BHP Coal Pty Ltd v Building and Construction Industrial (Portable Long Service Leave) Authority [1998] ICQ 7 (1998) 157 QGIG 120

120 QUEENSLAND GOVERNMENT INDUSTRIAL GAZETfE 20 Fchruary, 1998 ########################################################## 11'11rkpioce RPhili,ms An I ')')7 s. :\6()(21 - appeal frorn J,·dsinn nf in du.s1rial ,:,)tnmi,sion Bill' Cval f>ty l.t<I Buildm!! ,111d ( \1ns1ru,1ton ln,1u.,trial (Port<1hk I.\Ing .S\.'n: i..:c I .�;I''-·�) /\uth,)rity Jt'S'l'l<'Edc JERSEY. l'Rf�'>ll>E\T ') Fchru :,ry I 'l<JR t ·n,kr ,.66 of th,· flwlding 1111d < ·1111stnll·r1011 /n,111,tn //'nrtal>/t> /.1,11g SPtYir,, {,1,a•·t'i :\(·t /99/, ., h1ng scrv1cl..'. kav<-� kvy i.1..: impo..-.:cd \.)11 ..h uilding and , ·rn1'tr11<"11<>11 work··. That 1-' ,k1111<·d ,L, w,�·k 1x·rformed in the "huiltlong and <::,•n...:tn1,.:t h'U mdu.,.cry" (:-..1.). wh1...:h m..:-(1n.5! ,L'\ ��p..:c1.,lly rt;k,-. :,nl hc rt._ the industry nt: ..(,1) c,,rr}·ing oul th<..' c(,nstructi<,n. rt.:1...:l.lll'-tnt<:lHlll. rt.:novauon. alkration. th.·mohtion tif n1,1int<. ·rtd1H.:r ot t,)( n:p:-ur., of or to -- (ii) r1Md\'.. r<lilways. . tirli dd-.; Pr ..�her works for th1.,.: p,,ss1tgt! of <t11y1hlng: o r (v11i) \Vorks f<\r t:Xtra,._1in�. rdfning. pr<)(;c...:sing or tr�.aring mall.!rials or for J)flXtudng or (,_·xtral't1ng produ(..1-4: (rnd hr product� thm1 makriab� or lii) wnrk inv..,lving st11H.:turi..·s. ii x1ur�s or l�hc- r work.-: for ust• on, in or rn \:omu:(.'.titm w 11h an;:thin� 1nt.:nii-.>n...-d in JMr.,g.rttph (.,):... The. ,,ppdl,<111 BIii' ( \1al l'ty l.td h'"' paid 1h� l,'.vy 111 rdation <o ,1 cPntract for th� <.k.-qgn. ...:onstructtun ,tnd comn1,1s.:,,.ioning <Jf 1h, Gri.:gory uv-1.:'rland ..:on\\:y<.\f ..;yskm. Th.H �yst'-•n1 tn,n3port.i, • (mainly, c..:oal from th� Crinum und-.�rgrnund n1inc h) lht! (ir,:gory mini;.'·-: coal prt:p.ira1i,Jn plant Truck.s were previously u�cd. The pttrp,i,c of the cnal prcparnuon plant is to \.\'(13h \.'Oal to c1..�n:.1in !il�c1tic ations rdt' van1 to l.tJStom.;r r equircmcnLt;. I t i.� po.,,it>lc 10 hrcak down the ov,·rall c,,ntract price should the levy h" payable on <..:ompon�nt.,;: nnl)·. r,ilhc:r than u�xm chc> whole. Th� Authority ruled that all cosL, .should hi! l.tken into accoun t i n the c.,kulation of the kvy, sa,·c only for off-site 1.l:.-:ig.n l:o:--l.... sn-.:.urrl;.'d prmr to C()nuncnccmcnt of the. work. BHP Cnal apJX,lkd wan Industrial \1ag1slratc (.s.�8). The \1ag1.,1ratc determined that th\.! Authority erred t n the -.!Xl.;>nt !hat i1 h'Ok into a1.:.count the" ..:ost of th� n\ ·�rland conveyor il�d( hnkrng rh..: scr�t::ning .-.:ii'.i ng :-:lation at Crinum to the lirei;o ry sur�� "<>ckpik. He remiucd 1hc m,,Hcr to 1he Au1hori1y for re- 1.:akulatinn. 1301h BIii' C,lal .ultl !he Auth ority hav� n,,w ap1xalcd to me (.<.8�)) . BHP Ct'tdl ..:untended before me that 1he only co.�1 which .,hould ho laken into <u..'cl'>un L is th� co.-.;1 o f a maimenan,._\,: a..:c�s:,; ro:1<l constn..1ckd alon.� the roUl� l)f thi; (.,'t)nv�ynr. The.: Yfagi,-.;tral(,,' ink:nt.kd thHl thi� he t4tkcn-into ,u.:rnu nt. \1( Bond, who appeared for BHP Coal. made these principal .•mhm1s:�ion:--: I . Th� Or�gnry t:oal pr;,;part11ion plan, is ..-xis1ing w or ks and n o t 1he suhjcct of 1h is <.:on tr,11.:t. Ahhough chat pl,1n1 proh;,hly foils within par,1.(,1)(,·11i) or lhc ddinicinn. thc �111t,tnJctino o f the conveyOf syskm tn fo<·d it doc.s not fall w11hin the op,:nmg wo rds of (a), or withrn (h)(oi). 2. Whik th< screening .u,d sizing .,tation ma y argu�hly fall within (\'111) (alth\)U_gh that w.ts not �t<.X'<..'pt<..·d). l<l ...;d\!d out the c..:ost of it"' wos1ruction for the purpos<! ,if cakulatong the levy would i nvolve .. ,oo rnkn.>scopic ,Hl an.dys1� of lh� pllrp<)�'-· of the- conl.nt<.1 ... a proj�c, which ropl,1<.:,;., truck tran.<fXlnJtion of ,·,,..I to the (ircgory C't.M1 prl.'par,,tion pl,rnl'·. :l. Th<! ov,: rland t.:nnvcyor is n<)( "olh'-·r work.1: f,)r tht.'. pd.'\8<lg_1.• of anything", wi1h1n (;i)(ioJ. and not co,·erct1 hy (h)(1i ·1. ➔. Only the ins1alla11011 <1nd .i.-semhly corn1x111,:nt n f tilt' contrn,:t may. in any c.!YCl\1, amount 10 ··work", the 1,.,-vy h\.'ing. irnl,)\)�·.:d on "huil,hng ,ind ,�>nstru.:tion �·nrk". J\ppr o.�irnatdy S 15.7 mollion of 1hc .._:ontr,,cl pn1..'C l)f S.27.9 rrnllion i .... rcf...:rahh.: co th\.: )'Upply of pr,,prietary .:11u1pmc111 or the manuf,1cturc ol c,1u1pmcnt, ;inct that do\!...; not tnnJlv� "work.. 111 th\.' n.:k\'i.t1H .<-\!J\."-'-'• The Authority rd,.:<f <>nly on petr,cs, (,1\(i1\ and (viii), ,,nd (h)(ii}. �fr <rDon ndl V<'. wti,) app,·arc<I for th,· Authority. suhnutll.'d that the screening and si1.111g staLion fdl w11hrn (,,){v111J, .rnd th{J conv,.:y<.\f w11hin (a)(ii), hul that rn ,rny event, the whnlc .,y,1cm 1�·11 wi1hin (.1)(\'111) or Jilernativcl;·. (b)(11). Th,,1 1s n11:rdy ;,1 hr i,:t '-Unlm<,ry of th\· p,,rtit;;,; '-'"·"·�ntt.d positH>HS. I h,1,\: had th�. h..:ndll of compr�h•.;ns1vt' writk'n suhrnjs�ion:-:. 1ngt'.Chc r wilh oral dahorauon. '.\c1.:dl..:.'-s h.> �ay I h,IY\! fi\"(..'11 t:arcful \X'll�it.krati1.)ll to all of 1hat mati!n,ll. I h,1vc fcdd\od the �,,ndu.<ion th,11 the whole nf th� w,>rk.s arc properly (.;h...r:t<.:1t.·n:1.cd .-1s ··work� for pro, .:cs.'-mt or trcctling rrnucrials or for ..• i.:xtrdcting J1f(lol.iu1.:1.s .wd hy prodltt..:t:- frl)Ol nMt<.:nd.1.-:·· . wilhrn lhc Tlk!,tning of p,lr<l.(d)(Viii). Thl.'.:st.:. i;.....�1.:ntial factual <.:onsili;,;rat1on� -.LfL" v..:·ry 11nport,,nc. Thi.'. convt:)'t.lf hdl �y�·lt:m c�-trrics the tX>itl and otha mat-.:-nal� from Crinum under ground mine to the s<.:r<.:\.'.ning �izin� �tatio11. Thal extracts �xtr,tlll.'OUS rnatcii<tl, -.:...:r1...'L""fl� tht.:' rcrndini ng toal <tnd hr�ak....: dt,,vn ovl...'r:-:i1.'":d p1c:<..\!S. h "--'onstilute,.;. in term, nf (niii, ··work.< r,>r extr,,uong products aml hy products f rom matc:ri:-.ls .. (1ha1 is. the extrarh.'OU.s math.:r). t1nd p..:rfunn-.; ._, .. refining, pnx:C's�mg or tn!aling .. fun<.:tion (.-.;�r1.•<.:ning. r�m<)vrng l.'.Atrnrn..�ou:-: ma11c:r �ind hrcaking down (W�rs1z(.'.d pic·L·c::). Thi.: hdt lh.!ll lake� the maknal on I<.> the t:x1:..1ing. coal preparation plan1 at th� (lr!,.!gL,q· nlini!1 whac proc<..�ssmg and trc'.ating aJ�o <.x:i:urs. Pttr.,graph ( .t)(viii) inv11...:s on__.·� ,1lk'ntit H\ to the ohji;;..:t of th.! works: what ,,r" they "for.. '. \1 r Bond .,uhn\illctf th«t the c·unw}·nr .,ystcm w;c, �s.-.�ntiaJly a tran�portall\>O sysh.:m. to <.:,1rry thi.! ,;;nal trom onl! pomt lo <1nothcr. rather thdn hy truck. On the ,>th,•r hand ..\1r <rl>onndl re-,1X1nded th,11 the real <.)hji.'l1 of the: �ysh:m ,..._ nol mcrdy transp<..'lrlatr(-.n. hut facilitating the. pr,x :cssing, trc:.itmg etc. whic'h occurs at Cnnum and (.,rcgory in the m..tnni.•r d1..-.<-<T1ht.·d ah..w�. I hav-1.· acc...·ph.:d �vtr <rl)onndr;-.· suhrnis�i1.m 1ha1 th\! k-.�y to 1hc argurrk!nt ;, ch<1t (a)(,'iii) ,hl.,, not turn on what the work, !.!Q . hut what they ar� ill!· 20 Fehruary, l 99X QUEENSLAND GOVERNMENT fNDUSTRIAL GAZETTE 121 Con�e-qu�ntly. (,·1i1) will t"mhr t,�i:: works constn1ctcd for the puq.Jo.,c of prou�K..:.;:tng or Lrt·,tting matt.:rial.s <.!, ·..:n though the works in th..:- n1'-dv._.s nd1hcr pron:,s .nnr 1n·,1t. I c:oo.,11.h.:r 1ht' t ·lmdu�inn tha1 thi...:.;: wholt: <.:�.-.;km was ..f<,r'' th\.'. trt:,lling .:·t�. l)f m,,c...·ri,d( tu h� factu,tlly in..:�t:apahle. To -.;ay tha1 it wa,\ rn:.!rd;- ;, iransp.,fl,\Uon ·'}�km. i�nnring the widt:r purpo:-\.'. would invo!vt..• an imrxrnus�ihly hhnkcr�d approat:h. I agri;� ·.-.•ith the view cxpr�$.-.·i:d m Bui/drr.1i · l..1n'11s11;,�· /loord \' /'rut� (otlsfru("[iont· Pty Ltd ( J 1}79) I \SWl.R 607. "1, 1h:11 kgist1tio11 with thi.s ohj,•c1 sh,iuld he �on,1ru�d ii�ni�ni'>'. h,·ndkially. not oum,wly. The appn�1,h urg.:d hy :'-1r f3ond woultl ri.:ad�h1.: '.v�,rd ..for" ,·cry n,1,rn)w Jy . ...:ontining 1h0 pUf"f'<\:-'t' of th,: �yskm t, \ an inu1ra,1l:11<' . d1r�c1, limit�d purpo.s�. Why sh,>uld nn c nm lcx>k t(l the broader pit·iuri:. 1t h •n1ilyrni wh�u mig.h1 he t:..·rmi:d an "ov l!rall'' roJ"•'! fn thi.� C..t-"''-', th� (,rdinary 1,ih,.,·cn·._•r \\'PUhl I b.._:lh:vc l'.i.'n...jda lha1 to lk tht: cru� f>tJ11)(Js.: of th..: .-.:ysk'm. The f'Lun und"irlying puq)(>Sc ot the :-y.skm '·"· in �hor1. 10 �H.:hk\'<! eh\· pnx:<-'s,1 n�! ..,od trcati11,g nf <.:nal 1 hy hringin� 1h"� cn-,1 tn lh� pl.Kt:� wh�rc 1IHlt wiU d1rGOI}' tK.'.Cllr. Th..: wht.\k w or k8 do. tht.· r..:f<)r�. in my ,·it:,-.· foll within (;,l(v111). ft 1s thl�ft'h�r..: u11nt.:n.•.-.;�.ary lor me to tk,tl \\lllh lhe ..:uhmi...sion -...:on-...:�rniog (a)(1i) ur (hHti). f �hould ho\\\;s..:r rule 1..)n \1r Bond's �uhn\i"·"ion rd'i..:rr<..:d to in para . .J ahovc. A:• I Oll:iuion�t.l al the' outs<.'l. the lcYy i� impo.'-<..:<.t nn .. hu1hhng .md con.'-ln1c11ort work" (�.66), Th..: cost t,f1ha1 Wt>rk I."- lh� ··contra...:t prk...! for th(' \VOrk" (_.;,71) tunk.-.;:,.• thl.. i\uthori1y d<:x!.� not con�i<h:r 1hc1t lo h<.· an :u.:cur,Hi; i;stimat�). In chi.� 1...•a_,.:1.."", on.; i.-.; <.:OOC\!rn...:d \Vith < 1 527.«) rn1llinn �o ntn,ct. .v1r Bond crnphasi/J.:d hl)W�v�.r lh ,ll It 1s po:.;:-:ihk 10 di.••si.!<.:1 ouc lht: cos·1� 1..)f proprict.tf) 1.."q1.1ipn1t..:nt and rnanutactllr<.;d t:t(Uipm.!nt to h...: ineorporah.'d inw 1hc: work. [k,:,;au",.:, lh: �uhmitkd. lhost.' p<1.rt:-: •.)I lht ovcr,tll <.:on1ract whi;..:h cn, ·1.,;a!_!1.·d lh'-" suppiv pf ."-U<.:h ,:quipn1i..mt arc.:. not for the p.;r1'orrnantt..' o f "work" ( rn tha ,io,·unnary .se nse ol "cXertion. labou r. lull'·) a t the .<ite th<:y sh<'llld he (..'xdutkd wht<n the i\uthuruy c.1h:ul.,t..:� thl;;'. kvy. Tht.; i\uthHril)'. f or its pan. .i...:i..:cpt� tlMt th-: J)l.;f'form<tn<.t· of., <..:nntr,;1;._:t fo r th-.! �upply \ll mdh.: ri<1I nnty. whL·r1..· th\: m.:t1...-r1<il i-.. to h: U:"-..:d m lhi..· (:rcction of ,1 ..�tn.J..1ur,·. ,vould UPI h,;.• ..buildm.g: ,tnd ..:-on.,tructinn work... hut 1nak1...·s 1hc prnnl th<1t HH'- conlf�k'.t 1s for 1hc ..:urPly pf labour .i1H.i HMkri.tJ..,·. \Vhik lhL· prPvi:--ion., · rd:,tiu� to 1hc supply of nMtcrial:- ......nufd he i.--1..11ak<.1. th-.: (.'nn1r,i<.'l should he ch,t1tKlai1...:d more glohdtl)·. <1nd oni..:1.: i1 ,:-: :-c;.:n ;.1.,· a contr.11..1 ft.,r tht.' ctrry:n g out i..Jt \\'(1rk� with111 pa ra.(.t)(viitJ. lh( · ll\\;1c1U .. t ·ontr,Kt pnc� for th� \\Wk" 111 1, ·rms ,.,f s .7.l shoulcl h� ,1dop1 cd. In 1ny <.'f)Hl1on , th-.>r1.' 1s nu ...:an<:tilm fpr 1.'.Xdudin� 1h,: c.;o-..:t...: tlf lh1.: p..·rf.;_wrn,1n1.\· �)I tho.."t: P<tn..-: i..)f th..: �<ln!r,,cl to h"· (.."itrrkd t•llt 011•....:itt·. <L'" in the manufi-1<.:lur� t>r �urply nf ;,;quipn11.:nl, Rt•adin g the ddinillon...; nt ..hU1lding and c..·ot\.'-!ru'":li..,il \t.orlC tU1d "huihlrn�. ,:.1.nd ..,(lm-.1n1t.·uon mdu,,ry" wnh �-7 .\ ;,:.;.�l'.itlily H.\ lt�krt.'n-..·...- tu .. lh{.'. <:1>ntr.tet pri(._'t! for th-.· W<.}fk.., I <·an s1.·:: ll<.> J t1.\tiftc<1t1on fur linutin� tht: ..\,·,irk·· l\> h;.: c;,kl'."n into ,u.:cuum hy rdi:rcn<.:t..: to th.: plan: wli\•fc u 1,· tP h�· t:<UTic·t.l oul. It l,)Uow" lhal I d1lfl! r from tlk· Jndu-.;1rial \1.t!!1,·lr,1k t(, thi: 1.·Xh:nt th,tt J l'<.)n�itkr th�,t th•�· .uuoum upon whi�h 1h.: k , ·y i'- It\ ht' ..:'1.ku lakti nm�t 1ndUtk th,· c,�s1 nf <hi.: O\\!rl.,nd t.·t,nv._•yor, which m1..·,1n:,;- that th,: /\ulht,rl1)'°. ,,pprt>,1 \.h ,k-t.01k,I 111 n, kllcr h> B 111' ( ·(> .tl ol 21 (lch>lh-r I')96 ha, hccn vind1c«1<·,I. I ,,nkr ch,,t the· apfJ<•,d ol 1hc l\uchont y (( '72 of I •)97) h,, ,dlnw �tl «nd ch,n the ·'Pl�-•,,I •.>I Olli' Co,11 /('70 ol I<J97, he rdUs<=d. 'I he m<11ter ,., f<.'rnillcd to lh� /\uthority $0 that it might dt.'krnUn� th� levy in a..:o,rdanc1.· w11h thi., 1udg1111.· nt. I Win I\\ lht: <1u;.;:,.:(it)n of C0,\1.,'. ·n1.: /\utlH)rJly h<tS sought CL).'\IS Ill 11!-: nolit:t· 1.)f app<.:,1J. I was nol pr�s..:nti::d with 1)f1ti or v.-r11kn suhmi.'Sh)JlS in rcbt1on ,o the mt1tk:r of t.:o:..:t.". It thle:->' hnw-cv�r lflc:\'Jt�thly iollow frorn my resoluc ,"n of 1h-, app,;il., that I ,h,>t1ld order tiu,c 01 ii' Coa l p;,y the ,\uthorit}'s ,..,,1., of bvth ,lpJ><.'Jis tn t,� tax�d ,,n cha appropnak' Supreme Court .,c,d..:·. Th-: Authoritv ab:o .c.:uu�h1 tht: ..,'<l":i� of rh..: h.:ar11h! before the >1.1!;!.t'ir,HL'. f n !h•..' �1hsen..:c �>f �1.1hnn:--.-:...1ons on that point. t prcft..·r �ol 10 nMk;! ..i.n Ntkr �tl thi-. Sl,�1!1.!. noline lhl.'.: natUl'I.' of thi.· onk r nl<Hk hv lh(.." .\1.11?.i.-.:tr:,h;. I will ht'lw-.•v.:r int,;1a1c tha� uok�.\ lh.:::r1.: is son11.· r..•k·,·an� cnos1<.k;a1 iu11 of \, ,:hkh I ,1m pr;..•:•cnlly un<1w;ut.!. ll would .,1.�..:n1 10 j.,,lll,w 1h,,1 BHP (\,al :--houhi :,!,o p.,y thi: /\ulhority's C\)�1� of th111 h-..-..ir mg. Thi., in11matii)n m< t.Y f<H..·1IH.tlc ,1 fl.!�nlutwn 1·l any issue ...,fh>UI thns� <.),).'l.'. liuling wllit.:h 1hc.: m.tH\.'.1 w,11 h:n·.: to ht· r�h�kd f<.,r .,1. t.k1�rm1m,t1t,n ol' tha1 �1s1x:..:1. D:.kd 1h,, n1111h d,1y of February. I •l •>&. I ' . de Jl: ,RSJ;Y. f'r�sident. 181254-12 \1r J. Bond (on.<trucicd by Alkn Alle n and He m.sky} for th<.: Appellant. :Vlr B. O'Don nell QC, with him ;V!r T . Sulliv an (instruct"'' by '.\-kCullough and Rohcn.<on) for the k,·.<pond�nl. Of>,:r.itive l>at�: 'siA Ju,1gmcnt - BIIP Cnal Pty I.id 1\\1) Builthng and Cons1111c:t1on Industrial (P<)ft ahlL'. I .nng St:rvi<.:c- L:a\ ·._:) /\ulht\nty R�k:c<c tl: 9 h,hruary I')98 ########################################################## -- 1 of 1 --