~ ~ IN THE SUPREME COURT

OF QUEENSLAND No. 7788 of 1998

Before Williams J

[Sita Queensland Pty Ltd v Beattie & Anor]

BETWEEN: SITA QUEENSLAND PTY LTD ACN 070097219 Applicant AND: PETER DOUGLAS BEATTIE First Respondent

DAVID JOHN HAMILL Second Respondent

REASONS FOR JUDGMENT - WILLIAMS J

Judgment delivered 10th day of September 1999

( , CATCHWORDS: ADMINISTRATIVE LAW - Judicial Review on Grounds of Ultra Vires or Defective Exercise of Power - Failure to Exercise Discretionary Power - delegation of power - whether both Ministers made own decision.

Minister for Aboriginal Affairs v Peko Wallsend Limited (1986) 162 CLR 24, applied.

STATUTES - Acts of Parliament -Interpretation - Queensland Competition Authority Act - definition of "Ministers must act jointly" - sufficient if act in 'concurrence of the other'.

Kendle v Melson (1998) 193 CLR 46, considered. Queensland Competition Authority Act, s 6 considered.

ADMINISTRATIVE LAW - Judicial Review on Grounds of Ultra Vires or Defective Exercise of Power - Abuse of Discretionary power - Consideration oflrrelevant Matter or Refusal to Consider Relevant Matter - whether the matters alleged were irrelevant considerations - whether these considerations were decisive. ADMINISTRATIVE LAW - Judicial Review on Grounds of Ultra Vires or Defective Exercise of Power - error of law - whether Ministers simply adopted the approach of the Minister of Transport & applied the wrong test - distinction between political­ administrative decision-making and test to be applied in civil litigation.

Minister for Immigration and Ethnic Affairs v Wu (1996) 185 CLR 259, approved Briginshaw v Briginshaw (1938) 60 CLR 336, distinguished. Queensland Competition Authority Act, s 57 referred to.

ADMINISTRATIVE LAW - Rules of Natural Justice and Breach Thereof - right of party affected to be heard -whether applicant should have been given the opportunity to comment on Minister of Transport's material- whether consideration of procedural fairness of the type discussed in Kioa v West applied - ground should be considered in light of statutory provisions.

Bread Manufacturers ofNew South Wales v Evans (1981) 56 ALJR 89, referred to. Queensland Competition Authority Act, s 57, referred to.

ADMINISTRATIVE LAW - Judicial Review on Grounds of Ultra Vires or Defective Exercise of Power - Abuse of Discretionary power - Consideration oflrrelevant Matter or Refusal to Consider Relevant Matter - no cluty to consider advice of the Solicitor-General.

ADMINISTRATIVE LAW - Judicial Review on Grounds of Ultra Vires or Defective Exercise of Power - Failure to observe procedures required by statute - whether respondents failed to consult with responsible Minister - no procedures laid down by statute.

ADMINISTRATIVE LAW - Judicial Review on Grounds of Ultra Vires or Defective Exercise of Power - decision not authorised by statute - whether decision incomplete as it did not expressly reject QCA's recommendations.

Queensland Competition Authority Act, s 57, referred to.

Counsel: Mr F Harrison QC & Mr B Porter for the Applicant Mr R Hanson QC & Mr P Flanagan for the Respondents

Solicitors: MacGillvrays for the Applicant Crown Solicitor for the Respondents

Hearing Date: 2nd August 1999. IN THE SUPREME COURT

OF QUEENSLAND

No. 7788 of 1998 Brisbane

Before Williams J

[Sita Queensland Pty Ltd v Beattie & Anor]

BETWEEN:

SITA QUEENSLAND PTY LTD ACN 070 097 219

Applicant AND:

( \ PETER DOUGLAS BEATTIE

First Respondent .

DAVID JOHN HAMILL Second Respondent

REASONS FOR JUDGMENT - WILLIAMS J

Judgment delivered 10th day of September 1999

1. The applicant seeks review pursuant to the Judicial Review Act 1991 (JR Act) of the

decision of the respondents, being the Premier and , recorded in a

document dated 6 August 1998 and headed Ministers' Decision Noticepursuant to s.57(3) of the

Queensland Competition Authority Act 1997 (QCA Act).

2. To facilitate the hearing ofthe application the applicant delivered a statement of claim.

The allegations of fact contained in paragraphs 1-40 inclusive thereof, while not admitted by the

respondents, are not disputed for purposes of the hearing. 2

3. At least since October 1995 part of the applicant's business has involved the transporting

of passengers by bus between Brisbane and the Gold Coast along what is called the Brisbane-

Gold Coast public transport corridor. There is what is described as a "market" for the provision

of public passenger transport services along that corridor. The applicant has clearly been a

competitor in that market at least since 2 October 1995, and continues to be so.

4. On or about 26 February 1996, Queensland Rail (QR) started providing rail services along

that public transport corridor; initially the service was from Brisbane to Helensvale but it has

been extended to Robina. Because of that QR can be described as a competitor in the public

passenger transport market between Brisbane and the Gold Coast. In about January 1995 the

I\. then Minister for Transport and Main Roads set the initial fares to be charged for the rail service;

there was an increase after 23 January 1997.

5. QR is a body corporate which is a statutory GOC as defined in the Government Owned

Corporations Act 1993. It was then established as a body corporate on 1 July 1995 by s.8 of the

Government Owned Corporations (Queensland Rail) Regulation 1995. The 10 million ordinary

shares of $1 each are held equally by the Minister administering the GOC Act and the Minister

for Transport and Main Roads. Thus QR is a government agency as defined in the Schedule to

the QCA Act. By Gazette notice dated 30 June 1997 the then Premier and Treasurer of

Queensland declared all the business activities of QR to be "significant business activities" for

the purposes of s.39 of the QCA Act.

6. The statement of claim alleges that the fares set for rail passengers using the public

transport corridor in question were not set in accordance with ordinary commercial principles;

they were not set so as to recover costs or to make a profit; they do not include any profit margin,

debt guarantee fees, sales tax, or share of corporate overhead; nor do they cover the operating

costs of the service. It is alleged that the fares were set on the basis that Queensland would fund 3

and continue to fund the provision of the Gold Coast rail service by providing both direct

payments and internal cross subsidies to QR to enable it to provide the services.

7. The applicant then alleges that because the rail fare is lower than it's bus fare its share of

the subject market has fallen substantially and it will not be able to continue to carry on business

in that market without significant levels of external funding or cross subsidisation. It asserts that

unless the present situation is remedied it will have to cease providing its services in question.

8. Against that background the applicant made a complaint to the Queensland Competition

Authority (QCA), a body corporate established by s.7 of the QCA Act. Section 38 of that Act

provides:

( " " \ "The principle of competitive neutrality is that a government agency carrying on a significant business activity should not enjoy a competitive advantage, solely because of the government ownership or control ofthe agency, over competitors or potential competitors in a particular market."

9. Section 43 of the QCA Actprovides that a person adversely affected by the competitive

advantage alleged to be enjoyed by the government agency may lodge a complaint. On 2 July

1997 the applicant formally lodged a written complaint alleging against QR a breach of the

principle of competitive neutrality by the prices it was charging for the Brisbane to Gold Coast

passenger rail service.

10. Thereafter the QCA conducted an investigation into the complaint. There is no doubt that

the applicant had ample opportunity to put its case fully to the QCA. Indeed, as is established

by exhibit 6, the applicant was given an opportunity of commenting upon a draft report before

that report was finalised and forwarded to "the Ministers" pursuant to s.52 of the QCA Act.

11. The expression "the Ministers" is used throughout the Act, and in the Dictionary (the

Schedule to the Act) it is defined as meaning "the Premier and the Treasurer". That brings into

play s.6(1) which provides: 4

"F or this Act -

(a) if a thing is required to be, or may be, done by the Ministers, the thing is to be done by the Ministers jointly; and (b) if a thing is required to be, or may be, given to the Ministers, the thing is to be given to each of the Ministers."

Subsection (2) provides that where those two offices are held by the one person (as is not

. infrequently the case) "the thing may be done by, or given to, that person alone".

12. Section 54 provides that the QCA must state in a report whether the complaint has been

substantiated, its reasons for the decision, and (where it decides a complaint has been

substantiated) include recommendations on how the government agency's failure to comply with

the principle of competitive neutrality could be overcome.

13. The report was finalised in June 1998 and delivered under cover of a letter dated 7 July

1998 to the respondents. It is of some relevance to note that the Beattie Government was sworn

in on 29 June 1998 having defeated the previous Government at an election held shortly before

that date.

(\ :1. 4 The report from the QCA is reasonably lengthy but it is not necessary to quote extensively

from it for present purposes. All that need be noted are paragraph 11 reciting the decision, and

paragraphs 36 and 37 containing the recommendations:

"11. The Authority has concluded that:

• the fares charged by QR for its Brisbane to Gold Coast services breach the principle of competitive neutrality; BUT • QR does not enjoy any procedural or regulatory advantage in respect of Brisbane to Gold Coast services which breach the principle of competitive neutrality.

36. The Authority recommends that:

1. A CSO framework be developed for the Brisbane to Gold Coast public transport service which: 5

(i) complies with the principle of competitive neutrality; (ii) achieves an efficient resource allocation within the public transport market in South East Queensland; (iii) promotes competition in the public transport passenger market;

2. Until such time as the appropriate framework is established and implemented, the should, within 6 months of the release of this Report, ensure that passengers currently travelling by bus retain access to those or equivalent public transport services; and

3. Queensland Transport and QR establish a framework to facilitate adherence to the protocols required under the Government Owned Corporations Act 1993 in respect of the establishment of prices for QR services and the payment ofCSOs."

37. In the interests of overall efficient allocation of resources, the Authority suggests that the framework adopted in due course to remedy the breach of competitive neutrality should also reflect the contribution of public transport relative to ( '\ private transport to the transport needs of the region."

15. No one suggested that that report did not meet the requirements of s.54 ofthe QCA Act.

In accordance with s.55 within 2 days after the respondents received the report they had to ensure

that a copy of it was available for public inspection. It was not suggested that there was a failure

to comply with that statutory requirement.

Section 57 is of critical importance for present purposes and it is in these terms:

"57(1) Within 1 month after the Ministers receive a report, the Ministers must-

(a) accept or reject the authority's decision on whether the complaint the subject of the investigation has been substantiated; and

(b) if the authority decides a complaint has been substantiated - accept (with or without qualification), or reject, any recommendation of the authority contained in the report on how the government agency's failure to comply with the principle of competitive neutrality could be overcome.

(2) However, the Ministers may act under subsection (1) only in consultation with the responsible Minister.

(3) The Ministers must give a written notice (a "Ministers' Decision Notice") to the authority setting out their decision under sub section (1) and the reasons for the decision. " 6

17. The responsible Minister for purposes of subsection (2) thereof was the Minister for

Transport and Minister for Main Roads (hereinafter simply referred to as the Minister for

Transport). By letter dated 14 July 1998, signed by the Treasurer on behalf of himself and the

Premier, a copy of the QCA's report was forwarded to the Minister for Transport initiating

consultation pursuant to s.57(2). That letter contained the observation that "At first glance, the

QCA's finding that a breach of competitive neutrality by QR has occurred and QCA's attendant

recommendations in order to overcome the breach, would appear to be appropriate in the

circumstances." The reply from the Minister for Transport was received in the Treasurer's office

on 3 August 1998. It consisted ofa letter and accompanying comment on the QCA Report. In

broad terms the submission from the Minister for Transport was that the finding that there was

a "breach of the principle of competitive neutrality is both incorrect and fundamentally flawed

and therefore should be rejected." He also submitted that the three recommendations contained

in that Report "should be rejected as they stand".

18. The applicant primarily attacks the process by which the respondents arrived at their

decision contained in the Ministers' Decision Notice bearing date 6 August 1998. The relevant

part of that document is as follows:

"The decision

As the Ministers responsible under the Act, pursuant to s.57:

a. we reject the QCA's decision that there has been a breach ofthe principle of competitive neutrality in relation to the fares charged by QR for its Brisbane to Gold Coast services; and

b. we accept the QCA's decision that QR does not enjoy any procedural or regulatory advantages in respect of the Brisbane to Gold Coast services which breach the principle of competitive neutrality. 7

Reasons for the decision

a. Rejection ofQCA's decision that there has been a breach ofthe principle of competitive neutrality in relation to the fares charged by QR for its Brisbane to Gold Coast services.

We reject the QCA's decision that there has been a breach ofthe principle of competitive neutrality in relation to the fares charged by QR for its Brisbane to Gold Coast services because we consider that the information available to us is not sufficiently conclusive to support the QCA's decision.

b. Acceptance of the QCA's decision that QR does not enjoy any procedural or regulatory advantages in respect ofthe Brisbane to Gold Coast services which breach the principle of competitive neutrality.

The complainant alleged that it was disadvantaged by a number of procedural and regulatory mechanisms.

We accept the QCA's decision that QR does not enjoy any procedural or regulatory advantages in respect of the Brisbane to Gold Coast services which breach the principle of competitive neutrality for the reasons set out in the attachment to this decision notice."

It is not necessary to set out the reasons contained in the attachment.

19. The bases on which the decision of the respondents is attacked are somewhat differently

stated in the Statement of Claim and the Outline of Submissions of the Applicant delivered 19

July 1999. The argument in court followed the Outline of Submissions, and that should be taken

as the operative statement of the bases on which the decision is challenged. The grounds of

attack can be summarised as follows:

1. Failure to exercise discretion

(a) decision non-delegable; (b) Ministers did not decide personally; (c) both Ministers must actively consider.

2. The Ministers took irrelevant considerations into account.

3. The Ministers' decision was tainted by error oflaw.

4. The Ministers failed to accord the applicant procedural fairness. 8

5. The Ministers failed to take into account relevant circumstances.

6. The Ministers failed to observe procedures required by the statute.

7. The Ministers' decision is not authoried by the statute.

It is necessary to deal with each of those contentions in turn.

Failure to Exercise Discretion

20. The principal issues raised by the applicant under this heading were that the respondents

merely rubber-stamped advice given by Departmental officers and did not exercise their own

discretion, and the decision was not truly a joint one as required by the Act.

21. It is true that the respondents were given briefing notes by Departmental officers,

particularly Treasury officials. In the circumstances that is not surprising. As already noted the

Beattie Government had been in office for only a few weeks when the decision had to be made,

and much of the background related to matters and decisions for which the former government

was responsible. In those circumstances, particularly given that the decision had to be made

within one month, advice from Departmental officers was critical. In Minister for Aboriginal

Affairs v Peko-Wallsend Limited (1986) 162 CLR 24 Gibbs CJ observed at 30-31:

"Of course the Minister cannot be expected to read for himself all the relevant papers that relate to the matter. It would not be unreasonable for him to rely on a summary ofthe relevant facts furnished by the officers of his Department. No complaint could be made if the Departmental officers, in their summary, omitted to mention a fact which was insignificant or insubstantial. But if the Minister relies entirely on a Departmental summary which fails to bring his attention to a material fact which he is bound to consider, and which cannot be dismissed as insignificant or insubstantial, the consequence will be that he will have failed to take that material fact into account and will not have formed his satisfaction in accordance with law."

Mason J in the same case at 38 recognised that the business of government could not be carried

on if Ministers were required to exercise all powers personally. That was subject to those cases

where the statute made it clear that the Minister had to exercise the power personally. Further 9

reference should be made to the remarks in that case of Brennan J at 65-6:

"The Department does not have to draw the Minister's attention to every communication it receives and to every fact its officers know. Part of a Department's function is to undertake an analysis, evaluation and precis of material to which the Minister is bound to have regard or to which the Minister may wish to have regard in making decisions. The press of ministerial business necessitates efficient performance of that departmental function. The consequence of supplying a departmental analysis, evaluation and precis is, of course, that the Minister's appreciation of a case depends to a great extent upon the appreciation made by his Department. Reliance on the departmental appreciation is not tantamount to an impermissible delegation of ministerial function. A Minister may retain his power to make a decision while relying on his Department to draw his attention to the salient facts. But if his Department fails to do so, and the validity of the Minister's decision depends on his having had regard to the salient facts, his ignorance of the facts does not protect the decision."

In this particular case the Treasurer, the respondent Hamill, swore in his affidavit that he

read the report ofthe QCA on a number of occasions; under cross-examination he did not resile

from that proposition. The material satisfies me that the respondent Hamill read the report and

considered it in the light of advice from his Department and the material which resulted fron

consultation with advice from the Minister for Transport. On the evidence I am satisfied that the . respondent Hamill did not merely adopt Departmental advice so that it could be said that he did

not exercise a personal discretion.

~23. However, I am satisfied that the Premier, the first respondent Beattie, did not read in full

the report of the QCA. He may have skimmed some parts of it, particularly the

recommendations, but I am satisfied that in the main he relied on Departmental briefing notes

as to its contents. I am also satisfied that he directed his mind to issues raised in the briefing

notes and in particular to the observations and recommendations which emanated from the

Minister for Transport. There is also no doubt, as he frankly acknowledged, that he was

influenced in reaching the conclusion that he should concur in the decision because the

Treasurer's signature was already on the document. 10

24. The main concern ofthe first respondent was whether or not the decision to reject the first

finding in the QCA report conflicted in any way with government policy on competition. It was

understandable in the circumstances that the Premier should be more concerned with such

broader policy considerations.

25. In my view the process of reasoning of the first respondent could best be expressed by

saying that, having directed his attention to issues raised in the briefing notes and the material

from the Minister for Transport, and taking into account the broad policy implications of the

decision, he concurred in the decision reached by the Treasurer. To that extent he made his own

decision. ( \ -26. That leads to the applicant's second argument under this head; the contention that the

"Ministers must act jointly". It was submitted that each of the respondents was required to join

in the exercise of the power and that the statute required "both the Premier and the Treasurer to

tum their minds together to the substantive issues". In a word, the decision had to be made in

"concert" . / \. 27. In essence the applicant was contending for a Gilbertian solution: "replying we sing as

one individual". That, to my mind, is taking the requirement of the statute too far.

28. There is little authority on what is required wh~re a power must be exercised by two or

more persons jointly. The question was touched upon in Kendle v Melsom (1998) 193 CLR 46

where the court was concerned with the appointment of two men to be "joint and several"

receivers and managers of an undertaking pursuant to the terms of a mortgage. Brennan CJ and

McHugh J at 51 said:

"The question is whether, if a plurality be appointed, the powers which the Bank is authorised to confer on them are powers that must be exercised by them jointly - that is to say, powers in which each must join in the exercise - or powers that can be exercised by them severally - that is to say, powers which each may exercise independently of the other." 11

On the following page they spoke in terms of the receivers necessarily "agreeing on the course

to be pursued"; the powers "could not be exercised by two or more persons acting independently

one of the other." Then on 54 those learned judges used the expression: "they must together

resolve on the general course of the receivership". And again on 55 they spoke of "a concurrence

... that might be express or implied" before it could be said the power had been exercised jointly.

Hayne J at 67 used similar language; he spoke in terms of the receivers acting with the

"concurrence of the other". He seems to have regarded that as sufficient for it to be said that the

receivers were acting together, that is jointly.

29. To my mind that is the only way of sensibly construing a requirement, such as that here, c whereby two persons are to join in making a decision. Particularly in the context of a government decision made at ministerial level it is not necessary, in my view, that the two

ministers should meet face to face and verbally discuss options and reasons for a particular

decision before it can be said that the decision is that of each of them. That is essentially what

the applicant here pontends for. In this particular case the Premier was significantly influenced ( by the con~ideration that the Treasurer had applied his mind to the detail of the matter for

determination and had arrived at a particular decision. Having regard to the Treasurer's decision,

and the contents of the briefing notes, the Premier was satisfied that he should concur in the

Treasurer's decision. That in my view is sufficient to make the decision that of both ministers

arrived at jointly. It meets the test as formulated in Kendle.

30. In those circumstances it is not necessary to make a final determination as to whether or

not the decision was non-delegable; each of the respondents directed his mind sufficiently to the

facts and the question in issue in order to exercise his own discretion, albeit they were acting

together. \

12

Irrelevant Considerations

31. In the Statement of Claim, as later particularised, seven matters were designated as being

irrelevant considerations which the respondents took into account in arriving at their decision;

those considerations allegedly were:

(i) the cost to the State of Queensland of accepting the QCA decision;

(ii) the possible electoral consequences of raising rail fares so as to comply

with the principle of competitive neutrality;

(iii) similar complaints might be lodged by other unsubsidised private

transport operators in competition with QR; ( (iv) the Government's prerogative to purchase public transport services and

provide subsidies for whatever reason it chooses might be constrained by

an unfavourable precedent;

(v) the Government's legal position in a dispute with the applicant then the

subject of litigation might be damaged or compromised;

(vi) the findings might allow the applicant to recommence negotiations on the

matters of complaint raised by applicant generally;

(vii) the findings might result in the Government having to pay compensation.

32. In evidence each respondent expressly denied taking particulars (i) and (ii) into

consideration. It is in practical terms unthinkable that any government, particularly a government

with a small majority, would not have regard to the cost to the State of making a decision or the

possible electoral consequences of the decision. As I said in the course of argument, as a

Queensland taxpayer I would certainly hope that the cost to the State was always considered

when a government (of whatever political persuasion) was making a decision with economic

implications. For these reasons I would need further persuasion before concluding that either 13

item (i) or item (ii) was an irrelevant consideration such as would vitiate the decision. But

ultimately I have come to the view that what each respondent was saying in evidence was that

neither item (i) nor (ii) was a decisive consideration when it came to reaching the ultimate

decision. Particularly bearing in mind that this was a decision which involved government

policy for the future I am not persuaded that there is any substance in the contention of the

applicant that the decision was vitiated because items (i) and (ii) caused the Ministers to reach

the conclusion which they did.

33. It will be recalled that the statute requires the respondents to act "only in consultation

with the responsible Minister", here the Minister for Transport. The respondents had no control

over what material that other Minister might place before them in the course ofthe consultation.

Here, as already noted, the Minister for Transport submitted a letter and accompanying comment

on the QCA report. That material spoke of "grave consequences" flowing from the repondents

not rejecting the conclusion that there had been a breach of competitive neutrality. Those grave

consequences were particularised in terms of items (iii) to (vii) inclusive above. It was

incumbent upon the respondents to consult with the Minister for Transport and in consequence

they were statutorily bound to give some consideration and weight to whatever arguments he

! i - .... placed before them, though they had no control over what submissions might be made .. To that

extent it could not be said that anything contained in the material from the Minister for Transport

constituted an irrelevant consideration for present purposes.

34. But in any event I am not persuaded that either of the respondents in arriving at his

decision placed such weight on all or any of items (iii) to (vii) such as would lead to the

conclusion that the decision was vitiated because irrelevant considerations had been taken into

account. 14

Error of Law

35. As already noted the reasons given by the respondents for rejecting the decision ofthe

QCA that there had been a breach of the principle of competitive neutrality was that they

considered "that the information available to us is not sufficiently conclusive to support the

QCA's decision". Counsel for the applicant linked that with the statement by the Minister for

Transport in paragraph 7 of his comments that the finding by the QCA would potentially warrant

additional government funding such that the respondents would "need to be absolutely certain

that the QCA's conclusion that a breach has occurred is based on a sound premise and on ( conclusive evidence." The submission was made that the language used in the "Ministers'

Decision Notice" so closely reflected what was said in paragraph 7 that the inference should be

drawn that the respondents adopted and applied that approach. It was then contended that ifthat

was done then there was an error of law in the decision making process because the wrong test

was applied. According to counsel for the applicant what was said by the High Court in

Briginshaw v Briginshaw (1938) 60 CLR 336 at 361-2 established the appropriate test; the

satisfaction of the repondents had to be on the balance of probabilities taking into account the

seriousness of the consequences. In that context counsel also referred to Bruce v Cole (1998) 45

NSWLR 163 at 190 and Minister for Immigration and Ethnic Affairs v Pochi (1980) 44 FLR 41

at 67.

36. In the circumstances I am not persuaded that the submissions are valid. In my view the

more pertinent observations are those of the High Court in Minister for Immigration and Ethnic

Affairs v Wu (1996) 185 CLR 259 at 282; there Brennan CJ, Toohey, McHugh, and Gummow

JJ said: 15

"Submissions were made at the hearing of the appeal as to the correct decision­ making process which would have been permissible for the delegates to adopt. These submissions were misguided. They draw too closely upon analogies in the conduct and determination of civil litigation.

Where facts are in dispute in civil litigation conducted under common law procedures, the court has to decide where, on the balance of probabilities, the truth lies as between the evidence the parties to the litigation have thought it in their respective interests to adduce at the trial. Administrative decision-making is ofa different nature. A whole range of possible approaches to decision-making in the particular circumstances of the case may be correct in the sense that their adoption by a delegate would not be an error of law. The term "balance of probabilities" played a major part in those submissions, presumably as a result of the Full Court's decision. As with the term "evidence" as used to describe the material before the delegates, it seems to be borrowed from the universe of discourse which has civil litigation as its subject. The present context of administrative decision-making is very different and the use of such terms provides little assistance."

37. Wu and Fernandez v Government ofSingapore (1971) 1 WLR 987, were each concerned

with prophesying as to what might happen in the future rather than with making findings as to

what in fact occurred in the past. But nevertheless it is clearly correct to draw a distinction

between fact finding in civil litigation and making a political-administrative decision as to

whether or not a particular report should be adopted by government. (cf. also the reasoning of

the Privy Council in Mahon v Air New Zealand (1984) AC 808 at 814-5).

,s., I am by no means satisfied that the respondents reached their decision simply by adopting

the approach of the Minister for Transport indicated in paragraph 7 of his report. The language

used in the Ministers' Decision Notice recognises that the matter was one of importance for the

government and does no more than establish that the respondents considered that the report in

the particular respect should not be accepted because in their view the evidence was not

sufficiently conclusive to support that decision.

39. Section 57 does not oblige the respondents to apply any particular test or to have regard

to any particular circumstances in arriving at their decision. As already noted it is in essence a .' 16

policy decision for government and such a decision will inevitably be based on what the two

most senior Ministers in the government consider to be appropriate having regard to government

policy.

40. In the circumstances I am not satisfied that there was any error of law in that the

respondents applied some incorrect test in arriving at their decision.

Failure to Accord Procedural Fairness

41. The contention here of the applicant is that it was not accorded procedural fairness

primarily because the respondents did not give it the opportunity of commenting on the material

obtained from the Minister for Transport pursuant to s.57(2) of the Act. Though there was a deal

of cross examination on the point it seems clear that the applicant was not aware of the contents

ofthat submission and had no opportunity of commenting on it prior to the decision being made

by the respondents.

42. Whether or not that amounted to a failure to accord procedural fairness must be

determined in the light of the statutory provisions. Section 57 requires the Ministers to make

their decision within one month and decrees that they must consult with (in this case) the

Minister for Transport. Their decision in writing must be given to the QCA (s.57(3)) and must

be made available within 2 days for public inspection (s.59). It is for the QCA to provide "the

complainant" (in this case the applicant) with a copy of the Ministers' decision (s.58); there is

no obligation on the Ministers to provide the complainant with a copy of the decision.

43. Whilst the investigation carried out by the QCA is instigated by someone making a

complaint, the ultimate decision of the Ministers pursuant to s.57 is more than an acceptance or

rejection of that complaint and has more far-reaching economic consequences. In carrying out

its investigation the general procedures to be followed by the QCA are as set out ins.173 of the

Act; inter alia, the authority must "comply with natural justice". It is not disputed that that was 17

done here. The material suggests that the applicant was provided with a draft of the QCA report

and given the opportunity of commenting on that draft before the final report was submitted to

the Ministers pursuant to s.52.

44. It is of significance that what the Ministers can either accept or reject is the QCA report,

not the complaint which initiated the investigation. In that context it is of importance that the

only consultation specified by the legislation at the stage of the ministerial decision is with the

"responsible Minister". The respondents did not have to accord procedural fairness to the QCA,

the authority whose report is being accepted or rejected.

45. The weakness ofthe applicant's argument is demonstrated by a consideration ofthat part

of the report accepted by the respondents. The QCA found against the contention of the

applicant that Queensland Rail enjoyed a procedural or regulatory advantage in respect of the

Brisbane to Gold Coast services which breached the principle of competitive neutrality. If there

was substance in the applicant's argument that it had to be accorded procedural fairness at the

stage of the ministerial decision then it would equally apply to the ministerial decision accepting

that part of the Report. It has not been suggested that the respondents ought to have given some

notice to the applicant of their intention in that regard. ( \ 46. Counsel for the applicant also submitted that there was a failure to accord procedural

fairness in that the opinion of Mr Freeburn of counsel obtained by Crown Law critical of the

Report was not made available to the applicant. On the evidence it does not appear that

Freeburn's advice played any significant role in the decision-making process of either of the

respondents. It appears that the advice did not come to the attention of the Treasurer, and the

Premier only glanced at it in passing. Freeburn's advice did come to the knowledge ofQCA

which in tum obtained its own legal advice on the issues therein raised. 18

47. Against that background it is correct, in my view, to say that the ministerial decision

pursuant to s.57 is not directly concerned with the complaint which initiated the investigation but

with the broader economic and policy question as to whether or not the report and its

recommendations should be adopted by the government. In that context the observations of

Gibbs CJ in Bread Manufactures of New South Wales v Evans (1981) 56 ALJR 89 at 94 are

instructi ve:

"I return to consider the nature of the power which the Commission exercises under s.20(1). Except in the case where an inquiry is required to be held, the Commission does not follow a procedure similar to that of a court. It is not called upon to adjudicate upon a controversy between contending parties. The exercise of its discretion does not depend upon the formation of an opinion as to any particular fact or circumstance. It is no doubt required, by s.58, to consider such general matters as whether an increase in price would be "undue" and to what extent the regulation of the price of bread (an essential commodity) is "necessary", but its discretion is virtually unfettered. Its function, at least in the present case, was to make a general decision of a discretionary character which affected all consumers and sellers of bread. In Salemi v MacKellar (No.2) (1977) 137 CLR 396 at 452 Jacobs J drew a distinction between an Act which directly affects a person individually and one which affects him simply as a member of the public or a class of the public, and said that an executive or administrative decision of the latter kind is truly a "policy" or "political" decision and is not subject to judicial review. Although, it is unsafe to generalise, I respectively agreewith the significance ofthe distinction .... The provisions of the Act support the view, which the nature of the power suggests, that the audi alteram partem principle has no application to the exercise by the Commission of its powers in a case in which no enquiry is required to be held."

To similar effect is some of the reasoning of the Full Court of the Federal Court in Controller

General of Customs v Kawasaki Motors Pty Ltd (1991) 32 FCR 219.

48. Here, at the stage of the ministerial decision pursuant to s.57, the exercise of discretion

does not depend upon the formation by the Ministers of an opinion as to any particular fact or

circumstance. They are not called upon to adjudicate upon a controversy between contending

parties. The discretion is virtually unfettered. The decision is not primarily directed to the matter

of complaint which initiated the investigation by the QCA, but rather to the way in which the 19

economic affairs of a government instrumentality should be handled in the future. In my view

the decision is clearly a "policy" or "political" one involving social, political and economic

considerations affecting the wider Queensland community.

49. Even if the finding that there had been a breach of competitive neutrality had been

accepted, that would not have altered the position of the applicant. It derived no right or remedy

from a decision accepting the finding. Some further future government action was required

before the applicant's position improved in any way, and there was no obligation on the

government to take that further step. The legislation did not impose any sanction where the

government accepted such a finding but failed to take further remedial action. Such

considerations are relevant when considering what obligation, if any, there was on the

respondents to accord the applicant procedural fairness.

50. In all the circumstances I am not satisfied that considerations of procedural fairness ofthe

type discussed in Kioa v West (1985) 159 CLR 550 applied here. Thus I have reached the

conclusion that the respondent's decision is not vitiated by a failure to accord the applicant ( procedural fairness.

Failure to Take into Account Relevant Circumstances

, 51. The contention here is that the respondents failed to have regard to legal advice which the

QCA obtained from the Solicitor-General dealing with some of the issues which had been raised

in Freeburn's advice. The opinion in question was obtained after delivery of the report, but that

is not decisive. I cannot see that the respondents were under a duty, statutory or otherwise, to

take the advice of the Solicitor-General into account. Each of the respondents was aware from

a departmental memorandum that the QCA had legal advice to the effect that its interpretation

of the statue was correct. But it seems reasonably clear that the actual decision made by the

respondents was based primarily on economic considerations rather than questions of 20

construction of the statute with respect to the function and powers of the Authority.

52. It is not clear from the statement of claim that this was initially relied upon by the

applicant as a ground for review, but in any event I am not satisfied that there is any substance

in the argument. Given the nature of the ministerial decision, a matter which has been discussed

above, the respondents were under no duty, enforceable by the applicant, to have regard to the

legal opinion in question before arriving at their decision.

Failure to Observe Procedures

53. The contention here of the applicant is that the respondents did not act in consultation

with the responsible minister, the Minister for Transport, as required by s.57(2) of the Act. The

statute is silent as to what constitutes consultation. The respondents, under the hand of the

Treasurer, forwarded a copy of the QCA report to the responsible minister and asked for his

comments. They were provided by that Minister with a response in writing. The material

emanating from the Minister for Transport was is in some detail and was considered by the

respondents. In those circumstances I am not satisfied that there was any failure to comply with

the statutory requirement; as no procedures were laid down by the statute it is difficult to contend

that there was no proper consultation.

54. In so far as the argument on behalf of the applicant seems to suggest that there should be

some oral debate among the three Ministers in question I am not convinced that that is required

by the statute.

55. There was no substance in this ground.

Decision not Authorised by the Statute

56. As noted above the Report of the QCA set out two conclusions and made three

recommendations. The respondents clearly made a decision on each of the conclusions as to the

subject matter of the investigation, but it did not expressly deal with the recommendations. 21

Section 57(1)(b) ofthe Act is quoted above and I will not repeat it in full; essentially it provides

that the Ministers must, if the authority decides that a complaint has been substantiated, accept

or reject any recommendation of the authority contained in the Report. As already noted the

respondents did not expressly do so, but they clearly rejected the basis upon which the

recommendations were made. Once the relevant decision was rejected there was in practical

terms no basis on which it could be said that the recommendations retained some standing. In

the circumstances I am not satisfied that the ministerial decision is incomplete in the absence of

a decision pursuant to s.57(1)(b).

57. When a statute specifies in some detail what matters should be dealt with by a decision ( it is desirable that the decision maker follow the statutory requirements with some particularity;

but that does not mean that a decision has not been made in circumstances where all matters

requiring determination have been dealt with, at least impliedly, by the decision announced.

General Observations

58. There are a number of further observations which should be made on the submissions ( made by counsel for each side.

59. It is true that the applicant was not given a chance to make submissions or representations

directly to the respondents before they made their decision whether to accept or reject the

decision ofthe QCA. However, as noted above, there is nothing in the Act which requires the

respondents to give the applicant that opportunity; that is to be contrasted with the requirement

to consult with the "responsible Minister". That express provision indicates the policy nature of

the decision being made. The decision of the QCA is not one which the government must adopt;

after further consultation with the "responsible Minister" the two most senior Ministers, the

Premier and Treasurer, may either accept or reject the decision. Further, as the decision has to

be made within one month there would, as is evidenced by what occurred in this case, be 22 " practical difficulties in allowing the applicant, or its legal representatives, to make written or

verbal submissions to both the Premier and Treasurer in the light of the response of the

"responsible Minister".

60. In the circumstances I reject the submission that procedural fairness obligated the

respondents to give the applicant the right to make submissions or representations to them before

the decision under s.57 was made.

61. It should also be noted that most, if not all, of the applicant's contentions were discussed

in the report. A reading of the report would make a person aware of the contentions of the

applicant.

It is of some significance to note that under cross examination the second respondent, the

Treasurer, clearly indicated that he had reasons for rejecting the QCA report which went beyond

matters raised in the Departmental briefing notes. That confirms that he directed his mind to the

substantive issues raised by the Report and its recommendations.

63. The applicant's strongest argument is that the first respondent, the Premier, never read

fully (or perhaps even any) of the QCA report. In consequence the submission was made that

he never considered the substantive issues and that his concurrence was not In those

circumstances such as to be said an exercise of his own discretion.

64. Section 57 appears to be unique in that it is the only provision known to counsel (and the

first respondent) which required a decision to be made by two specified Ministers jointly. As

already noted the two specified Ministers here are the two most senior members of Cabinet.

That, in my view, can only be explained on the basis that usually a decision under s.57 will

involve issues of government economic policy having wider ramifications than would flow from

acceptance or rejection of the specific complaint which gave rise to the investigation. In those

circumstances, bearing in mind the authorities to which I have earlier referred, I have come to 23

the conclusion that it is sufficient if one ofthose senior Ministers (here with Treasurer) fully and

carefully directs his mind to the substantive issues, and the other (here with Premier) directs his

mind to issues raised by Departmental advisors and the Treasurer, and the broader implications

of government economic policy involved, and then concurs in the decision reached by the

Treasurer.

65. The only other argument which was raised at a late stage by counsel for the applicant was

that the Departmental officers were biased because they suppressed the opinion obtained by the ( QCA from the Solicitor-General. That does not appear to be borne out by the evidence. There

was reference in the departmental briefing material to the fact that the QCA had its own legal

( advice in relation to some of the issues raised in the opinion of Freeburn, and if those matters

were regarded as significant by either of the respondents they could have taken the matter further.

Nothing was withheld from the respondents, but inferentially neither regarded the legal issues

as critical to their decision.

66. In all the circumstances the application for judicial review should be dismissed with costs. (