FEDERATED FARMERS OF NEW ZEALAND (INC) MACKENZIE BRANCH v MACKENZIE DISTRICT COUNCIL [2015] NZHC 580

FEDERATED FARMERS OF NEW ZEALAND (INC) MACKENZIE BRANCH v MACKENZIE DISTRICT COUNCIL [2015] NZHC 580 [26 March 2015]IN THE HIGH COURT OF NEW ZEALANDTIMARU REGISTRYCIV-2013-476-000311[2015] NZHC 580BETWEEN FEDERATED FARMERS OFNEW ZEALAND (INC) MACKENZIEBRANCHAppellantAND MACKENZIE DISTRICT COUNCILRespondentSIMONS PASS STATION LIMITEDMERIDIAN ENERGYAssociated RespondentsHearing: 6 March 2015Appearances: M Casey QC and K E Forward for AppellantD C Caldwell and G C Hamilton for RespondentNo Appearance for Simons Pass Station LimitedNo Appearance for Meridian Energy LimitedJudgment: 26 March 2015JUDGMENT OF GENDALL J[1] The appellant (Federated Farmers) seeks leave to appeal to the Court of Appeal from a decision I gave in this Court on 23 October 2014 Federated Farmers of New Zealand (Inc) Mackenzie Branch v Mackenzie District Council1 (the High Court decision).[2] That decision concerned appeals by Federated Farmers from three decisions of the Environment Court given in November and December 2013 – the sixth (procedural) decision, the seventh (procedural) decision, and the eighth decision (re landscape objectives). These sixth, seventh and eighth decisions arose out of proposed Plan Change 13 to the Mackenzie District Plan (PC13).1 Federated Farmers of New Zealand (Inc) Mackenzie Branch v Mackenzie District Council[2014] NZHC 2616.[3] The present application for leave to appeal is opposed by the respondent Mackenzie District Council (the Council).Background[4] Issues over the sixth, seventh and eighth decisions of the Environment Court arising out of PC13 of relevance here concern, amongst other things, what is said to be the Environment Court's jurisdiction to introduce new proposed objectives,policies and rules in reliance on ss 290 and 293 of the Resource Management Act 1991 (the RMA). These also relate in part to questions raised over concerns about intensification of pastoral farming in areas of national significance in the Mackenzie Basin, an area itself accepted by all as one having an outstanding natural landscape.[5] In my High Court decision the following occurred:(a) I quashed the sixth decision to the extent that it found the "greening"(pastoral intensification) issue was ultra vires. The balance of the sixth decision was left intact.(b) I quashed the seventh decision and referred it back to the Environment Court for reconsideration, accompanied by certain directions set out at para [170](b) of the High Court decision:[170] I therefore make the following orders–(b) The appeal against the Seventh Decision is substantively dismissed, though procedurally it succeeds to a limited point. I therefore quash the Seventh Decision and refer it back to the Environment Court for reconsideration with the following directions:(i) Section 293 was able to be utilised. A more appropriate test is set out in this judgment.(ii) The directions to the Council should be to prepare changes, not to implement already prepared changes.(iii) In light of the Environment Court's finding that thetrue scope of PC13 is determined to be much broader than originally thought by the Council, a new s 32 Report is required and will need to becommissioned by the Council to address the changes and matters identified by the Environment Court.(iv) The entire varied plan change should again be publicly notified by the Council to enable the community to be consulted and to engage with what is being proposed.(v) Following consultation, the Council should submit the final changes to the Environment Court for confirmation.(c) I made no direct findings with respect to the eighth decision. This was due first, in part to Federated Farmers electing not to pursue its appeal on some aspects of this eighth decision and secondly, because matters considered in the eighth decision (that is confirmation of new Objective 3B(i) in reliance on s 290 RMA), were to be reconsidered in light of the directions to the Environment Court as set out at para [5](b) above.[6] So far as other background facts are concerned, these together with the procedural history of this matter are detailed and they have been traversed in my High Court decision. I do not propose to repeat these at length here, other than as will appear throughout this judgment. Those background facts together with the procedural history of this matter are set out in my High Court judgment at paras [4] –[97].Proposed points of appeal[7] In its present application for leave to appeal, Federated Farmers sets out the proposed points of appeal as follows:(1) Was the High Court right to determine that the Environment Court had jurisdiction to pursue the course it did under s 293 of theResource Management Act 1991 ("RMA") (with the exception ofthe procedural deficiencies identified)?(2) Was the High Court right to determine that provisions to addressgreening (and thereby pastoral intensification) were "on PlanChange 13" including:(a) The reference in the statement of issues to greening having been deleted by the Council for the specific reason that the PlanChange did not address land use other than subdivision and building;(b) The Court having found that the Environment Court was wrong to hold that the issue could not be deleted, whether it could bemade "live" again by resort to s 293;(c) That the finding at [141](a) that the reference to greening in the statement of issues altered the status quo was in error as it did not change any operative provision of the District Plan; and(d) The stated purpose of PC 13 could not reasonably be interpreted as extending beyond the particular aspects of use and development addressed by the change?(3) Was the High Court right to find that there are exceptions to the established test for when s 293 RMA is able to be utilised such that the Environment Court may invoke s 293 where there is:(a) an inadequate s 32 Report;(b) a failure to comply with s 74 (including preparation in accordance with the provisions of Part 2);(c) a more than minor deviation from one of the matters referred to in s 293(3) whether or not raised on appeal?(4) Was the High Court right to determine that the Environment Court was required by s 6 RMA to recognise and provide for the protection of the outstanding natural landscape in ways that were not proposed by the Plan Change and not raised in submissions or on appeal?(5) Was the High Court correct to find that Plan Change had as its broad purpose the protection of the Mackenzie Basin from inappropriate subdivision, use and development of any kind?(6) Was the High Court right to interpret that appeals to the Environment Court as being sufficiently broad to confer on the Environment Court jurisdiction to consider matters in the round, including the deleted greening issue and pastoral intensification?(7) Was the High Court correct to find that the Environment Court had found as a matter of fact (and not law) that the issue of greening(and thereby pastoral intensification) was "on" PC13, and to dismiss the appellant's fifth, sixth, eighth and ninth errors of law as raisingmixed questions of law and fact, or wholly factual disputes?(8) Was the decision to invoke s 293 correct in law in light of the HighCourt's findings:(a) that the true scope of PC 13 is much broader than originally thought;(b) a new s 32 report is required to address the changes and matters identified by the Environment Court;(c) the entire varied Plan Change should be publicly notifiedand further in light of the facts;(d) there is no provision for the opportunity to make submissions and be heard (as there was in the pre-2005 version of s 293); and(e) controls on pastoral intensification will significantly impact land use throughout the Mackenzie District in ways that would not have been contemplated; and(f) there will not be the right or opportunity for affected persons to be heard by the Council on the new provisions.The Council's position in opposition to the leave application[8] Although in the hearing which culminated in my 23 October 2014 High Court decision, the Council it says generally took the position of supportingFederated Farmers' appeal, broadly on grounds relating to the jurisdiction of the Environment Court, the Council before me now opposes the present leave application. It says the threshold for leave to appeal has not been made out on the grounds that:(a) Federated Farmers has not shown good cause as to why leave should be granted.(b) Many of the proposed questions of law are questions of fact or mixed fact and law. The Council says in the High Court I applied orthodox, indeed conservative, tests to the particular factual and planning context.(c) The questions of law and the issues sought to be raised, while important to the particular parties, are not of general or public importance. Rather they are limited to the particular factual situation and policy context arising from PC13, the factual findings of the Courts, and the breadth of the particular appeals lodged.(d) In light of this, the costs and potential delay from the granting of leave to appeal are not outweighed by any public or private interest.(e) Even if this Court finds there are seriously arguable questions of law and those questions are of public or private importance, this is an appropriate case for the Court to exercise its residual discretion and decline leave.(f) The Environment Court's seventh decision was quashed in this Court and referred back to the Environment Court. The Environment Court subsequently issued a Ninth (Procedural) Decision2 containing a number of directions to the Council in an effort to progress resolution of PC13. According to the Council that is a relevant factor for this Court to consider in the exercise of its discretion. And certain conclusions from that Ninth (Procedural) Decision for convenience are set out at [18] following:[9] The Council takes the broad view that all issues have been fully argued in the Environment Court and in this Court. It says they have been the subject of detailed submission, hearing and consideration over many years. The Council maintains this has now reached a point where finality of litigation is called for, albeit that a further Environment Court hearing will be needed following notification and consultation in accordance with the Ninth (Procedural) Decision noted at [8](f) above. The Council says the Mackenzie community and others are entitled without further delay to certainty as to the planning framework for the Mackenzie Basin which is undisputedly an outstanding natural landscape. This further delay, the Council contends, involves costs potentially much greater than the actual cost to the parties of any Court of Appeal hearing and, in particular, it involves risks and unquantifiable costs in leaving the Mackenzie Basin landscape vulnerable as a result of an incomplete and uncertain planning framework.Legal principles[10] An appeal to the Court of Appeal from a decision of this Court on an appeal from the Environment Court is brought pursuant to s 308 of the RMA. Although s 308 was amended in 2013 to provide that relevant provisions of the Criminal2 Decision No. [2014] NZEnvC 246 (4 December 2014).Procedure Act 2011 are to apply, transitional provisions specify that Environment Court proceedings such as the present commencing before 1 July 2013 continue to be dealt with under the now repealed s 144 of the former Summary Proceedings Act 1957 (SPA). The Court of Appeal decision in Foodstuffs South Island Ltd v Queenstown Lakes District Council3 confirmed this. Given that s 144 of the SPA applies to appeals under s 308 of the RMA in cases commencing before 1 July 2013 and the current proceedings commenced when the Environment Court appeals were filed in 2009, the present application is governed by the SPA.[11] Section 144 of the SPA permits a second appeal on a question of law with the leave either of the High Court (or with the special leave of the Court of Appeal) in limited circumstances. The Court may grant leave in terms of s 144(2) SPA:if in the opinion of that Court the question of law involved in the appeal is one which, by reason of its general or public importance or for any other reason, ought to be submitted to the Court of Appeal for decision.[12] In summarising the threshold test in Huia Resorts Ltd v Ashburton District Council4 the Court of Appeal said:[2] The combined effect of s 308 of the Resource Management Act 1991 and s 144 of the Summary Proceedings Act 1957 requires that the applicant meet a threshold before special leave to appeal may be granted by this Court. That is because the applicant is seeking to bring a second appeal against an Environment Court decision. It must show that the further appeal would raise questions of law which by reason of their general or public importance, or for any other reason, ought to be submitted to this Court for decision. It is well established that this threshold entails demonstrating that there is a question of law capable of serious argument in a case involving a public or private interest which is sufficient in its importance to outweigh the cost and delay to the parties of permitting another appeal.[13] On this, in Dome Valley District Residents Society Inc v Rodney District Council5 this Court also held at para [4] that:Of particular relevance is the policy of the legislation which does not provide an automatic second appeal right. Finality for litigation is a desirable outcome except in those few cases where some legal issue can be identified which transcends the mere partisan interests of the parties.3 Foodstuffs South Island Ltd v Queenstown Lakes District Council [2013] NZCA 458.4 Huia Resorts Ltd v Ashburton District Council CA29/05, 28 April 2005.5 Dome Valley District Residents Society Inc v Rodney District Council HC Auckland, CIV-2008- 404-587, 8 December 2008.[14] And in Genesis Power Limited v Manawatu Limited v Wanganui Regional Council & Ors6 this Court provided a summary of a number of key principles extracted from the authorities where s 144 (in an RMA context) has been considered:[6] a number of principles from the various s 308 or s 144 cases.Amongst these principles are:a) The applicant must show good cause why leave should be granted.b) The application must raise a seriously arguable question of law.c) If the Court has difficulty in identifying a clear and relevant question of law, leave to appeal should be declined.d) It is necessary to consider dispassionately whether the disputed matter contains the requisite element of sufficient importance. The scarce time and resources of both the High Court and the Court of Appeal are not to be wasted. The Court of Appeal is not engaged in the general correction of error. Its primary function is to clarify the law and determine whether it has been properly construed and applied by the Court below. Not every alleged error of law is of such importance to justify further pursuit of litigation which has already been considered and ruled upon by a Court.e) It is not sufficient that issues as a whole are of general public importance or interest. It is the question identified as the matter for appeal which must be a matter of general or public interest.f) Questions or issues of law which are fact specific or limited to the particular facts and findings of the case at hand are not generally matters of general and public importance.[15] In Palmerston North City Council v New Zealand Windfarms Ltd7 it was established that this Court can grant leave where the issues involved are of importance to a significant group of the community, including the parties themselves, rather than the public generally, invoking the second limb of s 144. And, in Kitewaho Bush Reserve Company Limited v Waitakere CC8 relevant here, the High Court noted that:6 Genesis Power Limited v Manawatu Limited v Wanganui Regional Council & Ors HC Wellington CIV-2004-485-1139, 22 May 2007.7 Palmerston North City Council v New Zealand Windfarms Ltd [2013] NZHC 2654.8 Kitewaho Bush Reserve Company Limited v Waitakere CC HC Wellington AP23/02, 14 May 2004 at [5].The Court has a residual discretion to refuse to grant leave even though there is a question of law involved and the question is one of general or public importance.[16] I now turn to consider briefly the threshold for leave to appeal, bearing in mind the legal principles outlined above.The threshold for leave to appeal[17] So far as this is concerned, as I have noted above at [8] and [9], the contention strongly advanced before me by counsel for the Council was that Federated Farmers has not shown good cause here as to why leave to appeal should be granted. In addition, the Council's final position as I have noted is that, even if this is a case where the Court properly finds that there are seriously arguable questions of law and those questions are of public or private importance, this case is however an appropriate one for the Court to exercise its residual discretion and to decline leave. The Council says it is significant here that following quashing of the Environment Court's seventh decision and the referral of this matter back to that Court, it issued its detailed Ninth (Procedural) Decision containing a number of directions to the Council made in an effort to progress resolution of PC13.[18] It is useful to set out the relevant conclusions and directions from that Ninth (Procedural) Decision, a decision which was detailed and given with commendable promptness on 4 December 2014:9A: Under section 290 of the Resource Management Act 1991 the (unchanged) policies in the operative district plan which implement objective 3A are confirmed, but renumbered as shown in Schedule B to this decision (consistently with the First Decision- [2011] NZEnvC 387 at [142]).9B: Under section 290 of the Act the Environment Court directs the Council to amend PC13 by changing policies 3B(9), 3B(10) and 3B(ll) to read as in Schedule C attached provided that leave is reserved to any party to apply to set this order aside if that party has reason(s) to oppose it.9C: In respect of policy 3B(5) - Farm Base Areas - if any party opposes confirmation of this policy (as stated in Schedule C) under section 290 of the Act they must advise the Registrar in writing giving a brief summary of grounds by 15 December 2014.9D: Under section 293 of the Act the Environment Court directs the Mackenzie District Council to prepare:(1) changes to PC 13:(a) including any further subordinate objectives (if it wishes there to be any more) for the Mackenzie Basin to address the issue of nonresidential development and buildings; but(b) excluding objectives 3A and 3B(l) and (2) which were settled under section 290 of the Act by the Eighth Decision; and(c) including its policies to address these matters:• recognition of the Mackenzie Basin's distinctive characteristics;• views from roads;• enabling pastoral farming;• farm buildings;• landscape aspects of subdivision;• pastoral intensification;(d) including policy 3B(5) - Farm Base Areas - provided that this order is subject to action being taken by a party under Order 9C;(e) including its methods for implementing all the policies for objective 3B(l) and (2) and for the new, subordinate, objective 3B(3) if any;(2) a section 32 evaluation of the matters - especially rules - added to the amended PC13 under Order 9D(l).9E: After completing compliance with order 9D, the Council is directed:(1) to publicly notify PC13 again on the following terms:(a) the provisions amended under section 290 should be included to give the context;(b) the provisions still in issue should be identified;(c) the notice should invite written advice from any person who seeks:(i) to be consulted; and/or(ii) to lodge a (late) section 274 notice to be heard by the Environment Court- in respect of the provisions still in issue being:• (possibly) objective 3B(3);• the substantially amended policies on the matters identified in Order 9D(l )(c) and (d); and• all the methods of implementation (including rules);(2) to consult with all the persons who might be affected by the proposed change or who have made a submission in the light of the public notification;(3) to make any changes it considers appropriate (within jurisdiction) to PC13 arising out of the consultation; and(4) to submit the changes to the court for approval together with a list of the persons who wish to be heard by the court.9F: Leave is reserved for any party to apply for further or other directions on Orders 9B to 9D by 15 December 2014.9G: Leave is also reserved for any party to apply for further or other directions in respect of Order 9E or for directions on the process when PC 13 comes back to the court for approval under section 293 of the Act.[19] I repeat that the Council consider this Ninth (Procedural) Decision to be a highly relevant factor for this Court to take into account in exercising its discretion here.[20] Turning back to the threshold test for leave to appeal, Federated Farmers'proposed points of appeal, which I have outlined at para [7] above, are detailed. I do not propose to address each proposed point individually to consider whether it has passed the threshold test. As will appear later in this judgment, in my view this is not necessary here, given the general conclusion I reach on this application for leave. Suffice to say that there may well be issues with a significant number of these proposed appeal points as to whether they involve questions of law at all and also, particularly if they do, whether in any event they are of such a general or public importance as to warrant leave being granted. Before me, Mr Caldwell for the Council argued strongly that the threshold test for each of the proposed points of appeal had not been met. In my view there may well be merit in many of the arguments he has raised.[21] Notwithstanding this, and with a degree of some reluctance, I leave these arguments on one side however. For present purposes, I am prepared to proceed on the basis that the threshold test for leave to appeal has been made out with regard to the proposed points of appeal.[22] The crucial issue here relates to the question whether this is an appropriate case for the Court to exercise its residual discretion to decline leave, essentially as Mr Caldwell for the Council notes, for reasons outlined at [8](e) and (f) and [9] above. This is so even if I was to find, as I have said I am reluctantly prepared to accept for present purposes, that there are seriously arguable questions of law of public or private importance here which justify the granting of leave.[23] I turn now to consider this question as to whether the Court should exercise its residual discretion here to decline leave.Residual discretion[24] As to this aspect, the timeline for the PC13 planning process shows that it is now some seven years since notification of this plan change and some five years since the issue of the original decision of the Commissioners'. The Council'sposition is that the costs involved in PC13 have been significant and the continuing delays in obtaining a definite position and some implementation of this have left what is described as an uncertain and incomplete planning framework. The Council says this has caused it significant difficulties in administering its plan and this in turn has left the outstanding natural landscape of the Mackenzie Basin sub-district vulnerable. It notes that, as a matter of public record, certificates of compliance for pastoral intensification have been granted and further delay in resolving all these issues enables that process to continue. These must all be seen in my judgment as matters of some concern.[25] The Plan Change planning process involved with PC13 has been protracted. To an extent the Council acknowledges that it must accept costs and delays associated with the lengthy hearings and appeals that have formed part of this process. It is noted that in Gisborne Refrigerating Company Limited v Gisborne CityCouncil9 the Court held that delay and expense arising from lengthy hearings and appeals are not reasons on their own to decline leave for an appeal. Mr Casey QC, counsel for Federated Farmers, suggested that potentially lengthy hearings and appeals are part and parcel of plan changes and the present proceedings he says are not extraordinary.[26] It is clear however that in Coromandel Watchdog of Hauraki Inc v Chief Executive of the Ministry for Economic Development (No 2)10 the High Court indicated that the issue of delay and the position of a respondent council are mattersrelevant to the exercise of the Court's discretion under s 144 of the former SummaryProceedings Act 1957 (SPA).[27] On these particular issues, I take the view that, if leave to appeal is granted, the further costs and delays which will result, including potential cost or possible damage to the outstanding natural landscape of the Mackenzie Basin involved here, and the continuing uncertainty for the Council and the local community, are simply not outweighed by any public or private interest in this particular instance. The real and in many ways immeasurable cost of leaving the Mackenzie Basin, an outstanding natural landscape, vulnerable as a result of an uncertain planning framework which the Council says inevitably arises must, in my view, be avoided.[28] At a general level, I am of the view too that the issues giving rise to the proposed questions of law in this case have been fully argued in both the Environment Court and before this Court. I agree with the position advanced for the Council that some finality of this litigation is called for. And importantly, this is not the end of the road for Federated Farmers and its members.[29] The process to be undertaken now pursuant to the Ninth (Procedural) Decision of the Environment Court referred to at para [18] above, is significant. It will itself involve public notification, consultation and input on what I understand to be these very issues. All this is still to be undertaken and, in my view, to an extent it9 Gisborne Refrigerating Company Ltd v Gisborne City Council HC Wellington 11 October 1990 AP12/90.10 Coromandel Watchdog of Hauraki Inc v Chief Executive of the Ministry for Economic Development (No 2) HC CIV-2004-485-1838 and CIV-2004-419-1776, 7 December 2005.will meet a concern of Federated Farmers expressed before me by its counsel, Mr Casey QC, as to the ability of its members to be involved and participate in these processes. As I see the position, the reality of the substantive matters concerning PC13 and the new Plan Change provisions will be properly open for consideration and submission following public notification of the entire varied Plan Change, with the Council then submitting the final changes to the Environment Court for approval, a process which will also include a further right for parties including Federated Farmers to be heard. In my view, all this will provide ample opportunity for Federated Farmers and its members having been consulted to provide input, advice and submissions to the Council and to appear and provide submissions before the Environment Court at a subsequent hearing.[30] For all these reasons, I am of the view that this is a case where, irrespective of all other matters, the Court should exercise its residual discretion to decline leave.Conclusion[31] The application by Federated Farmers for leave to appeal to the Court of Appeal from my decision in this Court on 23 October 2014 is dismissed.[32] As to costs, I see no reason here why costs should not follow the event in the usual way.[33] Costs are therefore awarded to the Council on its successful opposition to the present application on a category 2B basis together with disbursements, if any, as approved by the Registrar....................................................Gendall JSolicitors:Duncan Cotterill, ChristchurchTavendale & Partners, ChristchurchCooper Rapley, Palmerston North