THE CONSTRUCTION ISSUE
44 The principal issue of construction raised by TXA's amended originating application is whether there can be a failure of agreement on terms and conditions of access between the "owner and operator" and the "access seeker" within the meaning of cl 47 in circumstances where the negotiations for the agreement were conducted on behalf of the access seeker by an owner and operator of different regulated infrastructure as an agent.
45 It is a well-settled principle of statutory construction that legislative provisions must be construed in context. That context is to be understood "in its widest sense" and includes "the existing state of the law": CIC Insurance Limited v Bankstown Football Club Limited (1997) 187 CLR 384 ('CIC Insurance') at 408 (Brennan CJ, Dawson, Toohey and Gummow JJ); a phrase which "embraces the then understanding of the common law": The Wik Peoples v The State of Queensland (1996) 187 CLR 1 at 171 (Gummow J). This context is to be considered at first instance, "not merely at some later stage when ambiguity is thought to arise": CIC Insurance at 408.
46 It is agreed that the law of agency forms part of the common law. We therefore consider the primary judge was correct to find that the law of agency forms part of the background against which the provisions of the transmitter access regime are to be construed.
47 After construing the transmitter access regime against the background of the common law (including the law of agency), the primary judge found that the principle of legality supported her construction of the statutory provisions. In doing so, the primary judge cited the rule from Potter v Minahan, where O'Connor J stated (at 304):
It is in the last degree improbable that the legislature would overthrow fundamental principles, infringe rights, or depart from the general system of law, without expressing its intention with irresistible clearness…
48 This rule, which is often described as a statutory presumption, is derived from the principle of legality: Saeed v Minister for Immigration and Citizenship (2010) 241 CLR 252 at [15] (French CJ, Gummow, Hayne, Crennan and Kiefel JJ). It was adopted unanimously by the High Court in Bropho v State of Western Australia (1990) 171 CLR 1 at 18 (Mason CJ, Deane, Dawson, Toohey, Gaudron and McHugh JJ), but has been subject to criticism. In Malika Holdings Pty Ltd v Stretton (2001) 204 CLR 290 ('Malika'), McHugh J observed in obiter (at [29]):
Hallowed though the rule of construction referred to in Potter v Minahan may be, its utility in the present age is open to doubt in respect of laws that "infringe rights, or depart from the general system of law." In those areas, the rule is fast becoming, if it is not already, an interpretative fiction. Such is the reach of the regulatory state that it is now difficult to assume that the legislature would not infringe rights or interfere with the general system of law.
49 Yet despite this suggestion that the operation of the rule ought to be limited to laws that "overthrow fundamental principles", it continues to apply in respect of all three types of situations contemplated in Potter v Minahan, including where a particular construction of a statutory provision would "depart from the general system of law". Accordingly, whilst TXA's submissions focus on whether the law of agency in this context is a "fundamental principle", we consider the rule in Potter v Minahan to be engaged simply by reason of TXA's proposed construction, in purporting to exclude the operation of the law of agency, being inconsistent with the general system of law.
50 We consider that the primary judge was correct to find, in construing the relevant clauses of the transmitter access regime to determine whether a particular agent can seek to negotiate access to infrastructure on behalf of an access seeker, that the legislature will not be taken to have excluded the operation of the law of agency unless there is a clear statement of its intention to do so. We also point out that the primary judge considered the law of agency to form part of the background for statutory construction, and her analysis was not dependent upon the application of the statutory presumption.
51 It is useful to have regard to three decisions where this approach to statutory construction has been applied in an agency context: Christie v Permewan, Wright & Co Ltd (1904) 1 CLR 693 ('Christie'); McRea v Coulton (1986) 7 NSWLR 644 ('McRea'); and Lanciana v Alderuccio [2019] VSC 198 (28 March 2019) ('Lanciana').
52 In Christie, Griffith CJ considered whether an agent could lay an information to institute a customs prosecution under the Customs Act 1901 (Cth), with reference to the decision of Re Whitley Partners Ltd (1886) 32 Ch D 337 ('Re Whitley'), and held (at 700-701):
It is to be observed that sec. 245 only requires prosecutions to be instituted in the name of the Collector. It does not require any particular person to lay the information personally any more than it requires the Minister to go into Court to institute the prosecution. There is nothing in the Customs Act to say that the power conferred on the Collector cannot be exercised by some other person for and on behalf of the Collector. It is a general rule of law that what a person may do himself, he may do by an agent. In In re Whitley Partners, Ltd., 32 Ch. D., 337, which was the case of a memorandum of association, signed by one person in the name of another, without a power of attorney, Bowen, LJ., at p. 340, says: - "In every case when an Act requires a signature it is a pure question of construction on the terms of the particular Act whether its words are satisfied by signature by an agent. In some cases on some Acts the Courts have come to the conclusion that personal signature was required. In other cases on other Acts they have held that signature by an agent was sufficient. The law on the subject is thus summed up by Blackburn, J., in Reg. v. Justices of Kent, L.R., 8 Q.B., 305, 307: 'No doubt at common law, where a person authorizes another to sign for him, the signature of the person so signing is the signature of the person authorizing it; nevertheless there may be cases in which a Statute may require personal signature.' Quain, J., then says, 'We ought not to restrict the common law rule, qui facit per alium facit per se, unless the Statute makes a personal signature indispensable.' Archibald, J., says, 'I think this case comes within the common law rule, qui facit per alium facit per se, and there is nothing in the Statute to qualify the operation of that maxim. It is easy to understand that there may be cases in which a different construction must be put on particular Statutes.'"
(Emphasis in original.)
53 In McRea, Hope JA (with whom Kirby P and McHugh JA agreed) considered whether an agent could sign an application for statutory water rights and held (at 663):
The first question is whether the applicants must sign personally, or whether signature by an agent on behalf of the applicants was permissible. It has long been the law that, where a provision of a statute or of delegated legislation requires that a document shall be signed by a particular person, prima facie that provision does not exclude the common law rule qui facit per alium facit per se and if the person authorises another to sign on his behalf, a signature made by the other pursuant to the authority is equivalent to the signature of the person giving the authority: R v Kent Justices (1873) LR 8 QB 305; Re Whitley Partners Ltd (1886) LR 32 Ch D 337; France v Dutton [1891] 2 QB 208; Furnivall v Hudson [1893] 1 Ch 335; Dennison v Jeffs [1896] 1 Ch 611; Grahame v Commissioner for Railways (1946) 46 SR (NSW) 430; 63 WN 277. An intention that a personal signature is required may appear from the language of the statute or delegated legislation or from its subject matter…
54 Similarly, in Lanciana (which was upheld by the Victorian Court of Appeal in Lanciana v Alderuccio [2020] VSCA 152 (12 June 2020)), Moore J applied the law of agency in considering whether a solicitor could lodge a caveat on behalf of his or her client:
[32] The defendants contended that a literal construction of s 118 was contrary to the doctrine of agency because it would treat a solicitor as liable as principal for the act of lodging a caveat. This would reverse the essential concept of agency encapsulated in the maxim '[q]ui faci per alium facit per se' (he who does an act through another does it himself), pursuant to which the acts of solicitors in lodging a caveat are the acts of their client…
[…]
[84] … while I accept that legislation may depart from established agency principles by attributing liability to an agent for the acts of their principal, such a departure from common law principles would typically be supported by the use of clear and express words. I consider that express words would be required to support the plaintiff's construction of s 118 as conveying a departure from fundamental agency principles by exposing an agent to liability for the act of their caveator principal.
55 TXA submits that the present facts ought to be distinguished from the above cases because the subject matter of the transmitter access regime is said to be "a world away" from the signing of an application for water rights (McRea), a solicitor lodging a caveat (Lanciana), the signing of a memorandum of association to incorporate a company (Re Whitley), or the laying of an information in a customs prosecution (Christie). We do not see any basis for limiting the principles of construction or the principle of legality on these facts. Moreover, when one is reminded of the facts of this case in the context of the task before this Court (that is, to determine whether an agent can represent an access seeker in negotiations under the transmitter access regime), it becomes apparent that we are not so very far removed from these cases at all.
56 Finally, we note that TXA sought to invoke the principle of legality to contend that the transmitter access regime ought not to be construed in a way that allows for potential interference with private property rights. This may be a relevant consideration in determining whether an agent (including a competitor) can access transmission infrastructure, but we do not consider it to arise at this stage when construing the regime for the purpose of the first jurisdictional question to determine whether a competitor can act as an agent in negotiations.
57 Having settled the approach to construction, we will now ask: is there indication of a contrary intention in the transmitter access regime?
58 At the hearing, senior counsel for TXA identified seven matters which were said to indicate such an intention. Of these, six related to the fact that the regime expressly delineates between "owners or operators" and "access seekers" and, in doing so, gives certain statutory rights to access seekers that are given to no other class of person (including horizontal competitors). The final indication was said to be that the concept of "access" has an extended meaning in the regime that includes physical access: see cl 44. This is consistent with the matters identified by TXA in written submissions.
59 As soon as it is understood that the Court is only dealing with the question of whether an agent can strike an agreement or seek to do so on behalf of the "access seeker", rather than physically access the infrastructure on behalf of the "access seeker", the textual matters raised by TXA lose their significance.
60 As discussed above, it is conceivable that, when construing the remainder of the regime (including the substantive access provisions) in light of particular terms and conditions of access, a conclusion might be reached that access of the kind allowed in the terms and conditions is not access within the statutory regime. It is conceivable that the regime contemplates access only being carried out by certain classes of persons (the access seeker as a corporate entity and certain categories of natural persons who represent the access seeker such as employees and contractors) and not by an agent of the access seeker, or at least a particular type of agent. For the reasons explained earlier, in our view any such conclusion must await the specification of access by terms and conditions. That possibility, however, does not mean that there is any indication in the statutory text or context to exclude owners or operators of regulated infrastructure from the class of persons that may act as agent for an access seeker when seeking to negotiate terms and conditions of access under the transmitter access regime.
61 TXA submitted that it would be an absurd result if a competing infrastructure owner or operator was allowed to act as an agent for an access seeker in negotiations if the balance of the regime and the substantive access rights were confined in the way contended for by TXA. That is, if a particular agent cannot physically access the infrastructure, then it ought not to be allowed to negotiate the terms and conditions of such access. We disagree. The two activities are distinct. Under cl 47, the jurisdiction of the ACCC is enlivened upon a failure to reach agreement about the terms and conditions of access (and the failure to reach agreement about the appointment of an arbitrator). The ACCC is then empowered to arbitrate the terms and conditions of access, with the arbitration governed by the regulations made under cl 47. An outcome of the arbitration may be that the terms and conditions of access permit the negotiating agent to undertake certain access tasks on behalf of the access seeker, or the outcome may be that the terms and conditions do not permit that to occur. No absurdity arises in either case.
62 The reasoning set out above applies equally to the question whether there has been a request for access by the access seeker within the meaning of cl 45 to 46. There is no statutory indication that a request for access cannot be made by an agent on behalf of the access seeker.
63 For the reasons set out above, we do not consider that the primary judge erred in her construction of cl 47 of the transmitter access regime.