Liverpool City Council v Minister for Local Government and Co-operatives

The Court of Appeal of New South Wales considered a dispute between Liverpool City Council and the Minister for Local Government and Co-operatives concerning the validity of a notice issued by the Minister under section 15(1) of the *Local Government Act 1919* (NSW). The Council sought to challenge the Minister's decision to issue this notice, which had the effect of requiring the Council to take certain actions.

The central legal issue before the Court was whether the Minister had acted *ultra vires* in issuing the notice. Specifically, the Court had to determine if the Minister had properly exercised the power conferred by section 15(1) of the *Local Government Act 1919*, which permitted the Minister to issue directions to a council if satisfied that the council had failed to perform its duties or had acted improperly. This involved an examination of the preconditions for the exercise of that power and whether those preconditions had been met in the circumstances of the case.

The Court reasoned that the Minister's power under section 15(1) was not unfettered and was contingent upon the Minister being satisfied of the factual basis for issuing the notice. The Court analysed the evidence before the Minister and concluded that there was no proper basis for the Minister to be satisfied that the Council had failed to perform its duties or had acted improperly in the manner alleged. Consequently, the Minister's decision to issue the notice was found to be *ultra vires* and invalid. The Court applied the principle that statutory powers must be exercised within the scope of the authority granted by the legislation, and that a failure to satisfy the statutory preconditions renders the exercise of such power unlawful.

The Court of Appeal allowed the appeal, set aside the notice issued by the Minister, and ordered that the Minister pay the Council's costs of the appeal.