Cooney v Holden [2007] QSC 53
SUPREME COURT OF QUEENSLAND
CITATION: Cooney v Holden [2007] QSC 53
PARTIES: GRANT COONEY and FAYE COONEY
(applicants)
v
COLIN HOLDEN as CHIEF EXECUTIVE OFFICER,
QUEENSLAND RURAL ADJUSTMENT AUTHORITY
(respondent)
FILE NO: BS4921 of 2006
DIVISION: Trial Division
PROCEEDING: Application for statutory order of review
DELIVERED ON: 15 March 2007
DELIVERED AT: Brisbane
HEARING DATE: 5 December 2006
JUDGE: Mullins J
ORDER: Application dismissed
CATCHWORDS: ADMINISTRATIVE LAW – JUDICIAL REVIEW –
GROUNDS OF REVIEW – PROCEDURAL FAIRNESS –
GENERALLY – where the applicants seek judicial review of
the respondent’s decision to refuse the applicants’ application
for exit assistance under the scheme approved under the
Rural and Regional Adjustment Act 1994 (Qld) – where
applicants claim respondent should have given them a
reasonable opportunity to be heard on critical adverse
material – whether decision made accorded with the rules of
procedural fairness
ADMINISTRATIVE LAW – JUDICIAL REVIEW –
GROUNDS OF REVIEW – RELEVANT
CONSIDERATIONS – where the applicants seek judicial
review of the respondent’s decision to refuse the applicants’
application for exit assistance under the scheme approved
under the Rural and Regional Adjustment Act 1994 (Qld) –
where the respondent did not take into account the applicants’
explanation for a change in assessment of the viability of the
applicants’ farm business – whether respondent failed to take
into account relevant considerations or took into account
irrelevant considerations
Acts Interpretation Act 1954, s 27B
Judicial Review Act 1991, s 32
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Rural and Regional Adjustment Act 1994, s 3, s 8, s 11, s 12,
s13A, s 13B, s 13C
Vegetation Management Act 1999
Vegetation Management and Other Legislation Amendment
Act 2004
Commissioner for Australian Capital Territory Revenue v
Alphaone Pty Ltd (1994) 49 FCR 576, considered
Kioa v West (1985) 159 CLR 550, considered
Minister for Aboriginal Affairs v Peko-Wallsend Ltd (1986)
162 CLR 24, considered
COUNSEL: MO Plunkett and J Fenton for the applicants
PG Bickford for the respondent
SOLICITORS: Crowley Greenhalgh for the applicants
McCullough Robertson for the respondent
[1] MULLINS J: The applicants seek a review under the Judicial Review Act 1991
(“JRA”) of the decision of the respondent Mr Colin Holden, the chief executive
officer of the Queensland Rural Adjustment Authority (“QRAA”), declining an
application for assistance under the Queensland Vegetation Management
Framework, Financial Assistance for Farm Businesses, Exit Assistance Scheme
(“the exit assistance scheme”) which is an approved assistance scheme under the
Rural and Regional Adjustment Act 1994 (“the Act”).
Relevant legislation
[2] The QRAA is a body corporate which represents the State established under the Act
to deliver financial and other assistance and incentives primarily targeted at
fostering the development of a more productive and sustainable rural and regional
sector by giving assistance to rural or regional producers who have long term
viability, but it is also an object of the Act that the QRAA will help persons leave
rural or regional production: s 3 of the Act. Under s 8(1) of the Act, the QRAA’s
primary function is specified as putting approved assistance schemes into effect by
ensuring the schemes are properly and fairly administered and directly giving the
assistance the schemes provide for. The requirements for an approved assistance
scheme under the Act are set out in s 11 of the Act which specifies that an approved
assistance scheme must be approved under a regulation.
[3] The powers of the QRAA are set out in s 12 of the Act:
“12 Administering approved assistance schemes
(1) In administering an approved assistance scheme, the
authority may—
(a) assess and decide applications for assistance under
the scheme; and
(b) cancel the provision of assistance; and
(c) put conditions on the giving of assistance; and
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(d) change the arrangements for the repayment of debts
to the authority; and
(e) decline to deal with applications made by persons
previously refused assistance under the scheme; and
(f) decide its own procedures; and
(g) keep operational accounts with financial institutions
within Australia.
(2) However, in administering an approved assistance scheme,
the authority must comply with—
(a) the contents of the scheme; and
(b) agreements entered into between the authority and
persons receiving assistance under the scheme.”
[4] Part 3A of the Act deals with review of decisions. Under s 13A of the Act a person
who is dissatisfied by a decision of the QRAA under s 12(1)(a) to (e) of the Act in
relation to an approved assistance scheme may apply to the chief executive officer
for an internal review of the decision. The application for internal review must
comply with s 13B of the Act. Section 13C of the Act sets out what the chief
executive officer must do after receiving the application for internal review:
“13C Review decision
(1) The chief executive officer must, within 30 business
days after receiving the application—
(a) review the decision (the original decision);
and
(b) make a decision (the review decision) to—
(i) confirm the original decision; or
(ii) amend the original decision; or
(iii) substitute another decision for the
original decision; and
(c) give the applicant notice (the review notice)
of the review decision.
(2) If the review decision is not the decision sought by
the applicant, the review notice must also state the
reasons for the review decision.
(3) If the chief executive officer does not comply with
subsection (1), the chief executive officer is taken to
have made a decision confirming the original
decision.”
The exit assistance scheme
[5] On 21 May 2004 the Vegetation Management and Other Legislation Amendment
Act 2004 (“Amendment Act”) commenced which substantially amended the
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Vegetation Management Act 1999 (“VMA”) and provided for regulation of the
clearing of vegetation and the phasing out of broadscale “remnant vegetation” by 31
December 2006.
[6] The exit assistance scheme was approved by regulation made on 1 July 2004 to
compensate land owners whose properties were no longer viable as a direct
consequence of the Amendment Act. The purpose of the exit assistance scheme is
set out in full in clause 1:
“1 Purpose
To assist primary producers who are:
• without prospects of sustainable long term
viability as a direct consequence of the
implementation of the new vegetation
management arrangements enacted through the
Vegetation Management and Other Legislation
Amendment Act 2004 and
• have taken the decision to adjust out of primary
production or relocate their enterprise
The assistance will be through the purchase of their land in
the Farm Business, and the facilitation of the disposal of the
Farm Business consistent with the objectives of the
Scheme.”
[7] Relevant definitions for the purpose of the exit assistance scheme are set out in
clause 4 and include:
“Area of land affected – means the area covered with vegetation that
cannot be cleared under the legislation, regulations and assessment
codes proclaimed on 21 May 2004 but which could have been
cleared under the legislation, regulations and state assessment codes
in place prior to that date.
Farm Business – is a business that involves primary production,
which shall include, but not limited to the agricultural, aquacultural,
horticultural, pastoral or apicultural industries, and is operated as
either an owner operator, or as part of a family company or
partnership.”
[8] Clause 5 of the exit assistance scheme provides:
“5 Assessment Criteria
5.1 QRAA must be satisfied that:
• the Farm Business has a property which includes an
area or areas of land affected;
• the Farm Business acquired the property or a contract
for acquisition or usage of the particular land(s) was
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entered into prior to the 22/05/2003, being the date of
the announced changes;
5.2 the applicant has demonstrated that clearing of the area
of land affected was necessary to attain or maintain
sustainable long term viability for:
5.2.1 past viability, the previous capacity of the Farm
Business to meet the following factors:
• the operating costs of the Farm Business
• the living costs of the farm family
• servicing of the Farm Business debts
• future capital requirements for plant and
improvements
• investment in sustainable farming
systems
5.2.2 potential viability, in addition to the above, the
following factors:
• the scale and nature of the operations of
the Farm Business
• development plans having regard to the
productive capacity of the land holding(s)
and capacity to finance the
implementation of the plan
• the capital contribution of the applicant to
acquire and develop the Farm Business;
• the long term economic trends which
impact on the Farm Business;
• the provision of financial support for the
Farm Business by lenders;
• the demonstrated technical, financial and
business management performance of the
producer
5.3 the applicant has demonstrated that, as a direct
consequence of the introduction of the new vegetation
management arrangements, the Farm Business is not, or
does not have the potential to be, a viable commercial
operation taking into account the criteria listed above;
5.4 the applicant has demonstrated that all secured creditors
agree to allow the applicant to exit the Farm Business,
and both the applicant and secured creditors are
prepared to enter into an agreement approved by QRAA
to transfer the title of the land holding(s) to NRM&E.
The applicant must be able to transfer title to NRM&E
and be prepared to agree to take no further equity
interest in the land holding(s) thereafter; and
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5.5 the applicant has lodged an application with QRAA
prior to any of the following having occurred:
• the settlement of sale of the Farm Business, or
• a mortgagee taking possession of the Farm
Business; or
• the Farm Business being declared by a court to be
bankrupt; or
• a served eviction notice , allowing where relevant,
for due legal process to occur, unless failure to
lodge was due to extenuating circumstances
(excluding due legal and commercial practice)
applying in relation to the applicant.
5.6 under normal circumstances the primary producer is
responsible for the contribution of the majority of
his/her labour to the Farm Business enterprise and
generates the majority or has the potential to generate
the majority of income from that enterprise.
5.7 the Farm Business will not receive (through the ballot
process) a permit to clear vegetation in an area or areas
of land affected, for which they are seeking financial
assistance.”
The application under the exit assistance scheme
[9] The applicants are the owners and operators of a 31,920 hectare sheep and cattle
property known as “Tarko” (“the property”) located south west of Eulo in south
western Queensland.
[10] On 25 November 2005 Mr Graham Kenny of Devine Agribusiness as the
applicants’ agent submitted an application for exit assistance under the exit
assistance scheme. In summary, it was put that the applicants had been moving
away from sheep and toward beef cattle which necessitated an increased reliance on
improved pastures to maintain and improve the long term beef cattle carrying
capacity of the property and, but for the Amendment Act, the applicants had intended
to undertake a significant pasture development program on the property. The
application included a letter of advice from the Department of Natural Resources
and Mines dated 3 October 2005 advising of the Department’s estimate that 11,750
hectares of the property may be affected by the Amendment Act.
[11] By letter dated 18 January 2006 Mr O’Dea, the lending manager of the QRAA,
wrote to the applicants advising that their application for exit assistance had been
declined by the Lending Committee of the QRAA because they were ineligible for
assistance in terms of the scheme guidelines. The letter set out the following
matters in support of the decision to decline assistance:
“Your application was given due consideration by the QRAA
Lending Committee which acknowledges the significant area of land
affected by changes to the vegetation management regulations.
However, the Committee cannot support your claim that, as a direct
consequence of the introduction of the new vegetation arrangements,
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your enterprise is not or does not have the potential to be a viable
commercial operation. The Committee noted the supporting
documentation provided with your Exceptional Circumstances
interest subsidy review of July 2005 in which it was stated, on your
behalf, that you have managed to remain viable and that, despite the
continuing drought conditions, you have continued to meet your
financial obligations including debt reduction. QRAA subsequently
approved your third consecutive year of interest subsidy support.
It is considered that, in addition to the new vegetation management
arrangements, the issues of continuing drought, low commodity
prices and high debt load have influenced your decision to consider
your adjustment out of primary production.”
[12] Mr Kenny on behalf of the applicants by letter dated 3 February 2006 addressed to
the respondent sought a review pursuant to s 13A of the Act of the decision made by
the QRAA to decline the applicants’ application.
[13] As a result of requesting the review, another employee of the QRAA, Mr Scott
Wilson, prepared an assessment of the applicants’ application for exit assistance.
That assessment is exhibit “GRK 12” to the affidavit of Mr Kenny filed on 15
September 2006. Mr Wilson made a recommendation on 2 March 2006 that the
respondent adhere to the original decision.
[14] In connection with the reconsideration of the decision, the respondent wrote to Mr
Kenny on 13 March 2006, referring to the drought plan submitted in June 2005 by
him on behalf of the applicants which indicated that the applicants could
“sustainably service debts from the revenue generated by the enterprise” and that on
that basis, an Exceptional Circumstances subsidy of $20,400 was provided to the
applicants. On the basis that Mr Kenny’s submission under the exit assistance
scheme some six months later suggested that “the enterprise is now not viable”, Mr
Kenny was requested to advise “how such a turnaround in circumstances could
occur in that 6-month period”.
[15] Mr Kenny responded by letter dated 22 March 2006. There were three points made
in the letter. The first was directed at the means by which the applicants had made
their debt reduction during the drought conditions which was as a result of income
derived from the applicants’ management of the adjoining property and contract
income. It was emphasised that the application for exit assistance was in respect of
“the property or farm business enterprise” which was that operated on the property
and in respect of which other sources of income were not relevant in any assessment
of the viability of the property under the exit assistance scheme. The second point
that was made relied on a distinction between the objective of the Exceptional
Circumstances scheme and that of the exit assistance scheme. Reference was made
to the purpose of interest subsidy support under the Exceptional Circumstances
scheme to assist farmers “who would otherwise have prospects of long term
profitability and sustainability, but for exceptional conditions arising from drought
which has detrimentally affected the farmer’s income, leading to financial
difficulty”. This was contrasted with the objective of the exit assistance scheme
which was to enable primary producers to exit a property or farm business
enterprise “where there are no longer any prospects of long term viability as a direct
consequence of the introduction of new vegetation management arrangements”. It
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was submitted that the property could have achieved a commercially viable return to
the applicants (without recourse to income generated from other sources such as
management fees in respect of the adjoining property) with extensive property
development had it not been prohibited by the Amendment Act. The last point that
was made in the letter was that different timeframes were involved under the
Exceptional Circumstances scheme and the exit assistance scheme. It was pointed
out that the Exceptional Circumstances scheme is specific to a designated
Exceptional Circumstances event, whereas exit assistance scheme is concerned with
the effect on a property of the absolute ban on development which has been
imposed forever. The point was also made that when the applicants’ last
Exceptional Circumstances application had been prepared, the applicants did not
appreciate how the codes that were introduced by the Amendment Act for
assessment of applications for non-broadscale vegetation management activities
would be interpreted, but in the period that preceded the making of the exit
assistance application, experience had shown that the assessment of outstanding
ongoing purpose applications meant that ongoing purposes were not accessible or
feasible options to the extent necessary to maintain the current level of productivity
on the property in the longer term.
[16] In connection with the respondent’s review, Mr O’Dea prepared for the respondent
an undated report (“the O’Dea report”) which made comments on information
provided in Mr Kenny’s letter of 22 March 2006. The respondent has
acknowledged that he had the O’Dea report before him when undertaking the
review. The applicants did not become aware of the O’Dea report until after the
respondent made his review decision.
[17] The O’Dea report summarised applications made previously by the applicants to the
QRAA and that it had been stated a number of times previously by the applicants
that they had capacity to be viable given normal seasons and prices and had put
forward cash flows in support of that position. This report extracted from the
Exceptional Circumstances application made by the applicants of May 2003, the
following statement under the heading of “Development”:
“There has been no extensive land development carried out on the
‘Tarko’ aggregation as these country types are not well suited to
extensive development. Mulga regrowth is controlled through the
strategic grazing of sheep. Recent drought conditions has led to
extensive pushing of Mulga, for stock feed.”
[18] The O’Dea report drew attention to the claim in the exit assistance scheme
application that the applicants had intended to undertake a significant pasture
development program which was put on hold as a result of the moratorium on
development applications that commenced in May 2003, but that there had been no
indication in the Drought Management Plan of May 2003 in the Exceptional
Circumstances application that the applicants were intending to undertake or saw
any potential for significant pasture development.
[19] The O’Dea report also commented on the relevance of off-farm income and that
although it was taken into consideration during the Exceptional Circumstances
period, it was relevant for the Exceptional Circumstances application for interest
subsidy that the farm business have the capacity in its own right to meets its
commitments on a return to normal seasonal conditions and it was pointed out that
was how the applicants portrayed their situation in their May 2003 Drought
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Management Plan, as that provided for the farm business in its own right generating
a surplus after meeting all commitments by 2007/2008. Mr O’Dea’s report
observed that the applicants’ point about lack of appreciation of how the
Amendment Act would affect vegetation management on the property at the time the
Exceptional Circumstances application was prepared in July 2005 was “not
considered admissible information in this appeal”. The conclusion in the O’Dea
report was that the prior information given to the QRAA by the applicants did not
support their current contention that they are without prospects of sustainable long
term viability as a direct consequence of the implementation of the new vegetation
management arrangements.
[20] On 10 May 2006 the respondent made handwritten notes on the sheet which
contained Mr Wilson’s recommendation dated 2 March 2006. The respondent’s
notes stated:
“Main argument appears to be that when EC was approved it was on
the basis of management fees being received supporting the business.
While this was the case during the EC period the major factor was
our and client’s view that the enterprise was viable in its own right
(ie without management fees). There appears to be conflicting views
provided as to whether development was ever to be undertaken
which therefore brings into question whether the introduction of the
legislation has been the main influencer, assuming there is a question
mark over viability. In summary, I am of the view that given
reasonable seasons and stock numbers the enterprise remains viable.
Recommendation supported. Decline.”
[21] By letter dated 11 May 2006 the respondent advised the applicants that he adhered
to the previous decision to decline their application for exit assistance on the basis
that he was not satisfied that they were “without prospects of sustainable long term
viability as a direct consequence of the implementation of the new vegetation
arrangements”. The respondent expanded on this conclusion in that letter as
follows:
“I refer you to the QRAA decisions to approve Exceptional
Circumstances (EC) assistance in July 2003, June 2004 & August
2005 and advise that the requirements for determining long term
sustainable viability under EC are consistent with those under
Vegetation Management-Exit. The EC decisions were made on the
information you provided indicating that, given a return to normal
seasonal conditions and commodity prices, your farm business had
the capacity to return to a position of sustainable long term viability.
Your Drought Management Plan of May 2003 accompanying your
initial EC application indicated that off-farm income would continue
to be necessary during the drought, in conjunction with the EC
assistance provided by QRAA, to enable you to meet all of your
commitments. Based on the information presented this opinion has
not altered.
I have also noted there has been no indication, prior to your Exit
application, that there was any need or intention to undertake
significant pasture development in order to maintain viability. To
the contrary, your Drought Management Plan stated that the country
types on ‘Tarko’ are not well suited to extensive development. On
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this basis I am not convinced that the introduction of the new
Vegetation Management Legislation has impeded any proposed
development activities on ‘Tarko’.”
Preliminary point
[22] One of the criteria in clause 5.7 of the exit assistance scheme is that the relevant
business “will not receive (through the ballot process) a permit to clear vegetation in
an area or areas of land affected, for which they are seeking financial assistance”.
The applicants did not apply for such a permit. The respondent argues that it is
therefore impossible for the applicants to establish that they “will not receive” such
a permit through the ballot process and that is a complete answer to the application.
[23] Under clause 8.5 of the exit assistance scheme, an applicant for exit assistance must
identify whether an application for a clearing permit under the ballot process has
been made. If the applicant has entered the ballot process, the application for exit
assistance will not be assessed until it is known that the applicant has been
unsuccessful in the ballot process. The making of an application for a permit
through the ballot process therefore affects the timing of the assessment of the
application for exit assistance.
[24] As a matter of construction of the exit assistance scheme, it is not a condition
precedent to the making of an application for exit assistance that the applicant has
applied through the ballot process for a permit to clear vegetation. The criterion in
clause 5.7 will be satisfied if an application for the permit was made through the
ballot process and was unsuccessful, but likewise it will also be satisfied if no
application was made for a permit through the ballot process, as it follows in that
case that the relevant business will not receive a permit through the ballot process.
[25] The preliminary point is not the complete answer to the application as submitted by
the respondent.
Nature of review decision
[26] Under Part 3A of the Act the respondent is required to review the original decision
of the QRAA which is the subject of the review application. On the review the
respondent is not limited to the material that was available for the making of the
original decision: s 13B(1)(b) of the Act.
[27] The possible decisions that the respondent can make on the review that are set out in
s 13C(1)(b) of the Act of confirming, amending or substituting another decision for
the original decision are consistent with the respondent embarking on a decision-
making process that requires him to look at all the material that is before him to
decide the outcome of the application for exit assistance. There is nothing that
remains to be decided in relation to the application for exit assistance after the
respondent has undertaken his review. That the respondent expresses his decision
in relation to the application by reference to the effect of his decision on the original
decision does not mean that he limits his review to deciding whether or not he
agrees with the original decision. It is an independent decision making process.
[28] The question on which the respondent had to satisfy himself is expressly set out in
clause 5.3 of the exit assistance scheme. The respondent had to be satisfied that
“the applicant has demonstrated that, as a direct consequence of the introduction of
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the new vegetation management arrangements, the Farm Business is not, or does not
have the potential to be, a viable commercial operation”, taking into account the
criteria listed in clause 5.2 of the scheme.
Grounds for review
[29] The grounds set out in the amended application are extensive, but were refined on
the hearing of the application. The grounds that were pursued were:
(a) the respondent denied the applicants’ procedural fairness by not
giving them a reasonable opportunity to be heard on critical adverse
material contained in Mr O’Dea’s report that was provided to the
respondent for the purpose of the internal review;
(b) the respondent did not take into account the applicants’ explanation
for a change in their assessment of the viability of the property;
(c) the respondent erroneously relied on the fact that in previous
dealings with the QRAA the applicants had not advised the QRAA
of their development plans; and
(d) the respondent misunderstood the nature of his obligation to make an
independent decision on the internal review and asked himself the
wrong question.
Lack of procedural fairness in respect of the O’Dea report
[30] The content and scope of procedural fairness must be evaluated by reference to the
legislative context and the nature of the decision-making process required to be
undertaken by the respondent. It is pertinent that the respondent is a public servant
and not undertaking an adjudicative role. See Kioa v West (1985) 159 CLR 550,
584-585.
[31] The applicants complain that prior to making the review decision, the respondent
had before him the O’Dea report and that Mr O’Dea was a member of the Lending
Committee of the QRAA which made the original decision. Mr O’Dea was an
employee of the QRAA performing his functions in providing an analysis of the
relevant information, including Mr Kenny’s letter of 22 March 2006, for the
purpose of the respondent’s consideration of the applicants’ application. Mr
O’Dea’s analysis was adverse to the applicants in the sense that he reached a
conclusion that the information provided by the applicants in other applications to
the QRAA did not support the applicants’ contention that they were without
prospects of sustainable long term viability as a direct consequence of the
implementation of the new vegetation management arrangements. There was no
additional factual material as such in Mr O’Dea’s report. The applicants were on
notice that the respondent was considering the contents of earlier applications made
by the applicants to the QRAA in respect of the property. Even acknowledging the
obligation of the QRAA under s 8(1)(a) of the Act to ensure the scheme is “properly
and fairly administered” and the obligations that govern his decision-making role at
common law, the respondent was not precluded from considering the work of other
employees of the QRAA in assessing the applicants’ application (even an employee
who was associated with the original decision), provided the respondent embarked
on the independent decision-making process required of him in conducting the
review.
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[32] The applicants were fully acquainted with the factual material that was before the
respondent on the application. Fairness did not require the contents of the
assessments done by employees of the QRAA for the purpose of assisting the
respondent in his review role to be brought to the notice of the applicants before the
respondent made the review decision: Commissioner for Australian Capital
Territory Revenue v Alphaone Pty Ltd (1994) 49 FCR 576, 591.
Failure to take into account the applicants’ explanation for change in their
assessment of viability of the property
[33] Under s 13C(2) of the Act, the notice given by the respondent of the review decision
must state the reasons for the review decision. That invokes s 27B of the Acts
Interpretation Act 1954 that requires the instrument giving the reasons to set out the
findings on material questions of fact and refer to the evidence or other material on
which those findings were based. The respondent did not comply with this
obligation.
[34] The respondent did, however, set out his reasoning process in some detail in his
letter of 11 May 2006. It was submitted by Mr Plunkett of Counsel who appeared
with Mr Fenton of Counsel for the applicants that where no proper reasons were
given in circumstances where there was a failure to comply with the duty to give
reasons, the Court should be cautious about concluding that the relevant
considerations were taken into account. The difficulty with that approach is that it
overlooks that the applicants themselves failed to take advantage of s 32 of the JRA
to request a statement of reasons.
[35] It is a matter of looking at the decision that the respondent made (as set out in his
letter of 11 May 2006) and the documents that were before him to determine
whether it is possible to conclude that the respondent did fail to take into account a
relevant consideration.
[36] Mr Kenny put forward in his letter of 22 March 2006 the applicants’ explanation for
the change in their assessment of the long term viability of the property between
making the latest Exceptional Circumstances application and making the application
under the exit assistance scheme. It is argued by the applicants that the respondent
failed to take the applicants’ explanation into account as a relevant consideration,
particularly because Mr O’Dea in his report was dismissive of that explanation and
had suggested it should be ignored. It is clear from the respondent’s letter of 11
May 2006 that he was cognisant that it was for the applicants to demonstrate to his
satisfaction that the applicants were without prospects of sustainable long term
viability as a direct consequence of the Amendment Act. In the letter of 11 May
2006 the respondent expressly acknowledged that he considered the information
contained in the applicants’ application for exit assistance and the letters from Mr
Kenny, including that of 22 March 2006 which contained the explanation for the
applicants’ change in their assessment of the long term viability of the property.
[37] The respondent’s decision depended on what of the material before him was
accepted by him. It cannot be concluded that the respondent did not consider the
applicants’ explanation for the change in their assessment of the long term viability
of the property. That explanation was one piece of material that was inconsistent
with other material before the respondent. It was a matter for the respondent
whether he accepted it or not or what weight he gave to it. Despite Mr O’Dea’s
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suggestion to the respondent that the explanation put forward by the applicants as to
why they had changed their assessment of the long term viability of the property
was “inadmissible”, the respondent has stated that he took into account the letter of
Mr Kenny in which that explanation was offered.
[38] The applicants also argue unreasonableness on the basis that if the respondent had
taken into account the applicants’ explanation for the change in their assessment of
the long term viability of the property (as set out in Mr Kenny’s letter of 22 March
2006), he would have been bound to conclude that the property was without
prospects of sustainable long term viability and not to have done so was
unreasonable. The area of the property affected by the Amendment Act was clearly
before the respondent. The assertion of the applicants that 93% of the property
would be affected as a result of the interpretation of the codes made under the VMA
was a matter for the respondent to decide whether he accepted or not. It was for the
respondent to give the weight he considered appropriate to relevant factors that he
found were made out. A court is required to proceed with caution when reviewing
an administrative decision on the ground of unreasonableness: Minister for
Aboriginal Affairs v Peko-Wallsend Ltd (1986) 162 CLR 24, 41-42. There is no
basis for a finding of unreasonableness as claimed by the applicants.
Taking into account failure of the applicants to disclose development plans in
previous dealings with QRAA
[39] The fact that the applicants had not previously disclosed their development plans in
the Exceptional Circumstances applications (and their assertion in one of the
applications that the “country types” found on the property was not suited to
extensive development) was an evidentiary matter that the respondent was entitled
to consider in determining whether he was satisfied on the relevant issue. The fact
that it may not have been strictly necessary for the applicants to include in an
Exceptional Circumstances application details of all long term development plans
for the property did not preclude the respondent from considering the contents of
those applications which related to the farm business conducted on the property in
respect of the application under the exit assistance scheme. The applicants were
able to and did make submissions to the respondent about the relevance of the
contents of the earlier applications. The applicants cannot succeed on this ground.
Whether the respondent made an independent decision on the question in issue
[40] This is determined by considering the contents of the review decision, as set out in
the letter of 11 May 2006, in the context of the documents that were before the
respondent. The endorsement made by the respondent on Mr Wilson’s
recommendation indicates that the matter was actively considered by the
respondent.
[41] The respondent expressed his review decision in terms of adhering to the original
decision which, arguably, conforms with the manner of expressing the outcome of
the review that is contemplated by s 13C of the Act. There is nothing in the review
decision to suggest that the respondent did not undertake the independent decision
making on the review that is required of him.
Order
-- 13 of 14 --
14
[42] The applicants have been unsuccessful in establishing any of their grounds for
review of the respondent’s decision. It follows that the application for statutory
order of review should be dismissed. Costs should follow the event, but I invite the
parties to make submissions on costs, before any order is made.
-- 14 of 14 --
Official source: https://www.sclqld.org.au/caselaw/QSC/2007/053