is not to say that a pedantic or limited scope should be given to what action can be required. The definition of clean- up action is intended to give the Council power to require any step to be undertaken which would deal with the pollution incident in a manner which prevents, minimises, disburses, destroys or mitigates any pollution.
[160] Here, the reach of the notice was far greater than the four incidents which Ms Tierney identified as those which she had a reasonable belief about. For those reasons, the notice under s 91 exceeded any proportional and reasonable response to the pollution incidents reasonably suspected.
[161] It is unnecessary to define authoritatively the precise relationship between the terms of the clean-up action required in the notice and the pollution incident. It is sufficient to conclude in relation to these circumstances that the notice went far beyond any reasonable remedying or preventing of the four incidents the subject of Ms Tierney's reasonable beliefs. The argument was put that the requirement to cease the business necessarily took the matter outside the possible scope of any issue of a notice under s 91. I am not prepared to go so far and to conclude that a notice under s 91 could never require steps to be taken that were required in this notice. How one prevents any pollution resulting or likely to result from any future incident may well depend upon reasonable apprehension of particular circumstances at the time. Here, the problem was the lack of reasonably proportionate correlation between ultimately what Ms Tierney accepted were the four incidents concerning her and what was demanded of the appellant.
63Although the context is different, the scheme of s 38 of the Native Vegetation Act is similar to the scheme in s 91 of the POEO Act. In each case, the statutory power to issue a notice to take remedial action is limited by a causal relationship with the incident to which it is responsive, although s 38(2) is exhaustive whereas s 91 (see the definition of "clean-up notice") is not. In my opinion, the implication of a reasonable degree of proportionate relationship between a notice and the incident to which it is responsive found in s 91 of the POEO Act in Precision Products is also implicit in s 38 of the Native Vegetation Act. Generally, in my opinion, such an implication is a likely purposive interpretation of statutory schemes where the State is empowered to order a citizen to do or not to do something, under pain of criminal sanction or forced entry, or both, in response to prescribed incidents. The implication is an important safeguard against overreaching by the State. In the present case, in my opinion, the content of the Direction was a reasonable and proportionate response to the unlawful clearing. This conclusion is reinforced by the fact that the applicant itself proposed the Remediation Area formulated by the applicant's flora consultants in respect of which the applicant made the pre-Direction representations to which I have referred.
64The applicant also may be suggesting an inference that the decision-maker did not believe that the Direction requires repairing of damage caused by the unlawful clearing, but rather believed that the Remediation area was merely a bargain struck in negotiating with the applicant, because the Remediation Area differs from the 18 remediation locations corresponding with the specific locations where threatened species were unlawfully cleared, as shown in the draft discussion map initially produced for the decision-maker. I do not accept that such an inference should be drawn. That map was only for draft discussion purposes and prima facie the different remediation sub-areas in the Direction simply reflect a different way of remedying the damage.
65If the facts in s 38(2)(a) and (b) are objective (contrary to my opinion), then in my opinion the applicant has not established that the facts in s 38(2)(a) did not exist. That provision is concerned with any damage, which includes damage to the populations of the threatened species on the Land. On the face of the Direction, its purpose is to repair any damage, which includes any damage to those populations. The evidence of Dr McDonald and the other expert evidence that I have accepted shows that the populations of the threatened species that were on the Land before the unlawful clearing were important; those populations were substantially reduced and thereby damaged by the unlawful clearing; to the extent that they were still there after the unlawful clearing they provided the basis upon which the populations could replenish though their continued survival and seeds they drop which are able to germinate; and that the prospects of the populations surviving will be enhanced by the removal of competition from non-native vegetation. The removal of such competition is what the Direction contemplates. I am satisfied that the remedial work contemplated by the Direction is work to repair damage caused by the clearing. I take into account that the experts agreed in their first report that the Direction's requirement to remove all non-native plants from the Remediation Area was not consistent with best practice. That does not mean it is not going to bring about any remedial benefit. Indeed, as Dr Clements noted in the second joint report, the populations benefited from Mr Rawson's removal of camphor laurel. The fact that the Direction might have defined the sub-areas of the Remediation Area differently is not to the point. It is unnecessary to express a view as to whether the Direction also comes within s 38(2)(b).
66For these reasons, in my opinion, the proceedings should be dismissed.