Berenyi v Maynard & Anor [2015] QSC 370
SUPREME COURT OF QUEENSLAND
CITATION: Berenyi v Maynard & Anor [2015] QSC 370
PARTIES: MARGARET THERESA BERENYI
(applicant)
v
IAN GRAHAM MAYNARD, DIRECTOR-GENERAL,
QUEENSLAND HEALTH
(first respondent)
AND
SUE RICKERBY, DIRECTOR-GENERAL, THE
DEPARTMENT OF SCIENCE, INFORMATION
TECHNOLOGY, INNOVATION AND THE ARTS
(second respondent)
FILE NO: SC No 7058 of 2014
DIVISION: Trial Division
PROCEEDING: Application
ORIGINATING
COURT: Supreme Court at Brisbane
DELIVERED ON: 18 December 2015
DELIVERED AT: Brisbane
HEARING DATE: 20 November 2014, 18 December 2014, 13 January 2015,
further submissions by the applicant dated 15 January 2015,
further submissions by the respondent dated 22 January 2015,
further submissions by the applicant dated 23 January 2015,
31 March 2015, further submissions by applicant dated
28 September 2015, further submissions by respondent dated
14 October 2015
JUDGE: Philippides JA
ORDER: The applications filed 31 July 2014 and 21 January 2015
are dismissed.
CATCHWORDS: ADMINISTRATIVE LAW – JUDICIAL REVIEW –
REVIEWABLE DECISIONS AND CONDUCT –
GENERALLY – where the respondent initiated disciplinary
process and made disciplinary findings against the applicant –
where the respondent purported to terminate the applicant’s
employment pursuant to a contractual clause – whether the
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termination was in the exercise of a contractual or a statutory
power – whether the respondent’s decision to terminate is
judicially reviewable
ADMINISTRATIVE LAW – JUDICIAL REVIEW –
GROUNDS OF REVIEW – PROCEDURAL FAIRNESS –
GENERALLY – where the respondent made three allegations
specifying acts or omissions by which the applicant failed to
discharge her professional responsibilities – whether the
respondent failed to sufficiently particularise the acts or
omissions which gave rise to the applicant’s alleged breach of
discipline – whether natural justice was afforded
ADMINISTRATIVE LAW – JUDICIAL REVIEW –
GROUNDS OF REVIEW – RELEVANT
CONSIDERATIONS – where the applicant relied on the
expertise of others in her decision making – where the
applicant was found not to have turned her own mind to and
made her own enquiries about the bases upon which her
decisions were made – whether it was a relevant consideration
that the applicant relied on the expertise of others – whether
the respondent failed to take that consideration into account
ADMINISTRATIVE LAW – JUDICIAL REVIEW –
GROUNDS OF REVIEW – IRRELEVANT
CONSIDERATIONS – where the respondent considered it
necessary to attribute responsibility for the failure of the
project the applicant was involved in – whether that was an
irrelevant consideration
Corporations Act 2001 (Cth), s 180
Public Service Act 2008 (Qld), s 5, s 8, s 9(1), s 96, s 96(1),
s 113, s 113(5), s 114, s 114(1), s 114(3), s 122, s 122(8),
s 123(1)(a), s 187, s 187(1)(a), s 188, s 190, s 190(1), s 192,
s 216(1)(b), s 216(2), s 218, s 218(1), s 218(2), s 219,
s 219(3)
Ainsworth v Criminal Justice Commission (1992) 175 CLR
564; [1992] HCA 10, cited
Bennett v Human Rights & Equal Opportunity Commission
(2003) 134 FCR 334; [2003] FCA 1433, cited
Blizzard v O’Sullivan [1994] 1 Qd R 112, applied
Bruce v Cole (1998) 45 NSWLR 163, cited
Bryne v Auckland Irish Society Inc [1979] 1 NZLR 351, cited
Chase Oyster Bar Pty Ltd v Hamo Industries Pty Ltd (2010)
78 NSWLR 393, cited
Commissioner of Australian Capital Territory Revenue v
Alphaone Pty Ltd (1994) 49 FCR 576, cited
Commissioner of Taxation v Day (2008) 236 CLR 163;
[2008] HCA 53, considered
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Craig v State of South Australia (1995) 184 CLR 163; (1995)
184 CLR 163, considered
Director-General of Education v Suttling (1987) 162 CLR
427; [1987] HCA 3, cited
Dovey v Cory [1901] AC 477, cited
Etherton v Public Service Board of New South Wales [1983]
3 NSWLR 297, considered
Gardiner v Land Agents Board (1976) 12 SASR 458, cited
Hot Holdings Pty Ltd v Creasy (1996) 185 CLR 149; [1996]
HCA 44, cited
Jarratt v Commissioner of Police (NSW) (2005) 224 CLR 44;
[2005] HCA 50, cited
Khan v Minister for Immigration & Ethnic Affairs (1987) 14
ALD 291, cited
Kirk v Industrial Court of New South Wales (2010) 239 CLR
531; [2010] HCA 1, cited
Law v National Greyhound Racing Club Ltd [1983] 1 WLR
1302; [1983] 3 All ER 300, cited
Minister for Aboriginal Affairs v Peko-Wallsend Ltd (1986)
162 CLR 24; [1986] HCA 40, cited
Murphyores Inc Pty Ltd v Commonwealth (1976) 136 CLR 1;
[1976] HCA 20, cited
Plaintiff S157/2002 v Commonwealth (2003) 211 CLR 476;
[2003] HCA 2, cited
Project Blue Sky Inc v Australian Broadcasting Authority
(1998) 194 CLR 355, [1998] HCA 28, cited
Public Service Board (NSW) v Etherton (1985) 1 NSWLR
430, considered
R (Arthurworrey) v Haringey London Borough Council
[2001] EWHC Admin 698, cited
R v British Broadcasting Corporation; Ex parte Lavelle
[1983] 1 WLR 23; [1983] 1 All ER 241, considered
R v Criminal Injuries Compensation Board; Ex parte Lain
[1967] 2 QB 864, cited
R v Little; Ex parte Fong [1983] 1 VR 237. cited
Re City Equitable Fire Insurance Co Ltd [1925] Ch 407,
cited
Reynolds & Co Pty Ltd v Australian Stock Exchange Ltd
(2003) 174 FLR 311, considered
Sean Investments Pty Ltd v MacKellar (1981) 38 ALR 363,
cited
SZBEL v Minister for Immigration and Multicultural and
Indigenous Affairs (2006) 228 CLR 152; [2006] HCA 63.
cited
Whitehead v Griffith University [2003] 1 Qd R 220; [2002]
QSC 153, considered
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COUNSEL: R W Haddrick for the applicant
S E Brown QC with J K Carter for the respondents
SOLICITORS: Fisher Dore for the applicant
Minter Ellison for the respondents
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The originating application
[1] Ms Berenyi (the applicant) was an employee of the Department of Public Works from
6 February 2009 and, subsequently upon its creation in 2012, an employee of the
Department of Science, Information Technology, Innovation and the Arts (DSITIA).
[2] From 9 August 2011, she was employed as the General Manager, Queensland Shared
Services (QSS) pursuant to a written contract of employment made between the
applicant and the Chief Executive for a three year term. The applicant was involved
in the roll out of Queensland Health’s Payroll System. The applicant’s designated role
at the time of the roll out was Executive Director (General Manager) of CorpTech,
a business or administrative unit within the DSITIA.
[3] The applicant filed an originating application for judicial review in the Supreme
Court’s inherent supervisory jurisdiction seeking orders against Mr Maynard, the then
Director-General, Queensland Health (the first respondent) and Ms Rickerby,
Director-General of DSITIA (the second respondent) as follows:
(a) the decision of the first respondent to terminate the employment of the applicant
dated 5 November 2013 be declared void;
(b) a declaration that the applicant remains an employee of the second respondent
pursuant to the Public Service Act 2008 (Qld) (the PSA); or
(c) alternatively orders in the nature of certiorari and mandamus in respect of the
applicants continued employment by the second respondent.
[4] The respondents argued that the application should be dismissed on the basis that:
(a) The decision to terminate the applicant’s employment was an exercise of
contractual power and was not amenable to judicial review.
(b) The decision to terminate was not constrained by, or at variance with, the PSA
and would not be subject to prerogative or declaratory relief so as to render it
amenable to the Court’s inherent supervisory jurisdiction.
(c) In any event, there was no jurisdictional error made by the decision maker when
terminating the applicant’s employment.
Background
The Queensland Health Payroll System Commission of Inquiry
[5] The roll out became the subject of the Queensland Health Payroll System Commission
of Inquiry (the Inquiry), which was required to have regard to previous reviews of the
failed implementation of the Queensland Health Payroll System, in particular the
Auditor-General’s Report ‘Information Systems Governance and Control, including
the Queensland Health Implementation of Continuity Project 2010’ to the Parliament
of Queensland and review by KPMG into the implementation of the Payroll System.
[6] On 31 July 2013, the Commission of Inquiry delivered the Queensland Health Payroll
System Commission of Inquiry Report (the Report). The first respondent was given
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delegated responsibility from the then Chief Executive of the Department for making
decisions in relation to disciplinary actions arising out of the Report.
Letter of 22 August 2013 advising of possible grounds for discipline
[7] On 22 August 2013, the first respondent (the then Commission Chief Executive of the
Public Service Commission), acting pursuant to the delegation, wrote to the applicant
advising her that, having reviewed the information available to him, he considered
that the applicant may be liable for discipline under the PSA. Referring to various
findings of the Inquiry and notifying her of four allegations, the first respondent
advised that, in respect of each allegation, he considered that, if proven, the allegation
could constitute a ground for discipline under s 187(1)(a) of the PSA – performance
of the applicant’s duties carelessly, incompetently or inefficiently.
[8] The applicant was invited, within seven days of receipt of the letter, to respond in
writing as to why a disciplinary finding should not be made against her in respect of
each of the allegations.
The applicant’s letter of 5 September 2013 in reply
[9] On 5 September 2013, the applicant provided submissions as to why a disciplinary
finding should not be made on the disciplinary ground set out in s 187(1)(a). The
submissions included detailed responses to each of the allegations and also attached
materials prepared for and considered by the Inquiry.
Letter of 4 October 2013 as to disciplinary findings
[10] By letter, dated 4 October 2013, the first respondent (at that time the Director-General
of Queensland Health and acting under a new instrument of delegation) wrote to the
applicant advising that allegations one to three had been found to be proven or
substantiated (the fourth was dismissed).
[11] The first respondent stated that, in accordance with s 188 of the PSA, he was
considering whether to impose disciplinary action in the form of termination of the
contract of employment but stressed that no final decision had been made and invited
the applicant to make submissions as to what disciplinary action should be taken. It
was also stated that ch 7 of the PSA permitted appeal avenues against the disciplinary
findings (a statement which the respondents’ counsel accepted was incorrect: see
s 218 of the PSA).
The applicant’s letter of 16 October 2013 in reply
[12] By letter, dated 16 October 2013, the applicant replied, stating that she disputed the
disciplinary findings and that without the particular “actions and inactions” upon
which the findings were based being specifically outlined, she was unable to respond
in a fully informed way. The applicant also made submissions as to what disciplinary
action should be taken if the first respondent did not reconsider his findings.
The letter of 5 November 2013 terminating the contract of employment
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[13] On 5 November 2013, the applicant was provided with a letter from the first
respondent advising of his decision to terminate the applicant’s contract pursuant to
cl 7(2)(a). Under the heading “Purpose”, it was stated that the purpose of the letter
was “to record my decision in relation to disciplinary action, as foreshadowed by my
letter of 4 October 2013”.
[14] Under the heading “Decision”, it was stated:
“My decision is to terminate your contract of employment dated
26 August 2011 pursuant to clause 7(2)(a) of that contract. I am required
to provide you with one month’s notice of termination of employment.
Accordingly, your employment will terminate on 5 December 2013.
Although no reason is required for the termination of your employment
under your contract (see clause 7(2)(b)), it is appropriate for me to give
reasons for my decision, and they are set out in this letter”.
[15] The letter then referred, by way of background to the Inquiry’s Report, the letter of
22 August 2013 setting out the allegations, the applicant’s response, the decision that
allegations one to three were substantiated and the applicant’s submissions in relation
to the issue of proposed disciplinary action.
[16] Under the heading “Reasons” a summary of the first respondent’s reasons for deciding
to terminate the applicant’s contract of employment was then set out referring to the
Report’s findings to the effect that the Payroll System Project was a catastrophic
failure and the first respondent’s determination that three allegations were
substantiated. The first respondent stated:
“In accordance with these findings, my conclusions in relation to the
appropriate disciplinary action in light of these findings are as follows:
(a) By 6 February 2009 you held the role of Executive Director of
CorpTech, which was a role with responsibility for the management
of the Project and the contractual relationship with IBM.
(b) Under the governance structure associated with the Project, there
were also two bodies with a critical decision making authority in
relation to the Project. These were the Project Directorate and the
Project Board (and its predecessor, the Executive Steering
Committee).
(c) You were a senior member of the Project Board.
(d) The Report made adverse findings in relation to decisions of the
Project Board. I refer in particular to the findings in the Report
which I have identified and taken into account in the correspondence
referred to above.
(e) You have submitted, and I accept, that in making these decisions
you and other members of these bodies relied on the support and
advice of others, including people with specialist expertise.
However if I accepted that this absolves you from all accountability
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in relation to the decisions which were made (which, as the Report
found, had catastrophic consequences) then I would have to accept
that no-one should bear responsibility for decisions which are made
collectively or on the basis of advice. I do not accept that as a valid
proposition.
(f) To the contrary, I believe the failures of administration identified in
the Report and which were the subject of the allegations in my letter
to you of 22 August 2013 reflect significant failures of leadership in
your role as Executive Director of CorpTech and in the role you held
on the Project Board. As stated in my letter of 4 October 2013,
I have accepted, consistent with the Report, that decisions were
made with catastrophic consequences. I have also concluded,
consistent with findings in the Report, that the exercise of proper
leadership, having regard to the information which was available at
the time, should have led to the making of different decisions.
(g) Given the seniority of your roles relevant to the Project, I believe it
is reasonable for you to be held accountable for those decisions,
including the catastrophic consequences which followed.”
[17] Under the heading “Other circumstances”, the first respondent stated that he was
“required to consider what disciplinary action [was] reasonable in the circumstances”,
stating that those circumstances included his having found that the applicant
performed her duties carelessly, incompetently or inefficiently, as well as the
following:
“(a) The time which has elapsed since the conduct occurred and the
statements made by your then Chief Executive Officer in July 2010
which you have drawn to my attention in relation to his
consideration of disciplinary action at the time, as well as the
comment in the Report observing that there was a legitimate reason
why you may have been treated more favourably than other officers
involved in the Project.
(b) The matters related to the impact on your personal circumstances
which you have drawn to my attention.
(c) The significant role you played in assisting to stabilise the QH
Payroll System after the ‘go-live’ date.
(d) Your record, which I accept, has involved strong performance as
a public servant in Queensland, and the references you have
provided in that regard.”
[18] The first respondent dealt with those matters as follows:
“The time elapsed since the conduct occurred and the absence of a prior
disciplinary response
It is only in unusual circumstances that disciplinary action, particularly
termination of employment, would take place several years after the
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events giving rise to the disciplinary action have occurred. I also
acknowledge that your then Chief Executive Officer did not take
disciplinary action at the time, and has indicated publicly that, at the time,
he could identify no basis to do so.
However in this case the Report was not provided to the Premier until
31 July 2013. The terms of reference under which the Inquiry was
established included:
a. the adequacy and integrity of the procurement, contract
management, project management, governance and
implementation process;
b. whether any laws, contractual provisions, codes of conduct or
other government standards may have been breached during
the procurement and/or implementation process and who may
be accountable.
The Commissioner having made findings related to these terms of
reference in his Report, I believe it is my role as the responsible delegate
to make the findings I believe are appropriate, notwithstanding the time
which has elapsed since the relevant events occurred.
I also believe that it is only as a consequence of the detailed analysis of
the relevant events in the Report that it has been possible to give proper
consideration to who, if any, should be accountable for the relevant
decisions.
Although I have noted that the Commissioner made a comment (recorded
at paragraph 6.60) that there was a ‘legitimate reasons’ (sic) why you
might have been treated more favourably than other officers, I do not
regard this comment to be of significant relevance to my decision. The
Commissioner’s role was to make findings in relation to the adequacy and
integrity of the relevant processes and to see whether Government
standards may have been breached. He has done so, and, in my view, those
findings reflect a failure by you to meet the standard required under the
Public Service Act 2008. Having made this finding, it is my responsibility
to decide what disciplinary response is appropriate.
I have taken these comments into account, but I have also taken into
account the Commissioner’s comments (at paragraph 6.59) that
‘leaderships (sic) was required and the “signs of distress” should have
been acted on’ which is consistent with my own view. Given the seniority
of your leadership roles in relation to the Project, I must hold you
accountable for the failure to appropriately exercise that leadership at the
relevant times.
I can identify no unfairness to you in terms of your capacity to respond to
the allegations which has been caused by the time elapsed since these
events.
The personal impact on you of a termination decision
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I acknowledge and accept that a decision to terminate your employment,
having regard to your personal circumstances as explained to me, is likely
to have a significant adverse personal impact on you. You have pointed
out some particular circumstances which may result in an impact which is
greater than might be the case in other termination situations.
Against these mitigating circumstances, however, I must weigh the
gravity of the failures which I have identified in your performance and the
consequences of them. Having balanced these issues, I do not believe
these (and other) mitigating circumstances should lead to a decision which
is more lenient than termination of employment.
Significant role in stabilising the QH Payroll System
I acknowledge the very significant input by you (as well as many others)
in this regard. It is clear that your contribution was significant and
contributed to the eventual stabilisation of the system. However, although
this is relevant and I have given it weight, I am unable to regard this as
a sufficient reasons not to take the proposed disciplinary action in relation
to the identified findings. It is a fact that many employees made significant
sacrifices in the process of rectifying the failings of the QH Payroll
System, and this is in fact one of the consequential costs of those failings.
Your achievements
I have considered, and accept, your submissions in relation to your own
achievements as a member of the Public Service over many years which
are strongly supported by the references you have supplied. I accept them
as powerful mitigating factors, and I have taken them into account and
given them significant weight.
However, against these achievements, I must weigh the significance of
the performance failures and the consequences of them.
Even taking into account these achievements, and giving them the
significant weight they deserve, I still believe termination of employment
is the appropriate response.”
[19] After dealing with each of those matters, the first respondent stated his belief was that
“termination of employment was the disciplinary action which is reasonable” and that
his delegated decision making role was complete, referring the applicant to her
Director-General or delegate for detail as to how his decision would be implemented.
Subsequent events
[20] Thereafter, the applicant’s position was initially held vacant, with the Assistant
Director-General, QSS assuming her duties. No one was appointed to replace or to act
in the applicant’s position.
[21] On 1 February 2014, a new DSITIA organisation structure was implemented. On
7 February 2014, the PSC approved the change of the position of General Manager,
QSS to the role of Assistant Director-General, Strategic ICT Division. The applicant’s
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former position no longer exists and the functions of the former role have been
absorbed into the role of Assistant Director-General, Shared Corporate Services.
The contract of employment
[22] The contract provided that “the basis of employment” was that the applicant accepted
“appointment as a senior executive on [the] contract from the commencement date
until the termination date”: cl 1. The contract specified the commencement date as
9 August 2011. The “termination date” was “the completion date or the date on and
from which the employment of the executive under [the] contract is terminated”. The
completion date was 8 August 2014.
[23] Clause 7 of the contract is entitled “Termination”.1 Clause 7(2) states:
“(a) The employment of the executive may be terminated by the chief
executive prior to the completion date by notice given to the
executive not less that one (1) month before the termination date.
(b) A notice under paragraph (a) need not give any reason for the
termination of the executive’s employment.
(c) The executive may, within seven (7) days of receipt of a notice
under paragraph (a), submit in writing to the Public Service
Commission Chief Executive reasons why the executive’s
employment should not be terminated.
(d) The Public Service Commission Chief Executive must confer with
the chief executive, in relation to a submission under paragraph (c),
within seven (7) days of receipt of the submission.
(e) The chief executive may revoke a notice under paragraph (a) before
it takes effect.”
[24] Clause 8 is concerned with service and separation payments. It provides:
“(1) This clause does not apply to the executive if –
…
(d) termination of employment occurs as a result of –
(i) disciplinary action against the executive under the
Act; or
…
(2) If the executive’s employment as a senior executive and this
contract expire on the completion date under clause 7(1), the
executive must be paid on the completion date, in addition to other
1 Clause 15(3) states that clause headings are not to be used as an interpretation aid.
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payments and benefits to which the executive is entitled, a service
payment.
(3) If the employment of the executive is terminated prior to the
completion date under clause 7(2), the executive must be paid on
the termination date, in addition to other payments and benefits to
which the executive is entitled, a service payment and a separation
payment.” (emphasis added)
[25] Clause 9 states:
“(1) Where the employment of the executive is terminated in accordance
with this contract –
(a) the provisions herein as to the payments to be made to the
executive constitute the whole of the entitlements of the
executive under this contract;
(b) the executive must not, except where the executive has an
express statutory right to do so, institute any proceedings for
compensation for loss of office, injunctive relief,
reinstatement or appeals;
(c) payments paid under clause 8 are deemed to be liquidated
damages which each party acknowledges are a realistic
assessment of any detriment which the executive may suffer
following a termination of this contract; and
(d) payments due by way of statutory entitlement are to be
calculated, where relevant, by reference to the superannuable
salary at the termination date.
(2) Should a termination of this contract be determined by a court or
a tribunal to be unlawful, any entitlement the executive may have is
limited to the amount of payments paid under clause 8 as liquidated
damages, as if termination had been lawful.”
The Scheme of the PSA
[26] Chapter 1 of the PSA deals with certain basic concepts. Section 5 provides that the
“Queensland Public Service consists of the persons who are employed under this Act,
called public service employees”. A “public service employee” is defined generally
in terms of s 9(1) of the PSA,2 which provides that a person is a public service
employee if the person is employed under the PSA inter alia as a “public service
officer”. That term means a person employed under the PSA as a chief executive or
a senior executive or an officer of another type: s 8 of the PSA.
[27] Chapter 4 of the PSA is entitled “Chief executives, senior executives and senior
officers”. It deals with the establishment of those positions and other matters such as
2 See Dictionary, sch 4.
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appointments, the contractual basis of employment and the term of appointment (as
to public service officers on a fixed term contract, see s 122(8) of the PSA).
[28] For chief executives and senior executives, the contractual basis of employment is
provided for in s 96 and s 113. A written contract of employment must be entered into
(s 96(1)). The “conditions of employment are governed by this Act, any relevant
directives by the commission chief executive and the contract” (s 113(5)). The term
of appointment for senior executives is regulated by s 114 which provides for a fixed
term contract of no more than five years (s 114(1)). It also provides for termination of
the senior executive’s appointment and contract of employment on one month’s notice
(s 114(3)).
[29] Chapter 6 of the PSA establishes a comprehensive procedure for disciplinary action
for public service employees. Section 187 provides for the discipline of an employee
by the chief executive on satisfaction of one of the disciplinary grounds specified
therein. Section 188 deals with the disciplinary action that may be taken. It specifies
that, in disciplining a public service employee, the chief executive may take the
action, or order the action to be taken (the disciplinary action), that the chief executive
considers reasonable in the circumstances. Termination is listed as an example of such
disciplinary action. Section 190 sets out the procedural requirements for disciplinary
action; s 190(1) states that a chief executive “must comply with this Act, any relevant
directive of the commission chief executive, and the principles of natural justice”.
Section 192 provides for additional procedures in respect of suspension or termination
and requires notice to be given in the case of termination of the day the termination
takes effect.
[30] Chapter 7 of the PSA is entitled “Appeal and reviews”. Part 3 of ch 7 provides for the
exclusion “of particular matters from jurisdiction under other Acts”. Importantly,
s 218 of the PSA provides:
“Exclusion for Judicial Review Act 1991
(1) A decision about an excluded matter can not be challenged,
appealed against, reviewed, quashed, set aside, or called in question
in another way, under the Judicial Review Act 1991.
(2) However, subsection (1) does not apply to a decision about a senior
officer.”
[31] An “excluded matter” includes “the contract of employment of, or the application of
this Act or a provision of this Act to… a senior executive”: s 216(1)(b) of the PSA.
Basis of the originating application
[32] It was common ground that, as the applicant was a senior executive officer and not
a “senior officer”, s 218 of the PSA excluded the availability of the Judicial Review
Act 1991 as the source of the Court’s power to judicially review the decision of the
first and second respondents; given that s 218(1) applied and s 218(2) does not. It was
also common ground that the effect of s 218 of the PSA (because of the definition of
“decision” in s 216(2) of the PSA) was that, although it excluded the application of
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the Judicial Review Act 1991 (Qld) to decisions made by the first and second
respondents, it did not (and could not) exclude this Court’s jurisdiction to judicially
review the decisions of the first and second respondents for jurisdictional error in the
inherent supervisory jurisdiction in accordance with the reasoning in Kirk v Industrial
Court of New South Wales (2010) 239 CLR 531. Hence, the nature of the review
sought by the applicant was pursuant to the Court’s inherent supervisory jurisdiction
to review for jurisdictional error.
[33] The originating application for review was premised on the basis that the contract of
employment was terminated pursuant to the statutory power in s 188 of the PSA to
take disciplinary action considered reasonable in the circumstances. Judicial review
was stated in the applicant’s submissions as being sought in respect of four decisions,
being the first respondent’s decision to dismiss the applicant on 5 December 2013 and
each of the first respondent’s decisions to make a disciplinary finding in respect of
allegations one to three.
[34] The applicant acknowledged that, in relation to the dismissal decision, a question
arose as to the source of the power that was exercised given the respondent’s
contention that the power exercised was a contractual one and therefore not properly
the subject of judicial review. The applicant argued that while issue had consequences
for the relief sought in respect of the dismissal decision, the same did not apply in
relation to the disciplinary findings, which it was said were able to be judicially
reviewed in the Kirk sense.
How should the decision to terminate be characterised?
The applicant’s submissions
[35] In disputing the respondents’ argument that the decision to terminate was made
pursuant to a contractual entitlement rather than a statutory power pursuant to ch 6,
pt 2 of the PSA, the applicant made the following submissions.
[36] It was contended that cl 7(2)(a) merely restated, in contractual form, the statutory
requirement for the giving of notice specified in s 114(3); that is the procedural right
associated with a termination under the PSA. Chapter 6, pt 2 provided a detailed code
and set out a comprehensive procedure for the taking of disciplinary action against
a public servant, including the power in s 188 to terminate employment.
[37] To the extent that cl 7 purported to provide otherwise, it was invalid since there was
no basis for concluding that employees under s 122 contracts were excluded from the
regime in ch 6, pt 2. Under a s 122 contract, the conditions of the public service
officer’s employment were governed by the PSA, any relevant directive and the
contract. The long followed rule of construction that applied was set out in Director-
General of Education v Suttling (1987) 162 CLR 427 at 437:
“If the relationship is contractual, the contract must be consistent with any
statutory provision which affects the relationship. No agent of the Crown
has authority to engage a servant on terms at variance with the statute. To
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the extent that the statute governs the relationship, it is idle to inquire
whether there is a contract which embodies its provisions.”
[38] The purpose of that type of contract was to provide the Crown with a fixed term
contract, permitting the Crown to dispense with the service of that particular public
servant without having to absorb that employee into another position or role at the
expiration for the contract. That was made evident by s 123(1)(a) of the PSA, which
provided for the transfer of a public servant onto tenure in circumstances where “the
contract is terminated other than by disciplinary action”.
[39] It was thus argued that the power to terminate in the present case arose solely from
s 188 of the PSA. The approach taken by the respondents involved adopting the
disciplinary process under ch 6, pt 2 leading up to the decision to terminate but then
changing the basis of the decision to terminate to a purported contractual right.
Moreover, that the termination was made by the first respondent acting under
delegated authority to exercise “the chief executive’s functions under an Act”, also
pointed to a termination under the PSA, rather than under the contract which required
termination by the chief executive.
The respondents’ submissions
[40] The respondents submitted that, even though the statutory process under the PSA was
utilised in relation to the making of disciplinary findings, it was not relied upon in
terminating the applicant’s employment (although it was open to do so). The
immediate or approximate source of power exercised by the State in terminating the
applicant’s employment was the contract, not the exercise of a power under the PSA.
In those circumstances, the disciplinary findings were not the decisions that had
a discernable or apparent legal effect upon rights and as such they were not amenable
to relief by way of certiorari (see Ainsworth v Criminal Justice Commission (1992)
175 CLR 564; Chase Oyster Bar Pty Ltd v Hamo Industries Pty Ltd (2010) 78
NSWLR 393 at [18]). The operative decision was the decision to terminate the
applicant’s employment; the disciplinary findings were not a pre-condition to the
exercise of the contractual right: Hot Holdings Pty Ltd v Creasy (1996) 185 CLR 149.
[41] Clause 7 of the contract provided a basis for termination that was complementary to
the provisions of ch 6 of the PSA. While those provisions created prima facie
conditions for the protections of public service employees otherwise liable to
termination on disciplinary grounds under s 187, they did not constitute an exhaustive
code as to the termination of employment. That was apparent from s 219(3) of the
PSA, which specified that the right or power of the State recognised at common law
to dispense with the services of a person employed in the public service was “not
abrogated or restricted by any provisions of this Act”. Clause 7(2) of the contract,
which provided for termination upon notice (and with the opportunity to be heard) but
without reason, was not at variance with the PSA. It accorded with the ambit of the
right or power of the State recognised at common law where public servants held their
offices during the pleasure of the Crown, which was considered in Jarratt v
Commissioner of Police (NSW) (2005) 224 CLR 44. While there was a question as to
whether the common law right or power was conditioned upon affording procedural
fairness, it was not necessary to consider that issue, given the express terms of cl 7 of
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16
the contract, which provided for the making of submissions as to why the termination
should not take effect. Procedural fairness had been afforded in the present case.
[42] The fact that the PSA made provision for the regulation and enforcement of private
conduct of public servants in certain respects, did not render otiose the private
contractual relationship that existed between the State and a senior executive
employed under a written contract. An ordinary employer/employee relationship
subsisted between the body politic and the civil servant: see Bennett v Human Rights
& Equal Opportunity Commission (2003) 134 FCR 334 at [117].
[43] It was thus submitted that the source of the State’s termination of the applicant’s
employment derived from cl 7 of the contract, notwithstanding that the State might
additionally have had a statutory right to terminate the applicant on disciplinary
grounds under s 188 of the PSA or to dispense with the applicant’s services at
common law as preserved by s 219 of the PSA. The powers pursuant to the contract
and at common law were both unfettered.
[44] The termination letter made it clear that the termination was pursuant to the contract.
As for the applicant’s argument regarding conclusions to be drawn from the fact that
the first respondent was acting under delegated authority to do acts under the PSA,
the respondents argued that the chief executive, as the authorised agent of the State,
entered into the contract so that the State was a party. The State may properly act
through any of its agents in exercising its right to terminate under cl 7 of the contract.
Absent proof that the Director-General (Health) was not authorised to exercise the
power to terminate or do acts that culminated in termination of the contract, there was
a presumption of fact that he was so authorised.
[45] The decision to terminate, being made pursuant to the contract and not in the exercise
of any statutory power under the PSA, was not one that was amenable to review under
the Court’s inherent supervisory jurisdiction, such as a decision to terminate under
s 188 was accepted to be.
[46] In advancing its arguments, the respondents referred to a line of authority to the effect
that disputes arising under private contracts that govern the relationship between an
employer and employee, do not give rise to a justiciable controversy, notwithstanding
that the employer is a body politic. They are not amenable to judicial review, where
no public or governmental decision is in question. In that respect, reference was made
to R v British Broadcasting Corporation; Ex parte Lavelle [1983] 1 WLR 23, where
Woolf J determined that judicial review was not available to an employee of the BBC,
who complained that she had not been afforded procedural fairness, in accordance
with regulations and instructions included as terms of her contract (through the
incorporation into the contract of the BBC’s regulations). Woolf J stated (at 30, 31):3
“Those [prerogative] remedies were not previously available to enforce
private rights but were, what could be described as, public law remedies.
3 See also Law v National Greyhound Racing Club Ltd [1983] 3 All ER 300; and R (Arthurworrey) v
Haringey London Borough Council [2001] EWHC Admin 698.
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17
They were not appropriate, and in my view remain inappropriate
remedies, for enforcing performance of ordinary obligations owed by
a master to his servant. An application for judicial review has not and
should not be extended to a pure employment situation. Nor does it …
make any difference that what is sought to be attacked is a decision of
a domestic tribunal such as the series of disciplinary tribunals provided
for by the B.B.C.
… the application for judicial review is confined to reviewing activities
of a public nature as opposed to those of a purely private or domestic
character. The disciplinary appeal procedure set up by the B.B.C. depends
purely upon the contract of employment between the applicant and the
B.B.C., and therefore it is a procedure of a purely private or domestic
character.”
[47] The termination, it was contended, remained one exercised under the contract and
concerned a private right, even though the first respondent may have had regard to the
disciplinary findings. That did not change the character of the decision. In that regard,
there was a parallel to be drawn with Blizzard v O’Sullivan [1994] 1 Qd R 112, where
the termination of the Deputy Police Commissioner was found to be pursuant to the
contract of employment and not the terms of the Police Service Administration Act
1990 and consequently not under an enactment. There was thus no justiciable
controversy in the present case.
Consideration
[48] It is trite that not every decision of an executive decision maker is amenable to judicial
review. The source and nature of the power being exercised will usually be decisive
as to the availability of judicial review: R v Criminal Injuries Compensation Board;
Ex parte Lain [1967] 2 QB 864 at 867 per Lloyd LJ. As was observed by
Spigelman CJ in Chase Oyster at [10], “The critical issue is whether the relevant
decision-maker is exercising public power, relevantly, a statutory power”.
[49] The difficulty with the respondents’ submission is that it fails to appreciate that it is
not definitive of the nature of the decision to terminate to describe it as being made
pursuant to cl 7(2) of the contract. That is because the contract itself contemplates that
prior to the completion date a notice of termination under cl 7(2) may be given both
where termination does and does not occur as a result of disciplinary action under the
PSA. That follows from cl 8(1). It excludes from the operation of cl 8(3) (which is
expressed to apply where employment is terminated “under cl 7(2)”) a termination
that occurs as a result of disciplinary action under the PSA. Clause 8 thus presumes
that where the termination is for disciplinary action under the PSA, a notice under
cl 7(2) is still to be given. There would be no cause for the exclusion in cl 8(1) if it
was not envisaged that a cl 7(2) notice extended to the situation where termination
followed disciplinary action.
[50] There is an additional difficulty in the respondents’ argument in that it assumes that
because cl 7(2)(b) states that a cl 7(2)(a) notice of termination need not provide
reasons for the termination, the giving of reasons can be of no import. However, the
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18
fact that reasons for termination are not mandated under the contract and thus may, in
fact, not be given, does not render reasons that are given for a decision to terminate
inconsequential. Where the reasons given indicate that the termination is as a result of
disciplinary action under the PSA, there are contractual consequences that follow: see
cl 8. Nor can the fact that such reasons are given mean that they are inconsequential
in terms of whether the decision is properly to be characterised as one where
governmental power pursuant to a statutory power to terminate is being exercised.
[51] In the present case, the decision to terminate was preceded by a disciplinary process
resulting in disciplinary findings. The termination letter stated that its purpose was to
record the first respondent’s “decision in relation to disciplinary action” as
foreshadowed in his letter of 4 October 2013 (which annexed a pro forma s 188 letter).
Although the decision to terminate was expressed to be made pursuant to cl 7(2), and
it was stated that no reasons were required, reasons were given by the first respondent
based on the disciplinary findings that had been made against the applicant. Moreover,
while s 188 of the PSA was not expressly invoked, the first respondent concluded the
termination letter by stating, “I believe termination of employment is the disciplinary
action which is reasonable”. That reflected the terminology of s 188 which provides
that, in disciplining a public service employee under s 188, the disciplinary action is
that which the chief executive considers reasonable in the circumstances.
[52] Thus, even though the termination letter stated that the decision to terminate was made
pursuant to cl 7(2)(a) which required no reasons to be given, the first respondent did
provide reasons, the purpose of which were “to record [his] decision in relation to
disciplinary action” and his conclusion that “termination of employment is the
disciplinary action which is reasonable.”
[53] The line of authority referred to by the respondents to the effect that disputes arising
under private contracts between an employer and employee do not give rise to
a justiciable controversy and are thus not amenable to judicial review,
notwithstanding that the employer is a body politic, is not apposite to describe the
decision to terminate in the circumstances of the present case. In Blizzard, Thomas J,
in refusing the Deputy Commissioner’s application for judicial review, explained the
correct approach in determining whether a decision is made pursuant to statutory or
administrative power and thus amenable to judicial review, stating (at 118-119):
“… under Acts where there are statutory provision for the creation of
positions and for transfer, promotion, retirement and dismissal of officers,
with the establishment of appeal boards and provision for enquiries to
review disciplinary action and review of promotions, ‘decisions made by
those Boards or Committees under the authority conferred by sections of
the Public Service Act or the Broadcasting and Television Act may be
susceptible of review under the Judicial Review Act’ … By contrast, in
cases where the authority has a general power to make a contract which
becomes the charter of the rights of the parties concerned, and where no
particular administrative power (as distinct from the contract itself) is the
basis of the challenged decision, the decision is normally regarded as
being made under the contract and in turn not being made under an Act.”
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19
[54] That approach was applied by Chesterman J in Whitehead v Griffith University [2003]
1 Qd R 220 in dismissing the application for judicial review brought by an academic
employed under an agreement made with Griffith University in relation to a decision
by the Vice-Chancellor censoring an employee and revoking an earlier decision to
convene a misconduct panel. Adopting the analysis of Thomas J as directly apposite,
Chesterman J noted that the respondent university, through its Vice-Chancellor, was
not exercising statutory powers; the relevant Act establishing the university and
permitting it to enter into contracts did not contain any specific grant of power to
investigate allegations of misconduct. The respondent was merely exercising powers
conferred by the contract, which were entirely in the “domestic or private” realm
rather than the public, in the sense of governmental.
[55] Applying the analysis in Blizzard to the present case, it is evident that the letter of
termination, although expressed to be made under cl 7(2)(a), was for the reasons stated
in the termination letter, a termination as a result of disciplinary action. Where
a contract of employment is terminated as disciplinary action taken for disciplinary
grounds, the termination is properly characterised as the exercise of statutory power
under s 188 of the PSA. Bearing in mind the comprehensive nature of ch 6, pt 2, it is
evident that s 188 of the PSA provides the sole basis for termination on disciplinary
grounds. So much is recognised in cl 8(1), which refers to termination “as a result of”
disciplinary action “under the Act”.
[56] It is clear from the terms of the letter that the termination was “as a result of …
disciplinary action … under the Act”. In my view, the first respondent, in making the
decision to terminate the contract under cl 7(2)(a) for the reasons provided in the
letter, was exercising the statutory power in s 188 of the PSA to take disciplinary
action, which the contract recognised in cl 8 may be a basis for termination under
cl 7(2)(a). It follows that the decision is one that is amenable to review for
jurisdictional error pursuant to the Court’s inherent supervisory jurisdiction in
accordance with the reasoning in Kirk.
Jurisdictional error
[57] In Kirk,4 the High Court endorsed the classic formulation of jurisdictional error as
stated in Craig v State of South Australia:5
“If… an administrative tribunal falls into an error of law which causes it
to identify a wrong issue, to ask itself a wrong question, to ignore relevant
material, to rely on irrelevant material or, at least in some circumstances,
to make an erroneous finding or to reach a mistaken conclusion, and the
tribunal’s exercise or purported exercise of power is thereby affected, it
exceeds its authority or powers. Such an error of law is jurisdictional error
which will invalidate any order or decision of the tribunal which
reflects it.”
4 (2010) 239 CLR 531 at 572 [67] per French CJ, Gummow, Hayne, Crennan, Kiefel and Bell JJ.
5 (1995) 184 CLR 163 at 179 per Brennan, Deane, Toohey, Gaudron and McHugh JJ.
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20
[58] Craig does not provide a rigid taxonomy of the categories of jurisdictional error.6 In
addition to the jurisdictional errors listed in Craig, denial of natural justice or
procedural fairness has been recognised as involving failure to comply with
a condition of the exercise of decision making power and amounting to jurisdictional
error.7
[59] The applicant argued that there were three jurisdictional errors:
1. The first error alleged is that the first respondent failed to particularise the acts
or omissions that were said to give rise to the applicant’s liability for breach of
each allegation said to amount to a breach of discipline.
2. Secondly, the first respondent failed to take into account a relevant
consideration when deciding whether to make a disciplinary finding and in
deciding the appropriate disciplinary action to be taken; namely, the applicant’s
ability “to rely upon the differing backgrounds, expertise and professional skill
sets of those who were involved in collective decision-making”.
3. Thirdly, the first respondent took into account an irrelevant consideration when
deciding the “appropriate disciplinary action to take; namely, the perceived need
by the decision-maker (in the consideration of the disciplinary allegations) to
attribute responsibility for decisions which were made collectively”.
[60] The applicant also contended that each of the three errors alleged were, in addition to
the specific grounds of error advanced in the submissions, contrary to the requirement
that the decision must comply with the principles of natural justice mandated in s 190
of the PSA. The applicant submitted that had made a request for particulars and that
there was no evidence that that was considered nor that there had been consideration
of the effect of that request on the impugned decision.
Disciplinary findings as to the substantiated allegations
[61] Before turning to the jurisdictional errors alleged, it is convenient to set out the
allegations as stated in the letter of 22 August 2013, which were found to be
substantiated, and the disciplinary findings concerning them as stated in the letter of
4 October 2013.
[62] In the letter of 22 August 2013, under the heading “Matter One”, the first respondent
stated that he had considered the following facts set out in the Inquiry’s Report. By
18 February 2009, the applicant held the role of Executive Director of CorpTech
(para 4.57, p 109). That role included responsibility for the management of the system
project and the contractual relationship with IBM, as well as authorising contract
variations (para 4.5, p 101). The letter then set out the first allegation as follows:
6 Kirk at 574 [73] per French CJ, Gummow, Hayne, Crennan, Kiefel and Bell JJ.
7 Plaintiff S157/2002 v Commonwealth (2003) 211 CLR 476 at [25] per Gleeson CJ; see also at [45] per
Gaudron, McHugh, Gummow, Kirby and Hayne JJ.
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21
“It is alleged that in your capacity as the Executive Director of CorpTech,
you failed to appropriately discharge your responsibilities for the project
by facilitating the progression of the project despite continuing serious
issues relating to the project’s scope and deliverables.”
[63] In respect of that allegation the applicant was referred “in particular, to the following
sections of the Report”, namely paras 4.75-4.76, pp 112-113.
[64] Under the heading “Matter Two”, the first respondent stated that he had considered
the following facts set out in the Inquiry’s Report. As part of the governance structure
for the project, an Executive Steering Committee was established of which the
applicant became a member. The Committee’s responsibilities included “strategy,
schedule and changes and managing key issues and risks” (para 2.19, p 94). As a result
of changes in June 2009, a Project Board was established at the peak of the project’s
governance structure, of which the applicant was also a member (para 2.24, p 95).
Payroll performance testing criteria were established for the system for the purpose of
being the “sole basis on which … [the parties would] decide whether to continue the
project or stop work” (para 5.95, p 128).
[65] Allegations two and three were set out as follows:
“It is alleged that on or around May to December 2009 you reclassified,
and/or supported the reclassification of defects identified in user
acceptance testing (UAT), downgrading their severity to enable the testing
of the system to progress, despite the pre-established entry and exit
criteria”.
“It is alleged that in your capacity as a member of the Project Board, you
failed to discharge your responsibilities by not ensuring appropriate UAT
and/or auditing prior to going live with the system, despite considerable
defects having been identified during earlier testing”.
[66] In respect of each allegation, the applicant was referred “in particular, to … sections
of the Report”, as follows:
(a) As to allegation two: paras 5.22-5.38, pp 116-119.
(b) As to allegation three: para 5.82, p 125, paras 5.91-5.94, p 127, paras 6.46-6.47,
p 151.
The disciplinary findings
[67] In the letter dated 4 October 2013, the first respondent dealt with allegations one to
three which were found to be substantiated as follows:
[68] As to allegation one, the first respondent found:
“During the life of the project and since that time, you have been engaged
by the Queensland Government as a member of the senior executive
service at the SES3.5 level.
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I acknowledge that your appointment as Executive Director with
CorpTech commenced in February 2009 and that a great deal of planning
and work went into the project prior to your start. However, there were
many critical decisions made in relation to the project while you were in
a significant and influential leadership role within the project governance
and within your agency, from the time of your appointment to March 2010
and beyond the decision to go-live.
I accept that on your appointment, your then Director-General indicated
a strong desire for the successful implementation of the project and
a ‘commercial’ outcome to the challenges which had emerged to that
point. I also accept the findings of the Report that, the delivery of the
project was a catastrophic failure. In particular, it is my view based on the
findings in the Report that there were multiple occasions, including while
you occupied critical leadership roles relevant to the project, that the
project should in fact not have been progressed, but should have been
halted, delayed or modified until it was clear that there was a significantly
greater likelihood of success.
In this regard, I do not accept your response to the effect that at the critical
point when the decision was made to proceed you could have reasonably
believed the new payroll system would work. I believe that even taking
into account the fact that I am able to view events with the benefit of
hindsight, it should have been apparent at the time from the many signs of
distress that there was a high risk of the catastrophic failure that in fact
occurred.
In recognition of the public trust placed in us all as public service
employees, you are required to direct your work performance and personal
conduct towards, among other requirements: achieving excellence in
service delivery; and providing sound and impartial advice to the
Government (section 26 Public Service Act 2008).
Given the catastrophic failure of the project and your intimate association
with its management and decision making, I am satisfied that Allegation 1
is substantiated by your actions or inactions and warrants a disciplinary
finding being made against you for the performance of your duties in
a careless, incompetent or inefficient manner (s187(1)(a)).”
[69] As to allegation two, the first respondent found:
“You were a member of the Project Board which accepted the
recommendations of the Project Directorate to reclassify and downgrade
defects.
I note that in your response you state that you relied on advice from the
Project Directorate, KJ Ross and Queensland Health employees in relation
to the assessment of system defects and the reclassification of those
defects; and that CorpTech had no involvement in this process.
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23
You reported to your then Assistant Director-General in your brief dated
27 July 2009 that –
The agreed condition for milestone to be met is that there are
no Severity 1 or Severity 2 errors or as determined by the
Project Board. Queensland Health, IBM and CorpTech have
reviewed the Severity 2 defects and have agreed that a number
be reclassified to Severity 3, Priority 0 classification. This will
allow IBM to concentrate on the priority Severity 2 defects for
UAT, and then to have the Severity 3 Priority 0 defects
rectified as an exit criteria for UAT.
You provided no justification or analysis in your briefing to the Assistant-
Director General (sic) to explain the reclassification and downgrading of
severity of defects.
I accept the findings of the Report that you (and others on the board) made
this decision notwithstanding the clear criteria established at the outset for
entry and exit to and from UAT.
I do not accept your submission that you were relying on the skills of
others to provide advice on the reclassification and downgrading of
defects. Your role as a member of the Project Board and your very senior
role within your agency required you to be sufficiently acquainted with
the business needs of the project to competently acquit yourself as
a member of the committee and to perform your role within your agency.
Failure to do so contributed to the overall failure of the project.
I do not accept your submission that you were diligent in the performance
of your board duties. As a member of the Project Board, the overarching
governance group for the project, and a very senior officer within your
agency with responsibility for the project, you must be held accountable
for your failure to discharge the responsibilities of your role on the board
and within your agency.
In summary, I find that Allegation 2 is substantiated by your actions or
inactions and warrants a discipline finding being made against you for the
performance of your duties in a careless, incompetent or inefficient
manner (s187(1)(a)).”
[70] As to allegation three, the first respondent found:
“Your response to this allegation, similar to your response to Allegation 2
relies heavily on your claim that you were relying on the skills of others
to provide advice to the board. I do not accept your claim that because
your evidence before the Commission of Inquiry (CoI) was not challenged
that I should rely on it in total; I must have regard to all of the evidence
and information before me.
I cannot accept your submission that you were diligent in the performance
of your board duties. I accept the Report findings that there was significant
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24
information concerning the ‘functional deficiencies in the system’
available to decision makers including the final UAT Report.
You state in your response that –
I was not aware prior to go-live of the extent to which QH had
centralised the payroll system processing or of the potential
impact that the payroll business model change may have when
coupled with implementation of the Solution. (para 17 p 30).
I cannot accept that a senior executive level officer, in a role critical to
CorpTech and Queensland Health in the governance and implementation
of the project, would not have been alerted to the above, or made the
connection of its significance to the overall performance of the system
implementation. I see this statement as a demonstration of your failure to
acquit your responsibilities as a senior executive member of the board and
your agency.
As a member of the Project Board, the overarching governance group for
the project, and a very senior officer within your agency with
responsibility for the project, you must be held accountable for your
failure to discharge the responsibilities of your role on the board and
within your agency.
In summary, I find that Allegation 3 is substantiated by your actions or
inactions and warrants a discipline finding being made against you for the
performance of your duties in a careless, incompetent or inefficient
manner (s187(1)(a)).”
Want of procedural fairness
[71] It is useful to return to the relevant provisions of ch 6, pt 2 of the PSA in more detail.
[72] Section 187 in setting out the grounds for discipline relevantly provides:
“(1) A public service employee’s chief executive may discipline the
employee if the chief executive is reasonably satisfied the employee
has—
(a) performed the employee’s duties carelessly, incompetently or
inefficiently; or
…
(f) contravened, without reasonable excuse—
…
(ii) a standard of conduct applying to the employee under
an approved code of conduct under the Public Sector
Ethics Act 1994; or
…
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(2) A disciplinary ground arises when the act or omission constituting
the ground is done or made.
…”
[73] The disciplinary action that may be taken against a public service employee is then
set out in s 188:
“Disciplinary action that may be taken against a public service
employee
(1) In disciplining a public service employee, the employee’s chief
executive may take the action, or order the action be taken,
(disciplinary action) that the chief executive considers reasonable
in the circumstances.
Examples of disciplinary action—
● termination of employment
● reduction of classification level and a consequential
change of duties
● transfer or redeployment to other public service
employment
● forfeiture or deferment of a remuneration increment or
increase
● reduction of remuneration level
● imposition of a monetary penalty
● if penalty is imposed, a direction that the amount of
penalty be deducted from the employee’s periodic
remuneration payments
● a reprimand
…
(5) In acting under subsection (1), the chief executive must comply with
this Act and any relevant directive of the commission chief
executive.
(6) An order under subsection (1) is binding on anyone affected by it.”
[74] The “procedure for disciplinary action” is set out in s 190:
“(1) In disciplining a public service employee or former public service
employee or suspending a public service employee, a chief
executive must comply with this Act, any relevant directive of the
commission chief executive, and the principles of natural justice.
(2) However, natural justice is not required if the suspension is on
normal remuneration.”
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[75] If an employee is to be terminated or suspended by the exercise of powers under the
PSA, s 192 of the PSA provides that:
“(1) If a chief executive decides to suspend or terminate the employment
of a public service employee, the chief executive must give the
employee notice of the suspension or termination.
(2) The notice must state—
(a) for a suspension—
(i) when the suspension starts and ends; and
(ii) the remuneration to which the employee is entitled for
the period of the suspension, under a decision
mentioned in section 191(1) or, if no decision has been
made under section 191(1), under section 191(2); and
(iii) the effect that alternative employment may, under
section 191, have on the entitlement; or
(b) for a termination — the day when it takes effect.”
[76] Although s 190(1) of the PSA specifies that the principles of natural justice are to be
complied with, no content is given as to what that entails. In SZBEL v Minister for
Immigration and Multicultural and Indigenous Affairs (2006) 228 CLR 152, the High
Court unanimously endorsed the statement of principle in Commissioner of Australian
Capital Territory Revenue v Alphaone Pty Ltd (1994) 49 FCR 576 at 590-591:
“It is a fundamental principle that where the rules of procedural fairness
apply to a decision-making process, the party liable to be directly affected
by the decision is to be given the opportunity of being heard. That would
ordinarily require the party affected to be given the opportunity of
ascertaining the relevant issues and to be informed of the nature and
content of adverse material.”
[77] Bearing in mind that statement of principle, I now turn to consider each of the grounds
of error alleged. It is apparent for the reasons that follow that in relation to the decision
making process resulting in the disciplinary findings and the disciplinary action, I do
not consider that the applicant has demonstrated that there was a want of procedural
fairness in given her an opportunity to be heard, ascertaining the relevant issues or the
nature and content of the adverse material as complained.
Alleged error one – failure to particularise
[78] The first error alleged by the applicant is that the first respondent failed to particularise
the acts or omissions that were said to give rise to the applicant’s liability for breach
of each allegation said to amount to a breach of discipline.
[79] The applicant argued that the first respondent was under a duty to give such
particulars, especially as to allegation three, which was couched in terms of the
applicant’s membership of the “Project Board”, and which it was said effectively
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27
required her to answer an allegation based on collective guilt. The need to identify the
specific acts or omissions was reinforced by the terms of s 187(2) of the PSA which
stated that a disciplinary ground arose “when the act or omission constituting the
ground is done or made”.
[80] There can be no doubt that natural justice imposes an obligation on an administrative
tribunal hearing a disciplinary charge, where dismissal may result on the charge being
made out, to furnish particulars of the charge of breach of discipline: see R v Little;
Ex parte Fong [1983] 1 VR 237. As Street CJ observed in Public Service Board
(NSW) v Etherton (1985) 1 NSWLR 430 at 432 (endorsing the decision of Hunt J in
Etherton v Public Service Board of New South Wales [1983] 3 NSWLR 297 at 3078),
the requirements of natural justice impose an obligation on a prosecuting authority (in
that case the Public Service Board hearing disciplinary charge) to furnish such
particulars as will fairly enable the accused person to understand and to meet the case
being made against him. Likewise, Samuels JA (at 434) stated, “I know of no ground
in principle or authority which exempts the Public Service Board from compliance
with those principles of natural justice which entail that an accused person must be
informed of the nature of the case which is sought to be made against him”.
[81] The applicant placed particular reliance on Etherton as apposite to the present case.
There the breach of discipline charged under the Public Service Act 1979 (NSW) was
that the applicant was “negligent, careless, inefficient or incompetent in the discharge
of his duties”. The only particulars of the breach provided were that the applicant
“failed to carry out [his] duties as a senior district officer … in a satisfactory manner”.
The Public Service Board conceded that no precise statement of the specific acts or
omissions relied upon in respect of the alleged breach was provided but, in disputing
that there was an obligation to do so, contended:
“… it is not a requirement of natural justice in relation to administrative
tribunals that a person charged with a disciplinary offence is entitled to
particulars of that charge. It is sufficient, the Board says, that the plaintiff
is told of the charge itself and of the general nature of the case against him
and that he is given in advance of the hearing copies of all the documents
to be tendered against him (as was the plaintiff on this occasion). But the
Board is not obliged … to identify the precise acts or omissions of the
plaintiff upon which it relies to establish the charge or to affix a label to
each such act or omission in order to identify to which part of s 85(e) […is
negligent, careless, inefficient or incompetent in the discharge of his
duties…] it is said to relate.”
[82] After a detailed review of the relevant authorities, Hunt J held (at 306) that the Board
was required “to identify with precision” what was said to have been the “negligent,
careless, inefficient or incompetent discharge of the officer’s duties. In that context, it
was said (at 307):
8 See also Walters J in Gardiner v Land Agents Board (1976) 12 SASR 458 at 470-471.
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“In my view, therefore, the plaintiff was entitled to particulars of the
specific acts or omissions relied upon to establish the charge against him
and to have identified for him specifically whether he is alleged in relation
to each such act or omission to have been negligent, careless, inefficient
or incompetent.”
[83] The applicant argued that the letter of 22 August 2013, which set out the allegations
and stated that the first respondent considered that each allegation, if proven, “could
constitute a ground for discipline under s 187(1)(a) PSA – performance of [the
applicant’s] duties carelessly, incompetently or inefficiently” did not meet the degree
of particularisation articulated by Hunt J in Etherton. It was argued that to say that
the conduct “could” constitute a ground for discipline under the PSA because it was
performed “carelessly, incompetently or inefficiently” did not articulate to the
applicant what the allegation was. It was contended that it was necessary to identify
the individual allegations, coupled with the acts or omissions that constituted each
allegation.
[84] The applicant further submitted that the respondents misconstrued the combined
operation of s 188 and s 190 of the PSA, which required that, in according the
applicant her natural justice rights under s 190, the s 188 power necessitated that the
applicant be given an opportunity to be heard in respect of the allegations and the
allegations be particularised to a degree which afforded her an opportunity to be heard
as to the acts and omissions said to be grounds for disciplining her. The proceedings
were infected by the breach of natural justice perpetrated by the refusal to give
particulars. The misconstruction of the legislation constituted jurisdictional error in
that the first respondent “asked itself a wrong question” or “reached a mistaken
conclusion” as did the failure to provide natural justice and procedural fairness.
Relying on Etherton, it was submitted that the failure to provide proper particulars
gave rise to the availability of prerogative relief (in the form of a constitutional writ)
to correct errors in public service disciplinary proceedings.
[85] The respondents submitted that, in the present case, unlike the situation in the
Etherton, the applicant was aware of all of the issues in the Inquiry before the first
respondent made the allegations; the applicant was given leave to appear before the
Inquiry and was represented by counsel;9 statements by the applicant were tendered
at the Inquiry;10 and that it may be inferred from references throughout the Inquiry
Report that the applicant gave evidence at the hearings of the Inquiry and her legal
representatives made submissions on her behalf.11 However, while it is true that the
applicant was represented at the Inquiry, and made submissions, as was observed by
Vautier J in Bryne v Auckland Irish Society Inc [1979] 1 NZLR 351 at 359, in
a passage cited by Hunt J in Etherton (at 304), it has long been recognised that the
necessity for giving a precise notice of the nature of the charge “may exist even in
9 See appendix 7 of the Inquiry Report, p 247.
10 See appendix 8 of the Inquiry Report, p 248 and ff.
11 Inquiry Report, p 150.
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a case where it is clear from the circumstances that the [individual concerned] knew
exactly what was to be alleged”.
[86] Nor do I consider that the respondents’ submission that the present case may be
distinguished from Etherton because the adversarial and criminal court-like context
that existed there did not exist in the present case is particularly persuasive. The
observations of Hunt J in Etherton (at 303, 305), as to the critical importance to the
officer of the disciplinary inquiry, given the potential for his future as a member of
the public service, are also pertinent in the present case.
[87] It is instructive, however, as the respondents submitted, to have regard to the
distinction between a charge and the particulars of it. The respondents referred to
Reynolds & Co Pty Ltd v Australian Stock Exchange Ltd (2003) 174 FLR 311 (which
adopted the approach espoused in Etherton). As Campbell J there explained, a charge
is the allegation that a particular norm of conduct, which binds the person charged,
has on a particular occasion or over a particular period been broken. Particulars are
a statement of precise circumstances in which it is alleged the norm has been broken.
The respondents argued that, with respect to each allegation, the binding norm of
conduct that the applicant was alleged to have broken, over the period the applicant
held the role of Executive Director of CorpTech, was that she performed her “duties
carelessly, incompetently or inefficiently”. The respondents submitted that the
allegations themselves were “better and properly characterised as particulars” of the
acts or omissions, which if proven, established the ground of discipline under
s 187(1)(a).
[88] As already stated, in the letter of 22 August 2013, the first respondent set out certain
findings made in the Inquiry Report and the allegations against the applicant which
were expressed as follows:12
Allegation one - It is alleged that in your capacity as the Executive Director of
CorpTech, you failed to appropriately discharge your responsibilities for the
project by facilitating the progression of the project despite continuing serious
issues relating to the project’s scope and deliverables.
Allegation two - It is alleged that on or around May to December 2009 you
reclassified, and/or supported the reclassification of defects identified in user
acceptance testing (UAT), downgrading their severity to enable the testing of
the system to progress, despite the pre-established entry and exit criteria.
Allegation three - It is alleged that in your capacity as a member of the Project
Board, you failed to discharge your responsibilities by not ensuring appropriate
UAT and/or auditing prior to going live with the system, despite considerable
defects having been identified during earlier testing.
[89] The respondents argued that the allegations were particulars of conduct (acts or
omissions) said to constitute a ground of discipline under s 187(1)(a). In respect of
each allegation, the first respondent provided further particularisation (“I refer you, in
12 Reference is only made to the allegations found proven.
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particular to”) by reference to sections of the Inquiry’s Report that informed the
allegation. I accept the submission that the letter of 22 August 2013 in setting out
allegations, which the first respondent considered could constitute a ground for
discipline under s 187(1)(a) of the PSA, if proven, did particularise sufficiently to the
applicant the case being made against her. It identified the acts or omissions that
allegedly gave rise to a liability for breach of discipline.
[90] I cannot accept the applicant’s contention that the particulars were not effective to put
her on notice as to the case that she had to meet. Some store was placed by the
applicant on the position taken in Etherton by Hunt J, that simply asserting by way of
the compound allegation that the public servant there was “negligent, careless,
inefficient or incompetent in the discharge of his duties” was insufficient. But it is to
be recalled that in that case the phrase merely reflected the nature of the charge itself
and nothing further was furnished by way of particulars of the case to be answered.
[91] In those circumstances, I do not consider the ground of error alleging failure to
particularize amounting to breach of natural justice is made out. Nor was it shown
that there was there a misconstruction of legislation amounting to jurisdictional error.
Alleged error two – failure to take into account a relevant consideration
[92] The discretionary power under s 187(1) to discipline an employee, upon reasonable
satisfaction that a particular act or omission is done or made, does not in terms require
the chief executive, as the decision maker, to take any particular considerations into
account. Deane J in Sean Investments Pty Ltd v MacKellar (1981) 38 ALR 363 at
375, stated the correct approach in such a case:
“…where relevant considerations are not specified, it is largely for the
decision-maker, in the light of matters placed before him by the parties,
to determine which matters he regards as relevant and the comparative
importance to be accorded to matters which he so regards. The ground of
failure to take into account a relevant consideration will only be made
good if it is shown that the decision-maker has failed to take into account
a consideration which he was, in the circumstances, bound to take into
account for there to be a valid exercise of the power to decide.”
[93] In Minister for Aboriginal Affairs v Peko-Wallsend Ltd (1986) 162 CLR 24 at 39,
Mason J explained the pertinent principles as follows:
“(a) The ground of failure to take into account a relevant consideration
can only be made out if a decision-maker fails to take into account
a consideration which he is bound to take into account in making that
decision: Sean Investments Pty. Ltd. v. MacKellar; CREEDNZ Inc. v.
Governor-General; Ashby v. Minister of Immigration. The statement of
Lord Greene M.R. in Associated Provincial Picture Houses Ltd. v.
Wednesbury Corporation, that a decision-maker must take into account
those matters which he ‘ought to have regard to’ should not be understood
in any different sense in view of his Lordship’s statement on the following
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page that a person entrusted with a discretion ‘must call his own attention
to the matters which he is bound to consider’.
(b) What factors a decision-maker is bound to consider in making the
decision is determined by construction of the statute conferring the
discretion. If the statute expressly states the considerations to be taken into
account, it will often be necessary for the court to decide whether those
enumerated factors are exhaustive or merely inclusive. If the relevant
factors – and in this context I use this expression to refer to the factors
which the decision-maker is bound to consider – are not expressly stated,
they must be determined by implication from the subject-matter, scope
and purpose of the Act.” (citations omitted)
[94] Mason J (at 41) continued:
“It follows that, in the absence of any statutory indication of the weight to
be given to various considerations, it is generally for the decision-maker
and not the court to determine the appropriate weight to be given to the
matters which are required to be taken into account in exercising the
statutory power: Sean Investments Pty. Ltd. v. MacKellar; Reg. v.
Anderson; Ex parte Ipec-Air Pty. Ltd.; Elliott v. Southwark London
Borough Council; Pickwell v. Camden London Borough Council. I say
‘generally’ because both principle and authority indicate that in some
circumstances a court may set aside an administrative decision which has
failed to give adequate weight to a relevant factor of great importance, or
has given excessive weight to a relevant factor of no great importance.
The preferred ground on which this is done, however, is not the failure to
take into account relevant considerations or the taking into account of
irrelevant considerations, but that the decision is ‘manifestly
unreasonable’. This ground of review was considered by Lord Greene
M.R. in Wednesbury Corporation, in which his Lordship said that it would
only be made out if it were shown that the decision was so unreasonable
that no reasonable person could have come to it.” (citations omitted)
[95] As mentioned, the applicant alleged that the first respondent failed to take into account
a relevant consideration when deciding whether to make a disciplinary finding in
respect of each allegation that was proven, and, if so, what disciplinary action was
appropriate. The relevant consideration, that was not taken into account but ought to
have been, was said to be the applicant’s reasonable expectation, as a senior executive
officer and as a member of a collegiate governance body (the Project Board), “to rely
upon the differing backgrounds, expertise and professional skill sets of those who
were involved in collective decision-making”.
[96] The applicant’s assertion that the first respondent was bound to take into account the
consideration asserted to be “relevant” proceeded on the basis that allegation three
linked the applicant’s culpability to her “capacity as a member of the Project Board”.
The need to take into account the consideration as a relevant one was said to be
implicit in the nature of the Project Board, “a multi-disciplinary, multi-departmental
collegiate body of public servants and private sector individuals”. In arguing that that
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matter was a relevant consideration, the applicant sought to draw an analogy with
principles developed in the context of corporate governance in relation to the law
concerning a company director’s duties, in particular, the “business judgment rule”
expressed in s 180 of the Corporations Act 2001 (Cth) and the common law as
developed in authorities such as Dovey v Cory [1901] AC 477 at 486.13
[97] The applicant argued that the disciplinary provisions of the PSA were directed to
providing a legal basis for disciplining an individual servant of the Crown and liability
for disciplinary action was to be measured against the skills, expectations and duties
of the individual public servant. Allegation three necessitated consideration of what
responsibility the applicant had for her contribution to the decision making of the
Project Board, in contradistinction to that of the other members. The applicant
submitted that it was reasonable for her to rely on the skills, expertise and experience
of others on the Project Directorate and Project Board in the governance of the project
to the extent that she did not possess those skills, expertise and experience. In those
circumstances, the first respondent was bound to consider how and to what degree the
applicant was entitled to rely on the skills, expertise and experience of other members.
[98] The applicant thus submitted that, in respect of the Project Board, her duties were to
conduct her functions and responsibilities as a member of the Project Board with
reasonable care and diligence and to exercise reasonable care and diligence to ensure
that those around her on the Project Board had the necessary skills, expertise and
experience to contribute to the multi-disciplinary decision making process; it was not
to have those skills, expertise and experience herself. Further, as a member of the
Project Directorate, also a multi-disciplinary and interdepartmental working group,
the applicant “was entitled to rely on those staff who were seconded from Queensland
Health … [and] to rely upon advice received from the representative of IBM as to the
ability, or otherwise, of the supplier (IBM) to deliver on various aspects of the project,
both in terms of timeliness and technically”. It was submitted that in that sense the
applicant did “competently acquit herself as a member of the committee”.
[99] It was therefore argued that the first respondent failed to take into consideration, in
“an operative way”, how the applicant was entitled to rely on the skills, expertise and
experience of the others on the Project Board. In that regard, it was not sufficient for
the first respondent to merely make reference to the applicant’s argument in the
reasons for making disciplinary findings and taking disciplinary action. Taking that
into consideration necessitated that the consideration was “operational” upon the
decision and not dismissed as an irrelevant consideration. Citing Bruce v Cole (1998)
45 NSWLR 163 at 185-186, it was argued that what was necessary was that “proper,
genuine and realistic consideration” was given to the relevant matter.
[100] The respondents submitted that in respect of the discretionary power to discipline
conferred on the chief executive by s 187(1) of the PSA, the jurisdictional fact that
needed to exist before the statutory power was enlivened was the chief executive’s
“reasonable satisfaction” that the employee has done an act or made an omission that
13 See also Re City Equitable Fire Insurance Co Ltd [1925] Ch 407 at 427.
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constitutes a ground for discipline. The respondents argued that the principles
developed in the context of corporate governance had no application or relevance in
the present case. The complex and unique dynamics of company law render those
decisions both inapplicable and distinguishable. It was pointed out that the first
respondent expressly stated in both letters (as to the findings and disciplinary action)
that the applicant “performed her duties carelessly, incompetently or inefficiently”,
that conclusion being based on the findings in the Report and after regard was had to
the applicant’s submissions both as to whether the allegations were substantiated and,
upon concluding that the first three were, as to the appropriate disciplinary action to
be taken in the result. The findings of the first respondent expressly rejected the
applicant’s submissions about collective responsibility and placed responsibility at
her feet in her individual capacity having a particular role to perform as a member of
the Project Board. Those factors demonstrated that the first respondent had the
requisite state of mind to enliven the statutory power to discipline the applicant in the
circumstances.
[101] In my view, the respondents’ submissions should be accepted. The first respondent
did take into account the consideration contended for by the applicant in reaching his
view as to whether allegation three was substantiated. The real complaint is that
because the chief executive did not accept the applicant’s submission that it
exonerated her did not mean there was a failure to consider the matter raised. The
complaint by the applicant in relation to this error was in reality, as the respondents
submitted, a complaint that the first respondent had not afforded sufficient weight to
this consideration and has erred in reaching his findings.
[102] The applicant’s submission that it was reasonable to rely on the skills and experience
of others reflected her recorded position before the Inquiry: see for example para 6.39,
p 149. In relation to allegation three, the applicant was referred, inter alia, to paras
6.46-6.47 of the Report’s findings:
“The decision to Go Live miscarried. What was regarded as an imminent
failure of LATTICE overshadowed any measured and analytical
assessment and weighing of the relevant factors. By the time the Project
Directorate and the Project Board met to consider whether to Go Live, the
members of those bodies had made up their minds that the only option
was to proceed.
To do so was to abrogate their responsibility to have proper regard to all
options and to consider whether, in all the circumstances, the best option
was to proceed. The Project Board, as the superior body, must bear
primary responsibility for the decision which was made. It may have acted
on advice, and been entitled to do so, but that did not excuse its members
from turning their own minds and making their own enquiries as to the
bases upon which this important decision was to be made.” (emphasis
added)
[103] The finding at para 6.47 of the Report was also reflected in the view taken by the first
respondent that the applicant had failed “to acquit [her] responsibilities as a senior
executive member of the board and [her] agency”.
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[104] It was for the decision maker to attribute weight to the various relevant considerations.
It may be accepted, as the respondents argued, that a disagreement that the decision
maker afforded the appropriate weight to a particular consideration did not give rise
to a jurisdictional error. In effect, the applicant’s submissions were an attempt to invite
the Court to consider the merits of the decision, which was clearly beyond the ambit
of judicial review, especially in cases of jurisdictional error.
[105] In my view, this ground of complaint is not made out.
Error three – taking into account an irrelevant consideration
[106] The third error alleged by the applicant was that the first respondent took into account
an irrelevant consideration when considering the appropriate disciplinary action to
take. The error alleged was a perceived need by the decision maker (in the
consideration of the disciplinary allegations) to attribute responsibility for decisions
which were made collectively. The applicant relied on the following passage in the
termination letter, concerning the first respondent’s conclusion that termination was
the appropriate disciplinary action:
“You have submitted, and I accept, that in making these decisions you and
other members of these bodies relied on the support and advice of others,
including people with specialist expertise. However if I accepted that this
absolves you from all accountability in relation to the decisions which
were made (which, as the Report found, had catastrophic consequences)
then I would have to accept that no-one should bear responsibility for
decisions which are made collectively or on the basis of advice. I do not
accept that as a valid proposition.”
[107] The passage was said to indicate that an irrelevant consideration was taken into
account – the perceived need (“… I would have to accept …”) to find that someone
“should bear responsibility for decisions which are made collectively”; ie by the
Project Directorate and Project Board. That, it was submitted was an irrelevant
consideration for the operation of ch 6 of the PSA, since the text, context and general
policy (in the Project Blue Sky sense14). That was because ch 6 was enacted to
facilitate the consideration of discrete allegations of acts or omissions that could
constitute a ground of discipline against individual members of the public service; not
to attribute collective responsibility against an identified class of public servants.
[108] Additionally, the passage was said to indicate a further jurisdictional error, namely
that the first respondent had made “an erroneous finding” or had reached “a mistaken
conclusion”15, in that he mistakenly concluded that “if I accepted that this absolves
[the applicant] from all accountability in relation to the decisions which were made
(which, as the Report found, had catastrophic consequences) then I would have to
accept that no-one should bear responsibility for decisions which are made
14 Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355, [1998] HCA 28.
15 Craig v State of South Australia (1995) 184 CLR 163 at [14] per Brennan, Deane, Toohey, Gaudron and
McHugh JJ.
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collectively …”. That conclusion was erroneous because it was wrong to assert that if
the applicant could demonstrate that she was not responsible for the adverse outcomes
of decisions taken on professional advice then “no-one should bear responsibility”.
[109] The respondents argued that the passage did not reveal an irrelevant consideration,
erroneous finding or mistaken conclusion given that the statement was made by way
of response and a matter of comment to the submission of the applicant. Further, it
was made in the context of the remaining passages of the paragraph in question which
set out the basis upon which the applicant was found to bear responsibility for the
decisions in question.
[110] The respondents submitted that since the terms of the PSA did not set out the matters
to which the chief executive was to have regard, the applicant had not demonstrated,
according to the accepted approach, what considerations were relevant to the exercise
of the chief executive’s broad discretion under s 187(1) to discipline the applicant.
Without an assessment of what considerations were relevant, it was difficult to
ascertain what considerations were irrelevant. The starting point, however, was
Stephen J’s statement in Murphyores Inc Pty Ltd v Commonwealth (1976) 136 CLR
1 at 12:
“It will be seldom, if ever, that the extent of the power cannot be seen to
exclude from consideration by a decision-maker all corrupt or entirely
personal and whimsical considerations, considerations which are
unconnected with proper governmental administration; his decision will
not be a bona fide one since these considerations will, on their face, not
be such as the legislation permits him to have regard to. In other instances
the task for the court will be to discern what restraints, if any, the
legislation places upon considerations to which he may have had regard.”
[111] It was further submitted by the respondents that it was not alleged, nor could it
properly be, that the first respondent’s decision was assailable for such reasons
unconnected with proper governmental administration. Further, the PSA did not in
terms place any restraint on considerations that the chief executive, exercising the
discretion to discipline under s 187(1), might have regard to. In any event, the proper
construction of the PSA, especially having regard to the observations in
Commissioner of Taxation v Day (2008) 236 CLR 163 at [34], affirmed rather than
denied the relevance of “the perceived need … to attribute responsibility for decisions
which were made collectively”. The State’s constitutional function in employing
persons as civil servants mandated regard to the public interest as a relevant
consideration. The first respondent, at various instances in his reasons for the decision
to terminate the applicant’s employment, premised the attribution of responsibility to
the applicant on the “catastrophic failure” of the project, and “the public trust placed
in us all as public service employees”.
[112] I do not accept that there was error in taking into account an irrelevant consideration.
The first respondent recognised that the applicant had relied on the support and advice
of others. Additionally, she had worked as part of a group. But he considered that the
fact she worked as part of a group did not have the result that all were necessarily to
be relived of responsibility. I do not consider that the alleged error is made out.
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Application to amend the originating application
[113] On 21 January 2015, the applicant filed an application for leave to amend the
Originating Application in the matter pursuant to r 375(1) of the Uniform Civil
Procedure Rules 1999 (Qld) and a supporting affidavit, which sought to include
“Damages for breach of contract” and “Interest payable on breach of contract” as
relief sought under the Originating application. The application was subject to further
written submissions by the applicant, filed on 28 September 2015, and the respondent,
filed on 14 October 2015, and was opposed, on multiple bases.
[114] The application to amend, in any event, was premised on a finding that the termination
was in the exercise of statutory power which was void for jurisdictional error. Given
my conclusions that the termination was not pursuant to the contract, but a statutory
power, and that no jurisdictional error ground was made out, I do not consider it
appropriate to grant leave to amend the originating application.
Orders
[115] The applications filed 31 July 2014 and 21 January 2015 are dismissed.
[116] I will hear submissions as to costs.
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Official source: https://www.sclqld.org.au/caselaw/QSC/2015/370