WorldAudio Limited v Australian Communications and Media Authority
[2006] FCA 8
At a glance
Source factsCourt
Federal Court of Australia
Decision date
2006-01-16
Before
Conti J
Source
Original judgment source is linked above.
Judgment (20 paragraphs)
The circumstances of the applicants to the present dispute and the nature and implications of their business and operational activities relevant thereto 1 The first applicant, WorldAudio Limited ('WAL'), is a public company listed on the Australian Stock Exchange, having approximately 1200 ordinary shareholders. Its principal business is the sale of broadcast airtime to advertisers, per medium of commercial radio broadcasting services, at some 50 locations around Australia. The second applicant AusCoast Broadcasting Pty Limited ('AusCoast') is a wholly owned subsidiary of WAL and has been since February 2002, when WAL acquired the total AusCoast shareholding. AusCoast holds a Medium Frequency Narrowband Area Service ('MF NAS') radiocommunications apparatus licence issued under s 100(1) of the Radiocommunications Act 1992 (Cth) ('the Act'), being licence number 1130030 (the '1620 licence'). Broadly speaking, it is in the nature of a transmitter licence, in contrast to a receiver licence, those being the two types of apparatus licence available under s 97 of the Act. In turn, there are several types of transmitter licences provided for by the Act, the 1620 licence being described by the applicants as 'a broadcasting license type'. A 'broadcasting station' is defined by s 5 of the Act to mean: 'a transmitter that is operating for the purposes of: (a) a broadcasting services bands licence; or (b) the provision of a national broadcasting service within the meaning of the Broadcasting Services Act 1992 (Cth)'. 2 WorldAudio Communications Pty Limited ('the Broadcaster'), being a further subsidiary of WAL, holds an Australia-wide commercial radio broadcasting licence under s 40 of the Broadcasting Services Act 1992 (Cth), being licence No 1170227. That legislation does not fall for scrutiny in the present case. The broadcasting services of the Broadcaster are presently transmitted in the Brisbane area by AusCoast under the auspices of the 1620 licence. For convenience, and in line with the applicants' written submissions, those services transmitted in the Brisbane area are hereafter referred to as 'the broadcasting service'. An independent engineering report prepared for WAL by THL Australia Pty Ltd, said by the applicants to be one of Asia Pacific's leading broadcast engineering groups, was to the effect that the 1620 licence provides a signal of 'superior listening quality' to 1,150,065 persons in the Brisbane area, and of so‑called 'acceptable listening quality' to a further 882,596 persons in the Brisbane area. 3 The statutory scheme for licensing the use of spectrum under the Act has been administered by the respondent Australian Communications and Media Authority ('the Authority' or 'ACMA'), and its precursor the Australian Communications Authority, since 1 July 1997. Prior to that time, the administration of licensing was undertaken by the Spectrum Management Agency. Nothing turns however on those changes in identity of the administering authority. The statutory scheme contains provisions, in addition to the issue of apparatus licences, in relation to the duration of apparatus licences (s 103), the general conditions of apparatus licences (s 107), additional conditions of apparatus licences (s 108), changes to conditions of apparatus licences (s 111), the making of guidelines that the Authority is to apply in exercising its powers under sections 107, 108 and 111 (s 112), the suspension or cancellation of apparatus licences (ss 126 and 128), the renewal of apparatus licences (s 130), and the transfer of apparatus licences (ss 131AA and 131AB). 4 One of the conditions of the 1620 licence, apparently imposed from the time of its first issue, is that the location of the transmitter be 170 Kingsley Terrace, Manly, being a suburb of Brisbane; that site was referred to in the course of the proceedings as the 'condition site'. That condition was imposed pursuant to s 107(1)(g) of the Act. Other conditions relate to various technical aspects of the radiocommunications transmission authorised by the licence. In spite of that condition, transmission of the broadcasting service has never occurred in any physically operative sense from that site at Manly, that is, from the condition site, at least for the reason that the condition site is located within an established residential area. The broadcasting service is presently transmitted from a different location in the Brisbane area, being 320 Fleming Road, Tingalpa, which is 5.7 kilometres distant from the condition site. That site at Tingalpa is sometimes referred to in the parties' submissions as the 'current site', in contrast to the 'condition site' at Manly. The effect of the purported decision of the respondent Authority, the subject of the present review application, which was made on 30 June 2005 and affirmed on 18 August 2005, is that AusCoast is not officially authorised to transmit the broadcasting service, or any other radiocommunications service, from the current site, without breaching the locational condition of the 1620 licence referrable to Manly. That prohibition, if enforced, would apparently mean that the broadcasting service of the Broadcaster must cease to be transmitted in the Brisbane metropolitan area. So much would occasion substantial loss and damage, both directly and indirectly, as the applicants understandably emphasised. 5 As I have already indicated, there is not, nor has there ever been, any radiocommunications transmitter located at the condition site at Manly, that site being located within a residential area of Brisbane and itself comprising residential premises. When application was originally made by AusCoast for the 1620 licence, it appears that the condition site at Manly was used by AusCoast as the nominal location site for the 1620 licence because of an inability of AusCoast to identify a suitable location elsewhere for transmission of its broadcasting service to Brisbane, pending proper planning for transmission of radio communications under that licence. The adoption of that course of purported expediency was said by Mr Thompson, the chief executive officer of WAL, to accord with the then practice of administrative convenience in operation at that time in respect of applications for and adoption of transmitter licences. As I have foreshadowed, that practice was said to allow an applicant for a MF NAS apparatus licence to identify a convenient address for the transmission site referrable to the applicant's licence, pending completion of comprehensive planning for transmission of radiocommunications under the licence. In fact an application appears to have been made by AusCoast for the change of the transmission site from Manly to another site in the Brisbane locality as far back as 12 November 1996, it being doubtless considered that it would be highly unlikely that the necessary town planning approval could ever be obtained to operate the 1620 licence from within the Manly residential area, owing to the environmental implications that might have ensued to an area of land so zoned. A precedent for that practice was identified by the applicants as the MF NAS apparatus licence for Hobart, which was listed nominally by reference to the site of the Hobart Fire Station, even though such location could not constitute a radiocommunications site in any operational physical sense for radio interference reasons. 6 On 29 August 2003, the Minister for Communications, Information Technology and the Arts (the 'Minister') issued Australian Communication Authority Direction (MF NAS Transmitter Licences) Direction No. 1 of 2003, the practical effect of which was contended by the applicants to be that the holders of MF NAS apparatus licences, such as AusCoast, would not be permitted to transmit a commercial radio broadcasting service under a licence of that designation, unless the service was provided by 29 August 2004 (ie within one year later). 7 AusCoast commenced transmission of the subject broadcasting service on 5 November 2003 from the current site at 320 Fleming Street, Tingalpa, in alleged satisfaction of the Minister's direction. It appears that the transmission of the subject broadcasting service of AusCoast has thereafter continued unabated from the Tingalpa site, and there further appears to have been no complaint communicated to any of the parties to the proceedings, including the Authority, as to AusCoast's transmission of its broadcasting service from the Tingalpa site having caused any interference to any other radiocommunication transmission. 8 It was the applicants' further case that the current site is an established radiocommunications transmission site, and that its utilisation by AusCoast for that purpose has complied with all relevant town planning, local government and environmental laws, whereas the condition site remains as I have already indicated within a residential area, in relation to which it is highly unlikely any corresponding requisite approvals could ever be obtained in relation thereto; for one matter, there is a block of residential units standing in the immediate vicinity of the Manly transmission site. It was therefore that on 6 August 2004, AusCoast applied to the then relevant authority to change the site condition of the 1620 licence from its nominal location in Manly to its operative broadcasting site at Tingalpa. In the course of the communications which ensued, the Authority alleged that the broadcasting service being provided, in effect under the auspices of the 1620 licence, was being operated in breach of licence conditions, by virtue of transmission occurring from a site otherwise than that stated in the condition to the licence. 9 On receipt of that application of 6 August 2004, the Authority responded by fax of 16 August 2004 to the effect that any such variation of the site condition in respect of the 1620 licence was not acceptable, for the reason that it '… would put the station closer to an adjacent [channel] service on 1611kHz at Tingalpa and less than 30km from an adjacent channel service on 1629kHz at Mango Hill … [and the transmission site] would be closer to a co‑channel service at Toowoomba.' Of course there existed a degree of artificiality in relation to the expression '… place the transmitter closer…', the placement of the transmitter apparatus being already physically located at Tingalpa, and having never been physically located at Manly. 10 I should perhaps incorporate reference to further terminologies, practices and policies appearing in the evidence. A 'co-channel service' is another service broadcasting at the same frequency whereas an 'adjacent channel service' would be one broadcasting at either of the two frequencies each side of the subject apparatus licence, namely 1611 kHz and 1629 kHz in the present circumstances. The use of the expression 'closer' by the Authority's officer in the fax of 16 August 2005 is a reference to the application of the so-called '30/160 rule' which rule is enumerated in two policy documents of the Authority. The first document is a 'Business Operating Procedure' entitled 'Licensing Narrowband Area Service stations' ('NAS BOP') and the second document is a 'policy information paper' entitled 'Apparatus Licensing - Narrowband Area Service stations' ('NAS PIP'). In effect, those policies stipulate a minimum separation distance between MF NAS transmitters on co-channel frequencies of 160 kilometres and for adjacent channels of 30 kilometres. Since in the past the enforcement of those minimum separation distances has not always been strict on the part of the Authority (or its predecessors), it has also formulated the 'make it better rule', whereby suggested variations in site location that do not satisfy the '30/160 rule', but which are an improvement on the status quo in terms of the distances between transmission services, may be approved. 11 Subsequently by letter dated 5 October 2004 a further Authority communication informed WAL inter alia that its application dated 6 August 2004 to relocate the 1620 licence had 'not been finalised' because '… the site co-ordinates that you provided do not meet, or improve, co‑channel separation distances'. Interestingly in the light of the Authority's present submissions, the author of the letter then went on to request 'within one month of today, additional site co‑ordinates information and/or details of how [WAL] propose to regularise the operation of [the 1620 licence]', and said that 'this correspondence is to be taken as a request for additional information for the purposes of s 286 of the Act.' That requested information was apparently provided to the Authority by WAL in a letter dated 27 October 2004. By letter of 15 November 2004, the Authority acknowledged WAL's ongoing efforts to resolve its site difficulties, but indicated nevertheless that the broadcasting service was operating 'in breach of licence conditions'. No express mention was apparently made in that correspondence of 15 November 2004 to WAL's 'application…to relocate [the 1620 licence]', as that application was described in the Authority's earlier letter of 5 October 2004. 12 Two file notes authored by respective officers of the Authority evidence telephone discussions apparently undertaken by those same officers of the Authority with Mr Thompson of WAL in late 2004. In both of those file notes, the Authority's officers claim to have impressed upon Mr Thompson that the Authority 'had already considered the matter [of the variation of the site condition on the 1620 licence]' and had 'arrived at its current position'. On the second occasion Mr Thompson was apparently invited to make another request in writing, which he duly did by letter dated 13 December 2004. That letter sought both the relocation of the 1620 licence to the Tingalpa site but also the revocation of MF NAS apparatus licence number 1402943 ('the 1611 licence'), which had as its site condition a location also in Tingalpa some 7.5 kilometres away from AusCoast's current transmission site. 13 At this point of the narrative of material circumstances, I would revert back in time to 27 February 1996, being some five months after the issue originally of the 1620 licence to AusCoast. At that time in 1996, so the applicants pointed out, the 1611 licence was registered in the name of Queensland Hospital Radio Association. The site of the 1611 licence shown in records maintained by the Authority is presently recorded as Bracken Ridge Reservoir. Until January 2005, the 1611 licence, that being of course to be distinguished from the applicants' 1620 licence, had a different site location, recorded as being in Tingalpa. However by about the commencement of 2005, a change to the present 1611 licence site at Bracken Ridge Reservoir was approved by the Authority. The Bracken Ridge Reservoir site is 21063 kilometres distant from the condition site at Manly, and 18.291 kilometres distant from the current site at Tingalpa. Yet the 1611 licence is inoperative and has never operated, so the applicants maintained. Those circumstances were raised by the applicants by way of apparent exemplification of at least the alleged elasticity of administration and operation of the Act relevantly to the nomination of site locations of licensees for convenience until an appropriate transmitter site can be found. The fact that the 1611 licence had issued some five months after the 1620 licence was said to be explanatory of the request made by WAL to the Authority for the revocation of the 1611 licence. That request, and the events occasioning it, are not of course directly relevant to the present proceedings, but provides potentially relevant background to the principal case of the applicants to be presented, in the event that the applicants are successful in the present interlocutory dispute. 14 Further discussions and communications have ensued between WAL and the Authority concerning the possibility of AusCoast continuing to transmit from Tingalpa, in circumstances which nevertheless were described on behalf of the Authority as already involving breach of licence conditions, though pending resolution of what an officer of the Authority described as AusCoast's attempts to acquire another licence located at Tingalpa. By letter dated 23 December 2004, the Authority purported to 'reiterate its advice to [WAL] of 26 August 2004 that [the Tingalpa site] is unsuitable because it does not meet co-channel or adjacent channel re-use distances for a number of services…'. Next followed a description of the respective services which were said by the Authority to render the request for variation of the site location to involve breach of the Authority's policy on technical requirements. There followed on 14 February 2005 a written request from WAL's solicitors to the Authority to make a decision under s 111 of the Act concerning a condition of the 1620 licence, being that the site of that licence be changed from Manly to Tingalpa. Critical to the present proceedings is the Authority's correspondence of 30 June 2005, which, after describing the relevant policies and expressing the effect of the proposed relocation on separation distances between the transmission under the 1620 licence and those nearby, was relevantly in the following terms: '…the [Authority] will not exercise its discretionary power under section 111 of the [Act] and vary the licence conditions in the terms proposed by [WAL]… [S]ection 111 confers a power on the [Authority] to unilaterally impose, revoke or vary licence conditions. In this way, the only "decision" contemplated by the section is one that will some way change the licence conditions. If there is no change to the licence conditions, then for section 111 purposes, no decision has been made. It follows from this that it is only where the [Authority] decides to impose, revoke or vary conditions that a review can be sought under the Act. In this case the [Authority] has not made a decision to change the licence conditions so a reviewable decision has not been made.' The first issue arising in the present interlocutory dispute is whether that communication was a decision … made… under an enactment for the purposes of s 3(1) of the Administrative Decisions (Judicial Review) Act 1977 (Cth) ('ADJR Act'). It is that issue which is addressed by these reasons for judgment. 15 WAL subsequently requested reconsideration of the Authority's refusal to vary the licence site condition, doing so purportedly pursuant to s 285(g) of the Act. WAL also sought from the Authority a statement of its reasons for decision pursuant to s 13 of the ADJR Act. Both of those requests were refused by the Authority in correspondence of 18 August 2005. In that correspondence, the Authority reiterated its view that '…section 111 of the Act confers a power on [the Authority] to impose, revoke or vary licence conditions. [The Authority] has not exercised its power under section 111 to impose, revoke or vary licence conditions. There is therefore no decision under the Act for [the Authority] to reconsider under section 285 of the Act.' In respect of WAL's request for a statement of reasons, the Authority said: 'the decision not to vary the licence condition of [the 1620 licence] is not a decision made under the [Act]. The [ADJR Act] applies to decisions made under an enactment. As there has not been any such decision, this request for a statement of reasons is refused.' 16 It is further in issue in the present interlocutory proceedings whether the Authority's refusal to reconsider its decision pursuant to s 285 of the Act, and to provide a statement of reasons for its decision of 30 June 2005, amounted to decision[s] … made … under an enactment for the purposes of the ADJR Act.