The Australian High Court in a three ( Hayne, Heydon and Callinan JJ) to two (Gleeson CJ and Kirby J) decision rejected Michael McKinnon's and News Ltd appeal in relation to conclusive certificates issued by Secretary for the Department of Treasury under the FOI Act. The majority decided the issue on a narrow and technical consideration of the requirements for section 58. The majority judges were content only to require that the government demonstrate that any documents covered by a conclusive certificate was supported by reasons that were reasonable and rational as distinct from something that is irrational, absurd or ridiculous.
The ruling is an effective death sentence for the ground-breaking FOI legislation. According to the Sydney Morning Herald the decision is an enormous setback to informed debate, and further tips the scales towards unaccountable ministerial power. The case dates to 2002 when Treasurer Costello refused the requests from The Australian's FOI editor Michael McKinnon to reveal what Treasury officials knew about income tax "bracket creep" and possible rorts in the first-home buyers scheme. Costello's refusal had ample precedent on both sides of federal politics - notably from Paul Keating who, as treasurer, had rejected FOI applications from his then Liberal shadow, John Howard. McKinnnon pursued appeals, with the backing of his publisher, News Corp, and later with the support of John Fairfax, in the Administrative Appeals Tribunal, the Federal Court, and now the High Court.
The end result is a legal bill of over $1 million for News Ltd, and a large and simple loophole for governments to avoid processing FOI requests. Labor's public accountability spokesman Kelvin Thomson said the court's ruling was a "hammer blow" to accountability. Labor have since pledged to change FOI laws to prevent ministers from hiding sensitive documents. Prime Minister Howard ridiculed this pledge as hypocritical and unbelievable. "When they were in office they were up to their armpits in the use of conclusive certificates and I just don't believe them” he said today.
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