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Talagi v Niue Public Service Commission [1997] NUHC 1; C/37/97 (28 September 1997)

IN THE HIGH COURT OF NIUE

(CIVIL DIVISION)

Case No C/37/97

IN THE MATTER of the Niue Public Service Regulations 1979

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MARU TALAGI
Applicaplicant

AND

lass="MsoNoMsoNormal" align="center" style="text-align: center; margin-top: 1; margin-bottom: 1"> THE NIUE PUBLIC SERVICE COMMISSION
Respondent

Mr T. Chapman for the Applicant

The Attorney-General for the Respondent

Date of Hearing: 22 September 1997

Date of Judgement: 28 September 1997

JUDGEMENT OF DILLON CJ

las class="MsoBodyText" style="margin-top: 1; margin-bottom: 1"> The Plaintiff on 4 April 1997 entered informal “Contract Agreement for Heads of Departments” with tith the Government of Niue acting by and through the Niue Public Service Commission (hereafter called “the Commission”). The Plaintiff’s appointment secured by that contract was to undertake the duties of the Director of the Public Works Department in Niue for a period of three years, a senior appointment in the Niue Public Service attracting an initial annual salary of $27,599.00 and his present annual salary of $27,778.00 per annum. Clause 11 of the Contract Agreement provides as follows:

“11. This agreement ise interpreted in accordance with the Laws of Niue ande and any dispute as to any matter under this Agreement shall be determined by the High Court of Niue.”

A dispute having arisen between the Plaintiff and the Commission, the Plaintiff hferred that issue to this Court for determination.

The Attorney-General, appearing for the Commission, challenge judicial review process aess adopted by the Plaintiff but does not challenge this Court’s jurisdiction to determine the dispute as provided for by Clause 11 of the Contract Agreement. He claimed that “ the dispute should be dealt with on the basis of contract and not judicial review.” For the reasons which are subsequently set out in more detail, the Plaintiff, in reliance on Clause 11 of the Agreement, has issued proceedings to the Court to make a determination. All remedies of the nature now applied for are discretionary. Consequently even if the proceedings in their present form may be inappropriate, nevertheless the Court, if it considered that some form of relief is justified, may in effect grant an alternative remedy. The process then becomes an exercise in the judicial application of the Court’s discretion, i.e. for refusing the remedy sought; or granting the relief applied for so long as the Court in both instances exercises its discretion judicially and in accordance with recognised principles. Those are the principles which Clause 11 of the Contract requires this Court to apply in determining the dispute between the Plaintiff and the commission.

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THLICATION FOR JUDICIAL REVIEW

lass="MsoNoMsoNormal" style="margin-top: 1; margin-bottom: 1"> The application filed by the Plaintiff was brief and concise;

p class="MsoNormal" style="yle="margin-top: 1; margin-bottom: 1">

“The Applicant requests this Court to review the decision of the Niue Public Serv Service Commission (“NPSC”) which:

(a) &nnbsp; suspendspended the Applicant from his post as Director and Head of Department (“HOD”)of the Public Worksrtment (“PWD”) and,

(b) p;

Upon thends that the NPSC did not comply with the rules of natural justice by:

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(a) ; fg linobso observe correct procedures; and

(b)

when making the decision which ted the Applicant.”

The relief sought was subsequently amplified by Mr Chapman in his letter to the Attorney General dated 18 September 1997;

“(a) Thatalagi be r re-inst-installed to the position of Director of Public Works with effect from 20 June 1997, the date of his suspension.

(b) That Mr Talagi be paid u ful full salary for the 4 weeks period of suspension.

>

(c)

(d) &bsp;

(e) &nbbsp; That coat compensation be paid to Mr Talagi for the stress caused him and his family; damage to his profeal standing, integrity and dignity; this to be in the sum of $350,445.00.

(f) &bsp; That Court costs bets be awarded in favour of the Plaintiff.”

THE STARTING POINT OF THE DISMISSAL PROCESS

On 10 June 1997 the Plaintiff appean Niue Television News as President of the Niue Public Serv Service Association. The following is the full recorded text of that interview.

class="MsoNoMsoNormal" style="margin-left: 36.0pt; margin-top: 1; margin-bottom: 1"> “BCN

ass="MsoNoMsoNormal" style="margin-left: 36.0pt; margin-top: 1; margin-bottom: 1"> “Last week the Minister of Finance explained to BCN news that the country is facing fing financial constraints. This is due to uncollected money owed by the general public to the Government Departments.”

class="MsoNoMsoNormal" style="margin-left: 36.0pt; margin-top: 1; margin-bottom: 1"> “The NPP representative s this is the responsibility of the Niue Government.”

“The President of the Pru Talagi responded that another measure on top of thof the 10% would be a threat to job security.”

lass="MsoNoMsoNormal" style="margin-left: 36.0pt; margin-top: 1; margin-bottom: 1"> MARU

“We have never been in a position to finance ourselves, easures which were suppose pose to be put in place never follow through properly. In that sense, what we are going to face as indicated by the Minister of Finance is that further hardships, further cuts on top of the 10%.”

“The PSA response to that, first our purchasing power has been taken away by 10%. Secondly we face another measure which would affect the employment and security of the members.”

ass="MsoNoMsoNormal" style="margin-left: 36.0pt; margin-top: 1; margin-bottom: 1">

p class="MsoNoMsoNormal" style="margin-left: 36.0pt; margin-top: 1; margin-bottom: 1"> “Our philosophy is to maintain the dialogue betweeloying authorities and our our members, and if this is going to affect us in a much drastic way then- we have the option to take the Government to task either legally or upon ourselves to stop work.”

The Commission’s concern related e last part of the last sentence, and its alarm is signifienified in its initial response to the Plaintiff by letter dated 13 June 1997 which states in part as follows:

“Your appearance on Television as Presiden>of the PSA on Tuesday sday night 10th June has alarmed the Commission. In particular the statements of opposing Government policies but more so in your own words- quote:” The option to take the Government to task, either legally or upon ourselves to stop work.”

It is very obvious that this statement was a threat to the Government particularly froead of a Government Dent Department.

This action is considered as a serious misconduct and a breach of contract as pction 10 of your Cont Contract Agreement.”

class="MsoNoMsoNormal" style="margin-top: 1; margin-bottom: 1"> The Commission’s requirements were further stated in that same letter as ws:

“With the present incident it is found that you have breached Regulation 43 (2) of the Niue Public Service Regulations 1979 and Instruction L2-3 of the Public Service Manual.

Therefore, you are directed to relinquish your Presidency ency of the PSA effective as of today 13 June 1997.

You are also given 7 days (effective today 13 June 1997) to respond to the alleged misconduct. The Commission is expected to receive your response before noon Friday 20 June 1997.

From this point onwards the Plaintiff responded to the Commission with correspondence dated 16 June 1997 and 4 nd 4 August 1997; while Mr Chapman, on his client’s behalf, presented a detailed and comprehensive summary of all the issues that he considered relevant by his letter dated 18 September 1997. It was that letter that detailed the six orders the Plaintiff now seeks.

Interspersth the Plaintiff’s correspondence were those originating from the Commission – they hey are dated 13 June; 19 June; 18 July and 23 July 1997.

THE NIUE PUBLIC SERVICE REGULATIONS 1979.

“10. Under no circumstances that the Officer wrongfully communicate, retain, copy or disclose any official information to any person without proper authority is granted.”

The Plaintiff challenges that he didact breach Section 10 of his Service Contract. I agree with with the Plaintiff. There was no wrongful disclosure of official information in the Plaintiff’s statement on television.

This letter also refers to the Plaintiff having .. breachgulation 43 (2) of the Niue Public Service Regulationations 1979 and instruction L2-3 of the Public Service Manual.” Regulation 43 (2) states as follows:

“(2) No information out of the strict course of official duty sbe divulged directly or indr indirectly, or otherwise used by an employee, and no communication to the press or to the public on matters affecting the Service shall be made by any employee, except with the consent of the Secretary to the Government.”

The underlining is mine in order to identify the latter part of Regulation 43(2) which is the provision relied upon by the Commission. There is no question that the Plaintiff failed to seek or obtain permission from the Secretary to the Government for his “communication to the press or public.” On this point however, the Plaintiff claims he was speaking as President of the Public Service Association and not as Head of the Public Works Department.

The s letter issued by the Commission was that dated 19 June 1997 which briefly stated as d as follows:

“Ik you for your comprehensive reply to the Commission’s letter of 13 June.

Fr to what has been considered by the Commission as a beach of Regulations 43(2) 46(1)46(1),(2) 61 (3) of the Niue Public Service Regulations 1979 and Instruction L2-3 of the Niue Public Service Manual of Instructions, and your reply; the Commission at its meeting of 18 June wishes to inform that:

You are hereby suspefrom your position as Director of the Public Works Deks Department with effect 20 June-18 July 1997. Regulation 63(3) Niue Public Service Regulations 1979.”

Regulation 46(1) and (2) referred to and relied upon states as follows: <

“(1) Every employee shall obey promptly and readily all lawful orders given tven to him by his controlling officer.

(2) If any employee considers that he has ground for complaint arising out of any such order or from any other cause, he may report the matter through official channels to the Commission but shall nevertheless, as far as possible, carry out any orders lawfully given to him, until they are countermanded.”

The order that the Plaintiff has not obeyed if Regulation 46 is to be relied upon, is thes the direction ..”to relinquish Presidency of the PSA effective as of today 13 June 1997.”

That appears an unusual direction given that the Plaintxplained to the Commission:

1.

2. &nbp; &nnbsp;; p; tpan>that in the PSA minutes of 13 June 1997 it was recorded that he reminded “… the Council as he has previously done on a numberccasi that he will be stepping down as President oent of thef the PSA at the next AGM and will not be available for re-election.”

3. & That in his reply dated 16 June 1997 he sought deferral in relinquishing the Presidenc two weeks to the AGM when he could then account for the activities of his committee ttee during his term of office.

That request for a tek deferral in all the circumstances appears to me to be a reasonable request w which was never considered by the Commission. Certainly there was no evidence to suggest that they had considered it. That appears to be the only directive upon which the Commission invokes Regulation 46 and the question must be asked as to whether a directive which has received a reasonable response can without more be regarded as an “order” within the terms of Regulation 46.

Regulat1(3) was also relied on by the Commission. That Regulation states:

(3) &bsp; Thd Head of Departmpartment shall forthwith forward to the Secretary to the Government a copy of the complaint and any replies thereto, together with a report by the Departon thter ach othe other repr reports orts as may have been obtained; and the Secretary to the Government shall thereupon proceed to consider and determine the matter.”

However, Regulation 61 has no application to this present enquiry nor does Regul 63 (3) which is also referred to. The Attorney-General concedes that is so.

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In the Commission’s letter to the tiff dated 18 July 1997 the Commission resolved:

>

“However it was decided (under Section 7 (a) of Contract) that–

>

1. &bsp; ; p The Contract ract is terminated forthwith and in place of a 3 months notice, you are entitled to 3 months full salary effect 21 July to 20 October 1997.

&nbsp &nbssp; During your period of suspension 20 June to 18 July you will receive only half salary.”

That decision therefore purports to be based on Regulation 43 (2) ande given effect to by a term termination of the employment contract pursuant to the provisions of Section 7 (a) of that contract. While that decision referred to a period of suspension on half salary only, the Attorney-General advised the Court at the hearing that the Commission has subsequently agreed that the Plaintiff would be entitled to full pay for the period 20 June to 18 July and thereafter three months full pay in lieu of three months notice. However, by letter dated 23 July 1997 the Plaintiff was advised –

p class="MsoNoMsoNormal" style="margin-left: 36.0pt; margin-top: 1; margin-bottom: 1"> “Third, you are directed to take up duties as a meof the Niue Public Service vice Commission on 21 October 1997. Prior to that date I will advise you of the office within the Niue Public Service to which you will be appointed.”

From that correspondence emanating from the Commission this must try as best as it cant can to ascertain whether the Commission’s actions constituted a transfer of the Plaintiff for administrative purposes and which actions were contrary to the wishes of the Plaintiff, or whether to Plaintiff was being punished for a disciplinary offence.

class="MsoNoMsoNormal" style="margin-top: 1; margin-bottom: 1"> THE ALLEGED OFFENCE

The of the television interview, which has already been set out in full above, is the base basis of the Commission’s subsequent decisions just referred to. The Commission’s only complaint with that interview is the Plaintiffs statement that ..”we have the option to take the Government to task either legally or upon ourselves to stop work.”

lass="MsoNoMsoNormal" style="margin-top: 1; margin-bottom: 1"> When that statems analysed there could be no objection to the Plaintiff as head of the PSA referring ring to his members ..”taking the Government to task legally..” If any action contemplated was legal then naturally there could be no complaint. So the Commission’s concern must have referred to “ taking the Government to task.. upon ourselves to stop work.”

I appreciaat in a very small Public Service operating in Niue different standards may necessarissarily apply from those applying in New Zealand. But nevertheless such statements are every day occurrences in New Zealand and regarded as part and parcel of the Public Service spectrum. Even as this decision is dictated there are very large and important sectors of the New Zealand Public Service on strike and causing serious concern in the failure to provide New Zealand with essential services. Other essential services within the Public Service have also threatened to go on strike. But again I reiterate that what happens in New Zealand is not to be regarded as the standard to be necessarily applied in Niue.

But having said that I hearke back to the last line on the television interview because it is a question whetherether it constituted a disciplinary office, and whether the Commission did or should have regarded as such in making its final decision.

To assist this determin I refer to the New Zealand Court of Appeal case Poananga v State Services Commission ( 1985) 2NZLR 385. In that case a Ms Poananga worked for the Ministry of Foreign Affairs. However, her strong personal views had come in sharp conflict with the policy of the Ministry as exemplified by the following memorandum which she circulated to a seminar for new recruits to the Ministry.

“SEMINAR FOR NEW RECRUITS TO THE MINISTRY: 3.20PM 28 AP982, BICULTURALISM & THp; THE MINISTRY

“Witi and I were going to speak to yoay on a Maori approach to the Ministry’s work both here ande and abroad, and how this relates to the aspirations of the Maori community. We were the originators of what is known as “biculturalism “ in the Ministry and in terms of time, involvement and commitment have been the main advocates of this cause.

“We were ind last week that we would not be speaking to you ‘because we are too controversial’. al’. We would like you to think about this statement and its implications.

“Our view is that biculturalism is nssible when the cultural majority refuses to allow the Maor Maori minority the right to decide on matters affecting themselves; and does so only on their (Pakeha) terms. This is known as Racism

r place we have asked Alan Williams to circulate Donna Awatere’s paper ‘Cultural Iral Imperialism and the Role of the Maori Public Servant.’

We agree with her approach and reiteratt; ‘ to achieve biculturaliuralism, white hegemony must be put aside. Unless this is done all that is sought is a display of biculturalism rather than its reality’ and the ‘Public Service forces Maori people to live in a schizoid existence, to hang our Maoriness outside the office desk, to wait like house pets for the changes to come, sneaking our Maori side in occasionally and holding our breath, but basically forced to be content with the magician tricks half believing that reform and change are not fallacious illusions which make us feel we are not the house pets we are.’

“As Maoris we feel, along with others in the Maori community, ‘that it appears as if the Ministry has betrayed the cause of biculturalism ‘ [ a notable Maori has written this in a letter to the Secretary]. He was referring to the controversy over the Maori film produced and distributed by the Ministry without proper consultation and the agreement of Maori officers and others in the Maori community.

“This een justifiably condemned by many Maori people and organisations.

In the citances we cannot and will not continue to be the Ministry’s ‘house niggers’. To do sodo so betrays our people and their mana

Nicole Poananga Witi Ihimaera

28.4.82”

Fong the publication of that Memorandum the State Services Commission transferred Miss Miss Poananga to the Department of Scientific and Industrial Research. Miss Poananga appealed and the question for determination for the Court of Appeal was:-

Can an officer be transferred purely administratively contrary to the will of that officer when the real reasons for the action is that he or she has been guilty of conduct constituting in substance a disciplinary offence?

The Court found that the test was one of materiality – that is whether the conduct comes n the Offences Provisrovisions of the Legislation and is material to the decision to transfer. In the result the Court of Appeal allowed Miss Poananga’s Appeal and declared the decision to transfer her to the Department of Scientific and Industrial Research, and to dismiss her from the Public Service, as invalid. That brief synopsis of the principles applied in the New Zealand Court of Appeal decision related of course to the New Zealand State Services Act 1962. Under that legislation there is specific provision for laying charges against employees for specified offences in the same way as Regulation 61 of the Niue Public Service Regulations 1979 make provision for dealing with complaints and enquiries of all Niue public servants with the exception only of Heads of Departments. Nevertheless the above principles are relative. In this present case the Commission, by its letter dated 18 July 1997, relied on the Plaintiff’s breach of Regulation 43 (2) and liable therefore to a disciplinary offence which resulted in the termination of his contract while nevertheless remaining an employee of the Niue Public Service and subject to a transfer to an as yet undetermined Department.

THE DECISION OF THE COMMISSION

Clearly the Commission regarded he television interview as a very serious disciplinary offe offence. In that event the Plaintiff should have been charged with that offence and a full hearing held in order to fully consider all the evidence.

class="MsoNoMsoNormal" style="margin-top: 1; margin-bottom: 1"> If that proces been followed, the following quite unsatisfactory procedures adopted by the Co Commission could have been objected to and the essential standards of natural justice would not have been breached by the Commission.

1. By letter dat d 19 June 1997 the Plaintiff was “.. suspended from your position as Director of the Public Works Depnt wifect 20 une –ly 97 – Regulation 63 (3) Niue Public Service RegulRegulationations 197s 1979.” 9.” But Regulation 63 (3) does not provide authority for the suspension of the Plaintiff. The Attorney-General conceded that Regulation 63 has no relevance to this present case. The so-called suspension on 19 June 1997 was therefore invalid.

2. & By letter datr dated 18 July 1997 the Commission stated in part:

&nb"> span>

“Although the statementmade in your capacity as the President of the PSA forA for and on behalf of the Association, the members of the PSA Committee gave assurance that what you have stated have never been discussed nor alluded to in any of the Committee meetings.”

It is clear that the Commission has interviewed “the members of the Pmmittee” who have provided ided evidence relied upon by the Commission, the details of which have not been made available to the Plaintiff. Secret hearings in the absence of the Plaintiff, the results of which now form the basis of terminating a contract of employment is a flagrant breach of natural justice.

3. &nbp; In the satter tter dated 18 July 1997 the Commission stated:

&

“Normally with incidents of this nature it is required to look at the Service record of an employee. In your case the Record was not a very successful one, particularly with incidents occurred in 1993 and 1994.”

Here again the Plaintiff has no details of his past record relied upon by the Commission, nor does this Court have any details of this past record upon which an assessment could be made. The only information available to this Court is that the Commission relied “on incidents (that) occurred in 1993 and 1994”. But the same Commission appointed the Plaintiff to be the Director of Public Works Department on April 4 1997 – just two months before the television interview. The Court takes from that evidence that the 1993 and 1994 incidents, so called, were so insignificant as to be of no concern whatsoever when the Commission appointed the Plaintiff to be the Director on 4 April 1997.

4. &nnbsp;; Ipan>It is clear that the Commission’s fist letter to the plaintiff dated 13 June 1997 was based ouse 7f the Employment Contract for the following reasons:

(a) The telenision interview was classified as “serious misconduct” as referred to in Clause 7(b)

span "EN-GB"N-GB" styl style="foe="font-size:12.0pt">

class="MsoNoMsoNormal" style="text-indent: -18.0pt; margin-left: 72.0pt; margin-top: 1; margin-bottom: 1"> (b) nbsp; an>Thi Plaintiff tiff was suspended, an action authorised by Clause 7(b).

Clause does not specifically refer to serious misconduct or suspension. The initial letter tter of suspension dated 19 June 1997 relied upon by Clause 7 (b) of the Contract. However, subsequent letters dated 18 and 23 July 1997 the Commission purported to rely on Clause 7(a) of the Contract.

There can be no question that the Commission red the Plaintiff’s statement on television as “serious misconduct.” Dr Paka’s first letter to the Plaintiff dated 13 June 1997 clearly said so. It was stated by Turner J in the somewhat similar New Zealand case of Lindsley v Public Service Commission (Supreme Court Auckland A 61/62-judgement 9 August 1962):

In this present case the Plaintiff was given the tunity to respond to the allegations made by Dr Paka.Paka. However as the Plaintiff points out, the Commission already had a mind set against him which he labelled bias. There is certainly substance in the Plaintiff’s allegation that the Commission had already predetermined the issue in dispute, especially when one considers the content of the very first letter to the Plaintiff by the Commission.

1. &nbs; &nbbsp; This acis action is considered ..” a breach of contract of per Section 10 of your Contract Agreement.” By that the Commission had already decided a breach of contract based on Section 10 which did not apply to the events in question.

2. “With the preient incident it is found that you have breached…” That is a finding already established by the Commission without any input from the Plaintiff.

The underlining is mine inr to emphasise what Mr Chapman refers to as “the Plaintiff’s predetermined fate fate and bias.”

CONCLUSION

I am satisfied that the decision by the Commission to transfer to the Plaintiff within the Public Service from the Public Works Department to another as yet unnamed Department for the purpose of disciplining the Plaintiff was a punitive measure; and an improper exercise of the Commission’s discretion to transfer. Every member of the Public Service in Niue has the right to a fair and reasonable hearing when serious allegations are made against them. Regulation 61 (6) ensures that substantive fairness is recognised and applied.

“(6) The employee in respect of whe complaint is made shall be entitled to be present at all all times during the enquiry and may be represented by Counsel or an agent and shall be entitled either personally or through an advisor to make representations, call evidence ( including giving evidence personally) and to cross examine other witnesses who give evidence in respect of the complaint”

While Regulation 61 does not apply to the Head of a Department, nevertheless it goes without saying that the Plaintiff must be accorded the same elementary principles of natural justice and a fair hearing just as every other civil servant in Niue is entitled. This must be especially the case when the issue has been categorised by the Commission as “serious misconduct.” I do not believe that those principles of substantive fairness and natural justice have been accorded the Plaintiff in his instance.

The alleged suspension of the Plaintiff by the Commission per its letter dated 19 June relied upon Regulatiolation 63 (3) of the Niue Public Service Regulations 1979. But Regulation 63 (3) has no application for the Plaintiff. This is acknowledged by the Attorney-General.

That suspension was therefore invalid.<

The proe adopted by the Commission to terminate the Plaintiff’s contract contravened the prie principles of natural justice and substantive fairness for the reasons already stated. The alleged termination was therefore invalid. The contract is therefore current.

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The Plaintiff also seeks an apology and a public declaration from the Commission. The circumstances of this case do not justify orders in those terms and are refused. The Plaintiff initially sought compensation of $350,445.00 but in the course of the hearing withdrew all claims to compensation and/or damages. There will therefore be orders accordingly.

Finally the Plaintiff is entitled to costs in the sum of $350.00


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