Report by the Labor Members of the Committee

Human Rights Bill

Report by the Labor Members of the Committee

Senator Nick Bolkus (SA) & Senator Jim McKiernan (WA)

INTRODUCTION

The Human Rights Legislation Amendment Bill 1996 represents a fundamental attack on the rights of the disadvantaged and those who suffer from discrimination in Australian society. It forms just one part of a series of actions being undertaken by the Government that are depriving many hundreds of thousands of Australians of the right to access justice and to hold their government accountable.

This Government is attacking the rights held by Australians by making cuts to a wide variety of justice related services. These include cuts to legal aid, the federal courts and tribunals and the family services program. The Government has also increased fees for federal courts and tribunals and is considering limiting the rights of Australians to hold their government accountable through the Commonwealth's administrative law system.

In total the Government will have, from its election to the turn of the century, cut more than $400 million from services that help Australians access justice.

Cuts to the Human Rights and Equal Opportunity Commission

Foremost amongst the cuts to access justice measures are the Governments foreshadowed cuts to the Human Rights and Equal Opportunity Commission.

The Government will reduce funding for the Commission from the current $20.5 million provided in the 1996-97 financial year to $17.9 million in the 1997-98 financial year and ultimately to approximately $13.3 million in the 1998-99 to 2000-01 financial years.

When inflation and salary cost increases are factored in the cuts to the Commission will be in excess of 43 percent of the Commission's budget.

Whilst the greatest proportion of the cuts are not due to take effect until the 1998-99 financial year, the Commission, in evidence to the Senate Constitutional Legal Legislation Committee's consideration of the Appropriation Bills, advised that it would be forced to implement the cuts with effect almost immediately.

As a result of the cuts the Commission advised that it would have to offer involuntary redundancy packages to 60 of the Commission's 180 staff. The Commission advised that as the Government had made no provision for these inevitable redundancy costs, the Commission would be forced to implement these redundancies prior to the end of the 1997 calender year.

The Commission is yet to be able to determine exactly which of its activities it will be unable to continue to carry out following the implementation of the cuts. However, the Human Rights Commissioner, Mr Sidoti, noted that all areas of the Commission's activities would be expected to share this burden. Mr Sidoti also stated that the cuts would inevitably force the Commission to concentrate on its core statutory obligations such as complaint handling.

Mr Sidoti's evidence is completely at odds with the Government's statements as to the effects of the cuts. Acting Attorney-General, the Hon. Phillip Ruddock MP stated in a Media Release dated 9 June 1997 that:

"Reports in the media today contain incorrect claims that changes to the Human Rights and Equal Opportunity Commission (HREOC) will have a negative impact on disabled people."

Mr Sidoti confirmed in evidence to the Senate Committee that the services provided by the Disability Discrimination Commissioner would be amongst those to be affected by the cuts. The Government's deceit in not telling some of most disadvantaged in our community of the real effect of these cuts is simply deplorable and is condemned by the Labor members of the Committee.

The Labor members of the Committee also note that these cuts are totally unnecessary for the implementation of this Bill.

First, we note that the Government originally projected a cut of $1.5 million per year in the 1996-97 Budget to transfer the hearing function from the Commission of the Federal Court of Australia. This cut was delayed pending the passage of this Bill.

Even this cut was unjustified. The Senate Legal and Constitutional Legislation Committee's consideration of the Appropriation Bills for both the 1996-97 and 1997-98 financial years revealed that the true cost to the Commission for the provision of the hearing function was only approximately $600,000 per year. Despite this evidence the Government has persisted with the implementation of this cut on the basis that it incorrectly asserted in the Coalition's Law and Justice Policy at the 1996 Federal election that $1.5 million was the cost of the provision of the function.

The funding cuts proposed in the 1997-98 Budget are in addition to the cut of $1.5 million announced in the 1996-97 Budget as discussed above.

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Recommendation 1:

The Labor members of the Committee deplore the Government's decision to cut over 43 percent from the budget of the Human Rights and Equal Opportunity Commission because it will directly affect the ability of the most powerless and disadvantaged in our community to enforce and protect their rights. These cuts should be condemned by all fair and decent minded Australians.

Cuts to Legal Aid

The decision announced by the Government to cut $120 million over 3 years from legal aid funding and thereby to dismantle Australia's national unified legal aid system will also have a profound effect on the ability of Australians to enforce their human rights. This will particularly be the case as, in accordance with the provisions of the Bill, discrimination law disputes will now be determined in the Federal Court of Australia.

We note and draw attention to the more detailed discussion of the effect of the cuts to legal aid funding is contained in the Senate Legal and Constitutional References Committee's First and Second Reports on Australia's Legal Aid System. Accordingly, we do not propose to discuss the details of the cuts in detail in the context of the present report.

However, we note that a draft of the proposed Commonwealth-State legal aid agreements, due to come into effect from 1 July 1997, contains the following Guideline with respect to the funding of equal opportunity and discrimination cases:

"5.1 The Commission may grant assistance for equal opportunity/discrimination cases where there are strong prospects of substantial benefit being gained not only by the applicant but also by the public or any section of the public."

In the view of the Labor members of the Committee such a Guideline, if adopted would be totally unacceptable. The test provides a number of additional qualifiers to the standard merits tests by requiring an applicant to demonstrate that:

(a) they have strong prospects of success;

(b) those prospects are directed towards the attainment of a substantial benefit; and

(c) that benefit will be acquired not only by the individual bringing the complaint but also that the claim must serve a broader public interest or otherwise be in the interest of section of the public.

The Labor members of the Committee believe that equal opportunity cases should not be required to satisfy the stronger merits test as set out in (a) above.

The Labor members of the Committee also state their firm view that the creation of equality of opportunity or the elimination of discrimination are matters which derive substantial benefits not only to the individual complainant but also to the class of persons to which that complainant belongs and to the public at large. Accordingly, the Labor members of the Committee believes that tests (b) and (c) above are either redundant or, to the extent that they impose some higher standard in breach of the moral and international obligations of the Australian Government, should be opposed

Recommendation 2:

The Labor members of the Committee call upon the Government to ensure that adequate legal aid resources or other forms of legal assistance are provided to ensure either that all discrimination law cases which meet the traditional merits and financial tests for a grant of legal aid are funded or that such cases are otherwise adequately resourced.

THE LEGISLATION

The Bill has two fundamental objectives. The first is to ensure that discrimination determinations can be enforced in a timely, effective and efficient manner and in accordance with the ruling of the High Court in Brandy v Human Rights and Equal Opportunity Commission. The second is to implement a re-structuring of the Commission's complaint handling mechanisms.

We acknowledge that since the Brandy decision was handed down on 23 February 1995 it has been necessary to vest the power to make enforceable determinations in discrimination cases in a body exercising the judicial power of the Commonwealth pursuant to Chapter III of the Constitution.

It is noted that, following the Brandy decision, the previous Labor Government introduced interim procedures for the handling of discrimination complaints, which effectively re-instated the system which had applied to discrimination complaints prior to 1993. These arrangements provide for an initial determination to be made by the Commission which if acceptable to the parties operates subject to their goodwill and continued compliance. Determinations of the Commission are not legally enforceable.

Under the present scheme, enforceable determinations require a de novo hearing of the dispute and a determination by the Federal Court.

We note the widespread view that the continued operation of the pre-1993 and post-Brandy arrangements for complaint determination would be inappropriate. We note that these concerns are principally based around the need for a second hearing of complaint, by the Federal Court, for a determination to be enforceable. We believe that the current mechanism is unwieldy and place all parties at a financial and temporal disadvantage. We believe that there is a strong public interest in disputes being enforceable once determined.

We believe that, as provided in the Bill, the creation of a specialised Human Rights Registry within the Federal Court of Australia is the most appropriate and cost effective way to give effect to this purpose. We also support the Bill's effect in giving the Commission the power to mediate disputes.

Under the proposed arrangements as set out in the Bill, complaints are lodged with the executive President of the Commission who attempts to conciliate the dispute. Should the dispute not be capable of conciliation then the matter is referred to the Federal Court for determination.

Federal Court determinations are to be made by judges of the Court or by judicial registrars acting under their delegation and direction. Determinations by judicial registrars would be enforceable as orders of the Court. However, appeals from the determinations of judicial registrars would be by way of de novo appeal to a judge of the Federal Court in order to comply with the decision of the High Court in Harris v Caladine.

The Labor members of the Committee broadly support the structure of the Bill as being a necessary mechanism for the attainment of simplified and effective complaint determination procedures.

However, as discussed below, we believe that a number of key amendments to the Bill are required to ensure that the rights of complainants are protected and that they are able to access those rights.

Recommendation 3:

The Labor members of the Committee support the passage of the Bill subject to the Parliament's agreement to the amendments set out below.

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The Conciliation of Disputes

The Labor members of the Committee believe that the specialist Commissioners should continue to have the conduct of the conciliation of disputes. We note that specialist Commissioners are in the best position to understand the requirements needed for the conciliation of a particular type of dispute.

The argument advanced by the Government that the centralisation of the conciliation process in the hands of an executive President of the Commission ignores the need for different types of disputes to be conciliated in different ways.

The suggestion that the centralisation of the disputes handling function in an executive President would be more efficient ignores the fact that if complaints are not conciliated in the most appropriate manner then they will be less likely to be successfully conciliated and therefore more likely to proceed for determination by the Federal Court. Accordingly, we believe that the Government's arguments based on efficiency represent a false economy.

The Labor members of the Committee also believe that the conciliation function will operate most effectively when it is under the control of a specialist Commissioner with the requisite experience in handling complaints of that type. Specialist Commissioners can also bring their growing body of experience, obtained through the exercise of his or her inquiry functions, to the conciliation function thereby constantly improving the process.

Naturally, if a specialist Commissioner were to conciliate a dispute it would be inappropriate for that Commissioner to appear as an amicus curiae should the matter proceed to determination by the Federal Court. Accordingly, an amendment should be moved to prevent a specialist Commissioner appearing in a case with which they have been directly involved. In these circumstances another Commissioner should be entitled to appear to assist the court.

These amendments place the expertise of the specialist Commissioners to where they ought best be directed, and where they are likely to be most effectively deployed, namely the conciliation of disputes.

This process would avoid any suggestion of a conflict of interest between the relevant specialist Commissioner and the role of another Commissioner in appearing as amicus curiae to the Court.

We note that the Government and the Majority Report do not support this view. They argue that under a such a proposal a perceived conflict of interest could arise. However, no greater perceived conflict of interest would arise in this case than under the proposal set out in the Bill which would see a specialist Commissioner appear, on behalf of the Commission, as an amicus curiae when another member of the Commission, in this case, the new executive President, was unable to conciliate the dispute.

Recommendation 4:

The conciliation function of the Commission should be vested in the specialist Commissioners and not in the new executive President of the Commission. Accordingly, there would be no need to appoint a full-time executive President of the Commission.

Recommendation 5:

As a result, specialist Commissioners should be prevented from appearing as amicus curiae in disputes before the Federal Court involving cases where that Commissioner sought to conciliate. The other specialist Commissioners, appearing on behalf of the Commission, should be vested with authority to appear as amicus curiae in such cases.

Reporting of Complaints to the Parliament

Regardless of whether complaints are conciliated by the executive President or the specialist Commissioners, the Labor members of the Committee agree with the submission put by the Commission that it would be inappropriate for either the executive President or individual specialist Commissioners to report to the Parliament on the outcome of complaints. Such reports must necessarily report on the appropriateness of the conciliation process adopted and would result in either the executive President or the specialist Commissioner reporting on themselves.

It would be more appropriate for the reporting process to be subject to peer review. Accordingly, it is appropriate that any report to the Parliament be made by the Commission reporting as a whole.

Recommendation 6:

The responsibility for the reporting of complaints to the Parliament should be vested in the Commission acting as a whole.

Commissioners and Proceedings in the Federal Court

The Labor members of the Committee acknowledge that because of the extreme levels of disadvantage suffered by many victims of discrimination that it may be inappropriate to rely upon complaints being brought by individual complainants in order to eliminate discrimination. In many circumstances, Commissioners, in the course of their inquiry powers may come across situations were no complainant may be willing to come forward because of the very oppressive nature of the conduct being complained of. In these, and other, circumstances, we believe that the Commissioners have both a public duty and a general moral responsibility to act to end the discrimination.

In this regard, all Commissioners should be vested with the power to bring proceedings in relation to a breach or an attempted breach of one of the relevant Acts. It is noted that a similar power is granted to the Australian Competition and Consumer Commission under section 80 of the Trade Practices Act 1974.

Clearly, in such cases, it would be inappropriate for the relevant Commissioner to be able to conciliate the dispute. In such cases another of the Commissioners could be appointed to conciliate the dispute. Alternately, the Commission should have the power to approach the Court to seek the appointment of an independent conciliator who would be required to operate within the terms of the relevant Acts.

Recommendation 7:

Specialist commissioners should be empowered to initiate proceedings in the Federal Court as a complainant. If required, the Federal Court could be given the power to order the conciliation of such disputes.

Systemic Discrimination

Systemic discrimination against people is one of the most insidious forms of oppressive conduct in our society. Individual case based discrimination is largely ineffective is addressing discrimination on this scale. Often, in such cases, it is also inappropriate to blame individual respondents for blindly accepting what may often be seen as a societal or economic norms.

To address such deep rooted discrimination it is appropriate that the Commissioners be given the power to address systemic discrimination. Reliance upon individual case law is often slow, piece-meal and unreliable. Further, reliance on the educative function of individual commissioners, particularly in the context of strict budget constraints, is unreasonable.

Accordingly, the Commissioners should be given the power to investigate conduct they believe to be unlawful under the relevant discrimination Acts. In exercising their powers, Commissioners should not need the consent of the Commission as a whole and should have all relevant powers of discovery. Commissioners, upon concluding an investigation would report to the Attorney-General who would be required to table the report in the Parliament. A Commissioner should be excluded from exercising these powers whilst a current conflicting complaint was before him or her for conciliation.

Recommendation 8:

The Labor members of the Committee support amendment of the Bill to provide the Commissioners with powers to enable them to address systemic discrimination.

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Complaints Against Commonwealth Agencies

The Labor members of the Committee believe that it is totally unacceptable that private citizens will only be able to enforce discrimination complaints against Commonwealth government departments and agencies through the determination of a complaint in the Federal Court. Commonwealth government department and agencies have a heightened responsibility to comply with the legislation of the Federal Parliament. They should do so as a matter of administrative practice and not merely as a result of judicial order.

Accordingly, the Labor members of the Committee support the continuation of the present provisions in the relevant legislation which allow disputes against Commonwealth government departments and agencies to be pursued and enforced by administrative means.

Recommendation 9:

The Labor members of the Committee believe that Commonwealth government departments and agencies should continue to be bound by the current administrative mechanisms for ensuring adherence to Commonwealth discrimination law.

Amending Complaints

The Bill does not currently allow complainants to amend complaints once they are referred for conciliation by the Commission. We believe that this is too restrictive. It ignores the real fact that parties can continue to suffer discrimination of the type, or of an escalated nature to the type, originally complained of or suffer further discrimination consequent upon the bringing of a complaint.

The notion that such further but related acts should be conciliated prior to preceding to the Federal Court is simply absurd and denies the ability that this could give to those engaging in discriminatory conduct to frustrate the complaints process.

The Labor members of the Committee believe that the proposed clause 46PL(3) of the Bill is insufficient to achieve this purpose.

Recommendation 10:

The Labor members of the Committee support complainants being given the ability to amend a complaint to include acts incidental to, or flowing from, the initial act or acts of discrimination complained of, including acts of discrimination resulting from the lodgement of a complaint.

Compulsory Conferences and Confidentiality

The confidentiality of compulsory conciliation conferences is essential to the proper operation of the conciliation system. The Labor members of the Committee believes this issue should be put beyond doubt and, whilst noting the Attorney-General's view that the common law attaching to without-prejudice communications and the statutory protection afforded to some documents under section 131 of the Evidence Act 1995 provides adequate protection, supports the inclusion of a provision to make this protection certain.

Recommendation 11:

The Labor members of the Committee support the inclusion of a provision to ensure the confidentiality of compulsory conciliation conferences.

Recording The Outcome Of, And Enforcing, Conciliated Agreements

The Labor members of the Committee believe that parties who conciliate agreements should be advised of their right to record a binding agreement. Should the parties request assistance to record the agreement reached then the Commission should assist parties to record that agreement.

Such provisions will greatly assist parties to enforce conciliated agreements in the Federal Court or any other court of competent jurisdiction.

Parties should be advised of this right at the start of the conciliation process so as to avoid any concern when this matter is raised later in the conciliation process.

Recommendation 12:

The Labor members of the Committee believe that the Bill should be amended to enable the Commission to assist the parties to record a conciliated agreement in writing.

Referring Discriminatory Awards

The Labor members of the Committee accept the evidence of both Mr Peter Bailey of the Australian National University and the Commission that the Bill should be amended to enable discriminatory acts based on sex, racial or disability grounds to be referred to the Australian Industrial Relations Commission, in the case of an award or any other appropriate matter within the terms of the Workplace Relations Act 1996, or in relation to matters within the power of the Remuneration Tribunal and the Defence Force Tribunal.

We note that currently only sex discrimination matters are referrable to those bodies. There is no reason why race or disability discrimination issues should be treated any differently.

Recommendation 13:

The Labor members of the Committee support the amendment of the Bill to enable discriminatory acts based on sex, racial or disability grounds to be referrable to the Australian Industrial Relations Commission, in the case of an award, or in relation to matters within the power of the Remuneration Tribunal and the Defence Force Tribunal, to those Tribunals.

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THE CHAIRMAN'S REPORT

The Labor members of the Committee also support the following recommendations made in the Majority's Report:

JUDICIAL REGISTRARS

The Labor members of the Committee note that the Human Rights Registry of the Federal Court will principally be drawn from judicial registrars of the former Industrial Relations Court who may have little practical experience in dealing with discrimination cases.

We suggest that all judicial registrars and staff should undergo training to familiarise them with the jurisdiction and to ensure a sufficient level of awareness of the particular requirements of different types of discrimination complaints and the needs of complainants.

THE CONDUCT OF PROCEEDINGS

The Labor members of the Committee note that the fact that discrimination complaints have not previously been bound by the rules of evidence has been of great assistance in determining complaints.

In this regard, we note with concern the evidence of Associate Professor Tahmindjis that clause 46PO of the Bill would not prevent the operation of the rules of evidence in accordance with the ruling of Spender J in Aldridge v Booth. Similarly, we note the evidence of the National Federation of Blind Citizens that it has received legal advice that the provisions of the Evidence Act 1995 will apply to discrimination matters.

We note that the Legal Aid Office (Queensland) and the Commission also commented on this point.

Despite the evidence of the Attorney-General's Department that Evidence Act 1995 has greatly simplified the rules of evidence in federal causes, we believe that the rules of evidence should not apply in discrimination cases.

Recommendation 14:

The Labor members of the Committee believe that clause 46PO of the Bill should be amended to ensure that rules of evidence do not apply to discrimination cases.

COURT FEES AND LEGAL COSTS

The increased Federal Court fees introduced by the Government in the 1996-97 Budget represent part of the fundamental attack on the right of ordinary Australian citizens to enforce their rights in our justice system.

Under the Federal Court of Australia Regulations, the fees that will apply to discrimination cases will include:

In this context, a typical discrimination case, lasting two days, would cost more than $3,200 in court fees alone.

Whilst fee waiver provisions are in place these would only assist the most indigent in the community. The Sackville Report on Access to Justice revealed that one of the great problems with our justice system is the ability of ordinary Australians, who do not qualify for fee exemptions but who are not sufficiently wealthy to be able to afford to pay court fees, to access justice. The Government's decision in the 1996-97 Budget to dramatically increase court fees has significantly exacerbated the predicament of such people.

The Government's failure to provide for the waiver of court fees also ignores the traditional view (which applies in industrial cases) that institutionally weaker parties (such as employees) should not be required to pay any more than the most nominal court fees. Clearly, victims of discrimination are at an institutional disadvantage by virtue of the discrimination they face.

Currently in industrial cases only a filing of fee of $50 applies.

Accordingly, the Labor members of the Committee support an amendment to the Bill to apply no more than nominal filing fees for discrimination cases.

Recommendation 15:

The Labor members of the Committee support an amendment to the Bill to apply no more than nominal filing fees for discrimination cases.

Likewise, the awarding of costs has never been a feature of the handling of discrimination law cases.

We believe that it is most inappropriate that the costs follow the event rule apply. This rule would only enable the institutionally stronger party in discrimination cases to threaten the weaker party with retribution should the claimants case fail.

However, this is not to say that cost penalties should not apply in all cases. Where a complainant or defendant has acted in a frivolous or vexatious manner the Court should retain a discretion to award costs against the party concerned. In such cases, costs should be able to include not merely party-party costs but also solicitor-client costs.

Recommendation 16:

The Labor members of the Committee support amending the Bill to prevent costs being awarded against a party in a discrimination case except where, in the judgment of the court, the party has behaved in a frivolous or vexatious manner in which case the court should have the discretion to award solicitor-client costs in addition to party-party costs.

The Labor members of the Committee support the conclusion reached in the Majority's report that there is no public policy reason why lawyers acting in discrimination cases should be limited to charging their clients party-party costs.

REPRESENTATIVE COMPLAINTS

The Labor members of the Committee note the importance of representative complaints or class actions in combating discrimination. We believe that greater flexibility should be provided in the Federal Court of Australia Act and the Rules of the Federal Court of Australia to allow for class actions in discrimination cases.

In this regard, the current rules that apply to complaints to the Commission should apply in the Court: namely that any two or more people may bring a class action. Under the Federal Court of Australia Act the current minimum number is 7: section 33C and 33L.

The Labor members of the Committee also support the concerns raised by the Human Rights and Discrimination Committee of the Combined Community Legal Centres' Group (NSW) which stated that class actions should be permissible even where members of the class were seeking different remedies to address the same cause of discrimination.

Finally, we also support the concerns expressed by Human Rights and Discrimination Committee of the Combined Community Legal Centres' Group (NSW) that greater flexibility should be provided for in the replacement of complainants in class actions. We note that this concern was also supported in the Majority's Report.

Recommendation 17:

The Labor members of the Committee support amending the Bill to provide for representative actions to be brought by 2 or more people, to allow persons alleging the same source of discrimination but seeking different remedies to form part of the one action and for greater flexibility to be provided in the replacement of representative complainants.

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Representative Complaints By Unions

The Labor members of the Committee believe it is totally unacceptable to prevent a person or trade union, other than a complainant, to bring an action with the consent of a complainant in the Federal Court.

Clause 46P(2)(c) permits such people or groups to bring an action to the Commission for conciliation. However, clause 46PL limits the right to commence an action in the Federal Court to "an affected person".

In our opinion, there is no logic supporting this distinction. Trade unions and other beneficial organisations have a proud and valuable history of representing their members in such fora. Indeed, in many industrial circumstances, the action in question is representative of discrimination being experienced on behalf of the entire, or a significant proportion of, the workforce. In such cases, the conduct of the case by the relevant trade union is clearly appropriate.

Providing the relevant body has the consent of the "person affected" then the relevant body should be able to bring the discrimination case in the Federal Court.

Recommendation 18:

The Labor members of the Committee support amending clause 46PL of the Bill to allow persons and trade unions to bring discrimination cases on behalf of 'a person affected" providing the "person affected" consents to the person or trade union so doing.

FEDERAL COURT FACILITIES

Finally, the Labor members of the Committee wish to acknowledge their appreciation for the endeavours of the Federal Court of Australia, in particular of the Chief Justice and the Registrar, in preparing the facilities of the Federal Court for its taking up of responsibility for the enforceable determination of discrimination law cases.

Senator Nick Bolkus Senator Jim McKiernan

25 June 1997