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Broadcasting and television - case stated - extent, if any, of
Minister's obligation to consult representatives of existing
television stations concerning publication of a notice calling for
applicants, for new television licence and concerning planning
prior to publication - scheme of the licencing provisions of
Broadcasting and Television Act - functions of Minister and
Tribunal under Act - meaning of "plan the development of ...
television services" - meaning of "consult" - effect of failure to
consult upon efficacy of publication of notice and upon Tribunal
inguiry consequent upon publication - whether requirement to
consult Mandatory or directory - observations concerning
usefulness of Mandatory/directory dichotomy when construing
statutory directions - effect of definition of specification as
used in Act.
Words and Phrases - "plan the development of"
"consult"
Administrative Decisions (Judicial Review) Act 1977
Federal Court Rules 0.4 r.1, 0.29 r.2, 0.54 r.2, 0.4 r.l
Broadcasting and Television Act 1942 5.18, sub-s.80(1),
66.82,83,111C and Part V
Broadcasting and Television Amendment Act (No. 2) 1976
Acts Interpretation Act 1901 sub-s.13(1)
TVW ENTERPRISES LIMITED v. MICHAEL JOHN DUFFY and AUSTRALIAN
BROADCASTING TRIBUNAL and PERTH TELEVISION LIMITED, WEST COAST
TELECASTERS LIMITED, WESTERN TELEVISION LIMITED
No. WA Gll of 1985
TOOHEY J.
PERTH
12 JULY 1985
IN THE FEDERAL COURT
OF AUSTRALIA
WESTERN AUSTRALIA
DISTRICT REGISTRY
GENERAL DIVISION
JUDGE MAKING ORDER
DATE OF ORDER 2
WHERE MADE:
THE COURT ORDERS THAT:
No. WA Gill of 1985
we www
BETWEEN:
TVW ENTERPRISES GIMITED
Applicant
and
MICHAEL JOHN DUFFY
First Respondent
and
AUSTRALIAN BROADCASTING TRIBUNAL
Second Respondent
and
PERTH TELEVISION LIMITED,
WEST COAST TELECASTERS LIMITED,
WESTERN TELEVISTON LIMITED
Third Respondents
MINUTE OF ORDER
Toohey J.
12 July 1985
Perth
1. The questions in the case stated be answered as follows:
Question
1. Was the first respondent under any obligation to
consult with the applicant within the meaning of
§.111C(2)(a) of the Act prior to publication of the
notice:
(a) about or concerning the publication of the
notice;
(b) about or concerning the development of
television services in Australia by the
introduction of a further commercial
television station licence to serve an area
within the Perth Metropolitan Television Area;
(c) about or concerning planning the development
of broadcasting and television services in
Australia;
(ad) about or concerning any matter affecting the
applicant, or a specified class of television
station including the applicant, to a greater
extent or more particularly than television
stations in Australia generally.
Answer
{a) No;
(b) Yes;
(c) Yes;
(ad) It is unnecessary to answer this question.
Question
Re Were such other ministers referred to in para.3 of
section A under any obligation to consult with the
applicant within the meaning of 5.111C(2)(a) of the
Act in relation to any of the matters mentioned in
para.1l hereof in discharging their responsibilities
under 5.111C(1)(a) of the Act?
Answer
Yes; see the answers to Question 1.
Question
3. If the answer to Question lis in any respect in
the affirmative, in each case was the notice
thereby invalid and of no effect?
Answer
No.
Question
4.
If the answer to Question 3 is in any respect in
the affirmative, is the inquiry referred to in
para.8 above invalid and void?
Answer
This question does not fall to he answered.
Question
If the answers to Questions 1and 2 are in any
respect in the affirmative and the first respondent
failed or neglected to consult the applicant in
relation to any of the matters mentioned in para.l
hereof but the other ministers abovementioned did
consult the applicant within the Meaning of
5.111C(2) (a) of the Act as referred to in
Question 2 above, in each case was the notice
invalid and of no effect?
Answer
No.
Question
6.
If the answer to Question 5 is in the affirmative,
is the inquiry invalid and void?
Answer
This question does not fall to be answered.
Question
If the answers to Questions land 2 are in any
respect in the affirmative and the first respondent
and the other ministers abovementioned failed or
neglected to consult the applicant within the
meaning of s5.111C(2)(a) of the Act as referred to
in Questions 1 and 2 respectively, was the notice
invalid and of no effect?
Answer
No.
Question
8. If the answer to Question 7 is in the affirmative,
is the inquiry invalid and void?
Answer
This question does not fall to be answered.
The parties have liberty to apply as to the costs of the case
stated and for directions for the further conduct of the
application.
Note: Settlement and entry of orders is dealt
with in Order 36 of the Federal Court Rules
IN THE FEDERAL COURT
OF AUSTRALIA
WESTERN AUSTRALIA
DISTRICT REGISTRY
GENERAL DIVISION
No. WA Gli of 1985
BETWEEN:
TVW ENTERPRISES LIMITED
Applicant
and
MICHAEL JOHN DUFFY
First Respondent
and
AUSTRALIAN BROADCASTING TRIBUNAL
Second Respondent
and
PERTH TELEVISION LIMITED,
WEST COAST TELECASTERS LIMITED,
WESTERN TELEVISION LIMITED
Third Respondents
CORAM: TOOHEY J.
12 July 1985
REASONS FOR JUDGMENT
The Australian Broadcasting Tribunal ("the Tribunal") is
conducting an inquiry relating to the grant of a further
commercial television licence within the Perth Metropolitan
Television Area. The inquiry has been on foot since early this
year and from time to time there have been' applications to this
Court under the provisions of the Administrative Decisions
(Judicial Review) Act 1977 seeking to challenge decisions made by
the Tribunal in the course of its inquiry.
The matter now before the Court goes more deeply and
attacks the validity of the inquiry itself. That challenge is
made by TVW Enterprises Limited ("TVW") which is the holder of a
commercial television licence in the Perth Metropolitan Television
Area and opposes the grant of an additional licence. The
respondents to the application are as follows. Michael John Duffy
("the Minister") is the Minister responsible for the
administration of the Broadcasting and Television Act 1942 ("the
Act"). Mention has already been made of the Tribunal. Perth
Television Limited ("Perth Television"), West Coast Telecasters
Limited ("West Coast Telecasters") and Western Television Limited
("Western Television") each seeks before the Tribunal the grant of
an additional licence in its favour.
On 28 March 1985, on a motion by the Minister, I made an
order for the statement of a case and questions for decision
pursuant to 0.29 £r.2 of the Federal Court Rules. The
circumstances giving rise to the application and the reasons for
making the order appear in my reasons for judgment delivered 28
March. I there expressed some reservations ahout the utility of a
case stated for the resolution of issues between the parties and
there was some basis for that concern. Nevertheless the procedure
has made it possible to reach some conclusions which determine
Matters of substance in this application. In essence TVW claims
that a notice issued by the Minister on 7 May 1984 inviting
applications for, or written submissions relating to, the grant of
3.
a licence for a commercial television station in the Perth
Metropolitan Television Area was invalid and void and that in
consequence the inquiry being conducted by the Tribunal is also
invalid and void. While the application seeks declarations that
the notice and inquiry were and are each invalid and void, the
basis of this Court's jurisdiction lies in the challenge made by
TUW to a decision made by the Tribunal on 13 December 1984 that
the notice was validly issued and refusing to stay or postpone the
conduct of the inquiry. The application is not in the form
specified by 0.54 r.2 of the Federal Court Rules where the
Judicial Review Act is invoked; it is in the form provided by 0.4
vr. 1 where the Court's original jurisdiction is invoked. No
objection was taken by any of the respondents on this ground and,
the questions of substance being apparent, I propose to deal with
then. Nevertheless the situation is unsatisfactory for the
decision sought to be attacked is not hefore the Court nor does
the application spell out, in terms of s.5 of the Judicial Review
Act, the grounds upon which the applicant relies.
Sub-section 82(1) of the Act provides that before a
licence (which includes a licence for a commercial television
station) is granted, otherwise than by way of renewal, the
Minister shall publish in the Government Gazette and in a
newspaper or newspapers circulating in the area concerned, a
notice:
"(a) setting out an outline of the
specifications to which it is proposed
the licence is to he subject; and
(b) notifying interested persons that they
may -
reads:
(i) lodge with the Tribunal, not later
than a specified date (not being
earlier than 21 days after the
date of publication of the notice
in the Gazette) applications, in
accordance with a form approved by
the Minister, for the grant of the
licence; or
(ii) lodge with the Tribunal, not later
than 14 days after the date 50
specified, written submissions
relating to the grant of the
licence."
Section 111C, which is in PART V - GENERAL of the
"(1) It shall be the responsibility of the
Minister -
(a) to plan the development of broadcasting
and television services in Australia;
(b) to determine standards and practices in
relation to the technical equipment used
for broadcasting and television services
and the operation of such equipment;
(c) to investigate and correct interference
with the transmission and reception of
broadcasting and television programs;
and
(a4) to conduct examinations, or make or
approve arrangements for the conduct of
examinations, and to issue certificates,
as to the competence of persons to
operate technical equipment used for
broadcasting and television services.
(2) In discharging his responsibilities
under paragraph (1)(a), the Minister shall -
(a) consult representatives of broadcasting
stations and television stations in
relation to matters affecting those
stations; and
(b) aif there is a Broadcasting Council -
consult with that Council in relation to
Act,
5.
matters generally affecting broadcasting
and television in Australia."
The basic question is whether the requirement that the
Minister consult representatives of television stations in
relation to matters affecting those stations, in discharging his
responsibility to plan the development of television services in
Australia, extends to the giving of a notice under sub-s.82(1).
For the purposes of the case stated, it is an agreed fact that the
Minister, before issuing the notice, did not consult TVW.
While the basic question may be stated quite shortly
(though the case stated calls for an answer to a number of
questions, all of which have their foundation in the relationship
between para.111C(1)(a), sub-s.111C(2) and sub-s.82(1) of the
Act), an answer requires a consideration of the Act generally and
of a number of its provisions.
Putting to one side s.111C, the scheme of the Act is
tolerably clear. Section 82 finds its place in PART IIIB -
LICENCES. Sub-section 80(1) defines "licence" to mean a variety
of licences including a licence for a commercial television
station. Sub-section 81(1) empowers the Tribunal to grant or
renew a licence "upon such conditions, and in accordance with such
form, as the Tribunal determines". Although sub-s.82(1) makes
the publication of a notice by the Minister a condition precedent
only to the grant of a licence, the conclusion is inevitable that
the Tribunal may not embark upon an inquiry into the granting of a
licence except pursuant to such a notice, for it is the notice
that calls upon interested persons to make application for the
6.
grant of a licence or to Iloadge with the Tribunal written
submissions relating to the grant. And it is the notice that sets
out an outline of the specifications to which it is proposed the
licence is toa be subject. "Specification" is defined in
sub-s.80(1) to mean a specification of any of the following
matters:
""(a) the nature of the service provided in
pursuance of the licence;
(b) the area served in pursuance of the
licence;
(c) the purpose of the service provided in
Pursuance of the licence;
(d) ain the case of a public broadcasting
licence or public television licence -
the special purpose for which the
licence is granted;
(e) a matter referred to in section 93, 94,
95 or 96;
(f) a matter that, by virtue of section
111C, falls within the responsibility of
the Minister."
The remaining sub-sections of 5.82 and 55.83 and 84 are
concerned with the holding of an inquiry and the grant of a
licence. It is true that sub-s.18(1), which is part of Division 3
- Inquiries by the Tribunal within PART II - THE AUSTRALIAN
BROADCASTING TRIBUNAL, empowers the Tribunal before taking action
under the Act "in relation to any matter", if it thinks fit, to
"hold an inquiry in accordance with this Division into that
matter". Sub-section 18(2) empowers the Minister to direct the
Tribunal to hold an inquiry in accordance with the Division into
any of the matters therein mentioned, none of which involves the
7.
grant of a licence. Section 18 1s concerned with the holding of
an inquiry. It does not empower the Tribunal to grant a licence
as a result of an inquiry initiated by it. In my view,
sub-s.82(1) makes a notice by the Minister a prerequisite of an
inquiry relating to the grant of a licence.
It follows, I think, from this reasoning that not only
may a licence not be granted unless the required notice has heen
given but no inquiry may be held into the grant of a licence
without such a notice. In that regard it should be noted that, hy
reason of 5.83, where there is only one applicant for a licence
and there have been no submissions "other than submissions that,
in the opinion of the Tribunal, are frivolous, vexatious or not
made in good faith" objecting to the grant of the licence or to
the grant of the licence to the applicant, the Tribunal may, if it
thinks fit, consider the application without holding an inquiry.
Once an inquiry has been held, before there may be a
grant of a licence the Minister is required by sub-s.84(1) to
determine the specifications applicable to the licence and to
notify the Tribunal accordingly. The specifications must be
consistent with or substantially consistent with the matters set
out in the notice initiating the inquiry. Sub-section 84(2)
reads:
"(2) Upon the grant of the licence, the
conditions of the licence are -
(a) the specifications so determined by the
Minister; and
(b) such conditions, not relating to matters
referred to in the definition of
8.
'specification' in sub-section 80(1), as
are imposed by the Tribunal."
Thus the Minister initiates an inguiry by notice; the Tribunal
determines whether there should be a licence and, if s0, to whom
it shall be granted; and, before grant, the matter returns to the
Minister to determine the specifications relevant to the licence.
The Acts goes to considerable lengths to spell out the
functions of the Minister and of the Tribunal. In this respect it
is useful to refer to the second reading speeches of the Minister
responsible for the Act when moving the Broadcasting and
Television Amendment Bill (No. 2) 1976 and later in moving the
Broadcasting and Television Amendment Bill 1977.
In his second reading speech in connection with the 1976
Bill, the Minister said:
"It has been felt by the Government for some
time that there is now a need to separate the
quasi judicial functions of licensing, and
the conduct of public inquiries, from those
responsibilities involved in the planning,
regulation and other aspects of broadcasting
administration.
To the present time these responsibilities
have been vested in one authority - namely
the Australian Broadcasting Control SBoard.
As a result the Board has on many occasions
been placed in the rather invidious position
of being both 'judge and jury' in a number of
important areas of its administrative
responsibility. Under such conditions the
separation of conflicts of interest, the
preservation of a continuously objective
outlook and the avoidance of ad hoc or
sporadic development of the system through
diverse and fluctuating demand on staffing
and other resources, have become problems of
increasing intensity.
Until further legislation is introduced in
1977, the legislation contained in this Bill
is transitional in nature and transfers the
present responsibilities of the Board to
either the Tribunal or the Department.
Pending an early public inquiry by the
Tribunal into the concept of a greater degree
of 'self-regulation' by the industry itself -
as proposed in the Report of the Inquiry -
the Tribunal will also become responsible for
the administration of the present programming
and advertising standards as presently laid
down by the Australian Broadcasting Control
Board.
It was not possible, in the time available in
this session of Parliament, for Parliamentary
Counsel to draft all the necessary
legislation to implement the decisions of
Government in the licensing area.
It is intended however that the Tribunal will
ultimately assume the present Ministerial
responsibilities to grant, renew, suspend or
revoke licences, as well as impose conditions
on licences or impose penalties. It will
aiso be granted all the powers presently
available to either the Minister or the
Australian Broadcasting Control Board for the
administration of the ownership and control
provisions applicable to broadcasting
licences.
In this way there will be very substantial
'depoliticisation' of the licensing process.
Determinations on questions of licence grants
and renewals, as well as the administration
of licence conditions, will no longer rest
with the Minister. These responsibilities
will, in the future, be vested in the new
Tribunal." (Parliamentary Debates Senate 9
December 1976 pp.2931-2932).
In moving the 1977 Bill the Minister said:
"The principle of a broadcasting system not
subject to political interference is one of
the basic aims of the changes proposed in
this Bill. The major element of the changes
aimed at depoliticising the broadcasting
system is the transfer of the licensing power
from the Minister to the Australian
Broadcasting Tribunal. The broadcasting
10.
industry has sought this change for many
years and it is considered to be an important
factor in achieving more effective
broadcasting administration. In addition we
believe it highly desirable, that there
should be a significant degree of public and
industry involvement in the development of
broadcasting.
Under the revised administrative structure
provided by this Bill, the Minister
administering the Broadcasting and Television
Act now will now be responsible for planning
the provision of broadcasting services. We
believe that planning the physical
development of the broadcasting system is
properly a matter for government. It is
closely related to its overall communications
policy, and to its responsibility for the
management of the frequency spectrum. The
Minister will initiate the calling of licence
applications as part of the planning process
and then refer the applications received to
the Tribunal for determination. In inviting
applications, the Minister will provide
specifications for the particular licence.
These will indicate the nature of the service
to be provided, the area to be served, the
purpose of the licence, and other technical
matters. These specifications will become,
upon grant of the licence, conditions of the
licence an {sic} addition to the conditions
set by the Tribunal pursuant to its powers."
(Parliamentary Debates Senate 7 November 1977
pp.2181-2182).
Against that background, and in terms of the legislation
itself, the meaning and scope of s.111C must be considered. As
mentioned earlier, 5.111C is in PART V - GENERAL of the Act.
Counsel for TVW submitted that it was a reasonable inference
therefrom that, in its reference to planning the development of
television services in Australia, the section had application to
the action of the Minister in publishing a notice pursuant to
sub-s.82(1). I do not accept this submission. Although Part V is
described as "GENERAL", a perusal of the sections therein suggests
11.
that a more appropriate description would be "MISCELLANEOUS". By
reason of sub-s.13(1) of the Acts Interpretation Act 1901, the
heading of Parts and Divisions into which an Act is divided "shall
be deemed to he part of the Act". However it is still necessary
to decide what the term "GENERAL" comprehends. Part V contains
provisions relating to remuneration (s.111E), the rights of public
servants (5.111F), the transmission of certain messages (112), the
obligation of the Australian Broadcasting Commission to make
certain programmes available to commercial television stations and
to make programmes available to certain licensees (55.113, 113A),
the encouragement of Australian artists (s.114), the televising of
Bporting events and entertainments (s.115), the broadcasting or
televising of political or controversial matter {s.116),
particular requirements in regard to the broadcasting or
televising of political matter (55.117, 117A), a restriction on
the broadcasting or televising of objectionable items (5.118), a
review of certain decisions of the Tribunal by the Administrative
Appeals Tribunal (5.119A), the creation of various offences
(55.124A), the prosecution of offences (5.132), the service of
documents (5.133) and the power to make regulations (5.134).
Some of these provisions are clearly of general
application in the sense that they relate to matters to be found
elsewhere in the Act. But, equally, some have a specific function
unrelated to other provisions. The latter find themselves in Part
V because there is nowhere else that they may be appropriately
housed. It is apparent that 5.111C has some application outside
Part V. But the question still remains - in publishing a notice
12.
under sub-s.82(1), is the Minister engaged in plannning the
development of television services in Australia within s5.111C?
The use of the verb "to plan" is significant. Some
submissions made on behaif of the Minister tended to suggest that
unless the giving of a notice under sub-s.82(1) was part of some
plan conceived by the Minister, s5.111C could in any event have no
application. Ido not accept this. As averb, "plan" points
rather to the act of bringing some design or scheme into
existence, an act which necessarily begins before the final design
or scheme is arrived at. "Development" suggests a fuller working
out of details. Thus "to plan the development of ... television
services in Australia" is to engage in the process of bringing
about a detailed scheme to further television services in this
country. Inevitably it will be a process spread over a period of
time, in the course of which ideas may fluctuate. It is unlikely
that there will ever be a time when the details are complete for
the process is both continuous and mutable.
Section 111C was inserted in the Act by the Broadcasting
and Television Amendment Act (No. 2) 1976. In its original form
it declared the responsibility of the Secretary to the Postal and
Telecommunications Department to be along the lines of the present
sub-s.111C(1), though in rather different language. Paragraph (a)
of sub-s.111C(1), in its original form, read:
"(a) to ensure the provision of services by
broadcasting stations and television
stations in accordance with plans for
the development of the system of
broadcasting and television in
KE
lt
Australia, being plans from time to time
approved by the Minister;".
The emphasis was on "plans from time to time approved by
the Minister", a more tangible notion than planning
development.
Sub-section 111C(2), again in its original form,
required the Secretary in discharging his responsibilities under
para.(a) to consult the Broadcasting Council or, if there was no
Broadcasting Council, representatives of the stations mentioned in
the paragraph. The present s.111C was substituted by the
Broadcasting and Television Amendment Act 1977. It is apparent
from the legislative history of s.111C, read in the light of the
second reading speeches to which reference has been made, that the
intention of Parliament was to separate the quasi judicial
licensing function, which was entrusted to the Tribunal, and the
planning and policy making function, which was vested in the
Minister. Section 111C is concerned with identifying particular
functions of the Minister. In carrying out one of those functions
the Minister is required, by sub-s.(2), to consult. In literal
terms the publication of a notice under sub-s. 82(1) is, I think,
within the expression "to plan the development of ... television
services in Australia". Furthermore one of the agreed facts for
the purpose of the case stated is -
"7. The introduction of a further commercial
television service for the Perth
Metropolitan Area and environs:
seme es
wen yen re aoe
neg on —_
Sali Saad
14.
(a) constitutes development of television
services in Australia; and
(Db) aaa
But it is unlikely that Parliament intended that the publication
of anotice pursuant to sub-s.82(1) be part of the Minister's
responsibility under para.111C(1)(a). There is no apparent
connection between the two provisions though one might be expected
if sub-s.111C0(2) were to apply to sub-s.82(1). It is of some
importance that sub-s.111D(1) provides that, for the purpose of
discharging his responsibilities under the preceding section, the
Minister may "make such orders, give such directions and do all
such other things as he thinks fit". While the words "do all such
ather things as he thinks fit" are wide in their import, one would
expect a more direct reference toa notice under sub-s.82(1) if
sub-s.111D(1) were intended to comprehend such a notice. Cf. 5.17
which gives the Tribunal similar powers for "the purpose of
exercising its powers and functions under this Act", not merely
under s. 16 which identifies the functions of the Tribunal. In
other words para.111C(1)(a) is concerned with planning in its
broadest sense, not with the specific act of giving notice to
initiate an inquiry. If the Minister's power to publish a notice
was to be constrained by an obligation to consult first, it would
have been easy enough for the legislature to say so in clear
language.
Consultation is no empty term. "The requirement of
consultation is never to be treated perfunctorily or as a4 mere
formality" (Port Louis Corporation v. Attorney-General of
15.
Mauritius £19651 A.C. 1111 at 1124. That decision and others e.g.
Rollo v. Minister of Town Planning [19481 1 All E.R. 13 at 17 and
Sinfield v. London Transport Executive £19701 Ch. 550 at 558 make
it clear that a responsibility to consult carries a responsiblity
to give those consulted an opportunity to be heard and to express
their views 50 that they may be taken into account. It would bea
somewhat curious result if, the Act having constituted a Tribunal
to consider, within the framework of a public inquiry, whether
there shall be an additional commercial television station and if
60 who shall receive the licence, the Minister must before
instituting an inquiry consult representatives of television
stations that may be affected. If consultation is to have any
meaning it follows that the Minister may, having regard to matters
put to him by holders of existing licences, decide that there
shall be no inquiry, hence no grant. In that event the Minister
will have decided one of the very matters for which the Tribunal
was established, thereby obliterating the distinction between
quasi judicial functions and administrative functions which the
Act sought to establish. By way of illustration, the need for the
commercial viability of existing stations is a matter to which the
Tribunal must direct its attention (para.83(6)(c)(iii)). It
remains true of course that, if par.111C(1)(a) has no application
to sub-5.82(1), the Minister must still make a decision to publish
a notice and must do so on the basis of information available to
him. But that is a different matter from saying that the Minister
must first consult the holders of existing licences before he may
give notice instituting an inquiry. In my view this result was
not intended by the legislature and is not a result that follows
from the proper construction of the Act.
16.
Nevertheless, it is not easy to place para.111C(1) (a)
within the general framework of the Act. The matters mentioned in
paras (b), (c) and (d) of sub-s.(1) are of a technical nature and
put the Minister under no obligation to consult. The consultation
required by sub-s.(2) is not confined to representatives of
television stations in relation to matters affecting them.
Paragraph 111C(2)(b) requires the Minister to consult with the
Broadcasting Council "in relation to matters generally affecting
broadcasting and television in Australia". The Act does not
prescribe circumstances in which the Minister may publish a notice
in accordance with sub-s.82(1). Mr. M. Armstrong, the learned
author of Broadcasting Law and Policy in Australia, comments at
Ppara.703:
"There are no strict guidelines for the
procedure of inviting the Minister to call
applications for licences. On some occasions
the Postal and Telecommunications Department
itself initiates a proposal for a new station
known as a Planning Proposal. It may do so
on the initiative of the Minister or on its
own initiative where a need is perceived.
Sometimes applications are called as part of
some general plan such as the Guidelines for
the Development of Commercial FM Broadcasting
in Phase 1 published by the Department in
June 1979. The Minister is now required to
obtain the advice of the Broadcasting Council
before adopting plans of that kind:
6.111C(2)(b). The Department considers
Planning Proposais prepared outside, and
issues brief guidelines to assist anybody
preparing one: Postal and Telecommunications
Department Annual Report (1978-79) 18. A
Planning Proposal includes information about
matters such as: the proposed service area;
its population and industries; mass media
already available; evidence of demand fora
17.
new station; and basic technical matters such
as proposed radiated power and the nature of
any directional aerial. Some of those
preparing Proposals employ consulting
engineers to incorporate elaborate technical
details, but the engineers in the Department
themselves add appropriate technical details
to a Proposal which wins favour. Every
Proposal received is examined by the
engineering and planning staff of the
Department, who then send it to the Minister
with comments. If the Minister wishes the
Proposal to be considered further, he
circulates it to broadcasting industry bodies
for comment. That is regarded as necessary
under s5.111C(2) of the Act which obliges him
to consult representatives of stations in
relation to matters affecting then. This
process means that existing stations in an
area have an early opportunity to oppose the
licensing of any competitor. After comments
on the Proposal are received from existing
stations, the Department analyses them and
sends the Proposal, comments received and its
own comments and recommendation to the
Minister. The Minister then approves or
rejects the Proposal or asks for
modifications. Where a proposal is approved,
the Minister then calls for applications for
the licence under 5.82."
I have no doubt that the learned author accurately describes what
happens in practice. But if the inference to be drawn is that no
notice may be published under sub-s.82(1) without prior
consultation with television stations that may be affected, I must
disagree, In this regard there is another difficulty in the way
of TVW's submission. At what point is the Minister required to
consult? Planning is a continuous process. Is the Minister
required to consult at each stage of the process? If he is so
required, the difficulties facing him are great indeed.
If I am wrong in the view I have taken of the
relationship, or rather the absence of a relationship, between
s5.111C and 82, it is necessary to consider the nature and extent
ig.
of the obligation cast on the Minister by 5.111C and the
consequences of a failure by him to meet that obligation. One way
of putting the matter is to ask whether 5.111C is mandatory or
directory though I do not think this is a useful dichotomy in the
present case. In Scurr v. Brisbane City Council (1973) 133 C.L.R.
242 Stephen J. said at 255:
"The applicable principles determining the
choice between a mandatory and a directory
interpretation are well settled and are
succinctly stated ina passage from Maxwell
on the Interpretation of Statutes, 12th ed.
(1969), pp.314-315, which has been referred
to with approval in a number of
authorities;".
The passage in question reads:
"It is impossible to lay down any general
rule for determining whether a provision is
imperative or directory. 'No universal
rule,' said Lord Campbell L.C., 'can be laid
down for the construction of statutes, as to
whether mandatory enactments shall be
considered directory only or obligatory with
an implied nullification for disobedience.
It is the duty of Courts of Justice to try to
get at the real intention of the Legislature
by carefully attending to the whole scope of
the statute to be construed.' {Liverpool
Borough Bank v. Turner (1860) 2 De G.F. & J.
502, at pp. 507, S081 And Lord Penzance
said: 'I believe, as far as any rule is
concerned, you cannot safely go further than
that in each case you must look to the
subject-matter; consider the importance of
the provision that has been disregarded, and
the relation of that provision to the general
object intended to be secured by the Act; and
upon a review of the case in that aspect
decide whether the matter is what is called
imperative or only directory." CHoward v.
BHodington (1877) 2 P.D. 203, at p. 2111.
Fae
In a number of decisions, a duty to consult has been
held to be mandatory. See for instance Agricultural Hoard v.
Aylesbury Mushrooms Ltd. £19723 1 W.L.R. 190; In re The Union of
the Benefices of Whippingham and East Cowes, St. James £19547 A.C.
245 and Grunwick Processing Laboratories Ltd v. Advisory,
Conciliation and Arbitration Service £19781 A.C. 655. But the
distinction is not always important; Stephen J. commented in Scurr
at 256:
"It ais well established that a directory
interpretation of a statutory requirement
still necessitates, as a condition of
validity, that there should be substantial
compliance with the requirement; Cullimore v.
Lyme Regis Corporation £19623 1 Q.H. 718
provides a modern instance of this."
But that statement must be read in the light of Stephen J.'s later
comments in Victoria v. The Commonwealth and Connor (1975) 134
C.L.R. 81 at 179:
"A directory construction will not assist
in securing validity unless, despite the
non-compliance which is the occasion for
invoking that construction, there may
nevertheless be seen to be substantial
compliance with the general object at which
the statutory provision aims. Sometimes the
stipulation which has not been complied with
is, in its context, so relatively unimportant
to the attainment of that general object
that, although there has been total
non-compliance, a directory construction may
be appropriate. In such cases it may not
matter that the non-compliance is complete,
not partial. Indeed the stipulation in
question may be of a kind which is incapable
of partial compliance; to give to such a
stipulation a directory interpretation
recognizes that it may be wholly disregarded
without prejudice to validity because of its
relative unimportance in the attainment of
the general statutory object and also,
perhaps, because of the far-reaching and
20.
undesirable consequences of treating its
non-observance as invalidatory.
Where, on the contrary, a stipulation may
be seen to he of importance in attaining the
general object of the statute its total
non-observance cannot be sought to be
excused, and its intended effect
circumvented, by the adoption of a directory
construction. A directory construction may
none the less he given to such a stipulation
if it is of a kind capable of degrees of
non-compliance and if some degree of
non-compliance can be seen as not necessarily
prejudicing the substantial carrying into
effect of the general object. If in such a
case a directory construction be adopted, the
extent of non-compliance in the particular
case must then be examined to determine
whether what has in fact occurred
nevertheless gives effect to the general
object of the statute."
The current state of the authorities was summed up by the Court of
Appeal (New South Wales) in Tasker v. Fullwood £19781 1 N.S.W.L.R.
20 at 23-24 in the following terms:
"From these sources we take the following
propositions: (1) The problem is to he
solved in the process of construing the
relevant statute. Little, if any,
assistance, will be derived from the terms of
other statutes or any supposed judicial
classification of them by reference to
subject matter. (2) The task of construction
is to determine whether the legislature
intended that a failure to comply with the
stipulated requirement would invalidate the
act done, or whether the validity of the act
would be preserved notwithstanding
non~compliance: the Franklins Stores Pty.
Ltd. case. £19773 2 N.S.W.L.R. 955 at pp.963
et. seq. (3) The only true guide to the
statutory intention is to be found in the
language of the relevant provision and the
scope and object of the whole statute:
Hatton v. Beaumont. £19771 2 N.S.W.L.R. 211
at p.220 (4) The intention being sought is
the effect upon the validity of the act in
question, having regard to the nature of the
precondition, its place in the legislative
scheme and the extent of the failure to
ai.
observe 1ts requirement: Victoria v. The
Commonwealth. (1975) 134 C.L.R. 81 at pp.179,
180 (5) It can mislead if one substitutes
for the question thus posed an investigation
a5 to whether the statute is mandatory or
directory in its terms. It is an invitation
to error, not only because the true inquiry
will thereby be sidetracked, but also because
these descriptions have been used with
varying significations. (6) In particular,
it ais wrong to say that, if a statute is
couched in directory terms, the act will be
invalid, unless substantial performance is
demonstrated: the Franklins Stores Pty. Ltd.
case. £19771 2 N.S.W.L.R. 955 at pp.965 et
seq. A statute which, on its proper
construction, does not nullify the act in
question, even for total non-obsevance of the
stipulation, is also described as directory
in its terms: Victoria v. The Commonwealth."
In the present case it is an agreed fact that, before publication
of the notice establishing the inquiry, neither the Minister nor
any of his predecessors consulted TVW in relation to any matter
relevant to the inquiry. The question then is - what are the
consequences of a failure on the part of the Minister to consult?
Did the legislature intend that failure to consult would
invalidate the notice and in turn the inquiry? In this regard it
would, I suggest, be a curious and unexpected consequence of
failure to consult that the inquiry itself should be void. The
Minister's notice invites applications for, or written submissions
relating to, the grant of a licence for a commercial television
station in the Perth Metropolitan Television Area. The notice
fixes a time for the lodging of applications for the grant of a
licence and for the making of written submissions. Section 82
contains machinery provisions for making available for public
inspection the names and addresses of persons lodging applications
and for service of submissions. Section 83 obliges the Tribunal
22.
thereafter to hold an inquiry into the grant of the licence and
contains provisions relating to the holding of the inguiry and the
grant of a licence. Persons appear before the Tribunal and, as
the present inquiry demonstrates, the proceedings may be long and
costly. To hold the inquiry void because of the failure of the
Minister to consult TVW before publishing a notice under
sub-s.82(1) would, in the words of Sir Arthur Channell in Montreal
Street Railway Company v. Normandin £1917] A.C. 170 at 175, "work
serious general inconvenience, or injustice to persons who have no
control over those entrusted with the duty, and at the same time
would not promote the main object of the Legislature ..."
The sections mentioned in the preceding paragraph must
be read together with the provisions in Division 3 of Part II of
the Act which deal generally with the form of inquiries by the
Tribunal. The holder of an existing television licence, as in the
case of TVW, has every opportunity to oppose the grant of any
additional licence and to oppose its grant to any particular
applicant. In my opinion any obligation to consult by reason of
s.111C confers on TVW no greater rights than it has once a notice
has been given except that it may be argued that, as a result of
consultation, the Minister may be persuaded that there is no need
for an inquiry by the Tribunal into a further television licence.
But that view of the Act is, in my opinion, at variance with the
distinction drawn by the Act itself between the functions of the
Minister and the functions of the Tribunal.
The scheme of the Act for the granting of licences is to
be found in Part IIIB. The scheme is detailed; the details have
2 otra cer:
23.
been mentioned already in these reasons for judgment. I am unable
to import into Part IIIB, in particular into the publication of a
notice under sub-s.82(1), the obligation to consult of which
sub-s.111C(2) speaks. I am also unable to read into the Act an
intention that a failure to consult before the publication of a
notice, assuming for the moment that such an obligation exists,
Carries with it the consequence that the inquiry itself and its
conclusions are thereby of no effect. In my view, one would need
to find in the Act a more direct relationship between 5.111C and
5.82 and a clearer indication of Parliament's intention that
failure to consult avoids an inquiry than presently exist. In the
light of these conclusions I turn to the particular questions
asked of the Court. Better to understand the questions and
answers, it is necessary to bear in mind that they embrace the
actions and non-actions of the Minister's predecessors. It must
also be appreciated that the answer to the first question is in
part dictated by the agreed fact to which reference has already
been made.
Question
1. Was the first respondent under any obligation to consult with
the applicant within the meaning of 5.111C(2)(a) of the Act
prior to publication of the notice:
(a) about or concerning the publication of the notice;
(b) about or concerning the development of television
services in Australia by the introduction of a further
24,
commercial television station licence to serve an area
within the Perth Metropolitan Television Area;
(c) about or concerning Planning the development of
broadcasting and television services in Australia;
(ad) about or concerning any matter affecting the
applicant, or a specified class of television station
including the applicant, toa greater extent or more
particularly than television stations in Australia
generally.
Answer
(a) No;
(b) Yes;
(c) Yes;
(d) It is unnecessary to answer this question.
Question
2. Were such other ministers referred to in para.3 of section A
under any obligation to consult with the applicant within the
meaning of 5.111C(2)(a) of the Act in relation to any of the
matters mentioned in para.l hereof in discharging their
responsibilities umder 5.111C(1)(a) of the Act?
25.
Answer
Yes; see the answers to Question l.
Question
3. If the answer to Question 1 is in any respect in the
affirmative, in each case was the notice thereby invalid and
of no effect?
Answer
No.
Question
4. If the answer to Question 3 is in any respect in the
affirmative, is the inquiry referred to in para. 8 above
invalid and void?
Answer
This question does not fall to be answered.
Question
5. If the answers to Questions 1 and 2 are in any respect in the
affirmative and the first respondent failed or neglected to
26.
consult the applicant in relation to any of the matters
mentioned in para.l hereof but the other ministers
abovementioned did consult the applicant within the meaning
of 5.111C(2)(a) of the Act as referred to in Question 2
above, im each case was the notice invalid and of no effect?
Answer
No.
Question
6.
If the answer to Question 5 is in the affirmative, is the
inquiry invalid and void?
Answer
This question does not fall to he answered.
Question
If the answers to Questions 1 and 2 are in any respect in the
affirmative and the first respondent and the other ministers
abovementioned failed or neglected to consult the applicant
within the meaning of s5.111C(2)(a) of the Act as referred to
in Questions 1 and 2 respectively, was the notice invalid and
of no effect?
~ , a
~we
27.
Answer
No.
Question
B. If the answer to Question 7 is in the affirmative, is the
inquiry invalid and void?
Answer
This question does not fall to be answered.
I shall hear from counsel as to the appropriate orders
to be made in the light of these reasons, including any directions
that may be sought for the further conduct of the application.
I certify that this and the twenty-six
preceding pages are a true copy of the
Reasons for Judgment herein of his
Honour Mr. Justice Toohey.
Associate
Dated: " uly , VEE