Paspaley Pearling Company Pty Ltd and Delegate of the Chief Executive Officer of the Department of Primary Industries and Regional Development [No 2]

Case

[2024] WASAT 108

19 SEPTEMBER 2024


JURISDICTION     :   STATE ADMINISTRATIVE TRIBUNAL

ACT: PEARLING ACT 1990 (WA)

CITATION:   PASPALEY PEARLING COMPANY PTY LTD and DELEGATE OF THE CHIEF EXECUTIVE OFFICER OF THE DEPARTMENT OF PRIMARY INDUSTRIES AND REGIONAL DEVELOPMENT [No 2] [2024] WASAT 108

MEMBER:   JUDGE H JACKSON, DEPUTY PRESIDENT

DR S WILLEY, SENIOR MEMBER

HEARD:   11 - 15 MARCH 2024

DELIVERED          :   19 SEPTEMBER 2024

FILE NO/S:   DR 58 of 2022

BETWEEN:   PASPALEY PEARLING COMPANY PTY LTD

First Applicant

BLUE SEAS PEARLING PTY LTD

Second Applicant

AND

DELEGATE OF THE CHIEF EXECUTIVE OFFICER OF THE DEPARTMENT OF PRIMARY INDUSTRIES AND REGIONAL DEVELOPMENT

First Respondent

CYGNET BAY CONSOLIDATED PTY LTD

Second Respondent


Catchwords:

Resource management - Pearling - Issue of pearl oyster farm leases - Jurisdiction to issue - Interaction of State and Federal legislation - Extraterritoriality - Application made in 'wrong' name - Power to correct error - Application of non-statutory policy - Whether issue of lease by Tribunal on review would amount to issue of 'new' lease whether policy is against issue of new leases - Whether Tribunal on review must proceed on basis that decision under review was never made - 'Better interests' of the pearling industry - Biosecurity - Application of precautionary principle - Application or otherwise of Ministerial Policy - Orderly development of industry

Legislation:

Coastal Waters (State Powers) Act 1980 (Cth), s 5(c)
Fish Resources Management Act 1994 (WA), s 4
Fisheries Act 1905 (WA), s 8H
Fisheries Act 1952 (Cth), s 12H(4)
Fisheries Management Act 1991 (Cth), s 4, s 10(2)(a), s 10(3)(c), s 72, s 77
Pearling Act 1990 (WA), s 3(2)(c), s 16, s 22, s 22(1), s 23(1)(a), s 23(2), s 23(6), s 24(1), s 43(1), s 43(2)
State Administrative Tribunal Act 2004 (WA), s 24, s 25, s 25(1), s 26, s 27, s 27(3), s 29, s 29(1), s 29(3), s 29(5), s 32(2)

Result:

Applicants' application for review is dismissed
The decision of the first respondent is set aside and substituted with a new decision in which leases are issued in the name of the second respondent

Category:    B

Representation:

Counsel:

First Applicant : R Young SC & C Taylor-Burch
Second Applicant : R Young SC & C Taylor-Burch
First Respondent : CS Bydder SC & CG Mayne
Second Respondent : KR Lendich SC & LD Coci

Solicitors:

First Applicant : Corrs Chambers Westgarth
Second Applicant : Corrs Chambers Westgarth
First Respondent : State Solicitor's Office
Second Respondent : Cocks Macnish

Case(s) referred to in decision(s):

Andrews v Diprose (1937) 58 CLR 299

BHP Petroleum (Timor Sea) Pty Ltd v Minister for Resources [1994] FCA 168; (1994) 49 FCR 155

Bridgetown/Greenbushes Friends of the Forest Inc v Department of Conservation and Land Management (1997) 18 WAR 102

Citta Hobart Pty Ltd v Cawthorn [2022] HCA 16; (2022) 276 CLR 216

Clive Elliott Jennings & Co Pty Ltd v Western Australian Planning Commission (2002) 122 LGERA 433

Collins v Minister for Immigration and Ethnic Affairs (1981) 58 FLR 407

Commissioner for Consumer Protection v Murphy [2013] WASCA 89

Falc Pty Ltd v State Planning Commission (1991) 5 WAR 522

Fitzgerald v Masters [1956] HCA 53; (1956) 95 CLR 420

Forrest v Forrest Pty Ltd v Minister for Aboriginal Affairs [2024] WASCA 96

GB & G Consolidated v Melbourne and Metropolitan Board of Works (1972) 27 LGRA 327

Guy v Hampson [2019] WADC 19

Hogben v Darcy [2009] WADC 63

Jacob and Local Government Standards Panel [2022] WASAT 66

Leatch v National Parks and Wildlife Service (1993) 81 LGERA 270

LS v Mental Health Review Board [2013] WASCA 128

Macedon Ranges Shire Council v Romsey Hotel [2008] VSCA 45, (2008) 19 VR 422

Marshall v Metropolitan Redevelopment Authority [2015] WASC 226

Paspaley Pearling Company Pty Ltd and delegate of the Chief Executive Officer of the Department of Primary Industries and Regional Development [2023] WASAT 116

Port MacDonnell Fisherman's Association v South Australia [1989] HCA 49; (1989) 168 CLR 340

Project Blue Sky Inc v Australian Broadcasting Authority [1998] HCA 28

Re Brian Lawler Automotive Pty Ltd and Collector of Customs (New South Wales) (1978) 1 ALD 167

Re CJR [2023] WADC 111

Re Control Investments Pty Ltd and Others and Australian Broadcasting Tribunal (No 2) (1981) 3 ALD 88

Re Drake and Minister for Immigration and Ethnic Affairs (No 2) 2 ALD 634

Reid v Brisbane City Council [2013] QPEC 24

Robinson v Western Australian Museum (1977) 138 CLR 283

Shi v Migration Agents Registration Authority [2008] HCA 31; (2008) 235 CLR 286

Stream Focus Pty Ltd v City of Armadale [2018] WASC 13

Stream Focus Pty Ltd v City of Armadale [2018] WASCA 196

Wattleup Road Development Co Pty Ltd v State Administrative Tribunal [No 2] [2016] WASC 279

Wingadee Shire Council v Willis (1910) 11 CLR 123

Wright v ANZ Banking Group Ltd [2001] FCA 386

Yates v Integrity Industrial Pty Ltd [2020] WADC 127

REASONS FOR DECISION OF THE TRIBUNAL:

Introduction and overview

  1. On 24 February 2022 the first respondent (Delegate) determined to issue two pearl oyster farm leases (POFLs) pursuant to s 23(1)(a) of the Pearling Act 1990 (WA) (PA).  In each case the POFL is located off Cape Villaret, south­west of Broome, in the Australian Fishing Zone (AFZ), which is in Commonwealth waters.

  2. The applicants, the first of which (Paspaley) has a majority interest in the second (Blue Seas), are commercial competitors of the second respondent and have sought review of that decision.[1] 

    [1]          For convenience, and given Paspaley's controlling interest of Blue Seas, unless it is necessary to distinguish between them, we will refer to the applicants, jointly, as Paspaley, and use the singular rather than the plural.

  3. There are several grounds on which Paspaley challenges the decision of the Delegate.  One is that the name in which the applications for the POFLs were made is not that of the second respondent (Cygnet) and, indeed, is not the name of a legal entity (the Misnomer Issue).  While Paspaley acknowledges that the errors in question occurred by way of oversight, they submit that the Delegate was, and this Tribunal on review is, unable to correct that error and that there is therefore no power to issue the POFLs at all.

  4. Secondly, Paspaley also submits that the refusal of the leases to Cygnet would be in the 'better interests' of the pearling industry for two related reasons: it says the POFLs will introduce an unacceptable biosecurity risk (the Biosecurity Risk Issue) and will be contrary to the 'orderly development' of the WA pearling industry (the Orderly Development Issue).  Amongst other things in that regard, Paspaley is critical of a statutory policy (Ministerial Policy Guidance No. 17 - MPG17) which concerns separation distances between POFLs and which it says is inadequate for various reasons. 

  5. Finally, Paspaley also relies upon a non‑statutory policy issued on 2 August 2023 (2/8 Policy), which is to the effect that no 'new' POFLs located in Commonwealth waters will be approved until certainty is obtained as to the interaction of the PA and relevant Commonwealth legislation and the resulting power to issue the POFLs. Paspaley submits that, first, the POFLs the subject of this application are 'new' leases notwithstanding that they were issued before the 2/8 Policy was declared and, second, that there is no cogent reason to depart from the 2/8 Policy.

  6. For the reasons that follow, we are of the view that the correct and preferable decision is to set aside the Delegate's decision and substitute it with one by which the POFLs are issued to Cygnet, rather than to the non-entity.

  7. In so finding, we have determined that:

    (a)for the purposes of determining our own jurisdiction, we have the power to issue the POFLs;

    (b)that the error in the name of the applicant for the POFLs is one which the Delegate could have, and we can, correct;

    (c)it would not be in the better interests of the pearling industry to refuse to issue the POFLs in that any biosecurity risk introduced by issuing the POFLs to Cygnet will be no more than is anticipated and managed by existing policies (primarily MPG17) and that there is nothing inconsistent with the orderly development of the industry by the issue of the two POFLs to Cygnet; and

    (d)the 2/8 Policy has no application in these circumstances because the POFLs in question are not 'new' in the sense understood by the policy.

  8. In short, the application for review should be dismissed and the relevant POFLs should be issued to Cygnet.

Procedural history

  1. The applications for the two POFLs under consideration in these proceedings were made under cover of a letter dated 27 August 2021.[2]  That application consisted of:

    (1)a cover letter;

    (2)a document headed 'Potential Environmental Issues Associated with Proposed Pearl Lease Site';

    (3)a completed version of a form approved for the purpose under s 22 of the PA;

    (4)a copy of a Guidance Statement titled Evaluating and Determining Categories of Marking and Lighting for Aquaculture and Pearling Leases and Licences, consisting of various sections including section 6 which is a 'Marking and Lighting Form' which has been completed;

    (5)a document consisting of images of the relevant seafloor; and

    (6)a 'Site Plan' which, amongst other things, shows the area of the proposed POFL site surrounded by both a two nautical mile buffer zone and a five nautical mile buffer zone as well as existing POFL sites.

    [2] A complete copy of the application is contained in Volume 4 of the First Respondent's Section 24 Bundle.

  2. Those documents as just described were provided, with the exception of the cover letter, by way of application for each of the two POFLs.  That is, a version of each of those documents was provided for each of the relevant POFL applied for, submitted under the common cover letter.

  3. A summary of the applications was published on the website of the Department of Primary Industries and Regional Development (Department) on 29 October 2021 for a 28-day comment period.  Details of the applications were also forwarded to relevant decision‑making authorities, other involved agencies and interest groups.[3]

    [3] Exhibit 2, pages 5 and 6.

  4. During that consultation period an objection was made to the applications by what is described as the 'Paspaley Pearling Group of Companies' (summarised in the letter as 'PPCo').  The relevant 'Statement of Reasons produced by the Department' describes that objection as having four grounds:

    (1)That the application sites are not located an appropriate distance from existing POFLs issued to PPCo entities;

(2)That the application sites are within an area PPCo considers to be a 'pearl farm area' creating a disruption to PPCo's existing operations;

(3)That the application sites limit the capacity of PPCo entities to expand into the 'pearl farm area'; and

(4)That the application sites pose a potential biosecurity risk noting the 'applicant's health and productivity issues'.[4]

[4] Exhibit 2, page 6.

  1. On 10 December 2021 the Delegate provided to Cygnet (by email) a 'Summary of Stakeholder Submissions' received during the submission period.[5]

    [5] Exhibit 2, page 2.

  2. On 2 February 2022 Cygnet responded to that consultation summary.[6]

    [6] Exhibit 2, page 28.

  3. On 10 February 2022 the Delegate wrote to Cygnet and advised that he (the Delegate) was 'now in the position to advise you that I will grant the [relevant] pearl oyster farm leases in accordance with the Statement of Reason document enclosed'.  The letter went on to invite Cygnet to provide its 'written acceptance of the proposed … conditions' upon which the Delegate indicated he would issue the relevant leases with a term of 21 years.[7]

    [7] Exhibit 2, page 2.

  4. On 24 February 2022 the Delegate issued the relevant POFLs.[8]  On the same day the Delegate issued a Statement of Decision.[9]

    [8] Exhibit 2, pages 38 - 40, 42 and 44 - 46 and 48.

    [9] Exhibit 2, page 52.

  5. On 4 March 2022 the decision to issue the two POFLs was published in the WA Government Gazette.[10]

    [10] Government Gazette, No. 24, 4 March 2022, pages 464 - 465.

  6. In the above description we have referred to Cygnet as the recipient of the correspondence from the Delegate as well as the applicant for the POFLs and the provider of information.  As was foreshadowed in the Introduction and Overview (above), there are some documents in which the name of the relevant entity does not align with that of Cygnet.  That is a matter addressed in more detail below under the heading 'The Misnomer Issue'.

  7. As noted above, the two applicants filed their application for review on 31 March 2022.  It is not necessary for present purposes to set out in any great detail the progress of this matter through the Tribunal, save to say that it was mediated, and case managed, together with an application for review by the first applicant of a decision to issue a single POFL to Maxima Pearling Company Pty Ltd approximately 5 nautical miles from the 'Cygnet' POFL at Cape Villaret A (DR59/2022).  The outcome of that proceeding was an agreement between the parties whereby, amongst other things, the POFL issued to Maxima was transferred to the first applicant. 

  8. By orders made 12 May 2023, the current matter was listed for a final hearing to commence on 30 October 2023 for the duration of five days.

  9. On 2 August 2023 all members of the industry were sent a letter from the Delegate to which we have referred as the 2/8 Policy, which advised of a degree of 'uncertainty' as to the legal status of POFLs issued under the PA in Commonwealth waters and declared that no 'new' POFLs would be issued in Commonwealth waters until the uncertainty had been resolved.

  10. The parties then engaged in a somewhat lengthy period of consultation and conferral as to what impact, if any, the 2/8 Policy might have on the matter.

  11. The issue of the 2/8 Policy came to a head in mid-October 2023 and the Tribunal listed the matter for a directions hearing at the end of which the listed hearing dates in October were vacated and the matter listed for a preliminary determination, the result of which was our decision Paspaley Pearling Company Pty Ltd and delegate of the Chief Executive Officer of the Department of Primary Industries and Regional Development [2023] WASAT 116.

  12. Prior to the delivery of those reasons, on 3 November 2023 the Tribunal relisted the matter for hearing commencing on 11 March 2024.

Power to decide

  1. As has been previously noted, the 2/8 Policy notes a 'level of uncertainty with regards to the legal framework for managing tenure [under the PA] in Commonwealth waters'.

  2. That uncertainty arises due to particular provisions of the Fisheries Management Act1991 (Cth) (FMA) and its interaction with the PA.

  3. Although no party submitted that we lacked the power to issue the POFLs, we have a duty to ensure that we remain, at all times, within jurisdiction.[11]

    [11] Citta Hobart Pty Ltd v Cawthorn [2022] HCA 16; (2022) 276 CLR 216 (Citta Hobart) [22].

  4. What follows is largely taken from and largely adopts the submissions made on behalf of the Delegate.  Cygnet adopted those submissions, initially in its Outline of Written Submissions[12] and later in its written closing.[13]  In addition, it cautioned us against finding that the Delegate (and the Tribunal on review) lacks power to issue the POFLs where:

    (a)the industry has operated for ~30 years on the understanding that there is such a power;

    (b)no party submitted that we lack power; and

    (c)the Commonwealth has an interest in the issue but is not a party to these proceedings and has therefore not been heard.

    [12] Second Respondent's Outline of Written Submissions, 16 February 2024, para 93.

    [13] Closing Submissions of the Second Respondent, 15 March 2024, para 155.  Also, ts 417, 15 March 2024.

  5. Paspaley's written Outline of Submissions in Reply were to the effect that the question did not need to be determined because, it said, we should refuse to issue the POFLs.  Paspaley further submitted that, if we did not accept its initial position, it adopted the Delegate's written submissions.[14]

    [14] Applicants' Outline of Reply Submissions, 1 March 2024, paras 22 - 23.

  6. The issue arises in the context of s 10(2)(a) of the FMA, which provides that that Act is intended to operate in the AFZ to the exclusion of any law of a State. An exception is provided by s 10(3)(c) which provides that the FMA 'does not apply' to 'activities in the AFZ to which, because of s 77, [the FMA] does not apply'.

  7. Section 77 of the FMA provides that the FMA does not apply if 'an arrangement' under Div 3 of Pt 5 of the FMA provides that 'a particular fishery is to be managed in accordance with a law of a State'.

  8. For the following reasons, we are satisfied that the relevant arrangement between the Commonwealth and State governments provides that the pearl oyster fishery located off Broome in Commonwealth waters is to be managed in accordance with the law of Western Australia.

  9. The first point to note is that the PA purports to have extra‑territorial effect. Section 3(2)(c) of the PA declares that a reference to 'Western Australian waters or to waters generally' includes:

    for purposes in relation to a pearl oyster fishery, as defined in section 43, that is to be managed in accordance with the law of the State pursuant to an arrangement under Part IIA of the Fisheries Act 1905, is a reference to any waters in which the legislative powers of the State extend, with respect to that fishery, whether pursuant to section 5 of the Coastal Waters (State Powers) Act 1980 of the Commonwealth or otherwise.

  10. Section 5(c) of the Coastal Waters (State Powers) Act 1980 (Cth) provides that the States have the power to make laws:

    … with respect to fisheries in Australian waters beyond the outer limits of the coastal waters of the State, being laws applying to or in relation to those fisheries only to the extent to which those fisheries are under an arrangement to which the Commonwealth and the State are parties to be managed in accordance with the laws of the State.

  11. As Mr Bydder SC, who appeared for the Delegate, submitted, and as the definition in s 3(2)(c) of the PA appears to acknowledge, the Coastal Waters (State Powers) Act 1980 (Cth) is not the only source of power for a State to legislate with extraterritorial effect.

  12. In Port MacDonnell Fisherman's Association v South Australia [1989] HCA 49; (1989) 168 CLR 340, 373, the High Court held that a rock lobster fishery managed under an arrangement between the State and Federal government was sufficiently connected ('a real and substantial connexion') with South Australia's legislative power to enact laws for the 'peace, order and good government' of that State. That was because the fishery constituted a 'finite resource' exploited by State residents and because it was 'a significant source of … trade and employment'.[15] We accept Mr Bydder's submission that those matters are equally applicable here and provide a further basis for the extra-territorial application of the PA in relation to pearl oyster fisheries.

    [15] See also Robinson v Western Australian Museum (1977) 138 CLR 283, 331 per Mason J.

  13. Section 43(2) of the PA defines the phrase 'pearl oyster fishery' to mean 'a fishery, or a Joint Authority fishery, that is identified in an arrangement by reference to pearl oysters or pearling'.

  14. The term 'arrangement' in that definition is a term previously defined in s 8H of the Fisheries Act 1905 (WA). By s 43(1) of the PA, such definitions have the same meaning in Pt 7 of the PA.

  15. The Fisheries Act 1905 was repealed by the Fish Resources Management Act 1994 (WA). Both Acts used the same definition of 'arrangement' being 'an arrangement, made by the State with the Commonwealth under [the relevant] part [of the Act]'.

  16. Mr Bydder SC took us to two such arrangements.  The earlier was made in 1991, the later in 1995.

  1. The 1995 arrangement was published in Government Gazette, No. GN 4 (1 February 1995).[16] The lengthy Preamble includes, at item (e), reference to other, previous, arrangements, entered into under s 12H(4) of the Fisheries Act 1952 (Cth) including the 'Pearl Oyster Fishery', published in the Government Gazette No. GN 11 on 20 March 1991. That is a reference to the earlier arrangement,[17] which by cl 1 of the 1995 arrangement is 'terminated'.[18]

    [16] A copy is at pp 419 - 432 of Exhibit 2, the Delegate's s 24 Bundle.

    [17] A copy is at pp 416 - 417 of Exhibit 2, the Delegate's s 24 Bundle.

    [18] In both the Fish Resources Management Act 1994 (WA) and the latter FMA, an 'arrangement' made under the previous legislation continued in force as if made under the latter Act in each case. That is, the 1991 arrangement continued in operation until terminated by the 1995 arrangement, notwithstanding the earlier repeal of both the State and Commonwealth legislation under which it was executed.

  2. Clause 2 of the 1995 arrangement then states that the Commonwealth and the State 'hereby arrange that the fishery to which this Arrangement applies is to be managed in accordance with the law of Western Australia'.

  3. The power of the Commonwealth to enter into the arrangement is set out in s 72 of the FMA (contained within Div 3 of Pt 5 of that Act), which provides that the Commonwealth may enter into an arrangement with a State:

    with respect to a particular fishery in waters relevant to the State … that the fishery (being a fishery wholly or partly in waters on the seaward side of the coastal waters of the State) is to be managed in accordance with the law of the State.

  4. The 1995 arrangement defines the 'fishery' in question in three ways.

  5. First, it is a fishery 'for any purpose other than recreation'.  Plainly the commercial purpose of the activities in question in this case satisfy this aspect of the arrangement's definition of the fishery.

  6. Secondly, the fishery is described geographically, by reference to certain coordinates.  We were advised by Mr Bydder SC that that area 'includes the area we're dealing with'.  No one suggested otherwise and, in the absence of anything to the contrary, we assume that is so, without positively finding it to be so.[19]

    [19] ts 386, 15 March 2024.

  7. Thirdly, the fishery is defined by reference to certain listed marine species, which list includes 'all species of aquatic invertebrates', which plainly includes the pearl oyster.

  8. However, while the arrangement defines the 'fishery' in question by those three criteria, the uncertainty referred to in the 2/8 Policy is whether the pearl oyster fishery is a 'fishery' as that term is defined by s 4 of the FMA.

  9. If not, it is not covered by the 1995 arrangement. That would mean that s 77 of the FMA does not apply and, therefore, the purported extra-territorial operation of the PA is ineffective due to s 10(2)(a) of the FMA.

  10. Section 4 of the FMA defines 'fishery' as follows:

    fishery means a class of activities by way of fishing, including activities identified by reference to all or any of the following:

    (a)a species or type of fish;

    (b)a description of fish by reference to sex or any other characteristic;

    (c)an area of waters or of seabed;

    (d)a method of fishing;

    (e)a class of boats;

    (f)a class of persons;

    (g)a purpose of activities.

  11. Accordingly, critical to the definition of 'fishery' is the definition of 'fishing'.  That term is, in turn, defined as follows:

    (a)searching for, or taking, fish; or

    (b)attempting to search for, or take, fish; or

    (c)engaging in any other activities that can reasonably be expected to result in the locating, or taking, of fish; or

    (d)placing, searching for or recovering fish aggregating devices or associated electronic equipment such as radio beacons; or

    (e)any operations at sea directly in support of, or in preparation for, any activity described in this definition; or

    (f)aircraft use relating to any activity described in this definition except flights in emergencies involving the health or safety of crew members or the safety of a boat; or

    (g)the processing, carrying or transhipping of fish that have been taken.

  12. The evidence, which we accept, is to the effect that the cultivated pearl industry operates through the following activities:

    (a)wild oysters are taken, mainly but not only, from 80­Mile Beach under pearling licences issued under s 23(1)(b) of the PA;

    (b)oyster spat is collected from broodstock produced in a hatchery or collected from the wild and then grown out on land pursuant to hatchery licences issued under s 23(1)(c) of the PA;

    (c)both the wild oysters and spat produced are brought onto a POFL. In that regard, s 16 of the PA mandates that all wild oysters taken and all pearl oyster spat produced in the preceding year must be moved to a POFL by 31 December each year and that they are not to be removed thereafter;

    (d)at the POFL, a 'seed' is placed into the oyster flesh and the pearl is then 'grown out';

    (e)the growing out occurs in rope cages which are suspended in the water column from longlines held at or below the water surface;

    (f)during the growth phase, the oysters are, periodically, removed from the water column and cleaned to remove marine growth/organisms;

    (g)the grown pearl is removed from the oyster, which may be reused to grow another pearl; and

    (h)in some, but not all cases, after the pearl is removed either or both of the meat (pearl-meat) and shell (for mother-of-pearl) are harvested rather than use the oyster for the growing of more pearls.

  13. We accept, and we find, that the searching for (and attempting  to do so) and the collection of (and attempting to collect - or take) wild oysters at, for example, 80-Mile Beach, and their transport from that area, together with other activities ancillary to that collection 'that can reasonably be expected to result in the locating, or taking' of the oysters constitute activities that fall within, at least, paras (a) to (c) of the statutory definition of 'fishing'; that is, they constitute searching for or taking (or attempting to do either or both) pearl oysters.

  14. Of course, those activities do not occur at the POFL and for the purposes of these reasons, we assume that they occur within the geographical limits of the 'arrangement'.

  15. As we understand the evidence, the seeding of the oyster, its 'growing out', and the removal of the pearl, as well as any removal and collection of the pearl-meat and/or the collection of the shell for mother-of-pearl does occur within the POFL.

  16. The Delegate's written submissions included that those processes fall within paragraphs (c), (e) and (g) of the definition of 'fishing'.[20]

    [20] First Respondent's Outline of Submissions, 16 February 2024, para 46.

  17. While the definition of 'take', in relation to fish, in s 4 of the FMA means 'catch, capture, take or harvest', we do not consider that the removal/collection of the pearl, pearl-meat or shell is 'harvesting' in the sense meant by the definition of 'take'.  In our view, that definition applies to the animal as a whole from the wild, not the separation of the captured animal into parts.

  18. That is, we find that the 'harvesting' of oysters from the wild constitutes a taking, but the processing of the animal to separate and remove parts of it for different purposes does not.  Rather, in our view, that latter activity constitutes 'processing' of the animal already 'taken' under para (g) of the definition.

  19. Section 4 of the FMA defines 'processing' to include 'cutting up, dismembering, cleaning, sorting, packing or freezing'.

  20. In our view, the separation and collection of the pearl, pearl-meat and mother-of-pearl falls within the ordinary meaning of cutting up and/or dismembering with the latter term defined as the separation of parts of a body from each other.  While reasonable minds might differ as to whether the pearl is 'part' of the oyster, we are prepared to accept for present purposes that it is.

  21. In addition, the activities undertaken within the POFL include the cleaning of the oyster shell during 'growing out' to remove marine growth and to encourage the 'growing out' process.  Although not directly addressed on the issue, it seems to us most likely that the activities undertaking on the POFL will also include the sorting of oysters or parts of an oyster in a variety of ways.  Finally, there will also, necessarily, be freezing of pearl-meat and the packing of various parts of the oyster for transport and sale.  At least some of those activities, but certainly the cleaning, appears to occur on (or within) the POFL.

  22. We accept Mr Bydder's submission, and we find, that there is no warrant in the legislation to impose a temporal limit on the process that commences with the taking (harvest) of wildstock and which ends with the dismembering of the animal and the freezing and packing of its parts.  That is, the fact that several years may pass between the insertion of the seed into the oyster and the processing of the pearl, pearlmeat and/or shell is not a matter to which the legislation directs attention.

  23. We also accept the submission, and we find, that the use of the disjunctive 'or' following each paragraph in the definition of 'fishery' has the result that only one of the paragraphs needs to be satisfied in order to satisfy the definition as a whole.

  24. Finally, we accept the submission, and we find, that the process undertaken should be seen as a whole. Section 16 of the PA effectively requires us to do so, in that it requires all wild oysters 'taken' from the wild must be moved to a POFL by not later than 31 December in the year that they are taken.

  25. As such, while the taking of wild oysters does not occur within the POFL (and we repeat that we are, for these purposes, merely assuming that such taking occurs within the geographic area covered by the 1995 arrangement), such taking occurs for the purpose of removing the taken oysters to, seeding and then growing them out and processing them within the POFL.

  26. For those reasons, we are prepared to accept, and we find, that both the taking of wild oysters, as well as their processing, constitute activities that fall within the definition of 'fishing' and that those activities are carried out 'by reference to' the pearl oyster and, as such, the activities amount to a 'fishery'.

  27. Plainly, the issue is not without its difficulties and the unusual (perhaps unique) nature of the activities of the pearling industry do not fit neatly within the regime created by the FMA.

  28. Nonetheless, the industry has operated on the understanding that there is a proper legal basis for POFLs issued under the PA for a very long time. That is not irrelevant to our consideration in this regard.

  29. Equally, we repeat that we lacked the benefit of a contradictor and that the Commonwealth clearly has an interest in the issue but is not a party and has not been heard.

  30. For all those reasons we are satisfied that there is a sufficient basis for us to find (and we do find) that the activities undertaken fall within the relevant definitions and the pearl oyster fishery is therefore a 'fishery' to which the 1995 arrangement applies.

  31. For the avoidance of any doubt, we emphasise that our 'finding' in this regard is not a 'conclusion having legal effect'.  That is, it cannot be relied upon external to this proceeding.  Rather, our finding is made solely for the purpose of ensuring that we remain within the limits of our jurisdiction and for the purpose of 'moulding [our] conduct to accord with the law'.[21]

    [21] Citta Hobart [24].

The Misnomer Issue

  1. Paspaley submits that we have no power to issue the POFLs to Cygnet because the original application was not made in Cygnet's name.[22]  Rather, the application was made in the name of Cygnet Bay Pearl Consolidated Pty Ltd,[23] an entity which does not exist.

    [22] Applicants' Closing Submissions, 15 March 2024, paras 8 and 146.

    [23] The name of the second respondent is Cygnet Bay Consolidated Pty Ltd.  The underlined word 'Pearl' does not appear in the name of the second respondent.

  2. We note that the name of the entity to which the POFLs were issued was Cygnet Bay Pearls Consolidated Pty Ltd (note the plural) which also does not exist.  Although Paspaley's case in this regard does not turn on this error, it does say that any decision by us to effect the issue of the POFLs to Cygnet will require us to set aside the original decision and substitute it with our own, which it says we cannot do because Cygnet was not the applicant, which gets back to the same point.[24]

    [24] Applicants' Closing Submissions, 15 March 2024, para 148.

  3. Paspaley relies upon ss 22 and 23 of the PA. Section 22(1) provides that an 'application for the issue … of a [POFL] shall be in a form approved by the CEO' while s 23(2) provides that the CEO 'shall not issue a [POFL] unless satisfied that the applicant holds' either a hatchery licence or a pearling licence.

  4. Paspaley says, in effect, that the effect of those two sections is that the CEO (whose function in this case was performed by the Delegate) must be satisfied that the entity whose name appears as the applicant on the approved form, and no one else, holds a hatchery or pearling licence.  It says that, as the application for POFLs was made by a non‑existent entity, the Delegate could not have been so satisfied.[25]

    [25] Applicants' Closing Submissions, 15 March 2024, paras 146 - 147.

  5. Further, Paspaley submits that there is no power for the CEO to overlook the error and grant the POFL to an entity that was not the entity named as the applicant.

  6. It also submits that, as the Tribunal stands in the shoes of the Delegate (s 27 of the State Administrative Tribunal Act 2004 (WA) - SAT Act) and has the 'functions and discretions corresponding to those exercisable by' the Delegate (s 29(1) of the SAT Act), we too lack the power to correct or overlook the error.[26]

    [26] Applicants' Closing Submissions, 15 March 2024, para 147.

  7. In that regard, Paspaley quibbles with the description of this issue as a 'misnomer'.  It says that the issue is one of power.

  8. Paspaley submits that the principle in Fitzgerald v Masters,[27] that 'words may generally be supplied, omitted or corrected in an instrument, where it is clearly necessary in order to avoid absurdity or inconsistency'[28] assists in the construction and amendment of instruments such as contracts but that it has no application in administrative law where the issue is one of power to overlook error.[29]

    [27] Fitzgerald v Masters [1956] HCA 53; (1956) 95 CLR 420 at 426 - 427, Dixon CJ and Fullagar J; see, also 437, per McTiernan, Webb and Taylor JJ.

    [28] Ibid, pages 426 - 427 (Dixon CJ and Fullagar J; see, also 437, per McTiernan, Webb and Taylor JJ).

    [29] Applicants' Outline of Reply Submissions, 1 March 2024, para 41; Applicants' Closing Submissions, paras 144 - 147.

  9. We disagree.

  10. The principle in Fitzgerald v Masters has been considered applicable in an administrative law context by the Full Federal Court.

  11. In BHP Petroleum (Timor Sea) Pty Ltd v Minister for Resources [1994] FCA 168; (1994) 49 FCR 155 (BHP) the statutory regime provided the Minister with the power to grant a certificate regarding certain tax concessions.  It also precluded the Minister from accepting an application for a certificate unless the request was made by all persons satisfying certain criteria.

  12. No particular form for the application was prescribed and the application in question was made by letter which listed each of the various applicants save for one which was omitted by oversight.

  13. The Minister did not 'take the point' as to the omission of the applicant's name but refused the certificate on other grounds.  The applicants then sought review of the Minister's decision in the Administrative Appeals Tribunal (AAT) where the Minister did take the point.  The AAT held that it lacked jurisdiction to grant the certificate saying, in effect, that the application was defective, the Minister's power was therefore limited to refusal of the application, and the AAT could do no more than the Minister.[30]

    [30] BHP page 169.

  14. On appeal, the Full Federal Court (Beaumont J, with whom Jenkinson J and Heerey J agreed in separate decisions) held that the application letter was to be considered in its context, which included its reference to previous letters to the Minister which included the name of all of the relevant applicants who satisfied the relevant criteria.  On that basis all relevant applicants were included in the application which was therefore valid.

  15. However, Beaumont J went on to say that an alternative approach would be to treat the application letter 'as having a formal status as a written instrument' in which case:

    a patent error of the present kind would not necessarily have vitiated the instrument. In other words, it may be that the omission of the [relevant name] was such an obvious mistake that the error would be corrected by the ordinary processes of construction.

  16. He then quoted the principle in Fitzgerald v Masters referred to above.[31]

    [31] BHP page 172.

  17. It is Paspaley's submission that the prescribed nature of the form under s 22 of the PA precludes the CEO from altering the name of the applicant.[32]  But by Beaumont J's analysis (and, while obiter, it is an analysis with which the other two judges agreed, giving it, in our view, considerable weight) its status as a prescribed instrument brings it directly within the scope of the principle in Fitzgerald v Masters.

    [32] Applicants' Outline of Reply Submissions, para 42(a).

  18. Elsewhere, Paspaley's submissions were to the effect that correction of an instrument pursuant to the principle was acceptable because the correction reflects the intention of the parties such that the principle has no application in an administrative law context.[33]

    [33] Applicants' Closing Submissions, 15 March 2024, para 144.

  19. But as the written submissions made on behalf of the Delegate observed, the principle in Fitzgerald v Masters has not been limited to the correction of errors in contractual documents but has been applied to remedy other legal instruments, including forms prescribed by legislation:  Wright v ANZ Banking Group Ltd [2001] FCA 386; Wingadee Shire Council v Willis (1910) 11 CLR 123.

  20. Further, other administrative law cases have applied the principle, albeit without referring to it.  In Reid v Brisbane City Council [2013] QPEC 24, Rackemann DCJ held that an error in naming the applicant for planning permission (the prescribed form gave the name of a corporate entity while accompanying documents used another corporate entity name but neither existed; rather, they were variations on a business name registered to an individual, who was the 'true' applicant) 'had no substantive effect on the application process'.

  21. In GB & G Consolidated v Melbourne and Metropolitan Board of Works (1972) 27 LGRA 327 (GB & G Consolidated) an application for planning permission was made in the name of the vendors of the property in question when, in fact, the purchaser of the property was the applicant.  Further, the section of the form which required the details of owners of the land (which in that case were the vendors, the contract of sale having not been completed) and their formal consent to the application to be provided was not completed.

  22. On review, the tribunal held that the errors in the application form were fatal.  On appeal, the 'true' applicant submitted that as the tribunal was required to 'act according to equity and good conscience and the substantial merits of the case without regard to technicalities or legal forms', it should have accepted 'the fact that the owners had concurred either mentally or verbally in the application as sufficient … to accept the owner's concurrence … as sufficient compliance' with the relevant regime.[34]

    [34] GB & G Consolidated, page 329.

  1. Anderson J upheld the appeal holding that while there may be occasions when a technical defect is such that, in the circumstances of the particular case, it justifies the rejection of the notice, each case should be considered on all of the facts, in equity and good conscience, against the substantial merits of the application.[35]

    [35] Ibid, page 331.

  2. In each of the above cases, the court appears to have accepted that the statutory regime in question may evince an intention against correction, consistent with the principle in Project Blue Sky Inc v Australian Broadcasting Authority [1998] HCA 28.

  3. But in our view, there is nothing in the regime created by the PA that precludes the CEO from overlooking an obvious error in the name of an applicant so as to apply the substance of the issue.

  4. As Paspaley submits, the PA establishes a statutory regime 'whereby there is a close connection between the pearling or hatchery activities and the growing of the pearls, meaning that to farm pearls the same person must also be authorised to take pearl oysters or produce oyster spat'.[36]

    [36] Applicants' Outline of Written Submissions, 26 September 2023, paras 81 - 82.

  5. That regime limits the number of people involved in the production of pearl oysters on a particular farm and, in turn, supports the value and rarity of pearls, protects their biosecurity and incentivises investment because investors have control of all stages of production.[37]

    [37] Applicants' Outline of Written Submissions, 26 September 2023, paras 81 - 83.

  6. We also agree with Paspaley that the critical issue is whether the entity to whom a POFL is issued is the licensee of a pearling licence or a hatchery licence under s 23(2) of the PA.

  7. But that does not preclude the CEO (and the Tribunal on review) from over-looking an obvious error in the name of an applicant for a POFL.

  8. Rather, in our view, and we find, it encourages a practical and sensible approach in considering and assessing an application for a POFL to ensure that, as a matter of substance, the applicant is the same entity as a pearling or hatchery licensee.

  9. Section 29(1) of the SAT Act provides that on review the Tribunal has the 'functions and discretions' of the original decision-maker. In addition, s 32(2) provides that we are 'to act according to equity, good conscience and the substantial merits of the case without regard to technicalities and legal forms'. As was the case in GB & G Consolidated, those words require us to take a practical and sensible approach, unless the legislative regime requires otherwise, to ensure that the applicant is the sole entity as that which holds a pearling licence or hatchery licence.

  10. In this case, it was uncontroversial, and we find, that Cygnet holds both hatchery and pearling licences while the named applicant (Cygnet Bay Pearl Consolidated Pty Ltd) does not exist and, therefore, does not hold such licences.

  11. As the passage from Beaumont J's reasons in BHP (above, at para [86]) makes clear, if the error was an obvious mistake, it may be corrected. Paspaley submits the error was not obvious.[38] We disagree.  We find that Cygnet was, in substance, the true applicant for the POFLs and that evidence supports the view that no one dealing with the application was in any doubt about that.  Rather, the evidence supports the view that the name of Cygnet and the 'wrong' name were used interchangeably with everyone aware that Cygnet was the 'true' applicant.

    [38] Applicants' Outline of Reply Submissions, 1 March 2024, para 42(b).

  12. The evidence in this regard falls into three categories:

    (a)The application documents;

    (b)The departmental documents; and

    (c)Paspaley's objection.

The application documents

  1. As noted above, the application consisted of six documents, one of which was a cover letter dated 27 August 2021.

  2. Throughout those documents, both Cygnet's name and the 'wrong' name, as well as other names, were used interchangeably.

The cover letter:

(a)The cover letter's letterhead, and the title of the person who signed the letter, simply state 'Cygnet Bay Pearls'.  The body of the letter also refers five times to 'Cygnet Bay Pearls' and once to 'Cygnet Bay'.  The subject line of the letter, however, refers to 'Cygnet Bay Consolidated'; being the name of the second respondent, albeit absent the 'Pty Ltd'.[39]

[39] First Respondent's Section 24 Bundle as updated on 16 February 2024 to include Vol. 8 (FRB), page 120.

(b)Significantly, in our view, the body of the cover letter:

(i)refers to 'Cygnet Bay Pearls' as a 'cultured pearling company' and one which is 'still actively investing in pearl cultivation';

(ii)describes the investment carried out by 'Cygnet Bay Pearls' and states that the POFL sites 'will allow for industry best practice commercial sub-surface grow out techniques, brood-stock conditioning, nursery propagation of spat from our hatchery oyster program and continued research and development of our seeded wild-stock and hatchery oysters.[40]

[40] FRB, page 120.

(c)In other words, the cover letter refers to activities which can only be carried out with a pearling licence and a hatchery licence.  As noted above, it is common ground that Cygnet holds (and, indeed, is the only entity within the Cygnet Bay group of companies that holds) a pearling licence and a hatchery licence.

The application form:

(a)The formal application uses the 'wrong' name for the applicant: 'Cygnet Bay Pearl Consolidated Pty Ltd';

(b)But the business address given for the applicant matches that of Cygnet on the various hatchery and pearling licences held by it;[41]

[41] FRB, page 128.

(c)The wildstock quota and hatchery quota units specified in Part C of the form match the quotas held by Cygnet;[42] and

[42] FRB, page 129.

(d)Again, the form refers to aspects of pearling and hatchery practice (ie the quotas) which can only apply to Cygnet, being the only entity within the group which holds those licences.

Other documents:

(a)Cygnet's name is used in the 'Marking and Lighting Form', which Administrative Guideline No 1 (issued under s 24 of the PA) (AG1) requires to be included with the application form;[43]

(b)The form headed 'Potential Environmental Issues Associated with Proposed Pearl Lease Site'[44] and the Site Plan both use the name 'Cygnet Bay Pearls Consolidated Pty Ltd'.[45]

The departmental documents:

[43] FRB, page 140.

[44] FRB, page 124.

[45] FRB, page 147.  Note the plural:  'Pearls'.

  1. The documentary evidence supports the view that Departmental staff, including the Delegate, proceeded on the basis that Cygnet was the true applicant:

    (a)Consistent with the terms of the AG1, Departmental officers prepared a 'brief summary of information' which consistently used Cygnet's name as the name of the applicant throughout the document but attached copies of the site plans which used the 'wrong' name;[46]

    (b)The author of the information summary then sent correspondence to various entities by way of consultation, using the 'wrong' name of 'Cygnet Bay Pearl Consolidated Pty Ltd' as the applicant;[47]

    (c)The Delegate's letter of 10 February 2022 advising of his intention to issue the POFLs was addressed to Cygnet as the applicant;[48]

    (d)The Delegate's Statement of Reasons, which was attached to that letter, gives the name of the applicant as Cygnet Bay Pearl Consolidated Pty Ltd.[49]  However, and in our view most significantly, on page 3 of the Statement of Reasons the Delegate wrote that 'Cygnet Bay' (being the summary of the wrong name used) 'holds pearling wildstock and hatchery licence authorising them to conduct pearl culture practices'.[50]

    [46] FRB, pages 198 - 204.

    [47] See, for example, FRB, page 225.

    [48] FRB, page 2.

    [49] FRB, page 5.

    [50] FRB, page 7.

  2. In addition, the Delegate gave evidence that it was 'clear' to him that Cygnet was the entity applying for the POFL because it (i.e. Cygnet) 'has been known to [him] for a long time as one of the small number of pearling licence holders and as a major operator in the pearling industry'.[51]  He said that was a factor in the 'error not being discovered and corrected'.[52]  In cross-examination, he said he was not aware of any corporate entity within the Cygnet Bay group other than Cygnet.[53]

Paspaley's objection

[51] Witness Statement of Nathan John Harrison (Exhibit 10), paras 8 - 9.

[52] Exhibit 10, para 11.

[53] ts 167 - 168, 12 March 2024.

  1. Finally, in this regard, we repeat what was described in the summary titled 'Procedural Matters' and set out above; that an objection was filed as part of the departmental consultation by the 'Paspaley Group of Companies'.  The objection did not identify/ raise the issue of the 'wrong' name and, indeed, used the 'wrong' name in the subject line to the letter which formed the basis of the objection.

  2. The letter raised four grounds of objection, the first of which was said to be the application's 'unacceptable biosecurity risk' given the health and productivity history of 'this Applicant'.  In our view, that can only be a reference to Cygnet.[54]

    [54] Exhibit 1:  Applicants' Re-Amended Bundle of Documents Referred to in Statement of Issues, Facts and Contentions dated and filed 2 February 2024, page 29.

  3. That is, the objection letter's reference to a health and productivity history can only be a reference to that of Cygnet, because Cygnet is the only relevant entity within its corporate 'group' which holds Western Australian hatchery and pearling licences and POFLs.

Conclusion on the Misnomer Issue

  1. For these reasons, we find that we are (and the Delegate was) entitled to apply the principle in Fitzgerald v Masters to the present case. That is, it was obviously Cygnet which was the true applicant for the POFLs and the use of the name Cygnet Bay Pearl Consolidated Pty Ltd was (once identified) obviously an error. As such, we are entitled to 'correct' the obvious error as was the Delegate (notwithstanding that ss 29(1) and 32(2) of the SAT Act did not apply to the Delegate's decision).

  2. Accordingly, we see no impediment to issuing the POFLs to Cygnet. Given the Delegate's decision to issue the POFLs to Cygnet Bay Pearls Consolidated Pty Ltd was also an obvious error, we will vary that decision and issue them to Cygnet instead.

  3. Having so found that the principle in Fitzgerald v Masters applies, it is not necessary for us to refer to either s 55 or s 74 of the Interpretation Act 1984 (WA), both of which were referenced in submissions but neither of which are directly applicable to our task.

The Application of the 2/8 Policy

The relevant terms of the Letter and the position of the parties

  1. As noted above, on 2 August 2023, all members of the pearling industry were sent a letter signed by the Delegate, in his role as Director Aquatic Resource Management, Sustainability and Biosecurity which we have referred to as the 2/8 Policy.[55]  Its relevant paragraphs are as follows:

    It is recognised that the Offshore Constitutional Settlement 1995 was developed on the understanding that fishing for pearl oysters and cultivating pearls is an integrated activity, and that the existing pearl oyster farm leases and holding sites in Commonwealth waters are in the spirit of that understanding. Despite this, there is a level of uncertainty with regards to the legal framework for managing tenure in Commonwealth waters.

    Given this, the Department will not be issuing new pearl oyster farm leases or new holding sites in Commonwealth waters (i.e. those waters located more than three nautical miles from the territorial baseline off WA).  This also applies to any application to vary an existing pearl oyster farm lease or holding site to cover a larger area (or different footprint) than it does at present.  This would not apply to variations to reduce the size of a site.

    Where there is an existing pearl oyster farm lease which is approaching the end of its current term, the Department will accept an application for a new lease over the existing area, or a reduction in the existing area.

    The Department has worked with DAFF [the Commonwealth Department of Fisheries, Forestry and Agriculture] to ensure the existing pearl oyster farm leases and holding sites in Commonwealth waters can continue, but new areas or variations to the existing areas are currently outside of that scope.  There is a desire at both State and Commonwealth level to find a solution to the issue in the medium to long term.

    [55] The 2/8 Policy is, clearly, not a statutory policy under s 24 of the PA. However, no-one suggested it was, on that basis or otherwise, irrelevant.

  2. Both respondents contend that the 2/8 Policy does not prevent the grant of the impugned leases because it only precludes the issue of 'new' pearl oyster farm leases. They both submit that the relevant POFLs were issued in February 2022 (i.e. before the 2/8 Policy was communicated on 2 August 2023) and are therefore not 'new'.[56]

    [56] First Respondent's Outline of Submissions, 16 February 2024 at paras 8 - 15; Second Respondent's Outline of Written Submissions, 16 February 2024 at paras 77 - 82.

  3. In support of that contention, they point to s 29(5) of the SAT Act by which a decision of the Tribunal to affirm, vary or substitute for the original decision will take effect from the date on which the original decision was made, and to s 25(1) of the SAT Act which provides for the ongoing operation of the decision under review in the absence of a stay.

  4. They also submit that the purpose, or intention, of the 2/8 Policy is to maintain the status quo, and that to rely on the 2/8 Policy to set aside the POFLs issued to Cygnet would be to alter the status quo, contrary to that purpose.

  5. Paspaley submits that that approach is wrong.  It submits that the policy against 'new' POFLs applies to the POFLs in question.  It submits that that although the POFLs were issued before the 2/8 Policy, they are 'new' in that an application for review constitutes a hearing de novo which requires us to consider the matter afresh.[57]

    [57] Applicants' Outline of Reply Submissions, 1 March 2024, at paras 4 - 11.

  6. In this regard Pasapley relies primarily upon s 27 of the SAT Act which requires us to conduct a 'hearing de novo' so as to 'produce the correct and preferrable decision at the time of the decision upon the review'. It says that that 'requires the Tribunal to give attention to the state of affairs existing at the date of its decision; the Tribunal is not confined to the circumstances existing at the date of the decision under review.'[58]

    [58] Applicants' Outline of Reply Submissions, 1 March 2024, at para 7, citing LS v Mental Health Review Board [2013] WASCA 128 [93] (Murphy JA), discussing Shi v Migration Agents Registration Authority [2008] HCA 31; (2008) 235 CLR 286, 316 [101].

  7. It submits that '[i]n standing in the shoes of the decision-maker, the Tribunal's decision is made as if the decision to issue the impugned leases had never been made'.[59] It repeats that proposition in support of further submissions to the effect that neither s 25 nor s 29(5)(b) of the SAT Act are contrary to its contention.

    [59] Applicants' Outline of Reply Submissions, 1 March 2024 at para 8.

  8. In support of the proposition that we must approach our task as if the decision to grant the POFLs in February 2022 'had never been made', the applicant relies upon three cases: Stream Focus,[60] Jacob,[61] and Yates.[62]  We will deal with them in reverse order.

The cases relied upon by Paspaley

Yates

[60] Stream Focus Pty Ltd v City of Armadale [2018] WASC 13 (Stream Focus) [28] (Smith AJ). An appeal was pursued (unsuccessfully), but not on this point: Stream Focus Pty Ltd v City of Armadale [2018] WASCA 196.

[61] Jacob and Local Government Standards Panel [2022] WASAT 66 (Jacob) (Member Petrucci).

[62] Yates v Integrity Industrial Pty Ltd [2020] WADC 127 (Yates) (Prior DCJ).

  1. Yates concerned an appeal from a registrar of the District Court of Western Australia, which is, relevantly, by way of hearing de novo.[63]  Prior DCJ said:

    The appeal is by way of a new hearing of the matter that was before the registrar.  This requires the appellate body to exercise its powers whether or not there was an error at the first instance.  The plaintiff is not required to establish an appealable error was made by the registrar.  The appeal court considers the matter afresh without regard to any previous decision. The judge hearing the appeal is therefore to treat the application as if it was before the court for the first time.[64]

    [63] District Court Rules 2005 (WA) (DCR) r 15(6).

    [64] Yates [25].

  2. In our view the passage provides only limited support for Paspaley's case for the following three reasons.

  3. First, in support of the proposition that the court 'considers the matter afresh without regard to any previous decision', his Honour cites the decision of Guy v Hampson.[65] 

    [65] Guy v Hampson [2019] WADC 19.

  4. However, in the relevant passage of Guy v Hampson,[66] Bowden DCJ acknowledges an alternative line of authority to the effect that 'it is appropriate to have regard to the assessment made by the learned assessor as a specialist tribunal in the field of criminal injuries compensation'.[67]  That debate appears to remain unresolved,[68] but see below as to the cases on weight given to the decisions of specialist decision-makers.

    [66] Yates [25]; Guy v Hampson [14].

    [67] Hogben v Darcy [2009] WADC 63.

    [68] Re CJR [2023] WADC 111 [48].

  5. Secondly, Yates, Guy v Hampson and the other cases referred to in the latter are cases concerning appeals from criminal injuries assessors pursuant to s 55 Criminal Injuries Compensation Act 2003 (WA) (CIC Act).

  6. Section 56(1) of the CIC Act expressly provides that the Court on appeal 'must decide the application to which the decision relates afresh, without being fettered by the assessor's decision'.[69] While there is no doubt that the Tribunal, exercising its review jurisdiction, is not 'fettered' by the impugned decision, no such words appear in s 27 of the SAT Act.

    [69] Criminal Injuries Compensation Act 2003 (WA), s 56.

  7. Thirdly, the words 'without regard to any previous decision' do not require the Court on appeal to pretend that no previous decision has been made but, rather, say no more than that the previous decision is to be given no weight in carrying out to its task of remaking the decision afresh.  In our view, those words accurately describe the relevant principle as enunciated by the Court of Appeal in this State.

  8. The final sentence of the quoted paragraph appears to go further.  It says that the application on appeal is to be treated as if before the court for the first time.  That proposition is said by the word 'therefore' to follow from the previous sentence.  In our view, it does not do so for the reasons just given.  Further, no other authority is cited for it.  To the extent that it purports to enunciate a general principle we do not accept it for reasons that are set out at para [147] and following.

Jacob

  1. In seeking review of a disciplinary decision by the Local Government Standards Panel, Cr Jacob submitted that he was not afforded procedural fairness, because (he said) the Panel had taken matters other than the complaints made against him into account in reviewing the decision.[70]  In her reasons, the learned Member said:

    It is not necessary for me to address Mayor Jacob's concern that he was denied procedural fairness by the [Local Government Standards] Panel.  This is because … the hearing before the Tribunal is by way of a hearing de novo.  I heard the application filed by Mayor Jacob as if the complaints had not been previously heard by the Panel and as if no decision had been made by the Panel, and without being limited to the evidence and other material that was before the Panel.[71]

    [70] Jacob [164].

    [71] Jacob [166].

  2. The first two sentences of the quoted passage are uncontroversial; any denial of natural justice at the first instance is cured by the subsequent review de novo.

  1. The third sentence does not, in our view, purport to apply a rule that a hearing de novo requires that the application be determined as if no decision had been made.  Rather, it simply describes the approach taken by the Member.

  2. To the extent that we are wrong, and the Member intended to describe a principle of general application, we note that she cites no authority for the proposition and, for the reasons set out below, we would respectfully disagree with the proposition.

Stream Focus

  1. In Stream Focus, the applicant sought review of two conditions imposed in relation to subdivisional approval pursuant to s 170(3) of the Planning and Development Act 2005 (WA).

  2. By consent, the parties agreed to orders to the effect that the matter was listed for final hearing, with the relevant issues identified as whether each of the conditions was 'within the power of the City to impose'.

  3. A month before the final hearing, the City conceded that each of the conditions were ultra vires.  At the hearing, the City proposed two alternative conditions.  The applicant submitted that the hearing was limited in its scope to the determination of the issues identified - whether or not each of the conditions were beyond power - and that the alternative conditions should not be imposed.

  4. The Tribunal held, in effect, that its role was to determine the correct and preferable decision and, to that effect, imposed the two alternative conditions proposed by the City.

  5. The applicant sought leave to appeal. In effect, the applicant submitted that, having determined that the two original conditions were beyond power, s 29 of the SAT Act precluded the Tribunal it from taking any further action.

  6. Smith AJ held:

    With respect, the argument put on behalf of Stream Focus is misconceived. The Tribunal is expressly conferred with jurisdiction to deal with a matter as it stands in the shoes of the original decision­maker, as if the decision-maker has yet to make a decision. The effect of its power of review [is] to remake the decision by the original decision­maker. Unless the matter is sent back to the original decision­maker, the decision of the Tribunal is to be regarded as, and given effect to as, the original decision made: SAT Act s 29(5).[72]

    [72] Stream Focus [28].

  7. The passage is not without its difficulty, in that it declares that the Tribunal's role was to make its decision 'as if the decision-maker is yet to make a decision' and yet, immediately afterwards, it says that the effect of the power of review requires the Tribunal to 'remake the decision' where, it seems to us, that to 'remake' something requires that the thing has previously been made. 

  8. As with Yates and Jacob, no authority is given for the proposition that the Tribunal on review is to proceed on the basis that the original decision has not yet been made.

  9. In any event, the case does not turn on whether or not the Tribunal was required to proceed on the basis that the original decision had not been made. Rather, it was the principle (in s 29 of the SAT Act) that the Tribunal stands in the shoes of the original decision-maker and remakes its decision, that is the basis for the decision and which forms its ratio.

  10. Accordingly, we do not consider ourselves bound to follow or adopt that aspect of the quoted passage relied upon by Paspaley.

  11. But, in any event, in our view the proposition that the Tribunal, in conducting a review of a decision by way of a hearing de novo, must proceed on the basis that the original decision has not been made is inconsistent with both the statutory regime and authority of both the WA Court of Appeal and the full Federal Court, as well as the decision of Kiefel J (as her Honour then was) in Shi.

The statutory regime and other relevant case law

  1. In our view, the statutory regime established by the SAT Act is contrary to the proposition that the original decision under review is to be considered as having never existed.

  2. So, for example:

    (a)s 24 of the SAT Act provides that the original decision-maker must ('is to') provide 'a statement of the reasons for the decision' to the Tribunal. The requirement proceeds on the basis that the decision has been made. Significantly, the requirement is for the reasons of the previous decision. It is not a requirement for the decision-maker to give reasons in support of the decision on review to be re-made in a particular way. In that regard, s 27(3) of the SAT Act provides that the reasons of the decision-maker do not limit the scope of the Tribunal's review, such that the decision-maker can put forward new or different grounds in support.

    (b)s 25 of the SAT Act provides that the commencement of an application for review of a decision does not, absent an order for a stay, affect the operation of that decision. That is, until the decision on review is re-made the original decision has effect. In the present case, Cygnet relies upon the fact that it has spent a considerable amount of money ( ~ $850,000)[73] in reliance on the POFLs issued more than 2 years ago.  Paspaley does not appear to contest that we must not have regard to that expenditure.

    (c)s 26 of the SAT Act provides that the commencement of review proceedings precludes the original decision-maker from remaking (varying or setting it aside) that decision, which is consistent with its ongoing effect (per s 25); and

    (d)s 27(1) provides that a review of a reviewable decision is not confined to matters before the original decision-maker but may include new material. Consistent with that power, s 27(2) provides that the purpose of the review is to produce the correct and preferable decision at the time of the decision upon review. In this case, that allows us to have regard to the 2/8 Policy, which was not before the Delegate when he made the original decision. Subsection 27(3) provides that the original reasons do not limit the scope of the Tribunal's considerations on review. That provision, again, is consistent with the principle in s 27(2) that our task is to make a decision on the facts and law as at the date of our decision. But the clear implication in the subsection to the effect that we may have regard to the original reasons militates against a finding that the decision on review must be made on the basis that the decision under review had never been made.

    (e)s 29(3) of the SAT Act provides that the Tribunal has the power to affirm, vary or set aside the original decision, and, by s 29(5) the Tribunal's decision is to be regarded as having effect from the date of the original decision. Again, the statutory language presumes the existence of the original decision.[74]

    [73] Closing Submissions of the Second Respondent, 15 March 2024, para 46 - 47.

    [74] We do not agree with Paspaley's submission that s 29(5) has no work to do if the decision under review continues to exist. It merely codifies the position as declared in Re Brian Lawler Automotive Pty Ltdand Collector of Customs (New South Wales) (1978) 1 ALD 167 at 175 - 176.

  3. In Shi,[75] the High Court considered the question whether the AAT, in undertaking review of an administrative decision, was concerned with the facts as at the time of the original decision or at the time of its own decision, being a question answered in this Tribunal by s 27 of the SAT Act. All five members of the court held the latter was the case, although four sets of reasons were delivered.

    [75] Shi v Migration Agents Registration Authority [2008] HCA 31; (2008) 235 CLR 286.

  4. Kirby J reached his conclusion based on a consideration of five factors[76] one of which was the 'Function of the Tribunal'.  Having explored the history that brought about the establishment of the AAT, his Honour said:

    [34]The grant of a power of decision 'on the merits' presented questions similar to those to be addressed in the instant context. According to whose view of the merits?  What weight, if any, should be given to the decision of the primary administrator with the ordinary responsibility for making such decisions?  Upon what evidence should the Tribunal act?  At what point of time are the 'merits' to be examined?

    [35]Davies J pointed out that, already by 1981, there was established authority in the Federal Court of Australia, and in the Tribunal, on many of these questions: [77]

    [37]Davies J acknowledged that regard might be had to the decision of the primary decision-maker as part of the 'material before the Tribunal', particularly where it involved special expertise or knowledge.  But ultimately, it was for the Tribunal to reach its own decision upon the relevant material including any new, fresh, additional or different material that had been received by the Tribunal as relevant to its decision. In effect, this was no more than a consequence of the Tribunal's obligation to conduct a true merits review.

    [38]There was no error in this analysis.  On the contrary, it represents the correct and preferable view of the legislation establishing the functions and powers of the Tribunal.[78]

    [76] Shi [29].

    [77] In Re Control Investments Pty Ltd and Others and Australian Broadcasting Tribunal (No 2) (1981) 3 ALD 88.

    [78] Underlining added.

  5. This aspect of Kirby J's finding was the subject of the recent Court of Appeal's decision in Forrest[79] which is addressed below.

    [79] Forrest and Forrest Pty Ltd v Minister for Aboriginal Affairs [2024] WASCA 96 (Forrest).

  6. Kiefel J said as follows (internal citations omitted):

    [133]Section 43(1) of the AAT Act [which is in materially similar terms to s 29 of the SAT Act] provides for the powers that the Tribunal may exercise with respect to matters in respect of which it has jurisdiction. The exercise of the powers conferred by the sub-section is restricted to the Tribunal's purpose, of reviewing the decision in question. As Sheppard J said in Secretary to the Department of Social Security v Riley, it is not possible to apply s 43(1) to the facts of any case without determining, first of all, what is the decision under review. It may therefore be appreciated that the decision, and the statutory question it answers, should be identified with some precision, for it marks the boundaries of the review.

    [140]The term 'merits review' does not appear in the AAT Act, although it is often used to explain that the function of the Tribunal extends beyond a review for legal error, to a consideration of the facts and circumstances relevant to the decision.  The object of the review undertaken by the Tribunal has been said to be to determine what is the 'correct or preferable decision'.  'Preferable' is apt to refer to a decision which involves discretionary considerations.  A 'correct' decision, in the context of review, might be taken to be one rightly made, in the proper sense.  It is, inevitably, a decision by the original decision-maker with which the Tribunal agrees. Smithers J, in Collector of Customs (NSW) v Brian Lawlor Automotive Pty Ltd, said that it is for the Tribunal to determine whether the decision is acceptable, when tested against the requirements of good government. This is because the Tribunal, in essence, is an instrument of government administration.

    [141]The reasons of the members of the Full Court of the Federal Court in Drake v Minister for Immigration and Ethnic Affairs confirm what is apparent from s 43(1), that the Tribunal reaches its conclusion, as to what is the correct decision, by conducting its own, independent, assessment and determination of the matters necessary to be addressed. To the contrary of the argument put by the respondent on this appeal, that the Tribunal's exercise of power is dependent upon the existence of error in the original decision, Smithers J denied that the Tribunal was limited to something of a supervisory role. As his Honour said, the Tribunal is authorised and required to review the actual decision, not the reasons for it.

    [142]In considering what is the right decision, the Tribunal must address the same question as the original decision-maker was required to address.  Identifying the question raised by the statute for decision will usually determine the facts which may be taken into account in connection with the decision.  The issue is then one of relevance, determined by reference to the elements in the question, or questions, necessary to be addressed in reaching a decision.  It is not to be confused with the Tribunal's general procedural powers to obtain evidence.  The issue is whether evidence, so obtained, may be taken into account with respect to the specific decision which is the subject of review.[80]

    [80] Underlining added.

  7. Far from suggesting that upon review the AAT must proceed as if the decision under review has not been made, the reasons of Kiefel J proceed on the basis that the decision under review is critical to the task of identifying the scope of the Tribunal's jurisdiction.

  8. There is also longstanding authority from both the Western Australian and Victorian Courts of Appeal to the effect that the reasons (as opposed to the decision itself) of the original decision-maker may be taken into account and given weight.

  9. In Romsey Hotel, the Victorian Court of Appeal (Warren CJ, Maxwell P and Osborn AJA) said of a decision by the VCAT on review from the Victorian Commission of Gambling Regulation that:

    Although the review proceeding was a hearing de novo, the [Victorian Commission for Gambling Regulation's] reasons should have been given considerable weight. As we noted earlier, the Commission has the administrative responsibility for the [Gambling Regulation] Act.  It has both specialist expertise and unique experience in dealing with the issues which arise under the Act. … Again, although it was for the Tribunal to decide what was the 'correct or preferable' decision on the proprietor's application, the Tribunal could not properly discharge its 'review' function without evaluating the central element of the Commission's reasoning and - if that element was to be disregarded in considering the 'net detriment' test - explaining why it was to be so disregarded. …[81]

    [81] Macedon Ranges Shire Council v Romsey Hotel [2008] VSCA 45; (2008) 19 VR 422 (Romsey Hotel) [53].

  10. In Commissioner for Consumer Protection v Murphy,[82] the appellant alleged that this Tribunal had failed to form its own view of the facts on review from a decision of the Motor Vehicle Industry Board.  It (the appellant) relied on that part of the Tribunal's reasons where it said that it (the Tribunal) 'gives weight to the Board's deliberations and conclusions at the time when the Board considered the matter' to suggest that rather than reach its own decision, the Tribunal had simply adopted the decision of the Board.

    [82] Commissioner for Consumer Protection v Murphy [2013] WASCA 89 (Murphy).

  11. The Western Australian Court of Appeal dismissed the appeal, noting that while the decision of the primary decision-maker could not be given weight, the reasons thereof were a relevant matter for consideration, just as any other submission was.[83]

    [83] Murphy [50].

  12. In doing so, the Court referred to the Full Federal Court's decision in Collins.[84]  In that case the Court distinguished between the decision and the reasons given for it and held that the latter could be given weight, but the former could not.  Amongst other things, the Full Court held that:

    There is, however, no presumption that the Minister's decision is correct and the Tribunal is neither required nor entitled to place weight, in the ultimate weighing process, upon the fact that the Minister has decided the issue before him, on the material before him, in a particular way.  Putting to one side the position where the decision maker is a person or Tribunal having special expertise where the position may conceivably be different, the actual decision does not, in itself, carry any weight.

    [84] Collins v Minister for Immigration and Ethnic Affairs (1981) 58 FLR 407 (Collins).

  13. In the very recent decision of Forrest v ForrestPty Ltd v Minister for Aboriginal Affairs [2024] WASCA 96 (Forrest) the Western Australian Court of Appeal held that the Tribunal erred in giving weight to the decision (as opposed to the reasons) of the Minister in refusing permission to destroy an Aboriginal site under s 18 of the Aboriginal Heritage Act 1972 (WA), as the decision under review.[85]

    [85] Forrest & Forrest Pty Ltd v Minister for Aboriginal Affairs [2024] WASCA 96 (Forrest) [58] per Buss P, with whom Vaughan JA agreed (at [259]) and [118], [193] - [198] per Mitchell JA.

  14. In doing so, Buss P (with whom Vaughan JA agreed) described Kirby J's approval of the statement by Davies J in Re Control Investments ([37] of Shi, quoted above at para 150) as ambiguous and held that he (Kirby J) 'must be taken to have been referring to the decision-makers reasons for decision, as distinct from the decision': [55]. Mitchell JA also did not follow Kirby J's approach: [197].

  15. In our view, none of Murphy, Collins or Forrest suggest that the decision under review is to be treated as not having been made by a tribunal reviewing that decision.  Rather, each of them goes no further than to hold that no weight can be given to the decision under review because to do so presumes towards its correctness, which is to undermine the function of review, being the very task being undertaken by the Tribunal.

  16. Finally, we note that the Court in Forrest determined it was unnecessary to address the proposition that where an original decision‑maker has particular expertise it may be permissible to have regard to its decision (as opposed to its reasons).[86]

    [86] Forrest at [60] per Buss P and [200] per Mitchell JA.

  17. Consistent with the above, in our view the above cases support the following propositions:

    (a)The decision under review forms the jurisdictional basis for the Tribunal's review function;

    (b)The decision under review cannot itself be given any weight, as to do so would undermine the Tribunal's review function;

    (c)The original decision-maker's reasons for decision (provided per s 24 of the SAT Act) are a relevant consideration and may be given such weight as the Tribunal determines.

  18. None of those propositions are consistent with Paspaley's contention that, in exercising our review function, we must proceed as if the decision under review was not made.

Consideration and Determination of the Question as to the Application of the 2/8 Policy

  1. The 2/8 Policy itself is silent on the circumstances of this case; where POFLs were issued before it was proclaimed and where they are the subject of merits review.  But the underlying reason for the 2/8 Policy - the uncertainty as to the legal status of POFLs issued in Commonwealth waters - is clearly relevant.

  2. In that regard, we note that the final paragraph of the 2/8 Policy quoted above speaks of the Department and its Commonwealth equivalent working towards an agreement to the effect that existing leases will be protected.

  3. On its face, that appears to say that any resolution of the identified uncertainty will not result in the removal of POFLs that have been issued prior to the date of the letter.

  4. That is, absent these proceedings, the 2/8 Policy appears to say that both governments are working towards a resolution of the 'uncertainty' whereby the Cygnet POFLs (and, indeed, the Maxima POFL transferred to the first applicant) will be protected in any legislative 'fix'.  That purpose/intent does not appear to be threatened or undermined by a decision to grant the POFLs.

  5. Put another way, there does not appear to us to be any reason why the fact that these proceedings have been commenced should alter the position enunciated in the 2/8 Policy that POFLs issued prior to its release on 2 August 2023 would be protected.

  6. As we have said, we are not obliged to proceed on the basis that the decision under review was not made, and s 29(5) of the SAT Act provides that our decision is to have effect from the date of the Delegate' s original decision.

  1. Cygnet's more fundamental response in this regard is that the evidence is that Paspaley transports seeded wild shell to and from Gourdon Bay, whereas the Translocation Protocol is concerned with the transport of spat and hatchery shell.[130]

    [130] Closing Submissions of the Second Respondent, 15 March 2024, para 112.

  2. In any event, the development of the Translocation Protocol, and the continuation of MPG17, was the industry's response (as declared by the Minister), to the risks of transmission of disease, as informed by OOD (and JOMS which preceded OOD).  Paspaley did not challenge the applicability of the Translocation Protocol and we do not accept MPG17 is out of date.

  3. We now turn to the question whether Cygnet's practice or history warrant a departure from the policies.

There is insufficient evidence to find fault with Cygnet

  1. Paspaley's SIFCs, submissions filed prior to the hearing, and the evidence relied upon at the hearing were to the effect that the risk associated with this proposal is greater than that with which the industry is otherwise familiar (and for which it has prepared, via the policies) because:

    (a)Cygnet's biosecurity practices are inadequate; and

    (b)Cygnet lacks experience in 'open water'.

  2. In our view the evidence does not go so far.

  3. As to Cygnet's biosecurity practices, in its closing submissions Paspaley acknowledged that 'a finding as to the adequacy (or otherwise) of Cygnet's husbandry techniques or biosecurity record is hard to make'[131] although it did raise three 'concerns'.

    [131] Applicants' Closing Submissions, 15 March 2024, para 85.

  4. That submission was made, in effect, on the basis that Cygnet had put on insufficient evidence to allow us to make a finding either way as to the adequacy of its history and processes.

  5. We disagree.  Mr Brown's evidence included a spirited defence of Cygnet's history and practice which, in our view, was sufficient to persuade us that there is nothing in either regard to take this application beyond the scope of the ordinary.

  6. In that regard, we find that his cross-examination made no material inroads nor obtained any material concessions.  In so finding, Paspaley's acknowledgement that an adverse finding against Cygnet would be 'hard to make' in effect accepts that characterisation.

  7. We turn, then, to Paspaley's three 'concerns'.

  8. The first and second 'concern' appear to be closely related. Paspaley contends there are 'challenges to Cygnet's productivity' and that Cygnet has 'for years been undertaking research projects in an attempt to mitigate its levels of pearl oyster mortality'.  In support of that first concern, it points to the evidence of Dr Stephens (the second 'concern') which was to the effect that from 2003 to 2017 Cygnet provided oyster samples in which the Department identified 'haemocyte inflammation, suggestive of bacterial … or another type of infection' and that 70-80% of unexplained mortality of which the Department was aware 'were from Cygnet' and the majority were in hatchery reared spat.

  9. There are three reasons why we have given little weight to these 'concerns'.

  10. First, it is now seven years after the end of the reports referred to by Dr Stephens and there is no evidence that whatever was happening up to 2017 continues to occur.

  11. Secondly, there is limited evidence before us about other participants in the industry and how they have addressed oyster mortality.  For example, neither Mr Paspaley nor Dr Buchanan addressed in any detail how Paspaley manages or investigates unexplained mortalities within its hatchery.

  12. Dr Stephens answered questions which indicated that Paspaley did use the Department's laboratories and agreed that 'their reports of mortality' were usually consistent with known external events.[132]

    [132] ts 211, 13 March 2024.

  13. But that evidence is insufficient to allow us to find that Cygnet has had, within that period, greater incidences than other industry participants of unexplained mortalities without evidence as to how each participant managed or reported mortalities.

  14. Cygnet's submissions included references to its commitment to openness and transparency.[133]  We are not in a position to contrast that commitment with Paspaley because there is very limited evidence in that regard.

    [133] Closing Submissions of the Second Respondent, 15 March 2024, paras 6, 23, 125 and 128.

  15. The only relevant evidence came from Dr Hart whose evidence was that Departmental officers spend time on Paspaley's vessels each year.  His evidence was to the effect that any information those officers might obtain about Paspaley's mortality events would be incidental or opportunistic, rather than by formal reports.[134]

    [134] ts 242 - 243, 13 March 2024.

  16. That is, we cannot understand the significance or otherwise of a figure such as 70‑80% of unexplained mortalities where it is unclear as to whether, how much and how other industry players are participating in those processes.  In this regard we note that Dr Stephens did not express anything like concern about Cygnet's practices based on her interaction with their oyster samples.

  17. A third reason why we give little weight to Paspaley's first two concerns is that, in about 2017, Cygnet applied for and obtained the Station Hill POFL, which is located just over 5nm from Paspaley's Gantheaume Point leases (PLSE57 and PLSE93), and between 5nm and 10nm from Paspaley's Roebuck Bay leases.

  18. Mr Brown says no objection was raised to the issue of that POFL by Paspaley.[135]  Paspaley explains its lack of objection by reference to three matters but, as to the Gantheaume Point leases, merely says it (Paspaley) does not have seeded shell on those POFLs.  We do not understand that as a reason to not object if there was a real concern about Cygnet's biosecurity practices.

    [135] Statement of James Bruce Brown, 5 May 2023, para 46.

  19. The third 'concern' is that White Colonial Sea Squirt is present on Cygnet leases.  As the Paspaley submission acknowledges, Mr Brown contends that this particular pest is 'widespread' and while Dr Buchanan's evidence was that, to his knowledge, the Sea Squirt is not present on Paspaley's leases, there was no evidence to contradict Mr Brown's evidence in this regard.  In such circumstances, it is not clear what, if any, additional risk the POFLs would provide.  Certainly, the presence of the Sea Squirt on Cygnet's leases is insufficient to give rise to a finding that Cygnet's hygiene practices are inadequate if its distribution is properly described as 'widespread'.

  20. As noted above, Paspaley also submits that Cygnet lacks experience operating POFLs in 'open water'.  It submits that the biosecurity risk associated with Cygnet is exacerbated by this lack of experience.

  21. It puts its case in two main ways:  that as an inexperienced operator Cygnet will expose its oysters to greater stress events which will weaken the oysters making them more susceptible to ill-health; and that due to its inexperience, Cygnet will be more at risk of equipment/infrastructure becoming loose/untethered and drifting into Paspaley's POFL zones, bringing with it pests and disease.

  22. Cygnet resists the assertion that it lacks open-water experience.  Mr Brown's evidence was to the effect that Cygnet has decades of experience operating POFLs in less protected areas (he disputes that the industry uses the terminology utilised by the Paspaley witnesses), referring to Cygnet's interest in Clipper Pearls which, he says, 'pioneered the development of … techniques in such unsheltered waters in Australia in an area known as Quondong Point … approximately 60 nautical miles north of the Lease [being the POFLs in question] areas' and that Cygnet 'has accumulated, developed and put into practice husbandry and farming practices for the successful operation of [POFLs] in such areas'.

  23. He also refers to other Cygnet POFLs which are certified by AMSA (Australian Maritime Safety Authority) in a manner that reflects that they are not in sheltered waters.[136]

    [136] Exhibit 18, Statement of James Bruce Brown, 5 May 2023, paras 72 - 77.

  24. Ultimately, although the point was not abandoned, it was not forcefully pressed by Paspaley in closing.

  25. In particular, Paspaley's written closing submissions regarding Cygnet's 'lack of experience' did not mention open water at all but, rather, were limited to Cygnet's previous use of other companies to provide wildstock.  That is, Paspaley's closing submissions referred to an alleged lack of experience in fishing for oysters rather than in operating POFLs in open water.[137]

    [137] Applicants' Closing Submissions, 15 March 2024, paras 88 - 90.  See also, ts page 434, 15 March 2024.

  26. We do not accept that Cygnet lacks relevant experience.  We find that the evidence of Mr Brown in this regard was not diminished in cross­examination as appears to be recognised by Paspaley's closing submissions.  Whether or not Cygnet has fished for wild oysters until reasonably recently appears to us to have no bearing on what we accept is its considerable experience in operating POFLs in a range of locations, including what Mr Paspaley describes as 'open water'.

  27. For these reasons, we find that there is no basis for Paspaley's assertion that the biosecurity risk associated with Cygnet operating the POFLs is greater than that associated with any other operator.

Conclusion:  Biosecurity Risk

  1. For the above reasons, we find that the industry, through the Department, has implemented a policy response to the risk of transmission of pests and disease which it considered, both before and after the catastrophe of OOD, to be suitable and proportionate.

  2. In the years since, on the material before us, there has been no attempt by Paspaley or anyone else to review or to procure a review of that policy response.  In the absence of anything to the contrary, we have proceeded on the basis that that silence reflects an ongoing acceptance of the policies' suitability and proportionality.

  3. Accordingly, we see no reason to disregard the policy provisions and, in the absence of anything particular to this application, we see no reason to depart from the terms of the relevant polices and, particularly, MPG17.

  4. In particular, the evidence before us falls well short of demonstrating that the risk of transmission of pests and disease associated with the issue of the two POFLs in question to Cygnet is any greater than would be the case with any other operator.

  5. That is, there is nothing in Cygnet's biosecurity practice or history or in its level of experience that takes this application out of the ordinary.

  6. For those reasons we see no biosecurity reason to depart from the provisions of MPG17.  Put another way, we find that there is no reason associated with the application of policy to conclude that refusal to issue the two POFLs in question would be in 'the better interests' of the pearling industry on biosecurity grounds.

Orderly Development

  1. Paspaley submits that to refuse to issue the POFLs to Cygnet would be in the better interests of the industry because to do so would be consistent with the industry's orderly development.

  2. Its case in this regard is, in effect, as follows:

    (a)one of the factors relevant to the better interests of the pearling industry is 'the orderly development of pearl farms' as identified in MPG17;[138]

    (b)as a matter of 'orderly development', it is in the better interests of the industry for 'pearl farm areas' to be preserved and encouraged;[139]

    (c)pearl farm areas should be preserved and encouraged because it allows for better and more efficient management, especially by allowing for and encouraging economies of scale;[140] and

    (d)the protection of pearl farm areas means that 'ad hoc and incremental development which abuts (or is in the middle of) sensitive and valuable pearl production areas [that is, we infer, pearl farm areas] … is not in the better interests of the industry'.[141]

    [138] Applicants' Closing Submissions, 15 March 2024, para 92.

    [139] Applicants' Closing Submissions, 15 March 2024, para 93.

    [140] Applicants' Closing Submissions, 15 March 2024, paras 94, 97 - 101.

    [141] Applicants' Closing Submissions, 15 March 2024, para 102.

  3. There are several difficulties with this submission.

  4. The first, we find, is that it misconstrues the terms of MPG17.

  5. As noted above, MPG17 states that the terms of that policy aim to achieve certain, stated, outcomes which, the policy states, are in the better interests of the WA pearling industry.

  6. That is, the aim of the policy of limiting the issue of POFLs where they are less than 5nm from the boundaries of another POFL, but not limiting them when they are greater than that distance, is to provide for the orderly development of pearl farms, which is in the better interests of the industry.

  7. Paspaley's submission seeks to isolate the relevant 'aim' of MPG17 (the orderly development of pearl farms) from the policy which seeks to achieve that aim and to argue that other matters (the preservation and encouragement of pearl farm areas and the economies of scale which they provide) seek to achieve that aim.

  8. Paspaley's case is that in order to preserve and encourage pearl farm leases the CEO (and the Tribunal on review) should not issue POFLs that are proximate to or might otherwise limit the expansion of the pearl farm lease.

  9. The difficulty with such an approach is that the preservation and encouragement of 'pearl farm areas' by limiting the issue of POFLs when they are beyond 5nm from the nearest POFL is inconsistent with the policy enunciated in Section 7 of MPG17 which:

    (a)seeks to impose no geographic limits on the issue of POFLs that are greater than 5nm from the boundary of another POFL; and

    (b)expressly states that the 5nm limit was chosen to provide 'commercial security and the opportunity for expansion'.[142]

    [142] MPG17, page 9.

  10. The second difficulty with Paspaley's submission is somewhat related to the first, which is that there is no generally accepted understanding of what constitutes the 'orderly development of pearl farms' being the phrase used in MPG17 to reflect one of the aims of that policy.  As such, we can proceed, we find, on the basis that decisions consistent with that policy will be consistent with the 'orderly development of pearl farms' but there is nothing else that suggests what else might satisfy that criterion.

  11. Paspaley's written closing refers to the similar phrase 'orderly and proper planning' in the context of town planning legislation and policy.[143]  But in that context there are at least some (and often many) documents that provide a framework for the making of decisions so that the phrase 'orderly and proper planning' means, in effect, a decision made having regard to 'applicable legislation, subsidiary legislation and planning scheme … and policy instruments'.[144]

    [143] Applicants' Closing Submissions, 15 March 2024, para 96.

    [144] Marshall v Metropolitan Redevelopment Authority [2015] WASC 226, [180].

  12. In the present case, we were taken to three documents which might play a similar role: MPG17, the Translocation Protocol and AG1.

  13. We find it is telling that Paspaley relies upon none of those documents in support of its submission that the refusal of the POFLs in this case would be consistent with the 'orderly development of pearl farms'.

  14. We find that a decision which is consistent with those documents could reasonably be said to be consistent with the 'orderly development of pearl farms'.  Conversely, a decision which cannot find support in those documents is, we find, less likely to be found to be so consistent.

  15. Rather than seek to demonstrate that its position is consistent with existing policy, Paspaley submits that we should look to other factors, not contained in those policy documents, for guidance as to what constitutes the 'orderly development of pearl farms'.  For the reasons above, we don't accept that submission.

  16. That raises the third difficulty with Paspaley's submission in this regard, which is the lack of relevant clarity.

  17. Paspaley says that the 'best evidence' of what constitutes orderly development is the 'observable behaviour of all industry participants', being the establishment of 'pearl farm areas'.

  18. Both Cygnet[145] and the Delegate[146] submit that the concept of a 'pearl farm area' is one unique to Paspaley, while Paspaley submits that they 'exist, and are readily observable, in the clusters of leases held by Paspaley and other operators'.[147]

    [145] Closing Submissions of the Second Respondent, 15 March 2024, para 30.

    [146] First Respondent's Outline of Submissions, 16 February 2024, para 64.

    [147] Applicants' Closing Submissions, 15 March 2024, para 105.

  19. The Translocation Protocol uses the term 'Pearl Farm', which it defines as 'one or more pearl farm leases including any ancillary shore based or floating support facilities that are operated by a licensee as a single productive unit and there is no more than 10 nautical miles between lease boundaries.' 

  20. However, that definition is, on its face, only for use within the Translocation Protocol and does not have a broader application.  Further, while Paspaley's written closing submissions reference (by footnote) the Translocation Protocol's definition as the source of its definition of 'Pearl Farm Area', the two definitions are not the same; the latter is defined as one 'where, generally, there are no more than 10 nautical miles between lease boundaries'.[148]

    [148] Applicants' Closing Submissions, 15 March 2024, para 102.

  21. Paspaley relies upon certain maps to demonstrate that there are 'clusters of leases' which, it says, amount to 'Pearl Farm Areas'.[149]

    [149] Exhibit 2, pages 356 - 366; also Exhibit 17.

  22. None of the witnesses were taken to those maps and asked to use the relevant scale, whose units are kilometres, rather than nautical miles, to demonstrate that those 'clusters' satisfy Paspaley's definition.  It is also unclear to us whether the scale given on our copy of the maps is intended to apply on an A4 page.  But assuming that the relevant distance of 10nm is to be measured at the widest point between the external boundaries of two POFLs and doing our best with the conversion of kilometres to nautical miles, it would appear that at least some of its proposed 'farm lease areas' do not meet Paspaley's proposed definition, including its Gourdon Bay 'cluster' around the Cygnet POFLs.

  23. There are also real differences in what constitutes Paspaley's 'clusters' of POFLs in that some of the clusters identified in Paspaley's written closing submissions are made up of POFLs in which the lease boundaries abut (i.e. they touch) while others involve POFLs separated by considerable distances.

  24. There is also a considerable lack of clarity in Paspaley's submission that new POFLs should not be issued if the new lease would 'abut' or be located 'in the middle of' an existing pearl farm area.[150]

    [150] Applicants' Closing Submissions, 15 March 2024, para 102.

  25. The POFLs in this case do not 'abut' the boundary of Paspaley's own, existing, POFLs,[151] although in each case the POFL boundary does appear to touch the 5nm buffer of an existing POFL.[152]

    [151] cf Applicants' Outline of Written Submissions, 26 September 2023, para 52.

    [152] See, also, Applicants' Outline of Written Submissions, 26 September 2023, para 4.

  26. Nor can it be said that the POFLs in this case are 'in the middle of' Paspaley's Gourdon Bay, Sandy Point and Gantheaume Point POFLs in that there is open water (without any of Paspaley's POFLs or their 5nm buffer zone) to the east of both of them.

  27. Paspaley's submission in this regard is, in effect, that the POFLs the subject of this application are 'too close' to its own POFLs.  But what is 'too close', particularly where Cygnet's POFLs comply with the 5nm buffer provided by MGP17?

  28. Paspaley has not put forward an alternative test and while, in a strict sense, there is no need for it to do so, in the absence of something like an alternative test, the complaint lacks clarity.

  29. The lack of clarity is particularly acute in the current circumstances where Paspaley's concern is that its existing POFLs 'encircle' the two Cygnet POFLs: when can it be said that existing POFLs are sufficiently far apart that they no longer 'encircle' a proposed POFL located between them?

  1. As a general proposition, we accept that there are various reasons why an operator might 'cluster' several POFLs in a general vicinity, including that it has various locational benefits (suitable benthic characteristics, distance from port, proximity to fishing/pearling waters etc.) and that to do so will provide efficiencies by, e.g., limiting travel times and distances by clustering several leases in reasonably close proximity to each other.

  2. We also accept that that appears to have occurred – a review of the maps appears to show that both Paspaley and Cygnet have certain clusters of POFLs in particular areas.

  3. But each of those clusters is different in its layout and there is nothing before us, save for the maps and bare assertion, to the effect that the existence of these 'clusters' represents the orderly development of the pearl industry (or, in the language of MPG17, the 'orderly development of pearl farms').  In the absence of any such evidence, we reject the submission that they do.

  4. Equally, we reject Paspaley's submission that the 'proper development of pearl farms' requires the application of geographic limits between POFLs over and above those expressed in MPG17.  As we have noted above, MPG17 states that the policy 'aims to achieve' outcomes that include the proper development of pearl farms.  Paspaley asks, in effect, that we add an additional distance requirement.  In our view, and we find, Paspaley's submission is inconsistent with the view expressed in MPG17 that the proper development of pearl farms is achieved by the application of that policy.  We also find that Paspaley's proposal lacks clarity as to what the additional requirement is, and when it would be applied.

  5. In so finding, we acknowledge that Paspaley's case in this regard was limited to the particular POFLs the subject of the application; that is, it was not expressed as a policy position with broader application.  But in our view the refusal of these POFLs on the basis that they are, in effect, 'too close' begs the question as to what distance would be acceptable and, significantly, why.  In our view Paspaley's submissions in this regard lack sufficient clarity for us to accept them.

  6. There are four further matters to address in relation to Paspaley's 'orderly development' submission but, given our previous findings, we address them only out of completeness.  They are:

    (a)whether this situation is 'unique';

    (b)whether the issue of the POFLs will 'inhibit' Paspaley's expansion in Gourdon Bay?

    (c)whether there is an absence of good sites for Cygnet?

    (d)whether the issue of the POFLs will result in Paspaley bearing greater costs?

Is the situation unique?

  1. Paspaley submits that the current situation – where the Cygnet POFLs are 'encircled' by its (Paspaley's) POFLs - is unique; it is the first time it has happened.  The Delegate agreed in cross-examination both that the Paspaley POFLs encircle the Cygnet POFLs and that that had not previously occurred.[153]

    [153] ts 164, 12 March 2024.

  2. Cygnet's written closing submissions in this regard do not directly address the question whether or not previous situations have resulted in a POFL being 'encircled' by those of an industry competitor.  Rather, they identify other examples where Paspaley has either applied for, or allowed without objection, POFLs which were/are located 'on or around the 5 nautical mile buffer'[154] of Paspaley's existing POFLs.

    [154] Closing Submissions of the Second Respondent, 15 March 2024, paras 115 - 116.

  3. In its written closing submissions, Paspaley seeks to justify its characterisation that the present situation is unique by distinguishing those other, previous, situations raised by Cygnet.

  4. Cygnet's submissions include that '[c]lusters of leases in close proximity is simply a consequence of the scarcity of the availability of good pearling sites in Western Australia'.[155]  We will return to the question of scarcity below.  But in our view, Cygnet has a point; the evidence supports the view that there are several examples of POFLs within or about 5nm of a competitor's lease.

    [155] Closing Submissions of the Second Respondent, 15 March 2024, para 115.

  5. Indeed, as we have already found, MPG17 provides for that to occur – it provides that a POFL located more than 2nm but less than 5nm from another lease 'should' be refused unless the holder of the other POFL consents, but is silent (and by implication therefore allows) POFLs to be issued if they are 5nm or more from the boundary of another.

  6. Cygnet places considerable weight on the decision by Paspaley to acquire the Maxima lease in settlement of proceedings DR 59 of 2022.  The Maxima lease is located a little more than 2nm from Cygnet's Cape Villaret B POFL and abuts the 5nm buffer of Paspaley's Sandy Point POFL.

  7. As Cygnet submits, Paspaley was aware of those matters, and of the possibility that Cygnet may prevail in these proceedings, when it decided to acquire the Maxima lease.  There is some strength to Cygnet's submission that the acquisition of the Maxima lease is 'incongruent' with Paspaley's position that biosecurity risks will result in additional travel to avoid Cygnet's POFLs and their associated biosecurity risk.[156]  However, Paspaley's answer – that the acquisition reduces by half the number of competitors in the vicinity and allows it to manage the risk associated with the Maxima POFL – also has some strength.

    [156] Closing Submissions of the Second Respondent, 15 March 2024, para 116.

  8. We are not convinced that the situation here proposed is 'unique' in that Map 6 (Exhibit 17) appears to show PLSE58 (owned by Paspaley) apparently 'encircled' by PLSE 8, 107, 108, 109 and 9.  But even if the present situation was unique, we do not give it much weight because that, of itself, carries with it no particular significance.

  9. What might be relevant is the consequences that might flow from the particular, unique, circumstances.  In this regard, Paspaley submits that the issue of the POFLs to Cygnet will inhibit Paspaley's expansion of its POFLs and will cause Paspaley to incur greater costs.  These are addressed below.

Will the issue of the POFLs to Cygnet inhibit Paspaley's expansion in the Gourdon Bay area

  1. Paspaley says that its Gourdon Bay South and Gourdon Bay South­West POFLs (PLSE 56 and PLSE 104 respectively) are as large as is allowed, given that s 23(3) of the PA limits POFLs to no more than 4nm2 and each of those POFLs is in excess of 3.9nm2.

  2. It submits that had Cygnet's POFL at Cape Villaret B (PLSE 622) not been issued, it would have applied for another POFL in the general location of that new lease. [157]

    [157] Applicants' Closing Submissions, 15 March 2024, para 122.

  3. Paspaley submits that if it is prohibited from expanding PLSE 104 and PLSE 56 and has to find an area further away then there will be an economic burden placed on Paspaley from having done so.[158]  In the relevant transcript relied upon for that submission,[159] Mr Paspaley explained that PLSE 104 and PLSE 56 are the areas in which Paspaley holds 'the majority of [its] seeding shell'.[160]

    [158] Applicants' Closing Submissions, 15 March 2024, para 126.

    [159] ts 78, 11 March 2024.

    [160] Mr Paspaley also says that there 'may be' an additional economic burden placed on Paspaley, not that there 'will be'.

  4. We accept that PLSE56 and PLSE104 are at the upper limit of their legal size and cannot be further 'expanded'.  We also accept that Cygnet's PLSE 622 effectively prevents Paspaley from applying for a new POFL to the north of its PLSE56 and PLSE 104.

  5. There was no evidence put before us as to why Paspaley could not or should not seek the issue of one or more new POFLs to the west of its Gourdon Bay South-West POFL (i.e. between PLSE 104 and PLSE 96), although a review of the relevant map shows Clipper Pearls PLSE12 to the south-west of Paspaley's POFLs which might impose a limit on such a course.

  6. But there appears to be no such limit to the north of Gourdon Bay East/ PLSE 96 (i.e. between that POFL and Gantheaume Point/ PLSE 84) although we accept that, on Mr Paspaley's evidence, those leases do not hold 'the majority of [Paspaley's] seeding shell'.

  7. In any event, the fact that the issue of two POFLs to Cygnet prevents Paspaley from successfully applying for new leases to the north of PLSE56 and PLSE104 does not satisfy us that the issue of the two POFLs to Cygnet are contrary to the 'proper development of pearl farms' (or 'the pearling industry') or that their refusal is in the better interests of the industry.

  8. To do so would, in our view, mistake Paspaley's interests for those of the industry as a whole.

  9. The reality is that Paspaley already dominates the industry.  As previously noted, it holds 77 POFLs out of a total of 102 (~ three quarters of those issued) and a review of the relevant maps provided suggests that Paspaley holds POFLs in almost all of the areas in which such leases have been issued.

  10. Put another way, it seems to us that Paspaley has very broad scope to expand its existing operations (i.e. without 'opening up' new areas) without the need to have regard (or much regard) to anyone else's interests.

  11. In those circumstances we find its complaint, that it cannot do exactly as it wishes in relation to two particular leases because of the issue of two POFLs to Cygnet, somewhat remarkable.

  12. In doing so, we acknowledge our finding (see below) that there is an absence of 'good pearling sites'.  That does not diminish our finding that Paspaley has considerable scope for expansion without the need to have regard to other industry participants' interests.

  13. That is because we assume that at least some of those other POFLs held by Paspaley are 'good' sites.  We do so because we assume that Paspaley would not hold onto them if they were not of some benefit to it.

  14. Plainly, the Gourdon Bay area is particularly prized, and the issue of two POFLs to Cygnet will prevent Paspaley from doing as it pleases in that area.

  15. But for the above reasons, we reject Paspaley's view that the Cape Villaret POFLs issued to Cygnet are either contrary to the 'proper development of pearl farms' (or 'the pearling industry') or are contrary to the better interests of the industry.

Is there an Absence of 'Good' Pearling Sites

  1. Cygnet submits that there is a shortage of 'good' pearling sites[161] and Paspaley urges us to reject that submission.[162]

    [161] Closing Submissions of the Second Respondent, 15 March 2024, para 27.

    [162] Applicants' Closing Submissions, 15 March 2024, para 127.

  2. Paspaley says that there 'remains a large expanse of ocean' along the WA coast 'in which [POFLs] could be developed'.[163]

    [163] Applicants' Closing Submissions, 15 March 2024, para 128.

  3. To some extent that is true, in that the area between Exmouth and the WA border with the Northern Territory is vast and there are large areas in which no, or few POFLs have been issued.

  4. But it seems reasonable to suggest that there may well be sound reasons why POFLs are clustered in certain areas and not others.

  5. Such a supposition appears supported by two documents put before us, one of which is MPG17, which includes (as quoted above at para [239]) the statement that the industry 'holds strongly' to the view that distances between POFLs should apply for reasons that include 'commercial security and the opportunity for expansion, as there appears to be a shortage of high quality pearl farm sites available along the coast'.[164]

    [164] Exhibit 1, page 91: MPG17, Section 7, page 9.

  6. The basis for that statement appears to be explained by a Briefing Note for (and approved by) the Minister for Fisheries from the Executive Director (presumably of the Department of Fisheries) from July 1995 which responds to two letters from the Chair of the Pearling Industry Advisory Committee (PIAC).  The author of the Briefing Note says that they support PIAC's position regarding 'the distance between' POFLs 'particularly given the difficulties in identifying high quality farm sites off the [WA] coast'.[165]  The Briefing Note recommends, amongst other things, the change in MPG17 from 10nm to 5nm.

    [165] Exhibit 2, page 409.

  7. It is possible that technology or some other changes have led to a more recent acceptance that the previous view as to the scarcity of 'good sites' is outdated but that was not the evidence before us.  Rather, Paspaley relied in this regard upon the evidence of Mr Paspaley that a 'successful' oyster farm is not merely the result of its location, but 'also depends on the investment made by the pearling operator, including with respect to infrastructure'.[166]

    [166] Responsive Witness Statement of James Paspaley, 20 June 2023, para 9.

  8. That may be so, but it does not really address the issue of scarcity of sites with appropriate locational attributes.  Mr Brown's evidence is that there are limited suitable areas off the Kimberley coast such that implementing the concept of a 'pearl farm area' would drastically reduce availability of those remaining sites.[167]

    [167] Witness Statement of James Bruce Brown, 5 May 2023, paras 119 - 120.

  9. Paspaley's submission, were it to be accepted, appears to us to cut both ways:  just as it would be open to Cygnet to seek approval for POFLs in new areas, the same may be said for Paspaley.

  10. As we found in the immediately preceding subsection, Paspaley has three quarters of the POFLs issued in WA, including in each area in which POFLs have been issued.  There appears to us sufficient areas from which it might 'expand'.

  11. We agree with the evidence of Mr Brown which was to the effect that to allow an operator to, in effect, implement a boundary around multiple farm leases and treat that entire area as a single pearl farm, in circumstances where there is a scarcity of 'good' areas to farm pearls, will materially reduce the waters available for the development of new POFLs.  It may well also serve to consolidate and strengthen the market power of Paspaley.

  12. None of those possibilities appear to us to be in the better interests of the pearling industry, when considered as a whole.

Will Paspaley travel further and bear higher costs if the Cygnet leases are issued?

  1. Paspaley's case in this regard is that, if the POFLs are issued to Cygnet, it (Paspaley) will be required to travel additional distances to service the southern most Gourdon Bay leases because of the Translocation Protocol, which requires relevant vessels to avoid travelling within 5nm of other operator's POFLs.

  2. To repeat, cl 3.1.3 of the Translocation Protocol provides that '[t]ransport vessels' must 'maintain a standoff distance' of 5nm from 'active leases operated by other licensees' unless a lesser distance is agreed by the other licensee/s.

  3. Clause 3.1.4 provides an exception to that requirement where 'geographic restrictions or lease concentration' means that the 5nm standoff distance 'cannot be achieved'.  In such a case, 'the transport route is to bisect the area between the leases where possible'.

  4. In our view it is significant that:  (1) the Translocation Protocol expressly acknowledges that clusters of POFLs may make it physically impossible to meet the 5nm standoff 'requirement', (2) if so, it provides for the bisection of the area between leases; (3) it does so without imposing a minimum 'standoff' distance; and (4) it expressly allows for other arrangements by providing that the bisection of the area between leases shall occur only 'where possible'.

  5. Mr Paspaley's evidence was that Paspaley 'transports seeded shell between its Gourdon Bay South-West lease and its Sandy Bay lease, and between its Gourdon Bay and Roebuck Bay pearl farm areas'.  His evidence was that the Cygnet POFLs 'mean that Paspaley is no longer able to utilise the same transport routes because of the requirements of the [Translocation Protocol]'.[168]

    [168] Exhibit 5, para 76.  See, also, para 39.

  6. But, as noted above cl 3.1.4 provides an exception for just this circumstance (i.e.'lease concentration') and, in any event, cl 3.1.3 allows Paspaley to seek Cygnet's approval to a lesser distance even without the need to prove 'lease concentration'.

  7. There was evidence that went to how much additional time each journey by boat the extra distance would add, as well as how much extra fuel it would take.

  8. But in cross-examination, Mr Paspaley said that 'the economic impact will be, I think, relatively minor on diesel, but … it's the importance of having to find out the locations as well'.[169]

    [169] ts 83, 11 March 2024.

  9. By that answer, we understand him to say that the main issue for Paspaley is understanding the relevant coordinates to ensure that the 5nm buffer zone is not traversed and that the economic impact due to additional diesel (and, presumably, the additional time) is of limited concern.

  10. For those reasons, we find that any additional distances travelled by Paspaley due to the issue of the two POFLs to Cygnet will be as a result of a choice made (internally) by Paspaley given the Translocation Protocol appears to allow for that choice, rather than strictly insisting upon it, and that any additional economic cost due to that choice would be 'relatively minor'.

  11. Accordingly, we find that the evidence does not support Paspaley's submission that we ought to reject the issue of POFLs to Cygnet because their issue would cause an additional burden on Paspaley, and thereby be contrary to the orderly development of the industry. 

Conclusion

  1. For the above reasons, both of the two applications for review should be dismissed.

  2. Given the entity to which the POFLs were originally issued does not exist, we will set aside the Delegate's decision and substitute it with one in which the two POFLs are issued to Cygnet, the second respondent.  In our view, for reason already discussed, Cygnet was the 'true' applicant.

  3. Orders will be made accordingly and the parties are to confer as to the need or otherwise for any ancillary orders and to file minute/s within 14 days of the publication of these reasons.

I certify that the preceding paragraph(s) comprise the reasons for decision of the State Administrative Tribunal.

PN

Associate to Deputy President Judge Jackson

19 SEPTEMBER 2024