EXPLANATORY STATEMENT
Issued by the authority of the Attorney-General
Judiciary Act 1903
Legal Services Amendment Directions 2009 ( No 1)
Section 55ZF of the Judiciary Act 1903 (Cth) provides, relevantly, that the Attorney‑General may issue directions (Legal Services Directions) that are to apply generally to Commonwealth legal work. ‘Commonwealth legal work’ is broadly defined as any work performed by a person for the Commonwealth; or for a body established by an Act or regulations, including a company in which the Commonwealth has a controlling interest.
Schedule 1 to the amendment inserts new paragraph 4.9 into the Directions.
Subparagraph 4.9(a) provides that an FMA agency may only apply for an order to prohibit or restrict the disclosure or publication of evidence or information in a proceeding if it considers this is reasonably necessary to protect the interests of the Commonwealth.
Subparagraph 4.9(b) further provides that those agencies must not apply for such an order only to avoid the disclosure or publication of evidence or information that may be embarrassing to the Commonwealth or its agencies.
The purpose of this amendment to the Directions is to establish clear circumstances in which the Commonwealth and its agencies should not seek suppression orders from the court.
This amendment will have the effect that any FMA agency seeking suppression orders to avoid embarrassment, in the absence of a legitimate purpose such as protecting the interests of the Commonwealth, will be in breach of the Directions. Breaches of the Directions must be reported to the Office of Legal Services Coordination in the Attorney-General's Department.
This amendment comes into effect the day after registration.
The Legislative Instruments Act 2003 (Cth) requires an explanatory statement to describe the nature of any consultation that has been carried out or, if there has been no consultation, to explain why none was undertaken.
Relevant stakeholders, including Commonwealth Departments and agencies, were consulted on this proposal in 2008. While the need for an amendment was questioned, on balance it was considered that there was a public interest and benefit in holding the Commonwealth to a higher standard than other litigants, and this amendment will assist to ensure that information is only suppressed where necessary and appropriate.
Overview
The Legal Services Amendment Directions 2009 (No. 1) were enacted to address a specific problem within the legal landscape of Commonwealth legal work. These Directions, introduced under the authority of the Attorney-General, amend the existing Legal Services Directions within the Judiciary Act 1903 to impose clearer criteria for when Commonwealth agencies may seek suppression orders in legal proceedings. This amendment aims to ensure that suppression orders are sought only when they are reasonably necessary to protect the interests of the Commonwealth, thereby preventing their use merely to avoid embarrassment. This legislative change was intended to uphold higher standards for the Commonwealth, ensuring transparency and accountability in legal processes.
The amendment, which was developed after consultations with relevant stakeholders in 2008, reflects a policy objective to maintain public trust by ensuring that suppression orders are not misused. By setting forth explicit criteria, the Directions aim to prevent the unnecessary suppression of information that may be embarrassing to the Commonwealth or its agencies, thus promoting openness and integrity in legal proceedings. These Directions came into effect following their registration, reinforcing the legislative commitment to uphold the principles of transparency and accountability in legal processes involving the Commonwealth.
Scope and Application
The Legal Services Amendment Directions 2009 (No 1) amends the existing Legal Services Directions under Section 55ZF of the Judiciary Act 1903, which applies to any work performed by a person for the Commonwealth or for a body established by an Act or regulations, including a company in which the Commonwealth has a controlling interest. The Directions establish specific guidelines on when Financial Market Authority (FMA) agencies can apply for orders to suppress the disclosure or publication of evidence or information in a legal proceeding. According to the amendment, an FMA agency may only apply for such an order if it deems it reasonably necessary to protect the interests of the Commonwealth, and not solely to avoid the disclosure of potentially embarrassing information. Breaches of these Directions must be reported to the Office of Legal Services Coordination within the Attorney-General's Department. This amendment, effective from the day after registration, aims to ensure that suppression orders are sought only in circumstances where they are necessary and appropriate, thereby upholding a higher standard for the Commonwealth compared to other litigants. Relevant stakeholders were consulted in 2008, and although the need for an amendment was questioned, the consensus was that this change would benefit the public interest.
Key Provisions
The primary operative sections of the Legal Services Amendment Directions 2009 (No 1) are found in the Schedule 1, which modifies the existing Legal Services Directions under Section 55ZF of the Judiciary Act 1903. Specifically, new paragraph 4.9 is inserted into the Directions. Subparagraph 4.9(a) stipulates that an agency of the Financial Market Authority (FMA) can only seek an order to prohibit or restrict the disclosure or publication of evidence or information in a proceeding if it believes it is necessary to protect the interests of the Commonwealth. Subparagraph 4.9(b) mandates that such agencies must not seek these orders merely to avoid embarrassment to the Commonwealth or its agencies. These provisions clarify the circumstances under which the Commonwealth and its agencies should not seek suppression orders from the court.
The Act imposes several obligations on FMA agencies and other relevant entities. Firstly, these agencies must ensure that any application for suppression orders is grounded in a legitimate need to protect the interests of the Commonwealth, rather than seeking to avoid embarrassment. Additionally, any breach of these Directions must be reported to the Office of Legal Services Coordination in the Attorney-General's Department. This ensures that there is accountability and oversight regarding the application of suppression orders.
Breaches of these Directions are not trivial matters; they have significant legal consequences. If an FMA agency seeks a suppression order for reasons other than protecting the interests of the Commonwealth, it would be in breach of the Directions. Such breaches are to be reported to the Office of Legal Services Coordination, which may then take appropriate action. The Explanatory Statement highlights that relevant stakeholders were consulted in 2008, and while the need for this amendment was questioned, the overall consensus was that it benefits the public interest by ensuring information is only suppressed when necessary and appropriate.
The consequences for breaching these Directions are not explicitly detailed in terms of penalties within the text, but it is clear that any misuse of suppression orders would be subject to scrutiny and possible action by the Office of Legal Services Coordination. The legislative intent is to hold the Commonwealth to a higher standard than other litigants, thereby maintaining the integrity of the legal process and ensuring that suppression orders are not used frivolously. This amendment aims to uphold the principles of transparency and accountability in legal proceedings involving the Commonwealth.