Parliamentary
Archives,
HL/PO/JU/4/3/1171
HOUSE OF LORDS
PADFIELD
AND OTHERS
v.
MINISTER OF AGRICULTURE, FISHERIES AND FOOD
AND OTHERS
Lord
reid.
Lord Morris of Borth-y-Gest
Lord Hodson
Lord
Pearce
Lord Upjohn
Lord Reid
MY LORDS,
Since 1933
there has been in operation a Milk Marketing Scheme for
England
and Wales made under Statutory provisions now contained in
the
consolidating Agricultural Marketing Act 1958. Under that
scheme pro-
ducers are bound to sell their milk to the Milk
Marketing Board and that
Board periodically fixes the prices to be
paid to the producers. England
and Wales is divided into eleven
regions. In each region producers receive
the same price but there
is a different price for each region. One reason
for (his is that
the cost to the Board of transporting milk from the pro-
ducers'
farms to centres of consumption is considerably greater for
some
regions than for others. The lowest price is paid to
producers in the Far
Western Region and the highest is paid to
producers in the South Eastern
Region : prices paid in the other
nine regions vary but fall between these
two extremes. The present
differentials between the regions were fixed
many years ago when
costs of transport were much lower. For the last
ten years or so
South Eastern producers have been urging the Board to
increase
these differentials but without success. It appears that the
present
differential between the South East and the Far West is
1-19 pence per
gallon : South Eastern producers contend that the
figure should be in the
region of 31/2 pence per gallon. As the
total sum available to the Board to
pay for the milk they buy in
all the regions is fixed each year, giving effect
10 the
contention of the South Eastern producers would mean that they
and
perhaps the producers in some other regions would get higher
prices, but
producers in the Far West and several other regions
would get less.
This
matter has been considered by two independent committees and
their
recommendations would, at least to some extent, favour the
contention
of the South Eastern producers. I only mention this
fact because it shews
that their contention cannot be dismissed as
wholly unreasonable or incon-
sistent with the general Scheme.
The Milk
Marketing Board is comprised of twelve members from the
legions,
three elected by all producers in the country and three appointed
by
the Minister. The Board of course acts by a majority of its
members.
It is said that members each have in mind, quite
properly, the interests of
their constituents, that the adoption
of the proposals of the South Eastern
producers would be against
the financial interests of the constituents of most
of the
members, and that the experience of the last ten years shews that
the
South Eastern producers cannot hope to get a majority on the
Board
for their proposals.
The 1958
Act provides two methods by which persons aggrieved by the
Board's
actions can seek a remedy. The first is arbitration. The
South
Eastern producers attempted to invoke that remedy but it is
now common
ground that arbitration would be inappropriate. To give
effect to their
contention would require a readjustment of the
price structure all over the
country and this could not be
achieved by arbitration.
The other
possible remedy is that provided by section 19 of the 1958
Act
which is in these terms :
"(1)
The Minister shall appoint two committees (hereafter in this
Act
referred to as a ' consumers' committee' and a ' committee of
"
investigation') for Great Britain, for England and Wales and for
"
Scotland respectively.
2
" (2) A consumers' committee shall—
" (a)
consist of a chairman and of not less than six other
"
members, who shall be such persons as appear to the Minister,
"
after consultation as to one member with the Co-operative
"
Union, to represent the interests of the consumers of all the
"
products the marketing of which is for the time being regulated
"
by schemes approved by the Minister ; and
" (b) be charged with the duty of considering and reporting
" to the Minister on—
" (i)
the effect of any scheme approved by the Minister,
" which is
for the time being in force, on consumers of
" the regulated
product; and
"
(ii) any complaints made to the committee as to the
" effect
of any such scheme on consumers of the regulated
" product.
" (3) A committee of investigation shall—
" (a)
consist of a chairman and either four or five other
" members
; and
" (b)
be charged with the duty, if the Minister in any case so
"
directs, of considering, and reporting to the Minister on, any
"
report made by a consumers' committee and any complaint
"
made to the Minister as to the operation of any scheme which,
"
in the opinion of the Minister, could not be considered by a
"
consumers' committee under the last foregoing subsection.
" (4)
On receiving the report of a committee of investigation under
"
this section the Minister shall forthwith publish the conclusions of
the
" committee in such manner as he thinks fit.
" (5)
For the purpose of enabling any committee appointed under
"
this section to consider any matter which it is their duty under
"
this section to consider, the board administering the scheme to
which
" the matter relates shall furnish the committee with
such accounts and
" other information relating to the affairs
of the board as the com-
" mittee may reasonably require, and
shall be entitled to make repre-
" sentations to the
committee with respect to the matter in such manner
" as may
be prescribed by regulations made by the Minister under this
"
Part of this Act with respect to the procedure of the committee.
" (6)
If a committee of investigation report to the Minister that any
"
provision of a scheme or any act or omission of a board
administering
" a scheme is contrary to the interests of
consumers of the regulated
" product, or is contrary to the
interests of any persons affected by the
" scheme and is not
in the public interest, the Minister, if he thinks fit
" so
to do after considering the report—
" (a)
may by order make such amendments in the scheme as he
"
considers necessary or expedient for the purpose of rectifying
"
the matter;
" (b) may by order revoke the scheme;
" (c)
in the event of the matter being one which it is within the
"
power of the board to rectify, may by order direct the board
"
to take such steps to rectify the matter as may be specified
"
in the order, and thereupon it shall be the duty of the board
"
forthwith to comply with the order.
"
Before taking any action under this subsection the Minister shall
give
" the board notice of the action which he proposes to
take and shall
" consider any representations made by the
board within fourteen days
" after the date of the notice.
3
" (8)
Any order made under paragraph (a) of subsection (6) of this
"
section, under paragraph (c) of that subsection or under the
last
" foregoing subsection shall be subject to annulment in
pursuance of a
" resolution of either House of Parliament,
and any order made .under
" paragraph (b) of the said
subsection (6) shall not take effect unless it
" has been
approved by a resolution of each House of Parliament."
With a
view to getting the Minister to take action under this section
the
present Appellants, who are office bearers of the South
Eastern regional
committee of the Board, approached the Minister
and met officials of the
Ministry on 30th April 1964. The outcome
of that meeting was unsatis-
factory to them and on 4th January
1965 their solicitors wrote to the
Minister making a formal
complaint and asking that the complaint be
referred to the
Committee of Investigation. The nature of the complaint
was stated
thus:
"4.
These acts and/or omissions of the Board (a) are contrary to
"
the proper and reasonable interests of producers in the
South-Eastern
" region and of other producers near large
liquid markets, all of whom
" are persons affected by the
scheme, and (b) are not in the public
" interest.
" . . . . . . .
"6. As to (a) in para. 4 above
" It
is contrary to the reasonable and proper interests of the producers
"
referred to in para. 4 above that (in addition to the other
contribu-
" tions they properly made under the scheme) they
should make a con-
" tribution to the marketing costs of
reaching the liquid markets from
" the more distant parts of
the country which are properly attributable
" to producers in
those more distant parts and which should be borne
" by such
producers.
" 7. As to (b) in para. 4 above
" (i)
the cross-subsidy set out above has caused or contributed to
"
and will cause or contribute to an unreasonable alteration in the
"
balance of production, reducing growth in the nearer areas and in-
"
creasing it in the more distant. This has tended and will tend to
"
increase the total marketing costs to the public detriment.
"
(ii) it is not in the public interest to continue a system of
pricing
" which unduly favours one set of producers as
against others."
To this
letter the Minister's private secretary replied on the 23rd
March
1965:
" The
Minister has asked me to reply to your letter of 4th January
"
in which you made a complaint on behalf of Messrs. G. Padfield,
"
G. L. Brock and H. Steven, against the Milk Marketing Board, and
"
requested that the complaint should be referred to the Committee of
"
Investigation.
" The
Minister's main duty in considering this complaint has been
"
to decide its suitability for investigation by means of a
particular
" procedure. He has come to the conclusion that it
would not be
" suitable. The complaint is of course one that
raises wide issues
" going beyond the immediate concern of
your clients, which is pre-
" sumably the prices they
themselves receive. It would also affect the
" interests of
other regions and involve the regional price structure as
" a
whole.
"
In any event the Minister considers that the issue is of a kind
"
which properly falls to be resolved through the arrangements avail-
"
able to producers and the Board within the framework of the Scheme
"
itself. Accordingly he has instructed me to inform you that he is
"
unable to accede to your clients' request that this complaint
be
" referred to the Committee of Investigation under section
19 of the
" Act."
4
And in reply to a further letter an official of the Minister replied on 3rd
May 1965:
" I
am directed to reply to your letter of 9th April addressed to the
"
Minister's Private Secretary.
" You
will appreciate that under the Agricultural Marketing Act
"
1958 the Minister has unfettered discretion to decide whether or
not
" to refer a particular complaint to the Committee of
Investigation.
" In reaching his decision he has had in mind
the normal democratic
" machinery of the Milk Marketing
Scheme, in which all registered
" producers participate and
which governs the operations of the
" Board."
Thereafter
the Appellants applied to the Court for an Order of Man-
damus
commanding the Minister to refer this complaint to the
Committee
of Investigation.
On 3rd
February 1966 a Divisional Court (Lord Parker L.CJ. and
Sachs and
Nield JJ.) made an order against the Minister but on 27th July
1966
this order was set aside by the Court of Appeal by a
majority
(Diplock and Russell LJJ., Lord Denning M.R. dissenting).
The
question at issue in this appeal is the nature and extent of the
Minis-
ter's duty under section 19(3)(b) of the 1958 Act in
deciding whether to refer
to the Committee of Investigation a
complaint as to the operation of any
scheme made by persons
adversely affected by the scheme. The Respon-
dent contends that
his only duty is to consider a complaint fairly and that
he is
given an unfettered discretion with regard to every complaint
either
to refer it or not to refer it to the committee as he may
think fit. The
Appellants contend that it is his duty to refer
every genuine and substan-
tial complaint, or alternatively that
his discretion is not unfettered and that
in this case he failed
to exercise his discretion according to law because
his refusal
was caused or influenced by his having misdirected himself in
law
or by his having taken into account extraneous or irrelevant
con-
siderations.
In my view
the Appellants' first contention goes too far. There are a
number
of reasons which would justify the Minister in refusing to refer
a
complaint. For example he might consider it more suitable for
arbitra-
tion, or he might consider that in an earlier case the
committee of investi-
gation had already rejected a substantially
similar complaint, or he might
think the complaint to be frivolous
or vexatious. So he must have at least
some measure of discretion.
But is it unfettered?
It is
implicit in the argument for the Minister that there are only
two
possible interpretations of this provision—either he
must refer every com-
plaint or he has an unfettered discretion to
refuse to refer in any case. I
do not think that is right.
Parliament must have conferred the discretion
with the intention
that it should be used to promote the policy and objects
of the
Act; the policy and objects of the Act must be determined by
con-
struing the Act as a whole and construction is always a
matter of law for
the Court. In a matter of this kind it is not
possible to draw a hard and
fast line, but if the Minister, by
reason of his having misconstrued the
Act or for any other reason,
so uses his discretion as to thwart or run
counter to the policy
and objects of the Act, then our law would be very
defective if
persons aggrieved were not entitled to the protection of the
Court.
So it is necessary first to construe the Act.
When these
provisions were first enacted in 1931 it was unusual for
Parliament
to compel people to sell their commodities in a way to which
they
objected and it was easily foreseeable that any such scheme
would
cause loss to some producers. Moreover, if the operation of
the scheme
was put in the hands of the majority of the producers,
it was obvious that
they might use their power to the detriment of
consumers, distributors or a
minority of the producers. So it is
not surprising that Parliament enacted
safeguards.
5
The
approval of Parliament shews that this scheme was thought to be
in
the public interest, and in so far as it necessarily involved
detriment to some
persons, it must have been thought to be in the
public interest that they
should suffer it. But in sections 19 and
20 Parliament drew a line. They
provide machinery for
investigating and determining whether the scheme
is operating or
the Board is acting in a manner contrary to the public
interest.
The effect
of these sections is that if, but only if, the Minister and
the
Committee of Investigation concur in the view that something
is being done
contrary to the public interest the Minister can
step in. Section 20 enables
the Minister to take the initiative.
Section 19 deals with complaints by
individuals who are aggrieved.
I need not deal with the provisions which
apply to consumers. We
are concerned with other persons who may be
distributors or
producers. If the Minister directs that a complaint by any
of them
shall be referred to the Committee of Investigation, that
committee
will make a report which must be published. If they
report that any
provision of this scheme or any act or omission of
the Board is contrary to
the interests of the complainers and
is not in the public interest then the
Minister is empowered
to take action, but not otherwise. He may disagree
with the view
of the Committee as to public interest, and, if he thinks
that
there are other public interests which outweigh the public
interest
that justice should be done to the complainers, he would
be not only
entitled but bound to refuse to take action. Whether
he takes action or not,
he may be criticised and held accountable
in Parliament but the Court
cannot interfere.
1 must now
examine the Minister's reasons for refusing to refer the
Appellants'
complaint to the Committee. I have already set out the letters
of
23rd March and 3rd May 1965. I think it is right also to refer to
a
letter sent from the Ministry on 1st May 1964 because in his
affidavit the
Minister says he has read this letter and there is
no indication that he
disagrees with any part of it. It is as
follows:
" My
colleague Mr. Jones-Parry and I had the opportunity of
"
discussing with you a day or two ago a matter which you first
raised
" with the Ministry at the end of January, namely,
what means the
" Ministry could suggest for investigating and
remedying the grievance
" felt by your Committee concerning
the regional price of milk in the
" south-east.
" 2.
We explained that, as it seemed to us, the only procedure avail-
"
able would be for a group of producers in the south-east to
formulate
" a complaint within the terms of section 19 of the
Agricultural Market-
" ing Act 1958 and request the Minister
to refer this to the Committee
" of Investigation. We made it
clear, however, that the Minister is
" not bound so to refer
any complaint and has discretion to decide
" whether to do
so.
" 3.
In considering how to exercise his discretion the Minister would,
"
amongst other things, address his mind to the possibility that if a
"
complaint were so referred and the Committee were to uphold it,
"
he in turn would be expected to make a statutory order to give
effect
" to the Committee's recommendations. It is this
consideration, rather
" than the formal eligibility of the
complaint as a subject for investiga-
" tion, that the
Minister would have in mind in determining whether
" your
particular complaint is a suitable one for reference to the
"
Committee. We were unable to hold out any prospect that the
"
Minister would be prepared to regard it as suitable.
"4.
The reasons which led us to this conclusion were explained to
"
you as follows:
" (a)
The guarantee given to milk producers under the Agriculture
"Acts
is a guarantee given to the Board on behalf of all pro-
"
ducers. The Minister owes no duty to producers in any
6
"
particular region, and this is a principle that would be
"
seriously called into question by the making of an Order
"
concerned with a regional price ;
" (b)
Such action would also bring into question the status of the
"
Milk Marketing Scheme as an instrument for the self-
"
government of the industry and such doubt would also, by
"
extension, affect the other Marketing Schemes as well; and
" (c)
It is by no means clear that the Minister could make an Order
"
pertaining to the price of milk in the south-east without deter-
"
mining at least one of the major factors governing prices in
"
the other regions, and he would therefore be assuming an
"
inappropriate degree of responsibility for determining the
"
structure of regional prices throughout England and Wales.
" 5.
I wish to point out that the statement of these reasons is not
"
intended to imply an assessment of the merits of your complaint
"
considered as an issue of equity among regions."
The first
reason which the Minister gave in his letter of 23rd March 1965
was
that this complaint was unsuitable for investigation because it
raised
wide issues. Here it appears to me that the Minister has
clearly misdirected
himself. Section 19(6) contemplates the
raising of issues so wide that it
may be necessary for the
Minister to amend a scheme or even to revoke it.
Narrower issues
may be suitable for arbitration but section 19 affords the
only
method of investigating wide issues. In my view it is plainly
the
intention of the Act that even the widest issues should be
investigated if
the complaint is genuine and substantial, as this
complaint certainly is.
Then it is
said that this issue should be " resolved through the arrange-
"
ments available to producers and the Board within the framework of
the
" scheme itself". This re-states in a condensed form
the reasons given in
paragraph 4 of the letter of the 1st May 1964
where it is said " the Minister
" owes no duty to
producers in any particular region ", and reference is
made
to the " status of the Milk Marketing Scheme as an instrument
for
" the self-government of the industry ", and to the
Minister " assuming an
inappropriate degree of responsibility
". But, as I have already pointed
out, the Act imposes on the
Minister a responsibility whenever there is a
relevant and
substantial complaint that the Board are acting in a
manner
inconsistent with the public interest, and that has been
relevantly alleged
in this case. I can find nothing in the Act to
limit this responsibility or
to justify the statement that the
Minister owes no duty to producers in a
particular region. The
Minister is, I think, correct in saying that the
Board is an
instrument for the self-government of the industry. So long
as it
does not act contrary to the public interest the Minister cannot
inter-
fere. But if it does act contrary to what both the
Committee of Investigation
and the Minister hold to be the public
interest the Minister has a duty to
act. And if a complaint
relevantly alleges that the Board has so acted,
as this complaint
does, then it appears to me that the Act does impose a
duty on the
Minister to have it investigated. If he does not do that he
is
rendering nugatory a safeguard provided by the Act and
depriving com-
plainers of a remedy which I am satisfied that
Parliament intended them
to have.
Paragraph
3 of the letter of 1st May 1964 refers to the possibility that
if
the complaint were referred and the Committee were to uphold it,
the
Minister " would be expected to make a statutory order to
give effect to
" the Committee's recommendations ". If
this means that he is entitled to
refuse to refer a complaint
because if he did so he might later find himself
in an
embarrassing situation, that would plainly be a bad reason. I can
see
an argument to the effect that if, on receipt of a complaint, the
Minister
can satisfy himself from information in his possession as
to the merits of
the complaint, and he then chooses to say that,
whatever the Committee
might recommend, he would hold it to be
contrary to the public interest to
7
take any
action, it would be a waste of time and money to refer the
com-
plaint to the Committee. I do not intend to express any
opinion about
that because that is not this case. In the first
place it appears that the
Minister has come to no decision as to
the merits of the Appellants' case, and
secondly the Minister has
carefully avoided saying what he would do
if the Committee were to
uphold the complaint.
It was
argued that the Minister is not bound to give any reasons
for
refusing to refer a complaint to the Committee, that if he
gives no reasons
his decision cannot be questioned, and that it
would be very unfortunate
if giving reasons were to put him in a
worse position. But I do not agree
that a decision cannot be
questioned if no reasons are given. If it is
the Minister's duty
not to act so as to frustrate the policy and objects of
the Act,
and if it were to appear from all the circumstances of the case
that
that has been the effect of the Minister's refusal, then it appears
to me
that the Court must be entitled to act.
A number
of authorities were cited in the course of the argument but
none
appears to me to be at all close to the present case. I must
however notice
Julius v. Lord Bishop of Oxford 5 App.
Cas 214 because it was largely
relied on. There the statute
enacted that with regard to certain charges
against any Clerk in
Holy Orders it " shall be lawful " for the Bishop
of the
diocese " on the application of any party complaining thereof"
to
issue a commission for enquiry.
It was
held that the words " it shall be lawful" merely conferred
a power.
" But there may be something in the nature of the
thing empowered to be
" done, something in the object for
which it is to be done, something
" in the conditions under
which it is to be done, something in the title of
" the
person or persons for whose benefit the power is to be exercised,
which
" may couple the power with a duty, and make it the
duty of the person
" on whom the power is reposed, to
exercise that power when called upon
" to do so " (per
Lord Cairns at page 223). Lord Penzance said that the
true
question was whether regard being had to the person enabled, to
the
subject matter, to the general objects of the statute and to
the person or
class of persons for whose benefit the power was
intended to be conferred,
the words do or do not create a duty
(page 229), and Lord Selborne said
that the question was whether
it could be shown from any particular words
in the Act or from the
general scope and objects of the statute that there
was a duty
(page 235). So there is ample authority for going behind the
words
which confer the power to the general scope and objects of the Act
in
order to find what was intended.
In Julius'
case no question was raised whether there could be a
discretion
but a discretion so limited that it must not be used to
frustrate the object
of the Act which conferred it; and I have
found no authority to support
the unreasonable proposition that it
must be all or nothing—either no
discretion at all or an
unfettered discretion. Here the words " if the Minister
"
in any case so directs " are sufficient to show that he has some
discretion
but they give no guide as to its nature or extent. That
must be inferred
from a construction of the Act read as a whole,
and for the reasons I have
given I would infer that the discretion
is not unlimited, and that it has
been used by the Minister in a
manner which is not in accord with the
intention of the Statute
which conferred it.
As the
Minister's discretion has never been properly exercised according
to
law, I would allow this appeal. It appears to me that the case
should now
be remitted to the Queen's Bench Division with a
direction to require the
Minister to consider the complaint of the
Appellants according to law. The
rder for costs in the
Divisional Court should stand. The Appellants should
lave their
costs in the Court of Appeal but as extra expense was caused
this
House by an adjournment of the hearing at their motion they
should
only have two-thirds of their costs in this House.
309710 A 4
8
Lord Morris of Borth-y-Gest
MY LORDS,
Pursuant
to decisions of policy which have been the basis of
Agricultural
Marketing Acts since 1931 there have been various
marketing schemes. The
producers of an agricultural product are
themselves entitled to submit a
Scheme to the Minister of
Agriculture for the regulation and marketing of
a product. There
may be a Board to administer the Scheme. Subject
to compliance
with certain conditions the Minister may approve such a
Scheme. A
Scheme is to be one for regulating the marketing of a product
"
by the producers thereof". The present case concerns one such
Scheme,
namely the Milk Marketing Scheme. There has been a Scheme
in operation
since 1933. It was then approved by the Minister and
has since from
time to time been amended. It is manifest that a
Scheme will be more
acceptable to some producers of milk than to
others. The advantage of
having a buyer for all the milk which a
producer produces will appeal to
those who otherwise would have
produced more than they could sell. There
will be no such
advantage for those so placed that they could have a sure
and
ready market for all that they could produce. If prices are fixed
region-
ally, and are fixed having regard to the average of
transport and marketing
costs within the region, there will be
some within the region who could
assert that their costs if they
had been left to themselves would have been
less than those of
others. If in fixing prices regionally it is not deemed
advisable
fully to reflect the variations as between regions of transport
and
marketing costs then it follows that encouragement to
production is being
given to certain regions at the expense of
others. Within the regions, there-
fore, as well as within the
industry, the interests of some producers are
being advantaged at
the expense of other producers. The less fortunate are
being
helped by the more fortunate.
The latter
may not welcome the policy which brings about such a result.
They
may see no reason why they should not have more and others less.
They
may object to a system under which they are in substance
contributing
to a subsidy to others. Yet all this may be one of
the results of having a
Scheme.
The Milk
Marketing Scheme is administered by a Board. It has twelve
regional
representatives (one for each of ten regions and two for the
eleventh
region). Those regional members of the Board are elected
by the registered
producers (paragraph 16 of the Scheme). In
addition there are three special
members elected by all registered
producers and not less than two and
not more than three persons
appointed by the Minister. The Scheme pro-
vides (by paragraph 24)
that questions arising at any meeting of the Board
are to be
decided by a majority of the votes of members present. There
are
Regional Committees whose duty it is to report to or to make
repre-
sentations to the Board on the operation of the Scheme in
relation to the
producers in the region. (Paragraph 31.) On the
coming into force of
the Scheme a poll of registered producers had
to be taken on the question
whether the Scheme was to remain in
force. (Paragraph 44.) Under the
statutory provisions (Section 1
subsection (8) of the Act of 1931 now
Section 2 subsection (7) of
the Act of 1958) the Scheme had to be laid
before Parliament. The
Board has wide powers to regulate marketing
(paragraph 60). If the
Board requires registered producers to sell any milk
only to the
Board then " the Board shall from time to time prescribe the
"
terms on which and the price at which such milk shall be sold to
the
" Board and may also prescribe the form in which
contracts for the sale of
" such milk to the Board shall be
made " (paragraph 64). The Board may
prescribe different
terms, prices and forms of contract for different classes
of
producers or classes of sale or descriptions of milk.
Two things
are apparent. One is that the Scheme provides for government
of
the industry by the industry. The second is that no machinery is
provided
whereby the work of the Board could be over-ruled by some
reviewing body
in regard to such matters as terms of sale and
price fixation.
9
The
Appellants are three producers in one region (the South
Eastern
Region). They have the support of most, or nearly all, of
the other pro-
ducers in that region. In substance they say that
the price being paid to
them should be higher. They complain of
the operation of the Scheme.
They asked (by a letter of the 4th
January 1965) that their complaint
should be referred to the
Committee of Investigation which has been
appointed under the Act.
It is important to note their complaint. It was
" of certain
acts and/or omissions in prescribing (under paragraph 64 of the
"
Scheme) the terms on which and the price at which milk shall be
sold
" to the Board, in that the Board should, but do not,
take fully into account
" variations as between producers in
the costs of bringing their milk to a
" liquid market whether
such costs are incurred or not". They set out
figures showing
that the range of variation (between regions) of producers'
net
prices is 1.19 pence per gallon, whereas the range of variation
(between
regions) of true marketing costs is considerably higher
(3.37 pence per gallon
in 1961-62 and probably 3.66 pence per
gallon in 1963-64). The costs
in the South Eastern region are the
lowest.
The cost
of transporting milk is naturally at its lowest in regions where
the
producers are near to centres of population and the Milk
Marketing
Board pay a higher price at the farm gate to producers
in those regions
than to producers in other regions. This is known
as a differential. Pro-
ducers in the South Eastern region receive
a higher regional differential
than do producers in any of the
other regions.
The
complaint as formulated would imply that there should be
varying
differentials as between all producers, but the case
proceeded on the basis
that there should be no variation in the
differential as between the producers
in a particular region.
It would
seem probable that the essential facts and figures relating to
the
complaint are either well known or are readily ascertainable. It is
quite
clear that in the fixing of prices it must have been decided
by the Board
that they would not take regional variations of
transport costs " fully"
into account. That decision,
if taken in good faith, must have been a policy
decision. It
must also be the case that the members of the Board who fixed
the
prices must have been fully aware of the contentions of the
Appellants.
Every member of the Board must have heard the
competing contentions
for and against the Board's policy advanced
and recited over and over
again. They have been canvassed over
the years. It has been for the
Board to decide as a matter of
policy whether regional prices should or
should not " take
fully into account variations as between producers in
" the
costs of bringing their milk to a liquid market ". Wider
issues of
policy are, in turn, involved. The Appellants in their
letter to the Minister
have suggested that the price fixations of
the Board will have the result of
" reducing growth in the
nearer areas and increasing it in the more distant"
and they
suggest that this will tend to increase the total marketing costs
to
the public detriment. It may or it may not be a good thing to
increase
production in the more distant areas. It may or it may
not be in the
public interest to encourage such production. It
is no part of our province
to attempt to assess the weight of the
competing public interests which are
involved or to consider
whether the policy decisions of the Board will or
will not in the
long run enure to the public advantage. The Board may
or may not
have reached the widest decision. It is, however, manifest that
the
Board's decisions have been deliberate. There is no suggestion
that
the Board have not acted in entire good faith. Nor is it
said that they
have exceeded their powers under the Scheme as
approved. When in 1964
the Appellants made a suggestion to the
Board that there should be an
arbitration the Board, through their
Solicitors in a letter (dated the 18th
June 1964) to the
Appellants' Solicitors, stated—" While your clients
contend
" that they ought to have a bigger proportion of the
available money, there
" are other producers elsewhere
who contend that your clients ought to
" have a smaller
proportion. The proportions actually determined by the
"
Board are the result of collective decisions of the Board and do not
neces-
" sarily represent the view of any one producer or of
the producers in any
10
" one
county or region ". In recording the view that the case was not
one
for arbitration it was said—" The Board have the
duty of determining prices
" and they have done so to the
best of their ability. They consider that as
" they have
acted within their powers and in good faith, an arbitrator
"
appointed under paragraph 93 of the Scheme has no power to
substitute
" his view (if it differs from the Board's) of
what those prices should be."
On behalf of the Board it was
further said—" Your clients cannot receive
" more
unless some others receive less, and what is really involved is the
"
whole determination of prices throughout the country. Paragraph 93
of
" the Scheme is not intended to transfer the Board's duty
of determining
" prices to an arbitrator at the instance of a
particular group of producers."
The Appellants do not now
suggest that arbitration would be appropriate
but in asking that
their complaint should be referred to the Committee of
Investigation
appointed under the Act they are in effect asking for an
Arbitration
in another form. They are asking that the determination of
prices
should be made by the Committee. The Committee could only
recommend
that the Appellants should receive a higher price on the basis
that
other producers should receive a lower price. The position of
all
those others would be affected. The Committee would be acting
as an
appellate body from the decision of the Board. It may have
to be decided
as a matter of policy and judgment whether the
Committee of Investigation
(which could be concerned with any one
of the Marketing Schemes coming
into existence under the Act and
was not appointed to be concerned with
any particular Scheme such
as the Milk Marketing Scheme) would be the
appropriate body to
perform the function. The Committee of Investigation
is, however,
in existence and it certainly would be open to the Minister if
he
deemed it desirable to refer a complaint of the present kind to
the
Committee.
Before
your Lordships it was in the first place submitted that the
Appellants
had a right to have their complaint referred to the
Committee and that
accordingly an Order of Mandamus should be
directed to the Respondent
positively commanding him to refer the
complaint. This contention was
rejected by the Divisional Court
and was not even advanced in the Court
of Appeal. I, also, would
reject it. In my view the Respondent is endowed
with a discretion.
It is for him to decide whether to ask the Committee to
report on
any complaint made as to the operation of any Scheme made
under
the Act. A duty will only devolve upon the Committee " if the
"
Minister in any case so directs ".
These
words are in sharp contrast to those which are employed in the
Act
when a positive duty is imposed upon the Minister. Thus in section
2
subsection (3) are the words " shall direct a public
enquiry to be held".
In section 19 subsection (4) are the
words "the Minister shall forthwith
" publish". In
Section 20 subsection (3) are the words " the Minister
"
shall refer ". If Parliament had intended to impose a duty on
the Minister
to refer any and every complaint, or even any and
every complaint of a
particular nature, it would have been so easy
to impose such a duty in
plain terms. I cannot read the words in
Section 19 subsection (3) as
imposing a positive duty on the
Minister to refer every complaint as to the
operation of every
Scheme. Such was the Appellants' contention though
they modified
it by suggesting that the duty would not exist in the case
of
trivial or frivolous or repetitive complaints. In support of their
revived
contention the Appellants submitted that in some
circumstances a duty exists
to exercise a power. So in the present
case it was argued that a power
was deposited in the Minister,
that the power was given for the benefit
of particular persons,
that in the Act they were specifically designated (e.g.
persons
complaining as to the operation of a Scheme) and that in the Act
the
circumstances in which there is entitlement to the exercise of the
power
are defined (i.e. that there should be a complaint to the
Minister as to the
operation of the Scheme being a complaint which
could not be considered
by a Consumers' Committee). Reliance was
placed upon a passage in the
speech of Lord Cairns L.C. in Julius
v. Lord Bishop of Oxford 5 App.
Cas. 214. At page 225
Lord Cairns said that the cases decided
11
"
that where a power is deposited with a public officer for the
purpose
" of being used for the benefit of persons who are
specifically pointed
" out, and with regard to whom a
definition is supplied by the Legislature
" of the conditions
upon which they are entitled to call for its exercise,
" that
power ought to be exercised, and the Court will require it to be
"
exercised."
In my view
this passage does not avail the Appellants. I can see no
provision
in the Act showing that the Appellants or others who might make
a
complaint similar to theirs were " entitled " to call upon
the Minister to
exercise the power given to him. At most their
entitlement was that the
Minister should consider and should
decide whether or not in the exercise
of his discretion he would
refer a complaint. It would have to be shown
that the Act gave the
Appellants a " right" to have their complaint sent
to
the Committee before the power in the Minister could be held to be
one
that he was bound to exercise. Thus in his speech in Julius
v. Bishop of
Oxford Lord Blackburn at page 241 said
that
" if
the object for which the power is conferred is for the purpose of
"
enforcing a right, there may be a duty cast on the donee of the
power
" to exercise it for the benefit of those who have that
right, when
" required on their behalf."
So also (at page 244) Lord Blackburn said—
" The
enabling words are construed as compulsory whenever the object
"
of the power is to effectuate a legal right."
Where some
legal right or entitlement is conferred or enjoyed, and for
the
purpose of effectuating such right or entitlement a power is
conferred
upon someone, then words which are permissive in
character will sometimes
be construed as involving a duty to
exercise the power. The purpose and
the language of any particular
enactment must be considered. Thus in
The King v.
Mitchell [1913] 1 KB 561 consideration was given to
the
words of Section 9 of the Conspiracy and Protection of
Property Act 1875
viz—
"
Where a person is accused before a Court of summary jurisdiction
"
of any offence made punishable by this Act, and for which a penalty
"
amounting to twenty pounds, or imprisonment, is imposed, the
"
accused may, on appearing before the Court of summary jurisdiction,
"
declare that he objects to being tried for such offence by a Court
of
" summary jurisdiction, and thereupon the Court of summary
jurisdiction
" may deal with the case in all respects as if
the accused were charged
" with an indictable offence and not
an offence punishable on summary
" conviction, and the
offence may be prosecuted on indictment
" accordingly."
A
declaration of objection to being tried by a Court of summary
jurisdiction
was duly made by a person accused of an offence made
punishable by the
Act who was entitled to object. It was held that
accordingly he had a right
to trial by jury and that the justices
were bound to give effect to his claim
and had no jurisdiction to
try the case.
On the
principles laid down in Julius' case it becomes necessary to
consider
the language used in the Agricultural Marketing Act and
the purposes of
the Act. A Consumers' Committee under Section
19(2) is charged with
the duty of considering and reporting to the
Minister on the effect of a
Scheme on consumers and also on "
any complaints made to the committee
" as to the effect of
any such scheme on consumers of the regulated product ".
The
words in Section 19 subsection (3) are in marked contrast.
A
Committee of Investigation is only charged with the duty of
considering
and reporting " if the Minister in any case so
directs ". The Minister may
309710 A6
12
refer to
them a report of a Consumers' Committee. He may refer to them
a
complaint which has been made to him and which in his view could
not
have gone to a Consumers' Committee. The language here is in
my view
purely permissive. The Minister is endowed with
discretionary powers.
If he did decide to refer a complaint he is
endowed with further discre-
tionary powers after receiving a
report (see Section 19 subsection (6)).
I cannot,
therefore, accept the contention of the Appellants that they
had a
right to have their complaint referred to the Committee and that
the
Minister had a positive duty to refer it. The Minister, in my
view, had
a discretion. It was urged on behalf of the Respondent
that his discretion
was in one sense an unfettered one, though it
was not said that he could
disregard the complaint. The case
proceeded on an acceptance by the
Respondent that he was bound to
consider the complaint and then, in the
exercise of his judgment,
to decide whether or not to refer it to the
Committee.
If the
Respondent proceeded properly to exercise his judgment then, in
my
view, it is no part of the duty of any Court to act as a Court of
Appeal
from his decision or to express any opinion as to whether
it was wise or
unwise. The Minister was given an executive
discretion. In speaking of
a power given by Statute to a local
authority to grant certain licences Lord
Greene M.R. said in his
judgment in Associated Provincial Picture Houses
Limited v.
Wednesbury Corporation [1948] 1 KB 223 at page 228—
"
When discretion of this kind is granted the law recognises certain
"
principles upon which that discretion must be exercised, but within
"
the four corners of those principles the discretion, in my opinion,
"
is an absolute one and cannot be questioned in any court of law."
1 think it
follows that an Order of Mandamus could only be made against
the
Minister if it is shown that in some way he acted unlawfully. A
court
could make an Order if it were shown (a) that the
Minister failed or refused
to apply his mind to or to consider the
question whether to refer a com-
plaint or (b) that he
misinterpreted the law or proceeded on an erroneous
view of the
law or (c) that he based his decision on some wholly
extraneous
consideration or (d) that he failed to have
regard to matters which he
should have taken into account. I
propose to consider whether any one
of these is established. The
Order that was made by the Divisional Court
commanded the
Respondent " to consider the said complaint of the Appli-
"
cants according to law and upon relevant consideration to the
exclusion
" of irrelevant considerations ".
As to (a)
it cannot be asserted that the Respondent failed to consider
the
Appellants' complaint. In his affirmation the Respondent states
that
he considered the complaint and all the matters put before
him by the
Appellants. He states that he came to his decision for
the reasons indi-
cated in the letters of the 23rd March and 3rd
May 1965, namely that
he " considered that the issue raised
by the applicants' complaint was one
" which in all the
circumstances should be dealt with by the Board rather
" than
the Committee of Investigation ".
As to (b)
I do not consider that the Respondent is shown to have
mis-
interpreted the law unless it could be said that any of the
considerations
recorded in the letters from the Ministry were so
inadmissible as to involve
that the Respondent took a wrong view
of the law or misdirected himself
in law. I turn therefore to
consider the letters. They formed the founda-
tion for the
submission that on the basis of (c) and (d) above the
Order of
the Divisional Court was appropriately made.
As the
Respondent states in his Affirmation that he came to his decision
for
the reasons indicated in the two letters it is primarily those
letters that
are to be studied. As, however, he states that in
deciding as to the applica-
tion he had read a letter dated the
1st May 1964 written by a Ministry
representative and as he has
not stated that he excluded from his mind
13
the
considerations therein recorded I think that it is a reasonable
inference
that ;they had, or may have had, some
influence. It is fair, I think, to
regard all three letters as
revealing what was in the mind of the Respon-
dent. His decision
was that the complaint was not one that in his view
was suitable
for investigation by means of the particular procedure of a
reference
to the Committee of Investigation. That decision was essentially
a
policy decision. It concerned a situation that was known and
under-
stood in the industry. The main facts in regard to it were
known. The
differential, or the range between producers' net
prices, stands at 1.19 pence
per gallon. It has stood at that
figure for some years. It was a figure
that was first fixed during
the War. That fact was known to all con-
cerned. So also must it
have been known to all concerned that if true
marketing costs were
taken "fully" into account the range would
be much
higher. The question must therefore have been a peren-
nial one as
to whether the differential should be varied. If it were,
then
producers in some regions would get more and producers in
other regions
would get less. A constant major policy problem must
have been whether
it is desirable to encourage production in those
regions where, if there were
no Scheme, producers would not fare
very well. So also it must have
been widely known that two
Committees had made suggestions relating to
this long-standing
problem. One of them (the Cutforth Committee) had
reported as far
back as 1936. Another (the Davis Committee) had in 1963
suggested
that the country should be divided into five price zones each
with
a different differential and that the total range of the prices at
the
farm gate should be the figure of 2.4 pence per gallon instead
of the figure
of 1.19 pence per gallon. But all these facts and
considerations must have
been well known.
I know of
no reason to assume or to suggest that the members of the
Board in
the discharge of their duties have acted irresponsibly. Because
a
policy decision under a national Scheme results in a measure of
advantage
to some and a measure of disadvantage to others it does
not follow that
the members of the Board have been guided, not by
considerations of the
national interest or of the general interest
of their industry but solely by
considerations as to how the
pockets of their colleagues would be affected.
At any
time during the sequence of the past years it would have been
open
to a Minister, had he considered it desirable and politic, to take
the
initiative under Section 20 subsection (2) of the Act and to
give directions
to the Board concerning prices. It was at all time
a question of policy
for successive Ministers, whether or not they
should take such action.
For any decision or for any inaction a
Minister would be answerable in
Parliament.
It was
against all this background that the Respondent had to consider
the
Appellants' request in the early part of 1965. In agreement
with
Diplock and Russell L.JJ. I do not consider that it has been
shown
that he failed to exercise his discretion: nor has it been
shown that he
was guided by irrelevant considerations or that he
failed to consider rele-
vant matters. A study of the letters
leads me to the view that the Respon-
dent considered it desirable
that the milk industry should, in accordance
with its own Scheme,
be self-governing and that it would not be good
policy for him to
over-rule decisions of the Milk Marketing Board which
fixed the
price to be paid in a particular region or to particular persons.
I
do not find in the letters any statement that the Respondent
considered
that he had no power to refer the Appellants' complaint
to the Committee:
nor any statement that the Respondent considered
that he was compelled
to leave price fixing to the Milk Marketing
Board. Rightly or wrongly
he considered it best to do so.
As a
result of the meticulous scrutiny to which the three letters
have
been subjected the Appellants contend that irrelevant or
inadmissible con-
siderations were taken into account by the
Respondent.
14
1. Criticism
is made of the passage in the letter of the 23rd March to the
effect
that the complaint of the Appellants was " one that raises wide
issues
" going beyond the immediate concern of your clients
which is presumably
" the prices they themselves receive ".
In the following sentence it is pointed
out that the complaint
would also affect the interests of other regions and
involve the
regional price structure as a whole. I do not read that passage
as
involving that the complaint ought not to go to the Committee
merely
because it raised wide issues. What I think was being
pointed out was
that the Appellants' complaint would necessarily
involve a complete review
of the prices in all the regions as
fixed by the Board. I see no reason to
think that the Respondent
was unaware of his powers as, for example, under
Section 20
subsection (2). What I think is revealed is that the Respondent
as
a matter of policy considered it undesirable or inappropriate for him
to
over-rule the Board in regard to price fixation. This is
shown by the letter
of the 1st May 1964 where it is said—
" It
is by no means clear that the Minister could make an Order
"
pertaining to the price of milk in the south-east without
determining
" at least one of the major factors governing
prices in the other regions,
" and he would therefore be
assuming an inappropriate degree of
" responsibility for
determining the structure of regional prices through-
" out
England and Wales ".
Criticism
is made of the passage in which it is said that the
Minister
considered that the issue was of a kind which properly
fell to be resolved
within the framework of the Scheme. It is
said that he was mistaking
his powers and was being unmindful of
the courses of action open to him
either under Section 20
subsection (2) or after a report from a Committee
under Section
19 subsection (6)(c). I see no reason to deduce that
the
Respondent was oblivious of his powers : nor that he was not
appreciating
that under the machinery of the Scheme a majority
vote could result in
disadvantages for some districts. If the
Respondent nevertheless decided
that the self-governing
machinery should operate, his decision could be
attacked as
being impolitic, but I do not think it could be attacked as
being
made on inadmissible considerations.
Criticism
is further made of the sentence in the letter of the 1st May
1964
which reads—
" In
considering how to exercise his discretion the Minister would,
"
amongst other things, address his mind to the possibility that if a
"
complaint were so referred and the Committee were to uphold it, he
"
in turn would be expected to make a statutory order to give effect
"
to the Committee's recommendations."
This
sentence may be obscure and imprecise but I doubt whether we ought
to
put the most unfavourable construction upon it. If there was a
reference
to the Committee and if the Committee reported that some
act of the Board
was contrary to the interests of consumers or "
of any persons affected by
" the Scheme " and was not in
the public interest, then the Minister would
himself have a
discretion as to whether or not to take any course of
action
designated in subsection (6) of Section 19.
There may
be cases where from a knowledge of the problem and all its
aspects
and because of his own firm view as to what course the
public
interest demands, a Minister could see that a reference
could lead to no
useful result. A Minister might conclude that
whatever report a Committee
might make a reference to them would
only produce needless confusion and
disappointment and would not
prompt him to follow a course of action
that he considered
undesirable. Though the 1964 letter is not very explicit
it is for
the Appellants to show that the Respondent was guided by
irrelevant
considerations. In agreement with Diplock and Russell
L.JJ. I consider
that the Appellants have failed to show this.
For the reasons which I have set out I would dismiss the Appeal.
15
Lord Hodson
MY LORDS,
The
Appellants say in the first place that this is a case which satisfies
the
test, propounded in Julius v. The Lord Bishop of
Oxford 5 App. Cas. 214,
drawing the distinction between a
power coupled with a duty and a complete
discretion. In the former
case enabling words are said to be compulsory
when they are words
to effectuate a legal right.
It is
argued that the Minister is subject to mandamus here for he is
given
a power to be exercised in favour of persons who are defined
and accordingly
are given a right to have their claim submitted to
a Committee of Investiga-
tion under the provisions of Section 19
of the Agricultural Marketing Act
1958. This argument was
abandoned before the Divisional Court, not
put forward in the
Court of Appeal but was resurrected before your Lord-
ships by way
of Supplemental Case. Section 19(3), so far as material, reads:
"
A committee of investigation shall—
" . . . .
" (b)
be charged with the duty, if the Minister in any case so
directs,
" of considering and reporting to the Minister on,
any report made
" by a consumers' committee and any complaint
made to the Minister
" as to the operation of any scheme
which, in the opinion of the Minister,
" could not be
considered by a consumers' committee under the last
"
foregoing section."
Schemes
for regulating the marketing of agricultural products were
introduced
by the Agricultural Marketing Act 1931 and are
compulsory in their
operation upon consumers, who are protected as
to price and supply, upon
distributors and upon producers who get
the advantage of having no milk
left on their hands unsold.
The
discretion must be exercised by the Minister in accordance with
the
intention of the Act but there is nothing in the language used
in the sub-
section introduced by the words " If the Minister
in any case so directs "
nor in the context of the Act and
earlier legislation to support the view
that an absolute right to
an enquiry is given to an aggrieved person. The
argument of the
Appellants is undermined, in my opinion, by their consession
that
trivial, frivolous or vexatious complaints can be shut out as, for
example,
where a complaint has been recently dealt with in a
parallel case. True
that the scheme is of a compulsory nature and
section 19 is designed for
te redress of grievances but this is
not to exclude the Minister's discretion
to reject a complaint if
he exercises his discretion according to law. The
succeeding
section, section 20 of the Act, indicates the position of
the
Minister as responsible for giving directions to a Board as to
its acts or
omissions as he considers necessary or expedient in
the public interest
and his directions have to be complied with so
far as the Board is not
required to do anything which it has no
power to do.
If the
Minister has a complete discretion under the Act, as in my opinion
be
has, the only question remaining is whether he has exercised it
lawfully.
It is upon
this issue that much difference of judicial opinion has
emerged
although there is no divergence of opinion as to the
relevant law. As the
Master of the Rolls. Lord Denning, said,
citing Lord Greene M.R. in the
case of Associated Provincial
Picture Houses Ltd. v. Wednesbury Corporation
[1948] 1 KB 223:
"A
person entrusted with a discretion must, so to speak, direct
"
himself properly in law. He must call his own attention to the
"
matters which he is bound to consider. He must exclude from his
"
consideration matters which are irrelevant to what he has to
consider."
In another
part of this judgment at page 228 Lord Greene drew attention
to
that which I have mentioned above, namely, the necessity to have
regard
to matters which the statute conferring the discretion
shows that the
16
authority
exercising the discretion ought to have regard. The authority
must
not, as it has been said, allow itself to be influenced by
something
extraneous and extra-judicial which ought not to have
affected its decision.
I come now
to the facts of the present case. In 1933 the Milk Marketing
Scheme
(amended in 1955) came into operation. The members of the
Board
consist of 12 regional members elected for the several regions by
the
registered producers and three special members elected by all
registered
producers and not less than two and not more than three
persons appointed
by the Minister (see Part II of the Scheme,
paragraph 9) Questions arising
at a meeting of Board are decided
by a majority of the votes of the members
present (see Part II
paragraph 24). The price of milk is fixed by the Board
for milk
delivered at the farm gate.
The South
Eastern farmers being much nearer to the great population
of
London are paid what is called a differential to compensate them
for
the loss of the advantage they would otherwise have over most
other districts
in consequence of their proximity to a large
market. The differential was
fixed many years ago at 1.19d. per
gallon and the South Eastern farmers
have long complained that it
is too low and sought without success to
obtain redress of their
grievance from the Board. They have been outvoted
since, in the
interests of their own pockets, so it is said, a majority of
the
other regions opposed them. This decision has been reached
notwithstanding
the recommendations of two committees set up at
different times who have
recognised the justice of their claim. On
the Davis committee, set up in
1963, making its report without any
benefit to the South Eastern farmers
ensuing, and the Board having
rejected their claim, the first named Appellant
approached the
Minister at the end of January 1964 asking what means
the Ministry
could suggest for investigating and remedying the grievance felt
by
his committee concerning the regional price of milk in the South
East.
Correspondence
ensued to which it will be necessary to refer and the
decision of
the Minister refusing to refer the complaint to the
Investigating
Committee was contained in a letter of 23rd March
1965. The letter reads,
so far as material:
" The
Minister's main duty in considering the complaint has been
"
to decide its suitability for investigation by means of a
particular
" procedure. He has come to the conclusion that it
would not be suit-
" able. The complaint is of course one
that raises wide issues going
" beyond the immediate concern
of your clients, which is presumably
" the prices they
themselves receive. It would also affect the interests
" of
other regions and involve the regional price structure as a whole.
"
In any event the Minister considers that the issue is of a kind
"
which properly falls to be resolved through the arrangements
available
" to producers and the Board within the framework
of the Scheme
" itself. Accordingly he has instructed me to
inform you that he is
" unable to accede to your clients'
request that this complaint be
" referred to the Committee of
Investigation under section 19 of the
" Act."
In
response to a further letter from the Appellants' solicitors a letter
dated
3rd May 1965 was received referring to the Minister's
unfettered discretion
and adding that in reaching his decision he
had had in mind the normal
democratic machinery of the Milk
Marketing Scheme in which all registered
producers participated
and which governs the operations of the Board.
Upon the
Appellants' solicitors enquiring whether it would be asserted
that
the letters of 1965 were the only matters present to the
Minister's mind at
the time of his decision, to the exclusion of
the considerations set out in
the letters which had passed in the
year 1964, the Minister affirmed on 4th
November 1965, he having
been appointed on the 19th October 1964 (after
the 1964 letters
had passed):
" In
considering the applicants' application I read among other
"
papers the letter signed by Mr. J. H. Kirk and dated the 1st May
"
1964."
17
He continued :
"
Before reaching my decision not to refer the applicants' complaint
"
to the Committee of Investigation I considered all the matters put
"
before me on behalf of the applicants in support of their
application.
" I came to my decision for the reasons
indicated in the letters dated
" 23rd March 1965 and 3rd May
1965 .... namely that I considered
" that the issue raised by
the applicants' complaint was one which in
" all the
circumstances should be dealt with by the Board rather than
"
the Committee of Investigation."
If the
letter of the 1st May 1964 be looked at, and it was not disowned
by
the Minister in his affirmation or at all, it throws further light on
the
refusal of the Minister to exercise his discretion by
referring the complaint
to the Investigating Committee. This
letter contains the following:
" In
considering how to exercise his discretion the Minister would,
"
amongst other things, address his mind to the possibility that if a
"
complaint were so referred and the Committee were to uphold it, he
"
in turn would be expected to make a Statutory Order to give effect
"
to the Committee's recommendations.
" It
is this consideration, rather than the formal eligibility of the
"
complaint as a subject for investigation, that the Minister would
have
" in mind in determining whether your particular
complaint is a suitable
" one for reference to the Committee.
We were unable to hold out any
" prospect that the Minister
would be prepared to regard it as suitable.
" The
reasons which led us to this conclusion were explained to you as
"
follows:
" (a)
The guarantee given to milk producers under the Agriculture
"
Acts is a guarantee given to the Board on behalf of all producers.
"
The Minister owes no duty to producers in any particular region,
"
and this is a principle that would be seriously called into
question
" by the making of an Order concerned with a
regional price ;
" (b)
Such action would also bring into question the status of the
"
Milk Marketing Scheme as an instrument for the self-government of
"
the industry and such doubt would also, by extension, affect the
"
other Marketing Schemes as well; and
" (c)
It is by no means clear that the Minister could make an Order
"
pertaining to the price of milk in the south-east without
determining
" at least one of the major factors governing
prices in the other
" regions, and he would therefore be
assuming an inappropriate degree
" of responsibility for
determining the structure of regional prices
" throughout
England and Wales.
" I
wish to point out that the statement of these reasons is not
intended
" to imply an assessment of the merits of your
complaint considered as
" an issue of equity among regions."
The
reasons disclosed are not, in my opinion, good reasons for
refusing
to refer the complaint seeing that they leave out of
account altogether the
merits of the complaint itself. The
complaint is, as the Lord Chief Justice
pointed out, made by
persons affected by the Scheme and is not one for the
consumer
committee as opposed to the Committee of Investigation and it
was
eligible for reference to the latter. It has never been suggested
that
the complaint was not a genuine one. It is no objection to
the exercise
of the discretion to refer that wide issues will be
raised and the interests of
other regions and the regional price
structure as a whole would be affected.
It is likely that the
removal of a grievance will in any even have a wide
effect and the
Minister cannot lawfully say in advance that he will not refer
the
matter to the Committee to ascertain the facts because, as he says
in
effect, although not in so many words, " I would not
regard it as right to
"give effect to the report if it were
favourable to the Appellants."
It has
been suggested that the reasons given by the Minister need not
and
should not be examined closely for he need give no reason at
all in the
exercise of his discretion. True it is that the
Minister is not bound to give
18
his
reasons for refusing to exercise his discretion in a particular
manner,
but when, as here, the circumstances indicate genuine
complaint for which
the appropriate remedy is provided, if the
Minister in the case in question
so directs, he would not escape
from the possibility of control by mandamus
through
adopting a negative attitude without explanation. As the guardian
of
the public interest he has a duty to protect the interests of those
who
claim to have been treated contrary to the public interest.
I would
allow the appeal accordingly and remit the matter to the
Queen's
Bench Division so as to require the Minister to consider
the complaint of
the Appellants according to law. I agree with the
order for costs proposed
by my noble and learned friend Lord Reid.
Lord Pearce
MY LORDS,
Prima
facie the Appellants have a complaint of substance. They are
"
persons affected by the scheme ". The " act or omission of
the Board "
in not paying them a higher price differential is
" contrary to their interests ".
And apparently
reasonable prima facie arguments have been advanced to
show
that this " is not in the public interest". The Appellants'
complaint
is therefore prima facie suitable to be
considered by the Committee of
Investigation.
The
outline of their complaint is simple. They farm in the more
populous
South East Region. In a more populous region milk is more
valuable. The
consumer is near at hand. The cost of transport is
less. And milk which
is drunk fetches higher prices than that
which is used for manufacture. As
against this the overheads of
production are, generally speaking, somewhat
higher than in some
more rural regions. For instance, the land in the more
populous
region is almost inevitably more expensive. It seems to follow
that
if the producer of milk in a populous region is paid precisely the
same
price as the producer in a sparsely populated rural region,
the former is not
being fairly treated. Some acknowledgment of
this fact is made in a
differential of 1.19 pence per gallon which
was, we are told, fixed by the
Minister during the war. Of this
figure .71 of a penny related to the cost
of transport. With
rising prices the present differential cost in respect of
transport
has risen to over 3d. No acknowledgment of this increase in cost
has
ever been made in the price paid to the farmers in the South
East
Region. Yet, unless the figure fixed by the Minister in the
war was too
large, which has not been suggested, it would seem
that in view of increased
costs it must now be too small. Prima
facie this would seem unfair. Two
committees, one in 1956 and
one in 1963 have, on investigation, lent weight
to the Appellants'
contention. But the gain of the South East would mean
some loss in
some regions elsewhere. The South East Region is in a
minority on
the Board. They have been unable, in spite of fifteen attempts,
to
persuade the majority to do anything about it. The Appellants
contend
that the present situation is not only unfair to them but
also it is not in
the public interest. They argue, for instance,
that the present situation dis-
courages the production of milk in
the region where it is most valuable.
Against this, of course, may
be set the benefit of encouraging milk pro-
duction in more
sparsely populated regions. Any final conclusion on this
matter
obviously needs close consideration of all its relevant detail.
One
may sum it up superficially by saying that there is prima
facie a complaint
of some substance, that it has had support
from two committees, and that
there seems little likelihood of the
majority of the Board doing anything to
remedy it.
This is
not a criticism of the majority. Most of them are elected
to
represent their own regions. One can hardly expect them to vote
in favour
of something that will injure their own regions. Nor
would it be very
conducive to the success of the scheme if a
region felt that its representative
was pursuing altruistic
policies in favour of other regions at the expense
19
of those
whom he is elected to represent. If justice to a minority is to
be
imposed at the expense of a majority, it is probably more
convenient that
it should be imposed aliunde.
This fact
was in my opinion recognised by Parliament. It was obvious
that
the scheme and the Act created a monopoly and imposed
severe
restrictions on individuals' liberty of action. With the
aim of general
betterment Parliament was interfering with the
individual farmer's method
of earning a livelihood and subjecting
him to the mercies of the majority
rule of the Board. But (no
doubt with these considerations in mind)
Parliament deliberately
imposed certain safeguards. Two independent com-
mittees must be
appointed (section 19). First there is the "Consumers'
committee"
to deal with consumers' complaints. The findings of this
committee
do not however produce any effective result, unless and until
they
have been considered by the more important Committee of
Investigation.
That committee is " charged with the duty, if
the Minister in any case so
" directs, of considering and
reporting to the Minister on, any report made
" by a
consumers' committee and any complaint made to the Minister as
"
to the operation of any scheme which, in the opinion of the
Minister,
" could not be considered by a consumers' committee
". The Minister is
bound to publish that report. " If a
committee of investigation report to
" the Minister that any
provision of a scheme or any act or omission of a
" Board is
contrary to the interests of consumers of the regulated product,
"
or is contrary to the interests of any persons affected by the scheme
and
" is not in the public interest, the Minister, if he
thinks fit so to do after
" considering the report may "
either amend the scheme so as to rectify the
matter, or revoke the
whole scheme, or direct the Board to take steps to recti-
fy the
matter (after hearing any representations from the Board). By section
20
the Minister has a right of his own motion, independently of
the investiga-
tion committee, to impose his will on the Board.
But in that case the
Board can ask to have the matter heard by the
committee of investigation,
and if the committee's report is in
the Board's favour the Minister cannot
impose his will on them.
Thus the
independent committee of investigation was a corner stone in
the
structure of the Act. It was a deliberate safeguard against
injustices
that might arise from the operation of the scheme.
There is provision for
arbitration between individual producers
and the Board. But this is clearly
not intended to deal with a
case such as the present; and the Board has
rightly refused
arbitration on this matter.
The
Appellants have therefore no avenue for their complaint
except
through section 19. And that section makes access to the
committee of
investigation dependent on a direction of the
Minister to the committee of
investigation. There is no provision
as to what are the duties of a Minister
in this respect. Has he a
duty to further complaints of substance which
have no other
outlet? Or can he refuse them any outlet at all if he so
chooses?
Need he have any valid reason for doing so? Or if he refuses
without
any apparent justification, is he exempt from any interference by
the
Courts provided that he either gives no reasons which are
demonstrably
bad or gives no reasons at all? No express answer to
these questions is
given in the Act. The intention of Parliament,
therefore, must be implied
from its provisions and its structure.
Both sides
placed some reliance on the case of Julius v. Lord Bishop
of
Oxford 5 App. Cas. 214. This dealt with a somewhat
analogous problem
under an Act which said "it shall be
lawful" for the bishop to issue a
commission. It was held
that the words gave the bishop a complete
discretion to issue or
decline to issue a commission. That decision rested
on the
construction of the particular Act and it made clear that in
the
context of an Act is to be found the answer to the question
how a power
given by it is to be exercised. Lord Cairns L.C. said
at page 225:
" The
cases to which I have referred appear to decide nothing more
"
than this: that where a power is deposited with a public officer for
20
" the
purpose of being used for the benefit of persons who are sped-
"
fically pointed out, and with regard to whom a definition is
supplied
" by the Legislature of the conditions upon which
they are entitled
" to call for its exercise, that power
ought to be exercised, and the
" Court will require it to be
exercised."
At page 229 Lord Penzance said:
" The
words ' it shall be lawful' are distinctly words of permission
"
only. They are enabling and empowering words. They confer a
"
legislative right and power on the individual named to do a
particular
" thing, and the true question is not whether they
mean something
" different but whether, regard being had to
the person so enabled—
" to the subject matter, to the
general objects of the statute, and to
" the person or class
of persons for whose benefit the power may be
" intended to
have been conferred—they do, or do not, create a duty
"
in the person on whom it is conferred, to exercise it."
And (at page 235) Lord Selborne said:
" The
question whether a judge, or a public officer, to whom power
"
is given by such words, is bound to use it upon any particular
"
occasion, or in any particular manner, must be solved aliunde,
and,
" in general, it is to be solved from the context,
from the particular
" provisions, or from the general scope
and objects, of the enactment
" conferring the power."
It is
quite clear from the Act in question that the Minister is intended
to
have some duty in the matter. It is conceded that he must
properly
consider the complaint. He cannot throw it unread into
the waste paper
basket. He cannot simply say (albeit honestly) "
I think that in general
" the investigation of complaints has
a disruptive effect on the scheme and
" leads to more trouble
than (on balance) it is worth; I shall therefore
" never
refer anything to the committee of investigation ". To allow
him
to do so would be to give him power to set aside for his
period as Minister
the obvious intention of Parliament, namely
that an independent committee
set up for the purpose should
investigate grievances and that their report
should be available
to Parliament. This was clearly never intended by the
Act. Nor was
it intended that he could silently thwart its intention by
failing
to carry out its purposes. I do not regard a Minister's failure
or
refusal to give any reasons as a sufficient exclusion of the
Court's surveil-
lance. If all the prima facie reasons seem
to point in favour of his taking
a certain course to carry out the
intentions of Parliament in respect of a
power which it has given
him in that regard, and he gives no reason what-
ever for taking a
contrary course, the Court may infer that he has no good
reason
and that he is not using the power given by Parliament to carry
out
its intentions. In the present case however the Minister has
given
reasons which show that he was not exercising his discretion
in accordance
with the intentions of the Act.
In the
present case it is clear that Parliament attached considerable
im-
portance to the independent committee of investigation as a
means to
ensure that injustices were not caused by the operation
of a compulsory
scheme. It provided no other means by which an
injustice could be
ventilated. It was not content to leave the
matter wholly in the power of
a majority of the Board. Nor was it
content that the removal of injustice
should be left to the power
of the Minister. It wished to have the pub-
lished views of an
independent committee of investigation (with wide power
to explore
the matter fully). It also wished that committee to consider
and
weigh the public interest—a fact that makes it clear that the
ques-
tion of public interest was not at that stage being left to
the Minister.
When the report is published then the Minister may
and must make up
his own mind on the subject. He has power to do
what he thinks best
and decide whether or not to implement the
report. He is then answerable
21
only to
Parliament, which will have the advantage of being able to
under-
stand the pros and cons of the matter from the published
report of an
independent committee. Until that is published nobody
can effectively
criticise his action, since nobody will have a
balanced view of the strength
of the grievance and its impact on
the public interest.
It is
clear, however, as a matter of common sense, that Parliament did
not
intend that frivolous or repetitive or insubstantial complaints or
those
which were more apt for arbitration should be examined by
the committee
of investigation. And no doubt the Minister was
intended to use his dis-
cretion not to direct the committee to
investigate those. It is argued that
if he has a discretion to
that extent, he must also have an unfettered dis-
cretion
to suppress a complaint of substance involving the public
interest
which has no other outlet. I cannot see why this should
be so. Parlia-
ment intended that certain substantial complaints
(involving the public
interest) under the compulsory scheme should
be considered by the in-
vestigation committee. It was for the
Minister to use his discretion to
promote Parliament's intention.
If the Court had doubt as to whether the
Appellants' complaint was
frivolous or repetitive, or not genuine, or not
substantial, or
unsuitable for investigation or more apt for arbitration, it
would
not interfere. But nothing which has been said in this case leads
one
to doubt that it is a complaint of some substance which should
properly
be investigated by the independent committee with a view
to pronouncing
on the weight of the complaint and the public
interest involved.
The fact
that the complaint raises wide issues and affects other regions
was
not a good ground for denying it an investigation by the
committee.
It is a matter which makes it very suitable for the
committee of investi-
gation, with its duty to report on the
public interest, and its capacity to
hear representatives of all
the regions.
Moreover
the Minister was mistaken in thinking that " normal demo-
"
cratic machinery of the Milk Marketing Scheme" was a ground
for
refusal to have the complaint investigated. It is alleged that
the normal
democratic machinery of the Board is acting contrary to
the public interest.
The investigation under section 19 and the
Minister's powers under sec-
tion 20 were intended to correct,
where necessary, the normal democratic
machinery of the scheme.
Parliament had put into the hands of the
Minister and those of the
committee of investigation the power and duty
where necessary to
intervene. A general abdication of that power and
duty would not
be in accord with Parliament's intentions.
1 would allow the appeal.
Lord Upjohn
MY LORDS,
This
appeal is of great importance to the milk producing industry
and
therefore to the country in general, for it is concerned with
the refusal
of the Respondent Minister to order an inquiry into
the complaint of the
Appellants representing the milk producing
fanners of the South East
Region.
In 1931
Parliament, in order to produce better conditions within
the
agricultural industry and more efficient and economical
methods of produc-
tion and distribution, enacted the Agricultural
Marketing Act 1931 which
provided for schemes to be prepared for
the control of various sections
of the industry. In 1933 pursuant
to the provisions of the Act the Milk
Marketing Scheme 1933 for
England and Wales was prepared and approved
by Parliament and is,
subject to many subsequent amendments, still in
force; I shall
refer to it as the Scheme. Many other schemes relating to
the
control of other sections of the industry have been prepared and
22
approved
and the Act now controlling these schemes is the
Agricultural
Marketing Act 1958, an Act consolidating the Act of
1931 and later amend-
ing Acts. For all relevant purposes schemes
have statutory force.
As was
intended by Parliament the Scheme was prepared by the
industry
itself, a circumstance much relied upon in argument on
behalf of the
Minister ; but of course that does not mean that it
received the unanimous
approval of all milk producers ; that would
be impossible to expect of any
scheme. The Scheme provided for a
Board to administer it consisting of
members elected by the eleven
Regions into which the country was for
the purposes of the Scheme
divided, one of them being the South East
Region. It provided for
the registration of producers of milk and in those
days when
compulsory powers were less familiar than to-day, went so far
as
to provide that no unregistered producer should sell any milk.
Further-
more the Scheme empowered the Board (a power quickly
exercised and
still in force) to resolve that registered producers
should sell only to the
Board and then only at the price and upon
the terms prescribed by the
Board. No one doubts that these
provisions were greatly to the advantage
of the industry as a
whole but a scheme which put the milk industry into
such a
straight jacket may produce anomalies and individual discontent.
In
my opinion it was with this (inter alia) in view and in the
realisation that
such matters should receive review at ministerial
level that Parliament
enacted the provision now to be found in
section 19 of the 1958 Act.
That
section provided that the Minister should appoint two committees,
a
consumers' committee and a committee of investigation. The
former
committee is bound to consider and report to the Minister
upon any
approved scheme and any complaints made to them as to the
effect of
the scheme on consumers, a matter with which this appeal
is not concerned.
The committee of investigation is by section 19 (3)(b):
"
charged with the duty, if the Minister in any case so directs, of
con-
" sidering, and reporting to the Minister on .... any
complaint made
" to the Minister as to the operation of any
scheme which .....
" could not be considered by a consumers'
committee."
These
committees are by the Act permanent committees and have been
set
up by the Minister to receive and deal with, from time to time,
matters
referred to them ; another indication that Parliament
realised that schemes
might require inquiry and review in
operation as time went on and
circumstances changed.
The South
East region contend that for many years they have received too
low
a price for their products for the reasons I shall not discuss, for
they
are set out fully in the speech of my noble and learned
friend Lord Reid.
Further, it is perfectly clear upon the facts
that this question, having been
considered by two independent
committees (with results on the whole
favourable to the South East
Region) and having been raised on no less
than fifteen occasions
at Board Meetings by the South East Regional repre-
sentative
since 1958, cannot be dismissed as frivolous, vexatious or
trivial.
In fairness to the Minister and his advisers let it be
said that this has never
been suggested.
At first
sight therefore I should suppose that this was precisely the type
of
matter which Parliament had envisaged would be fit for
investigation
by the Committee of Investigation and report to the
Minister, but the
Minister has declined either to investigate the
complaint himself, as of
course he was perfectly entitled to do,
or to refer it to the Committee of
Investigation.
Section
19(3) as a matter of language confers a discretion upon the
Minister
as to whether any complaint made to him should be referred to
the
Committee of Investigation, the relevant words being "if the
Minister
" in any case so directs " plainly words of
discretion and not of duty. But
it was argued before your
Lordships, perhaps more strenuously at the first
23
hearing
than at the second after Supplemental Cases had been delivered,
that
the case was governed by the principle established by the well
known
case of Julius v. Bishop of Oxford 5 App. Cas.
214 where it was held that
words of permission such as " it
shall be lawful" might in some cases in
fact call for its
exercise and create a duty upon the donee of the power
or
permission to exercise it. It was held not to do so in that case
where
Parliament had conferred upon the Bishop a power to issue a
commission,
but like so many cases in our law where it was held
that the principle
did not apply it is the leading authority for
the proposition that there may
be, as it is so often said, "
a power coupled with a duty ". In other words,
as was so
succintly stated by the Court in R. v. Steward of Havering
Atte
Bower 5 B. & Ald. 691 "The words of permission
are obligatory";
briefly they create a duty not a power.
But in my
opinion that principle can have no application to the present
where
it is clear that Parliament would have used different words if it
had
intended that the Minister was under a duty to refer every
complaint to the
Committee of Investigation ; in fact Parliament
would have adopted precisely
the same language as in section 19(2)
where consumers are empowered to
make their complaints direct to
the Consumers' Committee without any
intermediate reference to the
Minister.
So it is
clear that the Minister has a discretion and the real question
for
this House to consider is how far that discretion is subject
to judicial
control.
My Lords,
upon the basic principles of law to be applied there was no
real
difference of opinion, the great question being how they should
be
applied to this case.
The
Minister in exercising his powers and duties conferred upon him
by
statute can only be controlled by a prerogative writ which will
only issue
if he acts unlawfully. Unlawful behaviour by the
Minister may be stated
with sufficient accuracy for the purposes
of the present appeal (and here
I adopt the classification of
Parker L.CJ. in the Divisional Court):
by an outright refusal to consider the relevant matter, or
by misdirecting himself in point of law, or
(c)
by taking into account some wholly irrelevant or
extraneous
consideration, or
(d) by wholly omitting to take into account a relevant consideration.
There is
ample authority for these propositions which were not challenged
in
argument. In practice they merge into one another and ultimately
it
becomes a question whether for one reason or another the
Minister has
acted unlawfully in the sense of misdirecting himself
in law, that is, not
merely in respect of some point of law but by
failing to observe the other
headings I have mentioned.
In the
circumstances of this case which I have sufficiently detailed
for
this purpose it seems to me quite clear that prima facie
there seems a case
for investigation by the Committee of
Investigation. As I have said
already it seems just the type of
situation for which the machinery of
section 19 was set up, but
that is a matter for the Minister.
He may
have good reasons for refusing an investigation, he may have
indeed
good policy reasons for refusing it though that policy must not
be
based on political considerations which as Farwell L.J. said in
R. v. Board
of Education [1910] 2 KB 165 at 181
are pre-eminently extraneous. So I
must examine the reasons
given by the Minister, including any policy
upon which they may
be based, to see whether he has acted unlawfully and
thereby
overstepped the true limits of his discretion, or as it is
frequently
said in the prerogative writ cases, exceeded his
jurisdiction. Unless he has
done so the Court has no
jurisdiction to interfere. It is not a Court of
Appeal and has
no jurisdiction to correct the decision of the Minister acting
24
lawfully
within his discretion, however much the Court may disagree with
its
exercise.
In his
affidavit filed in opposition to the Appellants' application for
the
order of Mandamus the Minister, after referring to the
fact that he had
read the letter dated 1st May 1964 of Mr. Kirk,
an Under Secretary of the
Ministry, stated that he reached his
decision for refusing a reference to the
Investigating Committee
for the reasons given in his private secretary's
letters of 23rd
March and 3rd May 1965 all addressed to the Respondents
or their
solicitors. So to these letters I must turn to see whether his
reasons
are open to challenge on the ground of being unlawful.
The first
letter, that of 23rd March 1965, in which the Minister gave
his
reasons was, so far as relevant, in these terms :
" The
Minister's main duty in considering this complaint has been to
"
decide its suitability for investigation by means of a particular
pro-
" cedure. He has come to the conclusion that it would
not be suitable.
" The complaint is of course one that raises
wide issues going beyond
" the immediate concern of your
clients, which is presumably the prices
" they themselves
receive. It would also affect the interests of other
"
regions and involve the regional price structure as a whole.
" In
any event the Minister considers that the issue is of a kind which
"
properly falls to be resolved through the arrangements available to
"
producers and the Board within the framework of the Scheme itself.
"
Accordingly he has instructed me to inform you that he is unable
"
to accede to your clients' request that this complaint be referred
to
" the Committee of Investigation under section 19 of the
Act."
This
letter seems to me to shew an entirely wrong approach to the
complaint.
The Minister's main duty is not to consider its
suitability for investigation;
he is putting the cart before the
horse. He might reach that conclusion
after weighing all the facts
but not until he has done so ; but perhaps this
is the least of
the criticisms (arising out of his letter) to be directed at
the
Minister. But I have dealt with it as in argument it was
seriously pressed
upon your Lordships as a conclusive
consideration in answer to any challenge
to his powers.
His next
statement—that it raises wide issues etc.—shews a
complete
misapprehension of his duties, for it indicates quite
clearly that he has
completely misunderstood the scope and object
of Section 19. It is when
wide issues are raised and when the
complaint of one region raises matters
which may affect other
regions and the regional price structure as a whole,
that the
Minister should consider it as a most powerful (though not
con-
clusive) element in favour of referring the complaint instead
of the reverse.
Then, again, in his final paragraph of this letter
the Minister reveals the
same misconception. It was just because
it was realised that the Board
structure might produce within its
framework matters for complaint by those
vitally affected that the
machinery of Section 19 was set up. This letter
shews that the
Minister was entirely misdirecting himself in law based upon
a
misunderstanding of the basic reasons for the conferment upon him
of
the powers of Section 19.
I turn to
his second letter, that of 3rd May 1965 which so far as relevant
was
in these terms:
" You
will appreciate that under the Agricultural Marketing Act
"
1958 the Minister has unfettered discretion to decide whether or
not
" to refer a particular complaint to the Committee of
Investigation. In
" reaching his decision he has had in mind
the normal democratic
" machinery of the Milk Marketing
Scheme, in which all registered
" producers participate and
which governs the operations of the Board."
This
introduces the idea, much pressed upon your Lordships in
argument,
that he had an "unfettered" discretion in this
matter; this, it was argued,
means that provided the Minister
considered the complainant bona fide
that was an end of the
matter. Here let it be said at once, he and his
25
advisers
have obviously given a bona fide and painstaking
consideration
to the complaints addressed to him ; the question is
whether the consideration
given was sufficient in law.
My Lords,
I believe that the introduction of the adjective " unfettered
"
and its reliance thereon as an answer to the Appellants'
claim is one of the
fundamental matters confounding the Minister's
attitude, bona fide though
it be. First the adjective
nowhere appears in Section 19, it is an
unauthorised gloss by the
Minister. Secondly even if the section did contain
that adjective
I doubt if it would make any difference in law to his powers,
save
to emphasise what he has already, namely that acting lawfully he
has
a power of decision which cannot be controlled by the Courts ;
it is unfettered.
But the use of that adjective, even in an Act of
Parliament, can do nothing
to unfetter the control which the
judiciary have over the executive, namely
that in exercising their
powers the latter must act lawfully and that is a
matter to be
determined by looking at the Act and its scope and object
in
conferring a discretion upon the Minister rather than by the
use of adjectives.
The second
sentence of this letter again only shews what I have earlier
pointed
out, that the Minister has failed to understand that it may be
his
duty to intervene where there is a serious complaint that the
" democratic
" machinery " of the Board is
producing unfairness among its members.
Those are
the reasons relied upon by the Minister for refusing a
reference.
Summing up the matter shortly, in my opinion every
reason given shews that
the Minister has failed to understand the
object and scope of Section 19
and of his functions and duties
thereunder which he has misinterpreted and
so misdirected himself
in law.
The
matter, however, does not end there for in his affidavit the
Minister
referred, as I have already mentioned, to Mr. Kirk's
letter of 1st May 1964
without disapproval. That letter contained
this paragraph :
" 3.
In considering how to exercise his discretion the Minister would,
"
amongst other things, address his mind to the possibility that if a
"
complaint were so referred and the Committee were to uphold it,
"
he in turn would be expected to make a statutory order to give
effect
" to the Committee's recommendations. It is this
consideration, rather
" than the formal eligibility of the
complaint as a subject for investi-
" gation, that the
Minister would have in mind in determining whether
" your
particular complaint is a suitable one for reference to the Com-
"
mittee. We were unable to hold out any prospect that the Minister
"
would be prepared to regard it as suitable."
This fear
of parliamentary trouble (for in my opinion this must be the
scarcely
veiled meaning of this letter) if an inquiry were ordered and
its
possible results is alone sufficient to vitiate the Minister's
decision which,
as I have stated earlier, can never validly turn
on purely political con-
siderations ; he must be prepared to face
the music in Parliament if statute
has cast upon him an obligation
in the proper exercise of a discretion
conferred upon him to order
a reference to the Committee of Investigation.
My Lords,
I would add only this: that without throwing any doubt upon
what
are well known as the club expulsion cases, where the absence
of
reasons has not proved fatal to the decision of expulsion by a
club com-
mittee, a decision of the Minister stands on quite a
different basis; he is
a public officer charged by Parliament
with the discharge of a public
discretion affecting Her
Majesty's subjects; if he does not give any reason
for his
decision it may be, if circumstances warrant it, that a Court may
be
at liberty to come to the conclusion that he had no good reason
for
reaching that conclusion and order a prerogative writ to issue
accordingly.
The
Minister in my opinion has not given a single valid reason for
refusing
to order an inquiry into the legitimate complaint (be it
well founded or not)
of the
South East Region; all his disclosed reasons for refusing to do
so
are bad in law. I would allow this appeal in the terms proposed
by my
noble and learned friend Lord Reid.
(309710) Dd. 196999 120 2/68 St.S/PA/19