The provisions of s 39(2) of the Court Act considered
36I accept that, read as an individual word or phrase in a statutory provision, both "matter" and "in respect of" may appropriately be afforded a "wide meaning". However, their ambit must yield both to the particular statutory provision in which they find expression and to the context of that provision within the statute being considered.
37In the joint judgment of Dawson and Toohey JJ in Workers Compensation Board of Queensland v Technical Products Pty Ltd [1988] HCA 49; (1988) 165 CLR 642, their Honours concluded (at 653) that the breadth of meaning given to the phrase "in respect of" by Mann CJ in the passage I have earlier quoted from Trustees Executors Agency Co Ltd v Reilly went "somewhat too far". Their Honours observed that the phrase "gathers meaning from the context in which it appears and it is that context which will determine the matters to which it extends."
38As Basten JA observed in HIA Insurance Services Pty Ltd v Kostas [2009] NSWCA 292 at [108], "with respect to" are words of connection and must identify "some discernible and rational link" between two elements. Citing the observations of Dawson J in Technical Products Pty Ltd v State Government Insurance Office (Qld) [1989] HCA 24; (1989) 167 CLR 45 at 51, Basten JA stated that the words in the phrase "take their colour from the context in which they are found".
39While the decision of the Court of Appeal in Kostas was reversed by the High Court (Kostas v HIA Insurance Services Pty Ltd [2010] HCA 32; (2010) 241 CLR 390), I do not understand the judgments in that Court to have disagreed with the observations of Basten JA as to the manner in which the phrase "in respect of" should be considered in a particular statutory context. Indeed, in EDYP v Brazbuild Pty Ltd [2011] NSWCA 218 Allsop P applied the decision of the Court of Appeal in Kostas to construe the phrase "with respect to", when used in s 67 of the Consumer Trader and Tenancy Tribunal Act 2001 to identify the right of appeal to the Supreme Court under that legislation, as involving "words of limitation, not expansion" (at [34]). I see no reason to depart from that determination in the present case simply because the relevant phrase in s 39(2) is "in respect of" rather than "with respect to".
40Section 39(2) of the Court Act has been described as a facultative provision. As Preston CJ observed in Australian Leisure and Hospitality Group Pty Ltd v Manly Council (No 5) [2012] NSWLEC 53 at [7], the provision facilitates the hearing and disposal of an appeal by the Court. However, as his Honour recognised, that facilitation "is subject to limitations." The second limitation identified by his Honour is presently relevant. As to that limitation he said (at [13]):
"The power under s 39(2) to exercise the functions and discretions of the Council whose decision under ... the EPA Act is the subject of the appeal ... is available only 'for the purpose of hearing and disposing of an appeal'. The width or narrowness of the functions and discretions of the Council, which can be exercised by the Court for the purposes of hearing and disposing of the appeal, will therefore be governed by the nature and subject matter of the appeal."
41The decision of Biscoe J in Goldberg v Waverley Council [2007] NSWLEC 259; (2007) 156 LGERA 27 was relied upon by the appellant in support of its submissions. Consent had been sought for the demolition of an existing dwelling and subdivision of the land into two lots. The land had frontage to an unformed section of a public road. Access to the land via this unformed section of road was the means by which vehicular access to the subdivided site was to be provided. Part of the application to the council was to construct the unformed section of road, a road length of about 40m. Consent to carry out this part of the work was required under s 138(1) of the Roads Act.
42In Goldberg, Biscoe J was required to consider, as a preliminary question of law, whether, in the context of that case, the power available to the Court under s 39(2)of the Court Act extended to the functions and discretions of the Council to consent to the construction of the unformed section of public road under s 138 of the Roads Act. In so doing, his Honour undertook a comprehensive consideration of cases in the Court of Appeal in which the ambit of s 39(2) of the Court Act had been considered.
43I do not intend to repeat the review that his Honour undertook. As his Honour noted at the outset of that review, the Court of Appeal does not appear to have spoken "with one voice" as to the ambit of the section (at [26]). The language of the subsection was described by Reynolds JA in Kogarah Municipal Council v Kent (1981) 46 LGRA 334 at 336 as being "wide and clear" while described by Kirby P in McDougall v Warringah Shire Council (1993) 30 NSWLR 258 at 261 as being "wide and ambiguous".
44His Honour's review of the decisions of the Court of Appeal directed to the ambit of s 39(2) revealed what was described as both a "wide view" and a "narrow view" of the power available to the Court under the subsection. That description of the range of decisions in the Court seems to have had its origin in the observations of Kirby P in McDougall, more recently repeated in the judgment of Tobias JA in Sydney City Council v Ipoh Pty Ltd [2006] NSWCA 300; (2006) 68 NSWLR 411 at [60]. Biscoe J favoured "the broad approach" to the scope of the subsection. In so doing, his Honour said (at [43]):
"I respectfully agree with the broad approach. The result of that interpretation, as articulated by Kirby P in McDougall at 264 is that 'all the functions and discretions the council could have exercised when considering the application are open to the Land and Environment Court on appeal and not only those strictly necessary to the approval'. Of course, the functions and discretions (as Cripps JA indicated in McDougall) must have a relevant nexus to the matter the subject of the appeal in order to be 'in respect of'' that matter. I take this to mean that if a development application is refused and something has a relevant nexus to it, s 39(2) throws a blanket over both, that is, empowers the Court to deal with both."
45At a level of generality, it may be of interest to classify decisions as to the ambit of the subsection as either "broad" or "narrow". Ultimately, the focus must be upon the interpretation of the statutory provision and its application in a given case. This has been the task undertaken in each of the cases reviewed, it being noteworthy that the Court of Appeal has not seen fit in any of its decisions to qualify or overturn any statement of principle as to the manner in which the subsection should be interpreted, as that principle has been articulated in an earlier decision. Each decision may be seen as no more than "a refinement of the earlier" decision of the Court as to the proper construction of the subsection (cf McDougall per Kirby P at 160).
46Although, as I have said, I do not intend to repeat the comprehensive review of prior decisions of the Court of Appeal addressing s 39(2) undertaken by Biscoe J in Goldberg, there are some matters emerging from the judgments of the Court of Appeal that I regard as being important when considering the issue in the present appeal.
47The leading judgment in North Sydney Municipal Council v PD Mayoh Pty Ltd (1988) 14 NSWLR 740 was delivered by McHugh JA (Hope and Samuels JJA agreeing). There, the land in question was reserved under the statutory planning instrument for parks and recreation. The relevant planning instrument provided that where that public purpose could not be carried into effect "within a reasonable period", consent could be given by the council for other development, including residential development. The land so reserved was privately owned. At the time of lodgement of a development application for residential development, the purpose of the reservation for parks and recreation had not been implemented by the council.
48It was contended by the respondent council that the power of the Court, when determining a development appeal under s 97 of the EPA Act, did not extend to exercising the function of the council to determine that the purpose for which the land was reserved could not be carried into effect within a reasonable period. That contention raised for consideration the ambit of s 39(2) of the Court Act. In the context of the subsection, McHugh JA observed (at 746) that "a function or discretion of a council which affects the subject matter of the appeal is not necessarily 'in respect of the matter the subject of the appeal'". In that case the function of determining whether the purpose of reservation could be implemented within a reasonable time did more than "affect the subject matter of the appeal" because the exercise of the function was legally and temporally a prerequisite to the determination to grant development consent. In that context his Honour observed that the function of the council directed to implementation of the purpose of reservation of the land was "at the heart of the matter" which is the subject of the appeal and was therefore a function comprehended by the subsection.
49In the context of an appeal brought under s 97 of the EPA Act, the existence of a function necessary to be exercised by a Council in order to engage its power to grant development consent under that Act has been identified as the function which enlivens the operation of s 39(2). In Sydney City Council v Claude Neon Ltd (1989) 15 NSWLR 724, Hope JA (Priestley and Meagher JJA agreeing) referred (at 732) to "a function the exercise of which is basic to its function to grant development approval" as engaging the provisions of the subsection. The function there considered was the provision by the council of its consent to the making of a development application as owner of the land over which development consent was sought, the need for the consent of the landowner prior to the grant of development consent being a requirement of the EPA Act itself.
50A factual circumstance similar to that which arose in Claude Neon was considered by the Court of Appeal in Shellharbour Municipal Council v Rovili Pty Ltd (1989) 15 NSWLR 104. Clarke JA (Samuels and Meagher JJA agreeing) said (at 112) that whether s 39(2) of the Court Act was engaged
"depends upon whether the giving of consent is a necessary incident to the power of the council to grant development approval."
His Honour then stated that the giving of consent to the making of a development application was "a function [of the council] the exercise of which is basic to its function to grant development approval", with the consequence that s 39(2) would be engaged in such a circumstance.
51Unsurprisingly, this same reasoning was applied by the Court of Appeal in Sydney City Council v Ipoh Pty Ltd where, once again, the power of this Court to determine a development appeal was raised where the consent of the Council, as owner of the land over which development was sought, had been refused. Tobias JA (Hodgson and Santow JJA generally agreeing), reviewed the authorities addressing the ambit of s 39(2), including those to which I have referred, and concluded that the function of giving consent as landowner to the making of a development application was a function "in respect of the matter the subject of the appeal". Absent the performance of that function, the granting of development consent would be beyond power (at [77]). His Honour's conclusion is succinctly summarised at [78]:
"Accordingly, the giving of that consent to the making of the application by the Court is inextricably bound up with a function or discretion 'in respect of' the determination of the appeal."
52In McDougall, Cripps JA described the power provided by s 39(2) as being available "provided there is a relevant nexus between the matter the subject of the appeal and the discretion or function proposed to be exercised" (at 170). His Honour's observation to that effect followed a consideration of a number of the cases to which I have referred, including North Sydney Municipal Council v PD Mayoh Pty Ltd and Sydney City Council v Claude Neon Ltd. He did not seek to qualify or depart from the observations made in those cases as to the ambit of s 39(2), being observations to which I have already referred. The "relevant nexus" which his Honour stated must therefore be understood as involving something more than a function or discretion "affecting" the subject matter of the appeal (Mayoh per McHugh JA at 746.).
53This analysis of the authorities seems to me to suggest that to engage the power under s 39(2) of the Court Act, the 'nexus' must involve an exercise of power that is legally indispensable to the exercise of power to determine the subject matter of an appeal. Although it may be said that my reference to indispensability involves no more than replacing one term of indeterminate reference with another, the notion of indispensability to describe the operation of the statutory phrase seems apt to apply to the phrase in its context. It is an appropriate synonym for phrases taken from the decided cases such as "necessary or basic", "an incident of the power to grant consent", "a necessary precondition to the grant of consent" or "inextricably bound up" with the function to grant consent.
54By construing s 39(2) in this manner, I do not reflect difference with the conclusion reached by Biscoe J in Goldberg. In that case, road construction to provide vehicular access to the land proposed to be subdivided and thereafter developed for residential purposes was a "vital part of the overall proposal" (at [52]). As a consequence, so his Honour held, at [52], the development proposal and construction of vehicular access along the unformed section of an existing public road "were inextricably intertwined". The owner of the land in question, as a frontager to an existing public road, was entitled, as of right, to have access to it: 6(1) of the Roads Act. This right was identified by his Honour at [7], a circumstance that was undoubtedly relevant to his Honour's determination.