N. MacDonald Pty Ltd v Hamence, Donald William [1984] FCA 11
Federal Court of Australia
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CATCHWORDS
Administrative Law - Canberra Tourist Bureau - Powers and
duties not legislatively defined - Name of motel removed
from tourist publication - Decision-maker an "employee"
within the meaning of the Public Service Act 1922 - Regu-
lations imposing obligations on such employee - Whether
decision "made under an enactment" within the meaning of the
Administrative Decisions (Judicial Review) Act 1977.
Administrative Decisions (Judicial Review) Act 1977, s. 5
Public Service Act 1922, s. 82
Public Service Regulations, r. 32, 125
Hawker Pacific Puy. Ltd. v. Freeland & Ors. (unreported -
16 Lecember 1983)
New South Wales v. Bardolph (1934) 52 C.L.R. 455
N. MACDONALD PTY. LIMITED v. DONALD WLLLIAM HANENCE
No. ACT G95 of 1983
Meaves J.
Canberra
10 February 1984
IN THE FEDERAL COURT OF AUSTRALIA
AUSTRALIAN CAPTTAL TERRITORY
No. ACT G95 of 1983
DISTRICT REGISTRY
ew eS
GENERAL DIVISION
BETWEEN : N. MACDONALD PTY, LIMITED
Applicant
AND: DONALD WILLIAM HAMENCE
Respondent
ORDER
JUDGE MAKING ORDER: Neaves J.
DATE OF ORDER: 10 February 1983
WHERE MADE: Canberra
THE COURT ORDERS THAT:
1. The application be dismissed.
2. The applicant pay the respondent's costs of
the application.
IN THE FEDERAL COURT OF AUSTRALIA )
)
AUSTRALIAN CAPITAL TCRRITORY )
) No ACT G95 of 1983
DISTRICT REGISTRY )
)
GENERAL DIVISION )
BETWEEN: N. MACDONALD PTY. LIMITED
Applicant
AND: DONALD WILLIAM HAMENCE
CORAM: Neaves J.
DATE: 10 February 1984
REASONS FOR JUDGMENT
This is an application by N. MacDonald Pty.
Limited ("the applicant") under paragraph 5(1)(a) of the
Administrative Decisions (Judicial Review) Act 1977.
An objection has been taken to the competency of the
application.
The applicant operates the business of a motel
known as the Acacia Motor Lodge or Acacia Lodge situate
at 65 Ainslie Avenue, Canberra City. The decision in
respect of which an order of review is sought is a
decision made on 24 October 1983 which had the effect
' from a publication
of removing the name "Acacia Lodge'
entitled "Canberra Accommodation". 'That publication is
expressed to be "A guide to hotels, motels, guest houses,
hostels and caravan parks" and to be "Compiled by the
Canberra Tourist Bureau ... Canberra City eee". Tt is
asserted that a breach of the rules of natural justice
occurred in connection with the making of the decision.
The application as filed named McDonald B.
Nichols as respondent. At the hearing the applicant
sought, and was granted, leave to substitute Donald William
Hamence as respondent. Mr. Hamence ("the respondent") is
described as the Tourist Commissioner. His responsibilities
include directing and controlling the operations of the
Canberra Tourist Bureau, promoting the Australian Capital
Territory as a tourist destination and providing policy advice
on all aspects of tourism in the Australian Capital Territory.
The Canberra Tourist Bureau is not a body corporate
and does not owe its existence to any statute, regulation or
ordinance. Nor is there any legislative definition of its
powers and duties. It is a section within the Community
Relations and Facilities Branch of the Community Services
Division of the Department of Territories and Local Government.
The Bureau has offices in Canberra, Sydney and Melbourne.
Its Functions are to undertake the promotion of the Australian
bo
Capital Territory as a tourist destination and to provide
tourist and visitor services. Its offices are staffed by
members of the Australian Public Service.
One of the Bureau's tourist promotion undertakings
is the periodical publication of a list of accommodation
facilities in Canberra. The evidence is that such a list
has been published at intervals since at least 1967.
Editions of the list entitled "Canberra Accommodation"
were published on 14 December 1982, 14 Aprii 1983, 11 August
1983 and 2 December 1983. Those editions bore the dates
January 1983, April 1983, August 1983 and October 1983
respectively. The publication shows the name, address and
telephone and telex numbers for each establishment and gives
details of the type of accommodation provided and of the
tariff chargeable.
In 1983 20,000 copies of each edition of "Canberra
Accommodation" vere printed. The copies were distributed
to the offices of the Bureau for display and for dissemination
to the public. The publication is made wilhout charge, cost
or expense to the businesses the names of which appear in the
list. The information published in the list is obtained by
officers of the Bureau soliciting information from the known
accommodation businesses operating in the Australian Capital
Territory. No accreditation or standards of physical
facilities are prescribed for accommodation businesses to be
included in the list. Except where, as in the case of Acacia
Motor Lodge, a decision is made to exclude a particular
business, no such business is omitted from the list.
Mr. Norman MacDonald, a director of the applicant
and manager of Acacia Motor Lodge, gave evidence, which was
not disputed, that he had conducted random surveys as to
the reasons why members of the public sought accommodation at
Acacia Motor Lodge. From those surveys he concluded that the
use by members of the public of the lists published by the
Bureau was the single most important factor in attracting
clients.
On 5 or 6 October 1983 Ilr. MacDonald attended a
meeting with Mr. Nichols, General Manager of the Bureau, and
a Mr. Byfield also of the Bureau. Mr. Nichols informed
Mr. MacDonald that the Bureau had received a number of
complaints concerning the Acacia Motor Lodge which he
summarised as being that Mr. MacDonald was too scrict with
some of the guests' children, that Mr. MacDonald had insisted
on the cessation of noise at 11.00 p.m. by school student
guests and that school student guests had been locked out of
their rooms by Mr. MacDonald. Mr. MacDonald agreed with the
thrust of the first two types of complaint but denied that
school student guests had been Locked out of their rooms.
Mr. Nichols also informed Mr. MacDonald thet Ansett Pioneer
had informed him that they reccived complaints about Mr.
MacDonald's conduct of the Acacia Motor Lodge and had de-
cided not to nake further bookings there. Hr. Nichols
subsequently wrote to lir. A.J. Potter, Manager of Ansett
Pioneer, urging him to reconsider his decision not to deal
further with the Acacia Motor Lodge.
Evidence was also given by Mr. Nichols, and not
disputed, that between 6 and 20 October 1983 he had received
further complaints about the Acacia Motor Lodge which led
him to believe that the dissatisfaction experienced by
patrons was more widespread than he had first thought. He
also ascertained from the Manager of the Bureau's offices at
Sydney and Melbourne that they had from time to time received
complaints about the Acacia Motor Lodge.
Mr. MacDonald gave evidence, which {1 accept, that
at the meeting which took place on 5 or 6 October 1983 he
was not told of any proposal to delete the Acacia Motor Lodge
from any publications of the Bureau.
On 20 October 1983 Mr. Nichols sought a decision
from the respondent whether the Bureau should cease to
publicise, and take bookings for, the Acacia Motor Lodge.
On 24 October 1983 the respondent decided that the Bureau
should not recommend the services of tha Acacia Motor Lodge
to visitors. The decision is recorded in a note in Mr. Ham-
ence's handwriting as follows -
"T have read the attached [ile which does
not make pleasant reading!
"T believe the Tourist Bureau has a right
and obligation tu the consumer to only use
accommodation houses of a standard acceptable
to the visitor generally.
"The complaints lodged against Acacia
Motor Lodge are serious and until such time
as they can prove that they have improved
their standards of service I believe the
Tourist Bureau should not recommend their
services to visitors."
The material upon which the respondent made the decision
is not in evidence.
In accordance with that decision Mr. Nichois
took steps to have the name and details of Acacia Motor
Lodge deleted from "Canberra Accommodation" and from any
future displays and promotions undertaken by the Bureau.
The first edition of "Canberra Accommodation" in which the
mame Acacia Motor Lodge or Acacia Lodge did not appear
was the edition dated October 1983 which, as T have said,
was published on 2 December 19383,
On 23 November 1983 Mr. MacDonald received from
the Bureau a letter dated 18 November 1983 signed by Hr.
Nichols reading as follows -
"In our recent discussion you made clear how
high your standards are. However, the Bureau
has a responsibility in marketing tourist
facilities and services to be confident that
all visitors using these Facilities are
satisfied
"In view of the many comments we have received
from groups whe have used your establishment the
Bureau is not confident of a sufficiently high
Level of satisfaction and therefore will delete
Acacia Motor Lodge from Bureau publications
and marketing activities for the time belug.
"LE you wish to discuss this matter Further T
would be happy to do so at your conventence."
A meeting lasting some 2 hours between Mr.
MacDonald and Messrs. Nichols and Lamb of the Bureau
took place on 23 or 24 November 1983. It is unnecessary
to refer in detail to what was then discussed. For
present purposes it is sufficient to note that Mr. Mac
Donald's request to see the complaints which Mr. Nichols
stated in his opinion warranted the removal from "Canberra
Accommodation" of any reference to Acacia Motor Lodge was
refused on the ground that the complaints were confidential.
It is clear on the evidence, and I so Find, that
the decision of which the applicant complains was made by
the respondent. The evidence also establishes that the
respondent is employed in a temporary capacity under the
provisions of section 82 of the Public Service Act 1922
and is an "omployee" within the meaning of that expression
iP
as used in that Act and in the Public Service Regulations made
thereunder. He is not an "officer" within the meaning of
that expression in that Act or those Regulations.
A threshold question arises whether the decision
made by the respondent on 24 October 1983 is a decision to
which the Administrative Decisions (Judicial Review) Act 1977
applies. It will answer that description if, andonly if,
it is a decision of an administrative character made under
an enactment within the meaning of Lhat expression in the
definition of "decision to which this Act applies" in sub-
section 3(1) of the Act. The expression "enactment" is
defined to mean -
(a) an Act other than the Commonwealth Places
(Application of Laws) Act 1970 or the
Northern Territory (Self-Government) Act
T9783
(b) an Ordinance of a Territory other than
the Northern Territory;
(c) an instrument (including rules, regulations
or by-laws) made under such an Act or under
such an Ordinance; or
(d) a law, or a part of a law, of the Northern
Territory declared by the regulations, in
accordance with section 19A, to be an en-
actment for the purposes of this Act,
and, for the purposes of paragraph (a), (b) or
(c), includes a part of an enactment".
To sustain the proposition that the decision
was a decision under an enactment counsel for the applicant
relied on the provisions of regulations 32 and 125 of the
Public Service Regulations. Regulation 32 provides -
"32, Every officer shall -
(a) during the hours of official business
devote himself exclusively and zcal-
ously to the discharge of his public
duties;
(b) behave at al] times with courtesy to
the public, giving prompt attention to
all reasonable requirements;
(c) obey promptly all instructions given to
him by any officer under whose control
or supervision he is placed;
(d) promptly and correctly carry out all
duties appertaining to his office,
or any other duty he is directed to
perform; and
) in due course and at proper times
comply with, and give effect to, all
enactments, regulations, and authori-
tative instructions made or issued [for
his guidance in the performance of his
duties."
(
ip}
As the respondent is not, as mentioned above, an officer
within the meaning of that expression in regulation 32,
that regulation can have no direct operation in relation
to him. Consequently counsel relied on regulation 125
which provides -
"125. Subject to the Act and these Regulations,
an employee has, in addition to the obligations
expressly imposed on him by these Regulations,
the obLigations -Ehat are imposed by these Regu-
lations on an officer."
Counsel For the applicant argued that the
making of the decision by the respondent was done in
carrying out the obligations which regulation 125 read
with regulation 32 casts upon him and, Chere being no
other statutory provision conferring upon him power
to make the decision in question, the source of the
power to do so is to be found in those regulations. It
was said that the respondent could not act in a vacuum -
there had to be some legislative provision to support
his action and that provision was to be found in the
regulations on which reliance vas placed.
In my opinion the applicant's argument must
be rejected. The clear purpose of regulations 32 and 125
is to cast upon an officer in the one case, and an employee
in the other, obligetions as to the manner in which he shall
carry out the duties which apperrain to his office, in the
case of an officer, or which he is required to perform in
the case of both an officer and an cmployee. They are designed
not only to give guidance and direction to an officer
or employee but also, in the case of a failure to comply
with the obligations so imposed, to provide a basis for
disciplinary proceedings which may be taken wder the
relevant provisions of the Public Service Act 1922. But
in my opinion there is no basis for the assertion that the
regulations provide the legislative foundation or are the
source of power for the making of decisions of the kind
with which this case is concerned. It is not correct, in
my view, to describe the decision made by the respondent as
having been made under those regulations so as to bring the
decision within the purview of the Administrative Decisions
(Judicial Review) Act 1977.
For the applicant it was said that, if the
source of the decision making power is not to be found in
regulation 125 read with regulation 32, there being no other
relevant statutory provision, the respondent acted without
authority and, therefore, illegally in making the decision.
In my opinion this submission lacks substance.
There are many activities in the ordinary course
of administering the affairs of government that may be
carried on independently of uny statutory provision express Ly
or impliedly authorising the particular activity. One may
put to one side for present purposes the need for Parliamentary
appropriation of funds to meet any necessary expenditure. I
do not doubt that the activities of the Canberra Tourist
10.
Bureau in publishing periodically a list of accommodation
facilities in Canberra and in making the necessary decisions
as to what information such publications should contain are
activities which do not require express or implied statutory
authority. In this regard it is sufficient to refer to the
decision of Fox J. in Hawker Pacific Pty. Limited v. Freeland
and Ors. (unreported - 16 December 1983) referring to New
South Wales v. Bardolph (1934) 52 C.L.R. 455 at pp. 474-5,
496 and 508.
For these reasons the application Fails and must
be dismissed. In the light of the conclusion to which IL
have come it would be inappropriate to express any view on
the other matters avgued before me. The applicant must pay
the respondent's costs.
I certify that this and the preceding
ten (10) pages are a true copy of the
Reasons for Judgment herein of the
Honourable Mx. Justice Neaves,
Dated: 10 February 1984
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