[1995] 2 VR 121
THE STATE OF VICTORIA v THE MASTER BUILDERS' ASSOCIATION OF VICTORIA
SUPREME COURT OF VICTORIA APPEAL DIVISION
TADGELL (1), ORMISTON (2) and EAMES (3), JJ
28-30 June, 1 July, 30 September 1994
Administrative law — Prerogative powers — Judicial review — Procedural
fairness — Government task force — Scheme for elimination of collusive
practices in building industry — Whether task force acted in performance of a
public duty — Publication of "black list of building contractors debarred
from tendering for government contracts — Whether legitimate expectation of
entitlement to tender for and be awarded government contracts — Legitimate
expectation as to business reputation — Whether contractors entitled to
procedural fairness before publication of "black list — Collusive Practices
Act 1965 (No. 7353) s5(3).
.
The Victorian Government established a non-statutory task force to deal with
collusive tendering and other corrupt practices in the building industry. In
August 1993 the task force sent 750 Victorian building contractors a letter
setting out the terms upon which the Victorian Government would in the future
be prepared to deal with contractors. Recipients of the letter had been
chosen on the basis that they had tendered for government contracts in the
previous six years whether or not there was evidence implicating them in
collusive practices. Each contractor was invited to provide a pro forma
statutory declaration denying involvement in collusive practices in the
previous six years. The statutory declaration left no room for explanation or
qualification. Contractors who admitted participation in collusive practices
were required to repay the government amounts of money obtained thereby.
Contractors were free to challenge the government's claims in court. In
September 1993 the task force sent to Victorian Government departments and
agencies and to all municipal councils a "black list of names of 240 building
contractors who in the task force's assessment had not responded
satisfactorily to the August 1993 letter and who, as a result, were not to be
allowed to tender for or be awarded government building contracts.
The Master Builders' Association of Victoria brought proceedings on behalf of
building contractors against the State Government seeking injunctive and
declaratory relief against the task force's activities.
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[1995] 2 VR 121
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