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Project Blue Sky Case Brief

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Project Blue Sky Case Brief

Project Blue Sky Inc v Australian Broadcasting Authority


(1998) 194 CLR 335
High Court of Australia
Material Facts:
Under the Broadcasting Services Act 1992 (Cth) s 160 the Australian
Broadcasting Authority (ABA) was given authority to develop codes and practice
and program standards. The ABA implemented a local content standard,
ensuring that television would have a minimum percentage of shows produced in
Australia. Project Blue Sky, a New Zealand company, challenged the validity of
the standard on the basis that the ABA had not performed its obligations under a
trade protocol which provided that New Zealand producers would not be treated
in a manner less favourable than Australian producers. The High Court held that
the standard was in breach the protocol, but that it was not invalid.
Procedural History:
The case was first heard in 1996 in the Federal court by a single judge who
adjourned the case to be heard by the full court. In 1996 the Full Court of the
Federal Court heard the case and decided in favour of the ABA. Project Blue Sky
then applied for special leave to appeal to the High Court which was granted.
Issues to be determined:
1. Is a transmission quota for programs of a particular description a standard?
2. What is the meaning of the Australian content of programs?
3. Is the Australian Content Standard consistent with s 160(d)?
4. If not, is the Australian Content Standard valid?
Holding on each issue:
1. That a transmission quota for programs of a particular description are and can
be defined as a standard.
Ratio: As the standard must relate to the Australian content of programs, a
standard to be observed by broadcasting licensees is a standard which is
calculated to ensure that they broadcast programs of Australian content. A
transmission quota for programs is a standard of that kind.
2. The meaning of the Australian content of programs was defined with a
legalist approach giving the phrase a much wider scope than its literal meaning.
It was based on the program having an Australian basis and provenance to be
classified as Australian as well as having the majority of its cast and production
crew of Australian extraction
Ratio: at 26 The provisions of the Act uniformly point to one meaning of "the
Australian content of programs", namely, the Australian matter contained in a
program. There is neither historical nor textual foundation for the proposition
that the term can be used to classify programs by reference to their provenance.

3. The Australian Content Standard was held by the Court to be invalid as it could
not be reconciled with s 160.
Ratio: at 31 Given the hypothesis, I would respectfully agree. And, as Australian
program makers are given an advantage over the New Zealand program makers
by cll 7 and 9 of the Australian Content Standard, I would hold those clauses to
be inconsistent with s 160(d).
4. The Court held that the Australian Content Standard was still valid but only up
to the point where it did not conflict with the provisions in s 160.
Ratio: at 42 If the ABA purports to exercise its powers in breach of the injunction
contained in s 122(4) and s 160(d), to that extent the purported exercise of the
power is invalid and the purported standard (or the non-conforming provisions
thereof) is invalid and of no effect. The standard cannot be saved by some notion
that s 160(d) is "directory".
Orders:
1. The appeal be allowed and the orders made by Davies J set aside.
2. The Court declares that cl 9 of the Australian Content Standard (the
Standard) determined by the Appellant on 15 December 1995 was
unlawfully made.
3. THE Appellant pay the costs of the appeal and of the proceedings before
Davies J.

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