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30th anniversary issue
This special edition of Admin Review marks the Council’s 30th anniversary.
It contains the text of presentations made at the Council’s 30th anniversary
seminar, ‘The Future of Administrative Law and the Challenges that Lie
Ahead’, held in September 2006, as well as articles written especially for the
anniversary.
More information about the work of the Council is available from the
Council’s website <www.ag.gov.au/arc> and the Council’s Secretariat
(ph. 02 6250 5800).
Contents
The 30th anniversary: what business needs from the law and decision
makers
Katie Lahey.....................................................................................................................48
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Administrative Review Council – 30th Anniversary Issue
Anniversaries provide opportunities not only for celebration but also for
serious reflection.1 The Administrative Review Council took the occasion of
its 30th anniversary to publish this special edition of Admin Review,
incorporating articles by those who spoke at the 30th anniversary seminar
in September 2006. Each author was asked to reflect on future challenges
for the Council. We are grateful that so many eminent people contributed
not only to this issue of Admin Review but also to helping the Council refine
its focus on future challenges.
These functions, which were set out in statute, reflected the Kerr
Committee’s view that the Council’s roles were ‘fundamental to the
*
On behalf of the members of the Administrative Review Council. Jillian Segal
is the current President of the Council; Robin Creyke has been a part-time
member of the Council since 1999.
1
As noted by Dr Peter Shergold, Secretary, Department of the Prime Minister
and Cabinet, in his contribution to this issue.
2
Administrative Appeals Tribunal Act 1975 (Cth) Part V.
3
ibid. s 51. Commonwealth Administrative Review Committee (Kerr
Committee) 1971, Report, Parliamentary Paper 144, Commonwealth of
Australia, Canberra.
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Administrative Review Council – 30th Anniversary Issue
Since its establishment the Council has faithfully and effectively performed
its allotted tasks. In its 30-year history it has produced 47 reports for the
Attorney-General—on matters as diverse as import control and customs
by-law decisions (report no. 3, 1979), Australian Broadcasting Tribunal
procedures (report no. 12, 1981), land use in the ACT (report no. 14, 1981),
the constitution of the Administrative Appeals Tribunal (report no. 29,
1987), access to administrative review by Australia’s ethnic communities
(report no. 34, 1991), government business enterprises and administrative
law (report no. 38, 1995), and the scope of judicial review (report no. 47,
2006). In addition, the Council makes submissions to parliamentary
committees and other bodies, advises government on a range of
administrative law matters, and provides input into government legislative
proposals that have administrative law implications.
The Council’s strengths lie in the quality and diversity of its membership
and its Secretariat. These are demonstrated by the wisdom and utility of its
recommendations, its independence from government and the respect paid
to its recommendations by government, and the fact that it shoulders a
considerable workload despite constrained resources.
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Administrative Review Council – 30th Anniversary Issue
A feature of the statutory remit of the Council is its flexibility. This has
enabled the Council to be responsive to the significant changes in the last
30 years in the way government operates. That has been essential.
Otherwise, despite the Kerr Committee’s recommendation that the Council
be a ‘permanent’ body,8 as the Council achieved the statutory objectives
initially set for it, it might have been seen as having outlived its useful role.
Indeed, there was a view prevalent in the 1990s, with the advent of
contracting out and the downsizing of government, that administrative law
generally was becoming outmoded.9
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Administrative Review Council – 30th Anniversary Issue
That expansion has occurred. From the initial, relatively narrow focus on
the heartland of administrative law—merits review and tribunals, judicial
review and courts, ombudsmen and inquiries, rights of access to and
protection of privacy—the Council’s interests have shifted. Council reports
have since examined administrative law aspects of primary decision
making, internal review,16 preparing statements17 and standards of conduct
for tribunal members,18 as well as developing benchmarks that should
apply to regulatory bodies that manage the government services now
supplied by private sector providers.
The Council’s 47 reports have not only considered a diverse range of topics
but have also varied in form. Some have provided specific
recommendations—for example, a citizenship review and appeals system
(report no. 7), the structure and form of social security appeals (report
no. 21), review of decisions under industry research and development
legislation (report no. 31), the jurisdictional hurdles posed by the
Administrative Decisions (Judicial Review) Act 1977 (report no. 32), what
decisions of government business enterprises should be subject to
administrative law remedies (report no. 38), and what decisions of the
Commissioner of Patents should be subject to merits review (report no. 43).
Others have sought to set out a framework of principles (for example, for
judicial review) to guide government drafters and decision makers. This
special issue of Admin Review summarises the topics covered by these
reports and the general response of government where relevant.
14
ibid. recommendation 7.
15
ibid. recommendation 11.
16
Administrative Review Council 2000, Internal Review of Agency Decision Making,
Report no. 44, ARC, Canberra.
17
Administrative Review Council 2000, Practical Guidelines for Preparing
Statements of Reasons, ARC, Canberra, rev. November 2002.
18
Administrative Review Council 2001, A Guide to Standards of Conduct for
Tribunal Members, ARC, Canberra.
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Administrative Review Council – 30th Anniversary Issue
In 2004 the Council published Legal Training for Primary Decision Makers: a
curriculum guideline to provide a blueprint for training materials for officers
across government. There is anecdotal evidence that the guideline is being
19
See p 36.
20
See p 58.
21
See p 80.
22
Administrative Appeals Tribunal Act 1975 (Cth) s 51.
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Administrative Review Council – 30th Anniversary Issue
Many of the contributors to this 30th anniversary issue have said that the
main challenges ahead lie in ensuring that administrative law continues to
reflect the fundamental values of our administrative system—lawfulness,
fairness, rationality and transparency—as adapted to new and developing
contexts.
Some clarity about these new contexts is emerging. The first is the use of
technology. The Council’s foresaw the use of expert computer systems by
government agencies and anticipated government decision makers’ need
for guidance.
23
The Council has already issued Practical Guidelines for Preparing Statements of
Reasons. The guidelines take into account changes in the law relating to the
content of statements of reasons consequent on the decision of the High Court
in Minister for Immigration and Multicultural Affairs v Yusuf (2001) 180 ALR 1.
24
See p 12.
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Administrative Review Council – 30th Anniversary Issue
25
Administrative Review Council 2004, Automated Assistance in Administrative
Decision Making, Report no. 46, ARC, Canberra.
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Administrative Review Council – 30th Anniversary Issue
The second changing context foreseen by the Council concerns the impact
of globalisation. This question of administrative review working
internationally is highlighted by Robert Cornall26 as a continuing challenge.
Again, the Council has prepared itself for working more globally and has
already provided advice on a merits review framework in the area of
therapeutic goods. Pursuant to a treaty made under the Trans Tasman
Mutual Recognition Agreement, Australia and New Zealand have agreed
to establish a joint agency to regulate therapeutic goods, with
administrative review of the agency’s decisions being performed by a
panel made up of members from both countries.
These themes highlight the need for the Administrative Review Council to
be proactive in its focus in order to provide guidance—whether that be
specific recommendations or general principles—to enable government,
government agencies and public servants to respond appropriately to the
new challenges.
26
See p 30.
27
See p 23.
28
See p 30.
29
See p 42.
30
See p 30.
31
See p 30.
32
See p 23.
33
See p 52.
34
See p 30.
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35
See p 23.
36
See p 30.
10
Administrative Review Council – 30th Anniversary Issue
37
Administrative Review Council 1977, Annual Report 1976–77, ARC, Canberra,
Foreword.
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Administrative Review Council – 30th Anniversary Issue
The Council has been enriched by the diversity and combined expertise of
its members, all of whom I congratulate for their part in the Council’s
30-year history. In that time, the Council has produced 47 reports on a
wide range of administrative law topics.
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Administrative Review Council – 30th Anniversary Issue
I have recently provided the Council with terms of reference for a further
report—number 49. The report will consider the relationship between
administrative law and business regulation.
The reason I make this point is to note that, while this seminar has largely
focused upon the future, administrative law’s past is equally important.
While new challenges will arise in the future, the fundamental values of
our administrative law system will remain.
The challenge—and it is a challenge that I have no doubt that the ARC will
continue to meet—will be to adapt the values and principles that have been
espoused in the past to new contexts.
Over the past 30 years the ARC has promoted the values of lawfulness,
fairness, rationality, openness and transparency, and efficiency in many
different contexts. These range from judicial review to social security,
taxation, migration, environmental decisions, contracting out of
government services, and the use of computer technology in decision
making. In the next 30 years the ARC will probably revisit some areas and
will also branch into new ones. I am sure that the Council will keep pace
with our changing society.
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It is worth recalling what has been said in the United Kingdom about the
claim for privilege based on freedom and candour of communication with,
and within, the public service in the context of disclosure in court
proceedings. Lord Radcliffe, who had considerable experience in working
with government in World War II and later in public inquiries, said,
‘I should myself have supposed Crown servants to be made of sterner
stuff’ and went on to criticise the tendency to suppress ‘everything
however commonplace that has passed between one civil servant and
another’.4
1
Public Service Board of NSW v Osmond (1986) 156 CLR 656.
2
6 September 2006, 2006HCA45.
3
(1968) AC910.
4
Glasgow Corporation v Central Land Board (1956) SC 1 at 20.
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The Ombudsman
Of the major reforms, the Ombudsman has been perhaps the most
successful; indeed, more successful than I expected. Ombudsmen have
succeeded in dealing expeditiously and effectively with a very large
number of complaints at very low cost. The reasons for that success lie in
three factors. First, the requirement that the Ombudsman report directly to
Parliament makes him directly responsible to Parliament and gives
Parliament a specific role in administrative review, a role which conforms
to Parliament’s historic function in monitoring the actions of the executive
government and its agencies. Second, those who have been appointed to
the office have been persons of very considerable ability. Third, the
influence of the Ombudsman’s activities on the performance of the public
service and of government agencies has been most beneficial. It has
resulted in a growing understanding that public power is to be exercised
for the benefit of the people, that decisions must take account of the
interests of stakeholders in accordance with the requirements of due
process, and that they must be adequately explained.
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Administrative Review Council – 30th Anniversary Issue
The AAT has not been free from controversy. In the beginning, it was
suggested that the AAT lacked democratic legitimacy, because the
decision-making function was left by Parliament to the decision maker.
This criticism, which had no substance, seems to have abated. A second
criticism, still current in some quarters, is that the AAT is too court-like.
This is not surprising as the Tribunal was intended to operate in a court-
like manner. This criticism was discussed by the ARC in its 1995 report
no. 39, Better Decisions, in which the ARC considered the criticism to be
exaggerated. I agree with this view so long as it is clearly understood that
the Tribunal is at liberty to adopt such procedures as are best fitted to meet
the needs of the case in hand.
Associated with this criticism was the view that the composition of the
AAT was too heavily weighted in favour of lawyers. The problem here is
that it is a definite advantage for members to have legal qualifications or
experience. No doubt non-lawyers can make a valuable contribution to the
AAT, but the reputation and standing of the AAT depend to a significant
degree on its work being dealt with in a way that meets the lawyer-like
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Administrative Review Council – 30th Anniversary Issue
Another criticism made some years ago was that AAT decisions were
inconsistent. Inconsistent decision making generates strong perceptions of
injustice and lack of competence. Fortunately, the AAT addressed this
problem so that it seems no longer to be a matter of significant concern. It
is, however, a matter which requires constant attention.
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Administrative Review Council – 30th Anniversary Issue
Judicial review
Some years after the introduction of the Administrative Decisions (Judicial
Review) Act it could be said that the Act had clarified judicial review by
identifying and circumventing the technicalities associated with the
prerogative writs. I doubt that such a statement would now be correct.
Judicial review has become increasingly complex. This development was
probably to be expected in the light of the volume of cases which have
come forward. What was not predictable, however, was the increasing
emphasis which has been placed on jurisdictional issues in tribunals in
recent decisions. In Craig v South Australia6 the High Court held that all
errors of law by a tribunal go to the existence of jurisdiction while many
errors of law by a court occur within jurisdiction. This conclusion naturally
entails the consequence that tribunals may be subjected to more intensive
judicial scrutiny than lower courts. In turn, this intensive judicial scrutiny
reinforces the court-like characteristics of tribunals.
6
(1995) 184 CLR 163.
7
Minister for Immigration & Multicultural Affairs v Bhardwaj (2002) 209 CLR 597.
8
(2006) AATA 227, 9 February 2006; see also J McMillan 2006, Administrative
Tribunals in Australia—future directions, <www.ombudsman.gov.au> under
‘research/speeches’.
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Concluding comments
The Australian constitutional separation of powers is unquestionably an
obstacle to principled reform of Australian administrative law. As things
stand, courts are not entrusted with merits review, yet courts cannot be
denied judicial review pursuant to s 75(v) of the Constitution. So the
combination of merits review and judicial review seems inevitable under
existing constitutional arrangements. An alternative—not as satisfactory—
would be to provide for expanded judicial review along the lines of judicial
review in England, but there is no sign of this happening and, in any event,
current constitutional thinking may well be resistant to such a
development.
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Dr Peter Shergold AC
Secretary, Department of the Prime Minister and Cabinet
There is much to extol in the history of the organisation and the manner in
which it has provided oversight of Australia’s system of administrative
review and advice to the Attorney-General on strategic matters.
Thankfully, a generation since its establishment, the ARC continues to have
an active presence. There are strong signs of institutional vigour: consider,
as evidence, the ARC’s work on automated assistance in decision making
and on the wielding of coercive powers by public sector agencies and its
practical guidance to government decision makers on procedural fairness.
Maintaining the ARC’s ability to remain relevant has not been easy. The
structure of government and delivery of public services has evolved
considerably in recent decades. The corporatisation, privatisation and
contracting out of government functions and service delivery have posed
substantial challenges to processes of administrative oversight and review.
Born in days when there was a sharper distinction between the public and
private sectors, the ARC has necessarily had to respond to an increasingly
complex environment in which the implementation of government has
become far more ‘distributed’.
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The Australian Public Service has responsibility for implementing this new
regime at the Commonwealth level. It will require new approaches.
Departments, as they prepare new policy initiatives on behalf of their
ministers, will need to identify the costs as well as the benefits of measures.
The case for regulatory action will have to be more persuasive than in the
past.
1
Rethinking Regulation, Commonwealth of Australia, Canberra, January.
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A key challenge is for the Australian Public Service to get its own house in
order. The paradoxical dilemma is a commonplace of bureaucracy: the
effort to reduce red tape externally actually sees processes prescribed
which have the potential to increase the amount of red-tape internally. This
remains an ever-present danger. There needs to be a concerted effort
within the APS to reduce reporting that is of limited value.
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This is true not just in the areas of health, education, welfare, crime and the
environment but also in the domain of values. What values—as opposed to
functional curricula—should be taught in schools? What values should be
expected of migrants or of those who seek citizenship in order to preserve
social harmony? How can people be persuaded to attach higher value to
saving money or conserving water or reducing energy consumption? What
can be done to improve the public expression of values, such as good
manners, courtesy and tolerance, so as to combat the antisocial behaviours
that impinge on the freedoms of others?
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This bold assertion leads to the third development which this contribution
anticipates: that the form and delivery of government programs will
increasingly be modified and adapted in response to the needs of
particular communities. Public administration will be ‘personalised’. If this
is correct—and I hope it is—this has significant consequences for many
aspects of public administration, from financial appropriation to auditing,
scrutiny and review.
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to all citizens without insisting that the same program provide it? Is it
appropriate to reward certain types of self-reliant behaviour at the expense
of those who continue to rely on ‘sit-down’ money?
Thankfully, on the basis of the last 30 years, it is likely that they will be met
successfully.
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Robert Cornall AO
Secretary, Attorney-General’s Department
The Administrative Review Council has already taken the first step in this
direction by publishing its well-received report Automated Assistance in
Administrative Decision Making.
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First, more and more decisions will be made through automated systems.
At the last count, eight Australian government agencies were using
automated systems in administrative decision making.
Second, provided the systems are well designed and regularly audited,
automated decisions will generally be accepted as fair.
Finally, the ARC and government policy makers will need to take care, in
designing both the automated systems and the legislation under which
they operate, to make proper provision for review of those aspects of the
automated decisions that involve the exercise of judgment or discretion.
Globalisation
The next issue is globalisation.
The early thinking in relation to therapeutic goods was that there would
not be administrative review. One reason for this approach was that
administrative review was seen as too difficult, particularly since New
Zealand does not have a tribunal equivalent to the Administrative Appeals
Tribunal. It is a feather in the ARC’s cap that its persistence was a major
factor in the development of a bilateral international regime for
administrative review in this important area.
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The problem this poses was well articulated by the ARC in its 1998 report
The Contracting Out of Government Services. The Council noted that
contracting out ‘has the potential to result in a loss of the benefits which
the administrative law system provides for individuals’.1 The report
contained 30 recommendations to address the problem.
A significant improvement was made last year when the Ombudsman Act
1976 was changed,2 giving the Ombudsman jurisdiction to investigate the
actions of ‘Commonwealth service providers’3 as if those actions had been
taken by the relevant department or agency. That extended authority will
be particularly relevant to immigration oversight and Welfare to Work
programs.
Nonetheless, the issue is still with us. The government will have to be
constantly on guard to see that reforms designed to improve the efficiency
of government services do not come at the expense of diminished access to
administrative review.
Another, but less obvious, human resource problem relates to the average
length of service and its implications for staff training. Along with other
big employers, the Australian Public Service is finding that its staff are
becoming more mobile and less likely to stay in one place for very long.
This changing employment demographic raises questions about staff’s
preparation to make sound administrative decisions. Will they have had
enough time in the job to learn how to do so? It highlights the need to have
good training programs that get staff up to an acceptable level of
performance very quickly.
1
Administrative Review Council 1998, The Contracting Out of Government
Services, ARC, Canberra, p vii.
2
Migration And Ombudsman Legislation Amendment Act 2005, No. 141, 2005,
Schedule 2.
3
Ombudsman Act 1976 s 3BA.
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In other words, simple and quick processes should apply in cases where
that is appropriate, with lengthier and more complicated procedures
applying to matters that justify more detailed consideration. This will be
necessary to meet any concern that applicants could use a complex review
process in some unmeritorious matters simply to create delay in
implementing administrative decisions.
Legislation
The fifth point is to do with the volume of legislation passed and
regulations made each year. The rate at which new laws are made is not
expected to decrease much in the foreseeable future, even though some
improvements will be made by concerted attacks on red tape. This is in
large part due to community expectations that the government will
4
Administrative Review Council 1995, Better Decisions: review of Commonwealth
merits review tribunals, ARC, Canberra.
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The British Prime Minister, Tony Blair, has sharply criticised this
community expectation. He has called it ‘a wholly disproportionate
attitude to the risks we should expect to see as a normal part of life’,
resulting in ‘a plethora of rules, guidelines, responses to “scandals” of one
nature or another that ends up having utterly perverse consequences’.5
Administrative review is really about ensuring that everyone gets a fair go.
It is about establishing an acceptable balance between the executive arm of
government and individual rights and ensuring that the judiciary and
administrative tribunals have the authority to enforce that balance.
However, the way the Australian community defines ‘a fair go’ will change
over time, and administrative review will need to adjust to that change. For
example, people may come to accept automated decisions as fair and not
be inclined to challenge them.
Right now, however, we are towards the other end of the complaint
spectrum. Robert Hughes believes we have developed ‘a culture of
complaint’ and was sufficiently concerned to write a book about it.6
Other commentators have observed that Australians are now much more
likely to complain or insist on what they see as their entitlements than they
were 10 years ago. My observation in my former role of dealing with
complaints against Victorian solicitors is that many complainants ‘want
5
Blair, A 2005, ‘Full Text: Tony Blair’s speech on compensation culture’, Speech
to the Institute of Public Policy Research, Guardian Unlimited, 26 May,
<http://politics.guardian.co.uk/speeches/story/0,11126,1493151,00.html>.
6
Robert Hughes 1993, Culture of Complaint, Oxford University Press, New York.
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justice’ but that ‘justice’, when expressed in this way, is a very personalised
concept. It usually means the outcome that suits them the best.
Conclusion
Given the nature of our open democracy, the steady passage of new laws,
and our strong expectation that we will receive a fair go, administrative
law and administrative review will grow and prosper in Australia over the
next 30 years. However, my perspective on these issues as an administrator
could be quite different to the perspective of a judge, a tribunal member, an
academic, a person in business or a member of the community affected by
an administrative decision.
7
Administrative Review Council 2002, Record of 25th Anniversary Proceedings,
ARC, Canberra, p 57.
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Noting that my contribution has been given the title ‘An international
perspective’, it should first be acknowledged that the contents will not
match the label. Instead, this paper offers some thoughts about issues and
challenges from a British angle, particularly that of the Council on
Tribunals—itself now approaching its 50th anniversary.
It may be going too far to say that the British Council on Tribunals and the
Australian Administrative Review Council are sister organisations, but
they certainly have quite a lot in common—more, in fact, than I had myself
fully appreciated until recently.
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Administrative Review Council – 30th Anniversary Issue
I note that the Hon. Attorney-General is reported to have said at the ARC’s
first meeting that ‘It is important that this Council be seen by the public as
the expert body designed to be a watchdog for the citizen, to ensure our
system is as effective and as significant in its protection of the citizen as it
can be’. Those are words which could have been uttered by many members
of the Council on Tribunals about their own organisation over the years.
What is also clear from Dennis Pearce’s account is that our two
organisations have had a variety of problems in common over the years.
Both organisations have limited resources—a part-time membership and a
small secretariat—which means that we must make careful strategic
choices about where best to focus our energies. Indeed, we have both
experienced times when secretariat staffing has fallen to a level that made
it difficult for us to continue to function effectively.
Our relationship with government has also at times been a sensitive issue
for both of us. Sometimes we have felt that government has not paid
sufficient attention to our advice. And, as small organisations operating at
arm’s length from government, we have been anxious to preserve the
appearance, as well as the reality, of an appropriate degree of
independence from the government departments that sponsor us, appoint
us and pay for us.
We have both been concerned to find ways to ensure that the voice of the
‘user’ of the administrative justice system is heard in our deliberations,
whether through the balance of the membership or through other forms of
engagement or consultation—something which seems to have been very
well developed here.
2
Administrative Review Council 2002, Record of 25th Anniversary Proceedings,
ARC, Canberra; Pearce, D 2001, ‘Administrative Review Council 25th
anniversary presentation’, 6 December, p 17.
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For all those and other reasons, I think many of us feel that there are
particular synergies between the British and Australian administrative
justice scenes that make it particularly worthwhile to keep up to date with
developments in the other’s jurisdiction and look for lessons that might be
useful at home.
Sir Andrew visited Australia in connection with his review and was clearly
both impressed and influenced by the work of the ARC—a rather neat
return of the compliment paid by the influence here of the British
experience some 30 years earlier.
The review also led to government plans to enable the Council to evolve
into an Administrative Justice and Tribunals Council with a wider remit, to
‘review the relationships between the various components of the system (in
particular ombudsmen, tribunals and the courts)’ in order to ensure that
the system as a whole satisfactorily reflects the needs of users. This change
is awaiting legislation to be passed by Parliament, but a Bill has been
published in draft, and the Council has been developing its work in a way
which will equip it to fulfil the intended wider remit. This will no doubt
give it even more in common with the ARC.
Turning now to the future, rather than attempting to talk about the
challenges in Australia, this part of the discussion will talk a little about the
challenges we face in Britain, the issues we at the Council want to focus on,
and the kind of organisation we should aspire to be.
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Two major themes emerged from the Leggatt report that did not feature so
prominently in Franks. First was the emphasis on the needs of users: the
Leggatt report was in fact entitled Tribunals for Users.
Although, as noted, the Council has always had the needs of users of the
system in mind, Leggatt emphasised the need to put the needs of users at
the heart of the system and at the forefront of the Council’s work. In
response to this the Council has been making changes to its working
methods. A User Issues committee of the Council was set up last year and
that committee organised a series of workshops around the country for
organisations that support the users of different tribunals. The main aim of
these workshops was to consult on the abovementioned changes to
government policy in relation to tribunals in order to provide feedback to
the government. The workshops were also a deliberate attempt by the
Council to work in a different way, to raise its profile in the advice sector,
and to forge new relationships.
The second major theme to emerge from Leggatt was that of independence.
Before the Tribunals Service was created, some of the largest tribunals were
part of the departments whose decisions were the subject of the appeals the
tribunals were hearing. Leggatt took the view that where such
arrangements existed ‘every appeal is an away game’ for the user. It is, I
may say, a view I have shared ever since I was the minister responsible for
the social security appeal system some 20 years ago, and we made some
initial moves to enhance that system’s independence.
New themes for the Council to address also emerged from the
government’s response to the Leggatt report. Government accepted the
need for structural changes but wished to set them in the context of a
wider strategy that it summarised as ‘proportionate dispute resolution’. It
sought ways to help people avoid problems and legal disputes in the first
place, to improve and simplify the decision-making processes that result in
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Administrative Review Council – 30th Anniversary Issue
The Council is only just beginning to tackle what is potentially a very big
agenda. The ombudsmen and complaint handlers themselves are
encouraging the Council to think more about their role in the
administrative justice landscape. Some argue that the boundaries between
complaints and justiciable disputes are not always clear cut and that the
‘ombudsman model’ may be better fitted to some of the disputes to which
the traditional ‘tribunal model’ is currently applied.
As to the kind of organisation the Council should be, Sir Andrew Leggatt
proposed in his report that the Council on Tribunals should become ‘the
hub of the wheel’ of administrative justice. Although it wasn’t wholly clear
what he meant by this, we frankly rather liked the phrase and have often
repeated it.
In addition, the Council has been developing the way in which our
relationship with government operates. To an important extent, the current
relationship is best described as ‘collaborative’. The Council was very
supportive of the creation of the Tribunals Service. I sat on the
government’s Programme Board to oversee the implementation process,
while several members of the Council also sat on implementation boards
for some of the transferring tribunals. The Council saw this as contributing
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I have been around long enough in government, and now in related areas
of public service, to know that there is almost never an area in which
institutions, processes and approaches can simply be picked up from one
country, culture or jurisdiction and transplanted to another. But it is clear
that these matters are much under discussion here in Australia, just as they
are in the UK. ‘Administrative justice’, however defined in detail, is a topic
that is not going to go quiet in either country. The interest of our citizens in
what historically was called ‘the redress of grievances’—in the terminology
used here earlier, ‘having a fair go’—will continue to grow.
I hope these reflections from the United Kingdom will have been of at least
some interest. They certainly come with renewed congratulations to the
ARC on its past 30 years and the warmest good wishes for its future—in
which I hope that one feature will be the continued strengthening of the
relationship between your Council and ours.
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Administrative Review Council – 30th Anniversary Issue
Peter Kell*
Chief Executive Officer, CHOICE
There is a wide range of ways in which one could approach the topic of
consumers’ interest in administrative review. I propose to identify a
number of distinct ways in which consumers relate to government which
are relevant for a consideration of administrative law issues. At one level,
there is the interplay of individual consumer rights and obligations vis-à-
vis government. Second, administrative law may also affect consumer
rights in relation to other actors in the marketplace, particularly the
suppliers of consumer goods and services. Third, it may also be relevant to
the collective rights of consumers in the development of effective market
regulation and good public policy. In the spirit of this seminar, my aim is
to identify some of the future challenges for administrative law in each of
these areas.
*
I am grateful for research information and suggestions from Gordon Renouf of
Choice, Jenny Lovric of the National Pro Bono Resource Centre, and
Jill Anderson.
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Administrative Review Council – 30th Anniversary Issue
These two roles identified here by the ARC play out in different ways
according to the particular relationship between consumers and
government that I have just mentioned.
Individual decisions
Complaints resolution
1
Administrative Review Council, Overview,
<http://www.ag.gov.au/agd/WWW/arcHome.nsf/Page/Overview_Details_Over
view>, viewed 9 September 2006.
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Administrative Review Council – 30th Anniversary Issue
After all, consumers want not only a remedy but a remedy they can
realistically pursue. Potential barriers include:
2
Access to Justice Advisory Committee (Sackville Committee) 1994, Access to
Justice: an action plan, Commonwealth of Australia, Canberra.
3
It is of some concern, for example, that there were only three applications to
the SSAT in the Northern Territory in 2004–05 from Indigenous clients of
Centrelink: Senate Finance and Public Administration Legislation Committee
2005, ‘Supplementary Estimates, Department of Human Services; Answer
HS45 to Questions on Notice’, 1 November,
<http://wopared.aph.gov.au/Senate/committee/fapa_ctte/estimates/sup_0506/h
uman/hs45.pdf>.
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Administrative Review Council – 30th Anniversary Issue
legal technicalities5
Under the former arrangement the ARC’s 1998 report The Contracting Out
of Government Services recommended that, where the government contracts
out a function, administrative law remedies (including the Ombudsman,
freedom of information and merits review) should not be lost. This is an
important issue for consumers, as in most cases it is irrelevant to them
whether the government or a contractor is providing what is basically a
governmental or essential service; this is especially so if it is a monopolistic
environment or a market where competition is limited. Consumers want to
be able to access the service and to do something if it goes wrong,
irrespective of the provider’s underlying ownership structure.
4
Current access is patchy and varies across jurisdictions and across the country.
5
For example, overly technical pleadings in tribunal matters can interfere with
the required flexibility for applicants when completing their applications and
stating grounds of review.
6
The NSW Welfare Rights Centre reports that its clients have most success in
cases conducted in informal rooms, with all participants sitting around a table.
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Administrative Review Council – 30th Anniversary Issue
7
For example, the financial services industry complaints resolution schemes
discussed below.
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Administrative Review Council – 30th Anniversary Issue
A common type of self- or co-regulation is the industry code that sets out
rules for market conduct and thereby governs interaction between firms
and consumers. Such codes may set standards for information disclosure,
product features and service quality. The other major area of self- or
co-regulation is industry-based complaints handling or dispute resolution
schemes, often referred to as alternative dispute resolution schemes.
The financial services sector illustrates the point well. The Superannuation
Complaints Tribunal is a government agency that handles complaints from
consumers about their superannuation. Decisions may be appealed to the
Federal Court. In contrast, the Banking and Financial Services Ombudsman
is independent of government and has no statutory basis. However, it
operates under the framework for dispute resolution set out under the
Corporations Act, along with six other finance sector complaints resolution
schemes, including the Financial Industry Complaints Service. Under the
Corporations Act, all financial services firms must belong to a complaints
resolution scheme approved by the Australian Securities and Investments
Commission. No particular schemes are specified in the legislation: it is for
industry participants to submit an industry scheme for approval. ASIC has
the administrative power to approve schemes against certain standards.
This arrangement works well in many parts of the finance sector, although
it should be recognised as the result of many years of policy development
involving industry, consumers and government.
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Administrative Review Council – 30th Anniversary Issue
There is also much at stake for regulatory agencies. Regulators, in their role
as bodies to whom consumers make complaints about market conduct,
increasingly rely on these dispute resolution schemes for the referral of
individual complaints. Thus the alternative dispute resolution schemes—
whether private or statutory—have become important elements of the
administrative decision making that occurs within regulatory agencies.
But perhaps from the consumer’s point of view these distinctions are
unimportant. After all, is there any a priori reason why consumer dispute
resolution schemes should operate within government or outside
government? As long as the complaints handler provides an accessible,
independent and high-quality service, all is well.
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Administrative Review Council – 30th Anniversary Issue
The different structures for dispute resolution schemes also matter because
these dispute resolution schemes may be subject to judicial review on the
basis of administrative law principles. A full discussion of this question is
beyond the scope of this paper, but the recent Masu8 decision—where a
financial planning firm sought review of a decision by the Financial
Industry Complaints Service—raises some interesting issues. This decision
found that the outcomes of these private schemes are judicially reviewable
for breach of procedural fairness and on jurisdictional grounds.
Not surprisingly, it has been the more powerful parties who have sought
external review to date or, more generally, have sought formal appeal
within the schemes. This gives rise to a tension between accessible, cost-
effective and timely decisions that are comprehensible by consumers and
those that could withstand administrative law principles and reasoning.
Alternatively, from an industry perspective, administrative law oversight,
or the threat of it, may promote greater attention to procedural fairness by
alternative dispute resolution schemes.
8
Masu Financial Management Pty Ltd v Financial Industry Complaints Service
Limited No 1 [2004] NSWSC 826.
9
Policy Statement 139.
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Administrative Review Council – 30th Anniversary Issue
If ASIC rejects this scheme for approval, then the scheme or industry group
can appeal to the Administrative Appeals Tribunal. The first such appeal is
currently being considered.10 In this case, an industry self-regulatory
complaints resolution scheme uses administrative law mechanisms to
make a complaint about the regulator. This is an example of the growing
interaction between private consumer dispute resolution schemes,
regulatory agencies, and administrative review bodies.
Given the significance of such a code for the way that drugs are promoted
to consumers, organisations like Choice would be interested in having a
say in this review process. The relevant questions are how this would
occur and, more importantly, how it should occur. Is this possible without
becoming involved in expensive legal work and technical fights over
standing?
These questions illustrate the point that, for consumers, the interaction
between self-regulation and administrative law is increasingly important
both at an individual level and for broader policy reasons. The same could
be said for businesses as well.
After all, one of the key debates of our time is how to get the balance right
between regulatory responses to market failure and social problems in
such a way that regulation does not unjustifiably undermine the efficiency
of markets in allocating resources. It is therefore reasonable to ask how
administrative law can help to ensure that self-regulatory and co-
regulatory structures can both be effective in improving market conduct
and facilitate industry competition and efficiency.
10
Timeshare Association v ASIC (V2004/700).
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Administrative Review Council – 30th Anniversary Issue
A key rationale for the above regulatory approaches is that they are faster,
quicker and cheaper than black letter law. As discussed, it is often industry
participants that are undermining that rationale by seeking additional
review processes. If these processes become difficult to use, require
resources not available to most consumers or consumer groups, and are
one-sided in that they provide rights of review only to the applicants, they
will both undermine consumer rights and increase regulatory costs.
Conclusion
The interaction between citizens and consumers and their governments
continues to evolve, and expectations of government services and rights
accordingly change over time. Administrative law should evolve to deal
with this changing climate, and the Administrative Review Council has a
critical role to play in considering how and where changes should take
place. This article has tried to highlight the importance of underpinning
principles such as accessibility in a changing environment and the
importance of regularly testing these core ideas against contemporary
trends.
The article has also sought to highlight the increasing interaction between
administrative law and other regulatory structures, in particular self-
regulation. This development has very significant implications for
consumers, both for their ability to assert rights and obtain remedies and
for their ability to influence regulatory and policy developments in
constructive ways. Obviously it has similar implications for businesses in
the economy. While there have been reviews of self-regulation in recent
years, its relationship with administrative law has not been coherently
considered. Given that the move towards self-regulatory and co-regulatory
structures of various sorts seems to be increasing, it is perhaps time that
this issue was more actively examined.
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Administrative Review Council – 30th Anniversary Issue
Katie Lahey
Chief Executive, Business Council of Australia
In March 2005 the BCA released its Business Regulation Action Plan, which
highlighted the following:
It may be argued that we have a very successful economy, with record low
unemployment and relatively low interest rates. However, we cannot
afford to be complacent. Instead, the BCA believes we must continue to
review and improve our regulatory administrative processes. We would
like to move from regulatory obesity to a more slimline regulatory regime.
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Administrative Review Council – 30th Anniversary Issue
regulating more
1
The Hon. John Howard MP, Prime Minister of Australia, and The Hon.
Peter Costello MP, Treasurer, 2005, Taskforce on Reducing the Regulatory Burden
on Business, Joint media release, 12 October.
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Administrative Review Council – 30th Anniversary Issue
clarity
consistency
certainty
Starting with clarity: laws should be clear, should only be applied where
the benefits outweigh the costs, and should only be imposed where
regulation is the best method of achieving the policy outcome. In turn, this
raises the question whether laws can be clear or efficient when there has
been an explosion in the amount of regulation imposed on business. For
example:
Federal and state governments have added more than 30 000 pages
of new laws and regulations a year.
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Administrative Review Council – 30th Anniversary Issue
Under these laws and agencies, Australia has seven rail safety
regulators for a population of around 20 million people. In contrast,
the United States, with a population of 285 million people, has one rail
safety regulator. As a result Australia, with a land mass the size of a
continent, has no truly national rail system.
This may seem laughable, but in reality it adds real costs to business
because Westpac cannot bulk-buy and standardise its first aid kits.
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Administrative Review Council – 30th Anniversary Issue
One example is the Saturday morning cake stall, which has largely
disappeared from our streets. This cornerstone of community fundraising,
which once supported our kindergartens, churches and footy clubs, has
slowly been squeezed out by regulation.
2
Banks, G (Chairman, Regulation Taskforce and Productivity Commission)
2006, ‘Reducing the regulatory burden: the way forward’, Inaugural public
lecture, Monash Centre for Regulatory Studies, University Law Chambers,
Melbourne, 17 May.
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Administrative Review Council – 30th Anniversary Issue
BCA believes that regulators need to increase the trusted ties with business
through a positive dialogue between the regulator and the regulated.
Business should be able to feel comfortable approaching regulators with an
issue, or seeking advice on compliance, without fearing that recrimination
or penalties may be imposed.
3
Taskforce on Reducing the Regulatory Burden on Business 2006, Rethinking
Regulation, Commonwealth of Australia, Canberra, 7 April.
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Administrative Review Council – 30th Anniversary Issue
There have been significant reforms in Western Australia over the last two
decades in the area of administrative law, one of the earliest being the
Freedom of Information Act 1992 and most recently the establishment of the
State Administrative Tribunal under the State Administrative Tribunal Act
2004. At the same time, there is another very significant development in
train—the enactment of legislation dealing with judicial review. In moving
the third reading of the State Administrative Tribunal (Conferral of
Jurisdiction) Amendment and Repeal Bill 2003, the Attorney-General for
Western Australia, the Hon. Jim McGinty, commented:
*
Wayne Martin was President of the Administrative Review Council from 2001
to 2005 and a member from 1997 to 2000. He acknowledges his indebtedness to
Dr Philip Jamieson for his very considerable assistance in the preparation of
this paper.
1
At <http://www.parliament.wa.gov.au/hansard/hans35.nsf/NFS/
ec40a4d04c9dbc4948256d8d002d4f01?OpenDocument&highlight=0,judicial
%20review>, viewed 5 September 2006.
2
In the acknowledgments section.
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Administrative Review Council – 30th Anniversary Issue
Substantive reforms
The ADJR Act implemented reforms of both a substantive and a procedural
nature. One of the first issues for the Commission in developing its report
was to consider whether its recommendations supporting the substantial
adoption of the ADJR Act should encompass its reform of the substantive
law as well as its merely procedural elements. Adopting its reform of the
substantive law effectively codifies the grounds of review.
3
See also recommendation 8, that the grounds of review (to be specified in the
proposed Act) should follow as closely as possible the terminology used in the
ADJR Act (p 27) (being implemented by clauses 17–19); and
recommendation 22, that the powers of the court in conducting judicial review
under the remedy proposed should be the same as those conferred on the
Federal Court conducting a review pursuant to the terms of the ADJR Act
(p 34) (being implemented in clause 26). Related to this is recommendation 27,
that jurisdiction to conduct judicial review proceedings should be vested in the
Supreme Court of Western Australia (p 36) (being implemented in clause 16).
4
A comparative discussion of the statutory developments in Queensland,
Tasmania, Victoria and the Australian Capital Territory, with reference to the
ADJR Act, appears in Aronson, M et al. 2004, Judicial Review of Administrative
Action, 3rd edn, Lawbook Company, Sydney, pp 19ff.
5
Administrative Decisions (Judicial Review) Act 1989.
6
Judicial Review Act 1991.
7
Judicial Review Act 2000.
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Administrative Review Council – 30th Anniversary Issue
The charge has been laid that this codification has stultified the
development of the common law.8 At the time of its report, the
Commission noted that an argument against statutory specification of the
grounds of review might be that such codification might stifle the
development of the law (p. 23). However, the Commission pointed to the
generality of the language which has been used in the ADJR Act and, in
particular, by way of example, to the statutory ground of review ‘that a
breach of the rules of natural justice has occurred’ (s 5(1)(a)). It noted that,
as the Act does not define what the rules of natural justice are, their ambit
and content are left to be filled by the general law as enunciated by the
courts from time to time. In the Commission’s view this suggested ample
scope for judicial development of the substantive law relating to natural
justice within the statutory ground of review.
The charge appears to be that this ample scope for ongoing development in
the common law identified by the Commission has not, however, been
explored as a consequence of a focus upon—perhaps a fascination with—
the ADJR Act. In similar vein, Dr Caron Beaton-Wells has recently noted
that the catch-all grounds under s 5(1)(j) (‘that the decision was contrary to
law’) and under s 5(1)(e) and 5(2)(j) (‘any other exercise of power in a way
that constitutes abuse of the power’) ‘have hardly been used’. 9
8
See discussion of Justice Kirby’s charge in Aronson, MI 2005, ‘Is the ADJR Act
hampering the development of Australian administrative law?’ Australian
Journal of Administrative Law, vol. 12, no. 2, pp 79–97 at 80–1, 91ff; Griffiths, J
2005, ‘Commentary on Professor Aronson’s article “Is the ADJR Act hampering
the development of Australian administrative law?”’ Australian Journal of
Administrative Law, vol. 18, no. 2, pp 98–102; Beaton-Wells, C 2005, ‘Australia’s
ADJR Act: reform or repeal?’ Paper presented at Administrative Law Forum,
Canberra, 30 June – 1 July, pp 18–19.
9
Beaton-Wells, C 2005, op. cit., p 17.
10
(2003) 198 ALR 59; (2003) 77 ALJR 1165; [2003] HCA 30 at pars 157, 166.
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Administrative Review Council – 30th Anniversary Issue
been the case under the earlier common law. However, in areas
where the ADJR Act or the common law are, for whatever reason,
inapplicable or no longer available, the rules governing the
provision of the constitutional writs, and their relationship to the
larger common law developments in administrative review,
assume a greater significance. (para 157)
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Administrative Review Council – 30th Anniversary Issue
statutory scheme for fear that its success might retard the common law. 11
The debate between statutory codifiers and common lawyers is, of course,
not new. It has occurred in many legal contexts—the sale of goods,
criminal law and corporations law, to mention just some. Administrative
law does not appear to offer any exceptional or unique features to the
arguments.
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Administrative Review Council – 30th Anniversary Issue
A right to reasons
One of the most significant and enduring17 of the reforms arising from the
ADJR Act has been the conferral of a right to reasons. At the time of the
Commission’s report, there was in Western Australia no common law
duty18 or general statutory obligation on an administrative decision maker
to give reasons when she or he made a decision. Section 21 of the State
Administrative Tribunal Act 2004 now entitles a person to request the maker
of a decision reviewable by the Tribunal to provide a written statement of
the reasons for the decision. The Tribunal has jurisdiction to review a
significant range of decisions on their merits. Complementing such a
reform in the context of judicial review, recommendation 28 of the
Commission was to adopt and reiterate its recommendations in its 1986
report19 with respect to the creation of a general entitlement to reasons for
decisions and as to the classes and categories of decisions to which the
obligation to provide reasons ought not to apply (p 37). This is being
implemented in the Judicial Review Bill.20
16
On which, see, Aronson, MI 2005, op. cit., esp. pp 90–1; Beaton-Wells, C 2005,
op. cit., pp 13ff; Griffiths, J 2005, op. cit., pp 100–1; Robertson, A 2003, ‘The
administrative law jurisdiction of the Federal Court: is the ADJ(JR) Act still
important?’ Australian Bar Review, vol. 24, p 89 at 101.
17
See Robertson, A 2003, op. cit., esp. p 101.
18
Public Service Board of New South Wales v Osmond (1986) 159 CLR 656.
19
Law Reform Commission of Western Australia 1986, Judicial Review of
Administrative Decisions: procedural aspects and the right to reasons, Project no.
26(II), LRCWA, Perth.
20
Note recommendation 29, that the obligation to provide reasons under the
proposed legislation would not apply to entities which have an independent
statutory obligation to provide reasons (p 38) (which is broadly implemented
in clause 27(a)), and see ADJR Act s 13(11).
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Administrative Review Council – 30th Anniversary Issue
It has been suggested that the ARC has been over-anxious in its concerns
about removing any jurisdictional limitation with reference to decisions
under an enactment; that fears about thereby exposing to judicial review
matters such as purchasing, staffing and property management decisions
ignore that the ADJR Act is premised on the applicant identifying an excess
of power and in such cases ‘decision-makers unconstrained by statute are
rarely likely to exceed their power, unless it be in breach of a duty to
21
Recently espoused in, for example, Aronson, M 2005, op. cit. pp 79–97; Beaton-
Wells, C 2005, op. cit., pp 7ff. Horan, C 2003, ‘Judicial review of non-statutory
executive powers’, Federal Law Review, vol. 31, no. 3, pp 551–72, discusses
alternative possibilities federally for review of decisions of non-statutory
executive powers. On the constitutional writs, see further Jackson, D 2004,
‘Development of judicial review in Australia over the last 10 years: the growth
of the constitutional writs’, Australian Journal of Administrative Law, vol. 12,
no. 1, pp 22–9; Williams, G 2004, ‘Commentary on “The growth of
constitutional writs”’, Australian Journal of Administrative Law, vol. 12, no. 1,
pp 30–4.
22
Examples appear in Aronson, MI 2005, op. cit., pp 84–5.
23
ibid., p 84.
24
At 40–1. A Commonwealth-funded scheme not established by or under an
enactment is not subject to the ADJR Act: Ex-Christmas Islanders Association
Inc v Attorney-General [2005] FCA 1867; Barnett v Minister for Housing and Aged
Care and/or Minister for Community Services and Health (1991) 31 FCR 400.
25
At para. 6.43.
26
See ss 4 and 9.
27
At p 28 (fn 123).
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Administrative Review Council – 30th Anniversary Issue
accord natural justice, and even there the duty is not likely to have much
content’.28
The approach taken in the Judicial Review Bill goes further than that
recommended by the Commission, removing any jurisdictional limitation
with reference to decisions under an enactment and requiring merely that
the decision be that of an administrative character of an officer, employee
or consultant engaged by the state, a minister of the state, a local
government, or a judicial officer. Thus, in Western Australia, the approach
taken will define the ambit of the Act by reference to the identity of the
decision maker, rather than the source of the power. Upon reflection, it
seems unnecessarily restrictive to require that a non-statutory decision
involve the expenditure of public funds to be reviewable under the statute,
and the Bill does not impose such a restriction.
28
Aronson, M. et al. 2004, op. cit., p 79.
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Administrative Review Council – 30th Anniversary Issue
have been hybridised, with the result, recognised by the Commission, that
conflicting policy considerations arise in considering whether such
activities should be subject to judicial review:
Because the Bill defines its ambit of operation by reference to the identity
of the decision maker, rather than the source of the power to make the
decision, the effect is to encompass decision making by officers of GBEs.
The Bill will extend to decisions of state government bodies (and their
officers, employees and consultants), defined in clause 3 to include bodies
(whether or not incorporated) and offices established for a public purpose
by a written law, as well as bodies and offices established by the Governor
or a minister. Exemptions of particular bodies can then be specified in a
schedule to the Act where appropriate.
29
At pp 29–30.
30
At para 4.29.
31
At p 30.
32
ibid.
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Administrative Review Council – 30th Anniversary Issue
While the Western Australian approach will be broader than that yet taken
in any other jurisdiction, it does not address the situation of private sector
bodies exercising public functions.33 This possible area of extension of
judicial review was highlighted by the decision of the High Court in NEAT
Domestic Trading Pty Ltd v AWB Ltd,34 handed down the year after the
Commission’s report. While Professor Allars has commented that ‘given
the unusual statutory scheme considered in NEAT, it may prove to be an
isolated authority, quickly forgotten’,35 the decision has also been described
as having ‘the alarming consequence that the Commonwealth may
successfully insulate itself from legal, and even political, accountability’.36
Reflecting considerations not dissimilar to those expressed by the
33
See discussion of the issues in, for example, Finkelstein, R 2006, ‘Crossing the
intersection: how courts are navigating the “public” and “private” in judicial
review’, AIAL Forum, vol. 48, April, pp 1–11. To be contrasted with the exercise
of a ‘private’ power by a public body: see Griffith University v Tang (2005) 213
ALR 724 and the associated body of literature; for example, Gangemi, M 2005,
‘Griffith University v Tang: review of university decisions made “under an
enactment”’, Sydney Law Review, vol. 27, no. 3, pp 567–77; Hill, G 2005, ‘Griffith
University v Tang: comparison with NEAT Domestic, and the relevance of
constitutional factors’, AIAL Forum, vol. 47, December, pp 6–16; Mantziaris, C
& McDonald, L 2006, ‘Federal judicial review jurisdiction after Griffith
University v Tang’, Public Law Review, vol. 17, no. 1, pp 22–48; Stewart, D 2005,
‘Griffith University v Tang, “under an enactment” and limiting access to judicial
review’, Federal Law Review, vol. 33, no. 3, pp 526–53; Stewart, D 2005, ‘Non-
statutory review of private decisions by public bodies’, AIAL Forum, vol. 47,
December, pp 17–32; Will, M 2005, ‘Judicial review of statutory authorities’
AIAL Forum, vol. 47, December, pp 1–5.
34
(2003) 198 ALR 179. There is an extensive body of literature on this decision:
see, for example, Buckland, A & Higgisson, J 2004, ‘Judicial review of decisions
by private bodies’, AIAL Forum, vol. 42, July, pp 37–47; Conde, C 2005,
‘Accountability for the exercise of “public” power: a defence of NEAT
Domestic’, AIAL Forum, vol. 46, July, pp 1–14; Hill, G 2004, ‘The Administrative
Decisions (Judicial Review) Act and “under an enactment”: can NEAT Domestic
be reconciled with Glasson?’, Australian Journal of Administrative Law, vol. 11,
no. 3, pp 135–50; Mantziaris, C 2003, ‘A “wrong turn” on the public/private
distinction: NEAT Domestic Trading Pty Ltd v AWB Ltd’, Public Law Review, vol.
14, no. 4, pp 197–201. A more general analysis appears in Gageler, S 2005, ‘The
legitimate scope of judicial review: the prequel’, Australian Bar Review, vol. 26,
no. 3, pp 303–12.
35
Allars, M 2005, ‘Public administration in private hands’, Australian Journal of
Administrative Law, vol. 12, no. 2, pp 126–47 at 145.
36
Arora, N 2004, ‘Not so neat: non-statutory corporations and the reach of the
Administrative Decisions (Judicial Review) Act 1977’, Federal Law Review, vol. 32,
no.1, pp 141–61 at 160.
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Administrative Review Council – 30th Anniversary Issue
Commission in the context of GBEs, the ARC concluded in its recent report
The Scope of Judicial Review that a decision made by a private body but
given statutory effect ought in principle to be subject to judicial review,
although specific activities could be excluded from review on a case-by-
case basis if it was probable that the availability of public law remedies
would thwart the proper delivery of services.37
Although it is not reflected in the current draft of the Bill, I consider there
may be some merit in considering, by analogy to the approach taken by the
ARC, whether judicial review should include review of a decision of an
administrative character made by a person other than an officer of the state
where both the following criteria apply:
37
At para 3.10.
38
ibid.
39
Aronson, MI 2005, op. cit., p 89.
40
Beaton-Wells, C 2005, op. cit. esp. at p 6.
41
Recognised, for example, by Beaton-Wells, C 2003, ‘Administrative law in
South Africa: no longer a “dismal science”’, Public Law Review, vol. 14, no. 2,
pp 85–108 at 97–8.
42
See 1(1), with its emphasis on public powers and public functions.
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Vice-regal exclusion
Under the ADJR Act, decisions of the Governor-General are not open to
review.43 Again, the ARC has suggested reform in this area, in 1989
recommending the removal of this limitation,44 a reform now embodied in
the Judicial Review Act 1991 (Qld)45 and the Judicial Review Act 2000 (Tas).46
Nor does vice-regal immunity still exist at common law.47 Given this
‘anomaly’48 in the ADJR Act, the Commission suggested that it probably
reflected what was perceived to be the law prior to the decision of the High
Court in FAI Insurances Ltd v Winneke.49 Of course, that is no longer the
general law of Australia, as enunciated by the High Court in that decision.
43
Under s 3 (definition of ‘decision to which this Act applies’).
44
Administrative Review Council 1989, Review of the Administrative Decisions
(Judicial Review) Act: the ambit of the Act, Report no. 32, ARC, Canberra, ch. 5.
45
See s 53.
46
See s 41.
47
The authorities are set out in Aronson, MI 2005, op. cit. p 83 (fn 42).
48
As described by Aronson, ibid., p 83.
49
(1982) 151 CLR 342. See also, for example, Beaton-Wells, C 2005, op. cit., p 9.
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To some extent, the ADJR Act makes provision addressing the necessary
balance. It provides for an application for an order of review in respect of
both a ‘decision’ (s 5) and ‘conduct for the purpose of making a decision’
(s 6). However, the majority approach of the High Court in Australian
Broadcasting Tribunal v Bond:51
and
The ARC, in its report The Scope of Judicial Review, refers to ‘the difficulty of
applying these concepts in a complex statutory setting where numerous
steps are involved in making and implementing a decision’.52 It did not
consider the solution to be to attempt to develop some detailed principle
about steps in the administrative process amenable to judicial review.53 The
Commission similarly saw risks in any attempt to modify the concept of
50
At para 5.2.7.
51
(1990) 170 CLR 321.
52
At para 5.2.7.
53
At para 5.2.7.
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‘decision’ under the ADJR Act to resolve these difficulties. 54 Rather, both
perceived the best resolution to lie in the exercise by the court of its
discretion to dismiss an application and thereby ensure that proceedings
are not initiated prematurely or for a spurious or ulterior reason.55 In
particular, it has been suggested that s 14 of the Judicial Review Act 1991
(Qld), which is also being implemented in the Judicial Review Bill 2006,
‘addresses more directly the real mischief the High Court had in mind’. 56
Section 14 provides that where the reviewable matter has been made or
engaged in by a tribunal, authority or person in the course of a proceeding
and:
54
At p 29; cf Aronson, M 2005, op. cit., p 84.
55
Administrative Review Council 2006, The Scope of Judicial Review, Report no. 47,
ARC, Canberra, para 5.2.7; Law Reform Commission of Western Australia
2002, Judicial Review of Administrative Decisions, Report no. 95, LRCWA, Perth,
p 29.
56
Aronson, M et al. 2004, op. cit., p 20.
57
At p 29.
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58
At para 5.2.7 (fn 113).
59
Section 11(3).
60
Though cf recommendation 30 in respect of the time within which an
application should be made for reasons: ‘Any request for a statement of
reasons should be made within 28 days of notification of the decision, but there
should be a power in the court to extend that time in an appropriate case’ (the
basis for the distinction is discussed at p 38) (being implemented in clauses
28(3) and (4)); and see ADJR Act s 13(2).
61
At p 31.
62
Law Reform Commission (Ireland) 2004, Report on Judicial Review Procedure,
LRC 71, LRCI, Dublin, pars 2.36–2.45, recommended that a six-month time
limit apply in all matters of conventional review, with the possibility of
extension where good reason exists.
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within six months, if the court is satisfied that the delay in commencement
of proceedings would be likely to cause substantial hardship to any person
or substantially prejudice the rights of any person or be detrimental to
good administration (recommendation 16, pp 31–2).
63
Australian Law Reform Commission 1985, Standing in Public Interest Litigation,
Report no. 27, ALRC, Sydney. The period under the Promotion of Administrative
Justice Act 2000 (South Africa) is 180 days: discussed in Beaton-Wells, C 2003,
‘Administrative law in South Africa: no longer a “dismal science”’, Public Law
Review, vol. 14, no. 2, pp 85–108 at 104.
64
The Commission noted at p 32 that this was also consistent with the
recommendation of the (English) Law Commission (1994, Administrative Law:
judicial review and statutory appeals, Report no. 226, LC, London, para 5.20).
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Costs
Other than in respect of intervention in proceedings by the
Attorney- General,67 the ADJR Act makes no provision as to costs. The
65
Report no. 26, ARC, Canberra.
66
Referring to Peter Bayne 1999, Judicial Review in Victoria, Victorian Attorney-
General’s Law Reform Advisory Council Expert Report no. 5, Melbourne,
recommendation 25, and Manitoba Law Reform Commission 1987,
Administrative Law: judicial review of administrative action, Report no. 69(II),
MLRC, Winnipeg, recommendation 41.
67
ADJR Act s 18.
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68
At p 37.
69
Which was also supported by Peter Bayne 1999, op. cit., recommendation 26.
70
Hansard, 26 November 1991, p 3138, available at
<http://parlinfo.parliament.qld.gov.au/isysnative/XFxXRUJTRVJWRVJcSEFOX
0lTWVM2REJcMTk5MVw5MTExMjZoYS5wZGY=/911126ha.pdf#xml=http://p
arlinfo.parliament.qld.gov.au:80/isysquery/irleb95/2/hilite>, viewed
29 September 2006.
71
Queensland Legal, Constitutional and Administrative Review Committee 2005,
The Accessibility of Administrative Justice, Discussion paper, QLCARC, Brisbane,
para 7.2.3.
72
Section 43.
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The Commission similarly considered that there was no good reason why
the usual interlocutory procedures such as interrogatories and discovery
should not apply with respect to applications for judicial review
(recommendation 21, p 33). The Bill makes no specific provision in respect
of either of these recommendations but probably does not need to.
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Administrative Tribunal.73 In that case, the court74 held that the State
Administrative Tribunal was to be regarded as an ‘anomalous Tribunal
analogous to a Court’ for the purposes of the application of the doctrine of
jurisdictional error enunciated in Craig v State of South Australia.75
Accordingly, the court held that, although the tribunal had made a number
of errors of law because it had jurisdiction to determine questions of law,
they were not errors of a kind which justified the grant of certiorari.
However, more significantly for present purposes, the court went on to
hold that, even if grounds for certiorari had been made out, the court
would nevertheless have exercised its discretion to refuse relief because of
an unexplained failure to exercise the avenue of appeal provided by the
State Administrative Tribunal Act.
Summary
Until recently Western Australia could fairly be described as lagging
behind in the reform and development of administrative law. Although
legislation creating an ombudsman and providing freedom of information
was enacted at about the same time as other jurisdictions, notwithstanding
many reports and recommendations over many years there had been no
substantive change to the arrangements for either merits review or judicial
review.
Although the final terms of the proposed Bill have not yet been publicly
exposed, assuming the Bill proceeds largely in the form of its current draft,
it will represent a significant improvement in the avenues available to the
73
Re Carey; Ex parte Exclude Holdings Pty Ltd & Ors [2006] WASCA 219.
74
(Of which this author was a member.)
75
(1995) 184 CLR 163.
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Margaret Harrison-Smith*
*
Margaret Harrison-Smith is Executive Director of the Administrative Review
Council. She thanks Attorney-General’s Department Graduate
Robert Gascoigne for his assistance in the preparation of this article.
1
As amended by the Attorney-General in 1970.
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The inspiration for the Administrative Review Council came from the
Committee’s study of the United Kingdom’s Tribunals and Inquiries Act.
That Act established a Council on Tribunals for the following purpose:
On 6 March 1975 the then Attorney-General, the Hon. Keppel Enderby MP,
introduced the Administrative Appeals Tribunal Bill 1975 (Cth) into the
2
Administrative Review Committee 1971, Report, Parliamentary Paper no. 44,
Commonwealth of Australia, Canberra, p 1.
3
Kerr Committee report, pp 81, 83.
4
ibid., p 103.
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Debate on the Bill was deferred, to resume on 14 May 1975. At that time, a
relatively new member of Parliament, John Howard MP, who had
delivered his first speech some seven months before, proposed a number of
amendments to the Bill on behalf of the Opposition. Among these was an
amendment to establish the Administrative Review Council. Introduced by
Mr Howard on 22 May 1975, the amendment called specifically for the
creation of a council consisting of ‘The President, the Ombudsman, the
Chairman of the Australian Law Reform Commission, a senior
administrative official and a Parliamentary draftsman’.6
The Bill received Royal Assent on 28 August 1975, and the Act commenced
on 1 July 1976. The Council had its first meeting on 15 December 1976. The
5
Commonwealth Parliamentary Debates (House), 6 March 1975, p 1188. The final
report of the Committee on Administrative Discretions, named the Bland
Committee after its chairperson, Sir Henry Bland. The report contained a
thorough analysis of the existing framework for administrative review. Among
other things, it identified the discretionary powers that should be subject to
tribunal review. (Bland, Sir Henry 1973, Report of the Committee on
Administrative Discretions, Parl. Paper 316/1973, Australian Government
Publishing Service, Canberra.)
6
ibid., 22 May 1975, p 2743.
7
ibid.
8
ibid., p 2744.
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passage of time is reflected in the fact that the Council will have its 225th
meeting later this year.
As noted elsewhere in this issue, in recent years the Council has used the
gamut of its powers to provide expert advice on many aspects of
Australia’s administrative system.
Full circle
To conclude, I return to the beginnings, to the influence of the UK Council
on Tribunals on the establishment—if not the shape and constitution—of
the Administrative Review Council. As Lord Newton suggests in his
contribution to this issue, there are longstanding historical links between
the two Councils.
History has come full circle. In May 2000 the British Government
commissioned an independent review of the tribunals system, chaired by
Sir Andrew Leggatt, to consider ‘the administrative justice system as a
whole’. The report, Tribunals for Users, was submitted to the Lord
Chancellor in March 2001.
9
Senate Legal and Constitutional Legislation Committee 1997, Report on the Role
and Function of the Administrative Review Council, SLCLC, Canberra.
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Concluding comment
This historical analysis confirms that the Administrative Review Council
was established to provide strong and independent advice to government
on the Australian administrative system. The perception of the Council
reflected in the excerpt from the Leggatt report that I include above
suggests that, so far, the Council has been doing so successfully.
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The report begins by outlining the constitutional and legislative basis for
judicial review in the Commonwealth administrative law system, the
grounds for seeking judicial review and the rationale for providing judicial
review. The public law values that underlie judicial review are the rule of
law, safeguarding of individual rights, accountability, and consistency and
certainty in the administration of legislation.
In general, the Council considers that the rule of law and the provision of
remedies for redressing unlawful government action or inaction are
paramount values in Australian society and under the Australian
Constitution. A strong justification is needed to reduce judicial review in
such a way as to allow conduct to proceed without the availability of any
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Government response
The Council notes that this report does not contain any formal
recommendations; rather, it presents a framework of indicative principles
for practical guidance.
The report was preceded by an issues paper. In addition, a forum was held
on 12 November 2003 to further consider the uses of expert systems. The
forum was attended by approximately 60 people from a broad range of
interest groups, including government, business and community
organisations. Although the primary focus of the Council’s issues paper
was rules-based systems, in the report the Council broadened its focus to
other forms of expert systems used in administrative decision making.
Setting out best-practice guidelines for the use of expert computer systems
by government agencies in administrative decision making, the report
focused on the sorts of administrative decisions best suited to the use of
expert computer systems, the advantages and disadvantages of using
expert systems in administrative decision making, best-practice principles
for developing and operating expert systems in administrative decision
making, and the need for expert systems used in administrative decision
making to comply with the administrative law values of lawfulness,
fairness, rationality, transparency and efficiency.
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Government response
During 2005–06 the advisory panel the Council proposed was established
as the Automated Assistance in Administrative Decision Making Working
Group. This Group developed the Automated Assistance in Administrative
Decision Making Better Practice Guide in February 2007, to assist Australian
government agencies in the successful deployment of automated systems.
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and the number and sorts of decisions they review internally, the report
did not recommend a single model; rather, it provided a framework for
agencies to design new internal review regimes and review existing
practices. There were no recommendations to government.
The final chapter of the report was a best-practice guide and was also
published separately as a short booklet, Internal Review of Agency Decision
Making: a best-practice guide.
The report, which was preceded by an issues paper and a discussion paper,
noted that when government provided a service directly to the public a
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recipient of that service who was dissatisfied with some aspect of its
delivery might have one or more administrative law remedies available.
Among those remedies might have been the right to information under the
freedom of information legislation, the right to complain to the
Ombudsman, and the right to have a decision reviewed by the Federal
Court or a tribunal. When that service was contracted out to the private
sector, however, service recipients’ access to administrative law remedies
could be lost in the process.
Government response
1
Report no. 379, October 2000.
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The report, which was preceded by a discussion paper, noted that appeals
from the Administrative Appeals Tribunal to the Federal Court were
limited to appeals on a ‘question of law’, within the meaning of s 44 of the
Administrative Appeals Tribunal Act 1975. In its report the Council
recommended that the scope of review under s 44 remain unchanged. It
also recommended, however, that the Federal Court’s powers be expanded
slightly, to give it discretion to receive evidence and to make findings of
fact where there had been an error of law—provided the Court’s findings
were not inconsistent with those of the Tribunal.
Government response
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The report, which was preceded by an issues paper and a discussion paper,
was prepared in collaboration with the Australian Law Reform
Commission and makes recommendations designed to improve the
public’s access to government-held information. The Council was
concerned to ensure the Act was operating to give full effect to the
Australian people’s right of access to government-held information. In
particular, recommendations were made to ensure that the Act was
interpreted in a way that gives proper effect to its objectives.
Government response
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Government response
The Senate rejected both Bills on 26 February 2001, and the Government
stated that it did not intend to reintroduce the Bills during the life of that
Parliament. Instead, the Government committed itself to reforming the
individual tribunals in order to achieve legislative and administrative
efficiencies.
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the Administrative Appeals Tribunal Act and other legislation on how the
Tribunal is to be constituted for the purposes of a particular hearing, and
expanding the range of alternative dispute resolution processes available to
the Tribunal.
Rather than setting out specific recommendations, the report, which was
preceded by a discussion paper, set out general principles to assist the
Government in determining how the Commonwealth’s administrative law
package should apply to government business enterprises. The report set
out:
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In the report, which was preceded by a discussion paper, the Council made
nine recommendations for reform. They were not as broad in scope as the
preliminary views expressed in the discussion paper. Among the reasons
for this were the views expressed during the consultation process and the
intervening reform of the Administrative Appeals Tribunal’s practices and
procedures. That reform had occurred as part of implementation of the
outcomes a review of the AAT, which did much to prevent the problems
that had previously been encountered in AAT proceedings.
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Government response
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The Council also recommended that the Federal Court have a discretion to
refuse relief or grant an application under the Act if it was satisfied that to
do so would be in the interests of justice or if it was satisfied that the
decision under review, or conduct engaged in for the making of that
decision, was not justiciable.
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The report, which was preceded by an issues paper, dealt with five
principal matters and contained recommendations for reform in the
following areas:
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The report, which was preceded by an issues paper and a discussion paper,
constituted the first stage of a major examination of the operation of the
Administrative Decisions (Judicial Review) Act 1977. It provided advice in
relation to claims that the Act was being abused in some areas. The
fundamental question was whether experience of the operation of the Act
had demonstrated that, in the course of achieving its primary aims, the Act
had left public authorities open to unwarranted litigation.
The Council did not consider that increased use of the legislation generally
or under specific legislation or the mere fact of applications for an order of
review being refused indicated that the Act was being abused. It found
little evidence of the Act being used to delay or frustrate Commonwealth
administration or to gain a tactical advantage, rather than to establish a
genuine legal right or interest. The Council recommended amendments to
the Act by which the Federal Court’s powers could be extended and
clarified to enable it to stay or to refuse to grant applications for review in
appropriate cases.
The Council considered that there was a need for a system of external
review on the merits to be available in respect of many migration decisions.
Among the proposals for reform recommended by the Council were the
following:
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The report, which was preceded by a discussion paper, put forward the
following main recommendations:
The report, which was preceded by a discussion paper, was divided into
three parts. The first concerned the legislative interrelationship between the
Ombudsman and the Administrative Appeals Tribunal and compared the
two bodies’ nature, functions, scope, review procedures and remedies. The
second part discussed whether it was desirable for the Ombudsman and
the Tribunal to have overlapping jurisdictions. Third, the Council
examined options for reform, with a view to improving the relationship
between the two bodies.
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In its 1980 report Social Security Appeals the Council had noted that it did
not favour a two-tier external review structure for social security appeals.
However, in the light of changes to the operation of Social Security
Appeals Tribunals and other developments, the Attorney-General and the
Minster for Social Security asked the Council to give further consideration
to whether a two-tier external review system would be appropriate.
The Council came to the conclusion that a two-tier review structure was in
fact the most appropriate review mechanism for social security appeals
and made 20 recommendations for reform. It recommended the
improvement of the existing two-tier structure of external review, to
consist of a single national tribunal—the Social Security Appeals Tribunal,
rather than the existing tribunals—with the Administrative Appeals
Tribunal providing review as the second tier.
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The report contains 21 recommendations, the primary one being that the
repatriation jurisdiction currently vested in the Repatriation Review
Tribunal be absorbed into the Administrative Appeals Tribunal’s
jurisdiction.
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Report no. 19, Rights of Review under the Migration Act 1958
and Related Legislation: interim report on the Constitution
of the Administrative Appeals Tribunal, 1983
The Council’s report on the Administrative Appeals Tribunal and rights of
review under the Migration Act and related legislation was transmitted to
the Government on 4 August 1983 and tabled in the Parliament on
15 September 1983.
The report set out two options for reform: to remove the prescription on
the Administrative Appeals Tribunal’s constitution or to allow the Tribunal
in its Migration Act jurisdiction to be constituted by a presidential member.
There was only one recommendation—that the second option be adopted.
The Council saw this as an immediate and short-term solution to a
pressing problem.
In its report the Council identified several problems with the operation of
the Compensation (Commonwealth Government Employees) Act 1971, one of
which was that in proceedings before the Administrative Appeals Tribunal
the Commissioner for Employees’ Compensation did not appear as
respondent. The Council felt that, in the circumstances, the benefits likely
to be derived from the direct involvement of the Commissioner
outweighed the disadvantages. The Council recommended that:
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that such review be available only if the leave of the AAT President
is first obtained
Report no. 15, Australian Federal Police Act 1979: sections 38 &
39, 1982
The Council’s report on ss 38 and 39 of the Australian Federal Police Act
was transmitted to the Government on 11 February 1982 and tabled on
21 October 1982.
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that certain decisions under the City Area Leases Ordinance and
the Building Ordinance 1972 that were not subject to review be
reviewable by the Administrative Appeals Tribunal
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access to information
ministerial directions
extensions of time
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The Council did not recommend transfer of the Student Assistance Review
Tribunal jurisdiction to the Administrative Appeals Tribunal at that stage
but recommended changes to improve the Student Assistance Review
Tribunal’s procedures.
The Council noted in the report that some exclusions in the Bill appeared
to be inconsistent with the bases of the Council’s previous
recommendations in Report no. 1 (1978). The 1980 report contained six
recommendations, concerning regulations to delete classes of decisions
from the schedules to the Administrative Decisions (Judicial Review) Act 1977,
the ambit of clause 13A of the Bill, levels of decision making for the
proposed s 13A, and the time for giving notice in clause 13A. The Council
also recommended that the Act be reviewed after a period of operation and
highlighted the need for record keeping by departments in anticipation of
this future review of the Act.
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The report examined the review mechanism existing at the time for
decisions relating to social security payments and benefits. This involved
review officers and appeals to the Social Security Appeals Tribunal, which
had power to make recommendations but not to substitute a decision for
that of the primary decision maker. Only in very limited circumstances was
appeal to the Administrative Appeals Tribunal available.
The Council concluded that, in principle, every decision that related to the
making of a social security payment or assistance should be subject to
external review by an independent tribunal with adequate fact-finding
powers and procedures and with the authority to determine matters
conclusively. It considered that the Social Security Appeals Tribunal was
not properly constituted and did not operate satisfactorily and that a major
restructuring of the social security appeals process was necessary.
The Council argued that a two-tier structure was not necessary, since the
principle of res judicata did not apply to administrative decisions. It
recommended that the Tribunal be abolished and replaced by an improved
review officer structure within the Department of Social Security. It further
recommended that a Social Security Division be established within the
Administrative Appeals Tribunal for external review of social security
decisions.
The Council also argued that a good internal review system before—but
not as a prerequisite for—external review was desirable because decisions
were often made by officers with limited experience and internal review is
fast and cost efficient and reduces the need for external review. It then
argued that, since social security had become accepted as part of
Australia’s community fabric and the effect of adverse decisions on
claimants could be serious, it was important to provide an avenue for
external review of decisions. The Administrative Appeals Tribunal was
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well placed to take on this role, the Council said, since it would assure a
high standard of procedural fairness, authority and clarity of decision
making, it had a pool of members with broad skills and experience, and it
had proved an efficient review process.
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