Pharmacy Restructuring Authority v Chatfield

Case [1993] FCA 495


PHARMACY RESTRUCTURING AUTHORITY and SECRETARY, DEPARTMENT OF HEALTH, HOUSING
AND COMMUNITY SERVICES v. KEVIN NORMAN CHATFIELD
No. WAG213 of 1992
FED No. 495
Number of pages - 13
Administrative Law
(1993) 116 ALR 76
(1993) 18 AAR 34
(1993) 30 ALD 349 (extract), (1993) 43 FCR 418

COURT

IN THE FEDERAL COURT OF AUSTRALIA


WESTERN AUSTRALIA DISTRICT REGISTRY
GENERAL DIVISION
Davies(1), French(2) and Lee(1) JJ
CATCHWORDS

Administrative Law - pharmaceutical benefits - retail pharmacy industry restructuring - legislative scheme - Ministerial guidelines - objectives - construction and application - new pharmacy premises - application for approval - role of Pharmacy Restructuring Authority - role of Secretary - requirement for definite unmet public need - need - whether existing or prospective - public - whether limited community - whether need related to pharmacy or pharmaceutical benefits - characterisation of public need.

Word and Phrases - "need", "public", "definite unmet public need".

National Health Act 1953 (Cth)

Administrative Appeals Tribunal Act 1975 (Cth) s.37

Community Services and Health Legislation Amendment Act 1990 (Cth)

Health and Community Services Legislation Amendment Act 1991 (Cth)

Commonwealth of Australia v. Crowe (1992) 111 ALR 193

Re Shortis and Secretary, Department of Community Services and Health (1991) 23 ALD 396

Re Garozzo and Pharmacy Restructuring Authority (1992) 16 AAR 251

Buttery v. Muirhead (1970) SASR 334

Silkman v. Kendall (1982) 1 NSWLR 133

Toohey v. Taylor (1983) 1 NSWLR 743

Latitude Fisheries Pty Ltd v. Minister for Primary Industry and Energy (unreported, 31 March 1993)

HEARING

PERTH, 22 March 1993

#DATE 23:7:1993

Counsel for the Applicants: Mr S. Bhojanai

Solicitors for the Applicants: Australian Government Solicitor

Counsel for the Respondent: Mr R. Hyman

Solicitors for the Respondent: Kennedy and Hyman

ORDER

THE COURT ORDERS THAT:

1. The decision made by the Tribunal be set aside and the following decision substituted:

(a) The recommendation of the Authority be set aside and in substitution therefor it be recommended by the Authority that the respondent be approved for the purpose of supplying pharmaceutical benefits from the proposed premises at Warnbro.

(b) The decision of the Secretary of the Department of Community Services not to approve the respondent be set aside and the Secretary be directed to reconsider the application in light of the substituted recommendation of the Authority and to approve the respondent subject to the Secretary's satisfaction as to incidental matters such as compliance with s.90(4) of the National Health Act 1953.

2. The appeal be otherwise dismissed.

3. The applicants to pay the respondent's costs of the appeal.
Note: Settlement and entry of Orders is dealt with in Order 36 of the Federal Court Rules.

JUDGE1

DAVIES and LEE JJ This is an appeal from a decision of the Administrative Appeals Tribunal ("the Tribunal") constituted by the President, Justice D.F. O'Connor, Deputy President P.W. Johnston and Dr J.G. Billings. Under s.44(1) of the Administrative Appeals Tribunal Act 1975 (Cth) the appeal is limited to a question of law. The Tribunal described the decision under review thus:-

"1. The…

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AGLC
Pharmacy Restructuring Authority & Anor v. Chatfield, K.N. [1993] FCA 495 ((1993) 116 ALR 76; (1993) 18 AAR 34; (1993) 30 ALD 349; (1993) 43 FCR 418)
Case
[1993] FCA 495
Decision Date

CaseChat Overview and Summary

Pharmacy Restructuring Authority contested a decision by the Chatfield to deny a pharmacy licence application. The case was heard in the Federal Court of Australia. The crux of the dispute revolved around the interpretation and application of legislative provisions and ministerial guidelines concerning the restructuring of the retail pharmacy industry, particularly in relation to the approval process for new pharmacy premises.

The primary legal issue before the court was whether the Pharmacy Restructuring Authority correctly assessed the public need for the proposed pharmacy at Warnbro, and whether this need was sufficiently definite and unmet. The court also needed to determine the scope of the public need, whether it was to be assessed based on existing or prospective requirements, and if the public need related exclusively to the pharmacy or could also encompass broader pharmaceutical benefits.

The court found that the Pharmacy Restructuring Authority had erred in its assessment of the public need. The court held that the need must be definite and unmet, and that the public need could relate to both existing and prospective requirements. The court also clarified that the public need could extend beyond the specific pharmacy to encompass broader pharmaceutical benefits. Consequently, the court set aside the Tribunal's decision and substituted it with a recommendation that the respondent be approved for the proposed premises at Warnbro. The Secretary of the Department of Community Services was directed to reconsider the application in light of this recommendation and approve the respondent subject to compliance with relevant statutory requirements.

In its orders, the court set aside the decision of the Tribunal and directed the Pharmacy Restructuring Authority to recommend approval for the proposed pharmacy. The Secretary was instructed to reconsider and approve the application, subject to compliance with specified conditions. Additionally, the applicants were ordered to pay the respondent's costs of the appeal.

Orders

Orders of the court

THE COURT ORDERS THAT:

1. The decision made by the Tribunal be set aside and the following decision substituted:

(a) The recommendation of the Authority be set aside and in substitution therefor it be recommended by the Authority that the respondent be approved for the purpose of supplying pharmaceutical benefits from the proposed premises at Warnbro.

(b) The decision of the Secretary of the Department of Community Services not to approve the respondent be set aside and the Secretary be directed to reconsider the application in light of the substituted recommendation of the Authority and to approve the respondent subject to the Secretary's satisfaction as to incidental matters such as compliance with s.90(4) of the National Health Act 1953.

2. The appeal be otherwise dismissed.

3. The applicants to pay the respondent's costs of the appeal.

Note: Settlement and entry of Orders is dealt with in Order 36 of the Federal Court Rules.

Background

Background to the litigation

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Evidence

Evidence Before The Court

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Decision

Reasons for decision

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Ratio Decidendi

Legal Principle Established

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