Judgments

Decision Information

Decision Content

A-785-85
Attorney General of Canada (Appellant) v.
Canadian Tobacco Manufacturers' Council, Benson & Hedges (Canada) Inc., Imperial Tobac co Limited, RJR-Macdonald Inc. and Rothmans of Pall Mall Canada Limited (Respondents)
INDEXED AS: CANADIAN TOBACCO MANUFACTURERS' COUN CIL V. NATIONAL FARM PRODUCTS MARKETING COUNCIL
(F.CA.)
Court of Appeal, Mahoney, Stone and MacGuigan JJ.—Ottawa, February 11, 12 and March 6, 1986.
Agriculture — Inquiry under Farm Products Marketing Agencies Act — Tobacco — Ontario Board, representing pro ducers, proposing creation of national marketing agency — National Farm Products Marketing Council conducting inqui ry — Whether having duty to act fairly — Council's report to Minister not prerequisite but may lead to proclamation — Agency would have power to fix prices — Adverse effect on manufacturers — Argument that Council merely fact finder which decides nothing — Procedural fairness required in view of role of Council's inquiry in decision-making process — Trial Judge properly ordering re-opening of hearing for con sideration of cost of production study received by Council after hearing but before its report to Minister — Farm Products Marketing Agencies Act, S.C. 1970-71-72, c. 65, ss. 2 (d),(e).(f),(g), 6, 7 ,( 1 )(a)(i), 8(1)(a),(3),(5), 10, 17(1), 18(1)(a),(b),(c),(e),(3) (as am. by S.C. 1984, c. 42, s. 1), 23(1)(a), (b).
Judicial review — Prerogative writs — Inquiry conducted by National Farm Products Marketing Council — Council administrative body charged only with duty to enquire and advise — Given probable adverse effects on some parties of ultimate decision based on recommendation, Council must afford procedural fairness to parties in course of inquiry — Farm Products Marketing Agencies Act, S.C. 1970-71-72, c. 65, ss. 2(d),(e),(f),(g), 6, 7(1)(a)(i), 8(1)(a),(3),(5), 10, 17(1), 18(1)(a),(b),(c),(e),(3) (as am. by S.C. 1984, c. 42, s. 1), 23(1)(a),(b) — Inquiries Act, R.S.C. 1970, c. I-13, Part I.
At the request of the Ontario Flue-Cured Tobacco Growers' Marketing Board, the National Farm Products Marketing Council undertook an inquiry into the merits of establishing a national tobacco marketing agency and held public hearings to that end.
The Council refused to order the Ontario Board to produce a crucial cost of production study on the ground that its stated policy of non-compellability prevented it from doing so. The study was, however, delivered to the Council after the hearing had ended, but before its report was presented to the Minister.
Alleging that they had thus been denied procedural fairness, the respondents applied to the Trial Division for a series of prerogative writs to require the reopening of a public hearing and the introduction into evidence of the cost of production study.
This is an appeal against the Trial Division order allowing that application.
Held, the appeal should be dismissed, but the order varied to provide for service of the notice of the reopening of the hearing on all persons who were permitted to intervene at the initial hearings.
The Council did have a duty to act fairly. It is clear that the establishment of a marketing plan and an agency having the power to fix prices would have an adverse effect on the manufacturers. Therefore, even if the Council is an administra tive body charged only with the duty to enquire and advise, given this adverse effect and given the role that the Council's inquiry has in the decision-making process—its expertise is such that its recommendations carry a great deal of weight— the Council is required to afford procedural fairness to those whose rights and interests would be affected by a decision based on its recommendation (see Saulnier and Abel).
An examination of the Council's duties and powers, and of the decision making process makes it apparent that Parliament has plainly recognized that, when an agency is established and a marketing plan adopted, a decision affecting rights and interests is taken and that it should not be taken without first affording all affected the opportunity of a fair hearing. It has expressly provided that opportunity as part of the Council's inquiry and the Council is obliged to conduct the hearing accordingly.
The relief granted by the Trial Judge was therefore warrant ed and appropriate.
Per MacGuigan J.: The new approach to judicial review of administrative action (as stated in Martineau) involves a recog nition of a spectrum of judicial review of government decision- making with greater procedural safeguards at the judicial end of the spectrum diminishing to no safeguards/no review at the other end, where purely legislative functions are in play. In the present case, the functions are not in the purely legislative area, and so must be reviewable.
While it is true that the Council's report to the Minister affects no rights directly, that the Minister is not bound to act on the report and that such a report is not a prerequisite to a ministerial proposal to the Governor in Council nor to a proclamation by the Governor in Council, Parliament clearly
intended an integral process stretching from public hearings to executive proclamation, and in particular intended that, when a report has been made, its consideration should become a pre condition of ministerial and executive action. And the present case meets the case law test of adverse effect for judicial review to come into play: the Council's report, if favorable to the tobacco growers, may well and indeed probably will adversely affect the interests of the manufacturers of tobacco products.
CASES JUDICIALLY CONSIDERED
APPLIED:
Saulnier v. Quebec Police Commission, [1976] 1 S.C.R. 572; In re Pergamon Press Ltd., [1971] Ch. 388 (C.A.); Re Abel et al. and Advisory Review Board (1980), 31 O.R. (2d) 520 (C.A.), affirming (1979), 97 D.L.R. (3d) 304 (Div. Ct.).
REFERRED TO:
Ridge v. Baldwin, [1964] A.C. 40 (H.L.); Nicholson v. Haldimand-Norfolk Regional Board of Commissioners of Police, [1979] 1 S.C.R. 311; Martineau v. Matsqui Institution Disciplinary Board, [1980] 1 S.C.R. 602.
COUNSEL:
Brian J. Saunders and David Byer for appellant.
François Lemieux, James H. Smellie and David K. Wilson for Ontario Flue-Cured Tobacco Growers Marketing Board and Prince Edward Island Tobacco Commodity Marketing Board.
Michael A. Kelen for Canadian Tobacco Manufacturers' Council.
John B. Claxton, Q.C. and Bernard Amyot for Benson & Hedges (Canada).
Simon V. Potter for Imperial Tobacco Limited.
Georges-R. Thibaudeau for RJR-Macdonald Inc.
Frank K. Roberts, Q.C. for Rothmans of Pall Mall Canada Limited.
SOLICITORS:
Deputy Attorney General of Canada for appellant.
Osler, Hoskin & Harcourt, Ottawa, for Ontario Flue-Cured Tobacco Growers Mar keting Board and Prince Edward Island Tobacco Commodity Marketing Board.
Michael A. Kelen, Ottawa, for Canadian Tobacco Manufacturers' Council.
Lafleur, Brown, de Grandpré, Montreal, for Benson & Hedges (Canada).
Ogilvy, Renault, Montreal, for Imperial Tobacco Limited.
Doheny, Mackenzie, Montreal, for RJR-Mac- donald Inc.
Smith, Lyons, Torrance, Stevenson & Mayer, Toronto, for Rothmans of Pall Mall Canada Limited.
The following are the reasons for judgment rendered in English by
MAHONEY J.: This is an appeal by the Attorney General of Canada, by leave, and by the cross- appellants, the Ontario Flue-Cured Tobacco Growers' Marketing Board and the Prince Edward Island Tobacco Commodity Marketing Board, against an order of the Trial Division [[1986] 1 F.C. 401] granting relief in the nature of certio- rari, prohibition and mandamus in respect of actions taken, proposed to be taken and omitted to be taken by the National Farm Products Market ing Council, hereinafter "the Council", in the course of or consequent upon an inquiry pursuant to subparagraph 7(1)(a)(i) of the Farm Products Marketing Agencies Act, S.C. 1970-71-72, c. 65, as amended. The appellants, other than the Attor ney General, represent tobacco growers. The respondents are manufacturers of tobacco products and their trade association. They buy substantially all tobacco produced in Canada. The primary issue is whether the Council had a duty to act fairly; if it did, a number of other issues must be dealt with.
The Council, constituted under the Act, consists of at least 3 and at most 9 members appointed by the Governor in Council, at least half of whom are required to be primary producers and one-third of whom are, if possible, to be from each of the four western provinces, the two central provinces and the four Atlantic provinces. Its duties, set out in section 6 of the Act, include:
6. (1) The duties of the Council are
(a) to advise the Minister on all matters relating to the establishment and operation of agencies under this Act with a view to maintaining and promoting an efficient and com petitive agriculture industry;
(2) In carrying out its duties the Council shall consult, on a continuing basis, with the governments of all provinces having an interest in the establishment or the exercise of the powers of any one or more agencies under this Act or with any body or bodies established by the government of any province to exer cise powers similar to those of the Council in relation to intraprovincial trade in farm products.
The subject proceedings were instituted by a writ ten request of the Ontario Flue-Cured Tobacco Growers' Marketing Board, hereinafter "the Ontario Board", as contemplated by subparagraph 7(1)(a)(i), that a national tobacco marketing agency be established.
7. (1) In order to fulfil its duties the Council
(a) on receipt of a written request from one or more associa tions representing a significant number of persons engaged in the growing or production of the farm product or farm products in Canada or if directed to do so by the Minister shall, or on its own initiative may, inquire into the merits of
(i) establishing an agency in respect of a farm product or farm products and vesting it with all or any of the powers set out in section 23, or
and report its recommendations to the Minister including the terms of an appropriate marketing plan where, in its opinion, it is appropriate that an agency be vested with power to implement such a plan in relation to the farm product or farm products to which the inquiry relates;
In the circumstances, it was mandatory that a public hearing be held and a panel was constituted pursuant to subsection 8(3). The material provi sions of section 8 follow:
8. (1) A public hearing shall be held by the Council
(a) in connection with an inquiry into the merits of establish ing an agency or of broadening the authority of an existing agency to cover an additional farm product or farm products;
(3) The chairman may direct that a public hearing under this section be heard on behalf of the Council by two or more members thereof designated by him, and the members so designated have and may exercise for the purpose of such hearing the powers of the Council set out in subsection (5) and shall report to the Council on such hearing.
(5) The Council has, in respect of any public hearing under this section, all the powers of a commissioner appointed under Part I of the Inquiries Act.
It is pertinent to note that Part I of the Inquiries Act [R.S.C. 1970, c. I-13], inter alia, empowers the Council to require and compel the attendance of witnesses, the production of documents and the giving of evidence under oath or on solemn affirmation.
The Council's report to the Minister pursuant to paragraph 7(1)(a) may lead to a proclamation under subsection 17(1). Such a report is not, how ever, prescribed as a prerequisite to the Governor in Council establishing an agency.
17. (1) The Governor in Council may by proclamation establish an agency with powers relating to any farm product or farm products the marketing of which in interprovincial and export trade is not regulated pursuant to the Canadian Wheat Board Act or the Canadian Dairy Commission Act where he is satisfied that a majority of the producers of the farm product or of cach of the farm products in Canada is in favour of the establishment of an agency.
18. (1) A proclamation establishing an agency shall
(a) designate the farm product or farm products in relation to which the agency may exercise its powers and indicate whether such powers may be exercised in relation to
(i) any such product or products to the extent that it is or they are grown or produced anywhere in Canada, or.
(ii) any such product or products to the extent that it is or they are grown or produced in any region of Canada designated in the proclamation, or in any such region and anywhere in Canada outside that region for shipment into that region in interprovincial trade and not for export;
(b) designate any of the powers set out in section 23 that are not vested in the agency;
(c) set out the terms of any marketing plan that the agency is empowered to implement;
(e) fix the number of members of the agency, which shall be not less than three and not more than twelve at least a majority of whom shall be primary producers ....
(3) A proclamation referred to in subsection (1) or (2) that designates a farm product other than tobacco, eggs or poultry or any part of tobacco, eggs or poultry shall not set out as a term of the marketing plan that an agency is empowered to implement any term that would enable the agency to fix and determine the quantity in which any regulated product could be marketed in interprovincial or export trade by persons engaged in such marketing thereof.
23. (1) Subject to the proclamation by which it is established and to any subsequent proclamation altering its powers, an agency may
(a) purchase any regulated product in relation to which it may exercise its powers and any farm product, wherever grown or produced that is of the same kind as the regulated product in relation to which it may exercise its powers, and package, process, store, ship, insure, export or sell or other wise dispose of any such product purchased by it;
(b) implement a marketing plan the terms of which are set out in the proclamation establishing it or in any subsequent proclamation issued under subsection (2) of section 18 in respect of it;
The foregoing provisions of the Act are to be understood in light of the definitions set forth in section 2, and particularly the expanded definition of "marketing".
2....
(d) "marketing", in relation to any farm product that is not a regulated product, includes selling and offering for sale and buying, pricing, assembling, packing, processing, transport ing, storing and any other act necessary to prepare the product in a form or to make it available at a place and time for purchase for consumption or use, and in relation to a regulated product, includes only such of the above acts as are specified in the marketing plan relating to the regulated product;
(e) "marketing plan" means a plan relating to the promotion, regulation and control of the marketing of any regulated product in interprovincial or export trade that includes provi sion for all or any of the following:
(ii) the specification of those acts that constitute the marketing of the regulated product and of those persons engaged in its marketing, as so specified, in interprovincial or export trade, and for the exemption of any class of persons so engaged from the marketing plan or any aspect thereof;
(iii) the marketing of the regulated product on a basis that enables the agency that is implementing the plan to fix and determine the quantity, if any, in which the regulated product or any variety, class or grade thereof may be marketed in interprovincial or export trade by each person engaged in such marketing thereof and by all persons so engaged, and the price, time and place at which the regulated product or any variety, class or grade thereof may be so marketed;
(v) a system for the licensing of persons engaged in the growing or production of the regulated product for, or the marketing thereof in, interprovincial or export trade, including provision for fees, other than fees related to the right to grow the regulated product, payable to the appro priate agency by any such person in respect of any licence
issued to him and for the cancellation or suspension of any such licence where a term or condition thereof is not complied with; and
(vi) the imposition and collection by the appropriate agency of levies or charges from persons engaged in the growing or production of the regulated product or the marketing thereof and for such purposes classifying those persons into groups and specifying the levies or charges, if any, payable by the members of each such group;
(/) "Minister" means the Minister of Agriculture; and
(g) "regulated product" means any farm product to the extent that it is grown or produced
(i) anywhere in Canada, if an agency is authorized to exercise its powers in relation to any such product grown or produced in Canada, or
Currently, the manufacturers purchase Canadi- an tobacco production at auction with negotiated average floor prices. Establishment of the agency and marketing plan proposed by the Ontario Board would replace that system with an agency, controlled by the producers, having the power to fix prices. Since the underlying premise is that the producers have not, for several years, recovered their production costs, it is to be inferred that any agency and plan would cost the manufacturers. The adverse effect of the proposal on the interests of the manufacturers is clear. The Council is not limited in what it may recommend to the Ontario Board's proposal nor is the Governor in Council so limited in what may be proclaimed. The limitation is imposed by the statute and, it is evident, given the definition of "marketing", that the potential of an agency and plan to affect the existing rights and interests of the manufacturers is very great indeed.
In arguing that the Council has no duty to observe procedural fairness in the hearing conduct ed pursuant to paragraph 8(1)(a), the appellants rely on the proposition that the Council decides nothing. It has merely a fact finding function. Its recommendations to the Minister affect no rights. The Minister is not bound to act on its report. A report by the Council is neither a prerequisite to a recommendation by the Minister to the Governor in Council nor to a proclamation by the latter. It is
the decision to issue a proclamation, made by the Governor in Council, that affects rights.
The Council is, in short, in the appellants' sub mission, an administrative body charged only with the duty to enquire and advise. That, strictly speaking, is true but that is not an end of the matter.
In Saulnier v. Quebec Police Commission, [1976] 1 S.C.R. 572, the Supreme Court of Canada dealt with an inquiry into the conduct of the director of a police department whose report to the provincial Attorney General had requested the latter to undertake an evaluation of the qualifica tions of the director to hold his office with a view to the "standardization" of his rank and duties. It appears to have been accepted that this report was not a censure or a recommendation of punitive action which would have engaged the express requirement of the governing statute that the director be heard. The matter was not dealt with by the Court as though the report were a sham. Rather, the report was accepted as merely a recommendation that further action be taken which might result in a penalty. The Supreme Court, at page 579, quoted with approval a pas sage from the dissenting judgment of Casey J.A., of the Quebec Court of Appeal who said, in part:
Appellant has rendered a decision that may well impair if not destroy Respondent's reputation and future. ... when I recall that the whole purpose of these reports is to present facts and recommendations on which normally the Minister will act the argument that no rights have been determined and that nothing has been decided is pure sophistry.
In re Pergamon Press Ltd., [1971] Ch. 388 (C.A.), was concerned with the conduct of an inquiry by inspectors appointed under a British statute to investigate and report to the Board of Trade on the affairs of a company. A copy of the report was required to be given to the company, which was entitled to publish it, even though the Board of Trade might not act on it at all. The judgment of Lord Denning, M.R., is most fre quently quoted; however, for the present purposes
the following passage from the judgment of Buck- ley L.J., at page 407, is succinct and equally apt.
If it is found that a director or officer has made some default or acted improperly in relation to the conduct of the company's affairs, this may well prompt the company to institute proceed ings against him, or it may prompt others to institute proceed ings against him. In those proceedings the person proceeded against would have the full protection of a judicial process, but, particularly since the company is entitled to a copy of the report, he should not be exposed to the risk of such proceedings without being given a fair opportunity by the inspectors to forestall an adverse report.
Finally, in Re Abel et al. and Advisory Review Board (1980), 31 O.R. (2d) 520, the Ontario Court of Appeal considered the inquiry required to be undertaken annually by a review board into the continued detention of persons under Lieutenant Governor's warrants. There, as here, the legisla tion provided for the tribunal to be composed of persons knowledgeable of the questions they would have to deal with. The Court, per Arnup J.A., at page 532, quoted Dickson J. [as he then was], in Martineau v. Matsqui Institution Disciplinary Board, [ 1980] 1 S.C.R. 602, at pages 622-623:
In my opinion, certiorari avails as a remedy wherever a public body has power to decide any matter affecting the rights, interests, property, privileges or liberties of any person.
It held that the review board "has power to decide such a question" and went on to quote the reasons for judgment of Grange J., in the Divisional Court decision under appeal, (1979), 97 D.L.R. (3d) 304, at page 318:
The Lieutenant-Governor is, of course, not bound to act upon the recommendations in the report, but I do not think I-go too far—indeed I think I only state the obvious—when I say that a patient's only hope of release lies in a favourable recommenda tion by the Board..
Just as the Lieutenant-Governor need not act upon the Board's report so the Board need not act upon the information and reports of the officer in charge, but there can be no question that these will influence the Board and may in many cases be decisive. If counsel for the patient seeks, as he must, to represent his client properly, one can well understand his desire, even his imperative need, to examine such reports.
Arnup J.A. went on [at pages 532-533]:
I agree completely with these comments, but I would go even further. The whole purpose of the establishment of an advisory review board was to create an independent body, bringing to its task a considerable and varied expertise of its own, and likely to develop quickly an even greater expertise with the kind of problem assigned to it, with the hoped-for result that no one would be kept indefinitely in a mental institution, half-forgot ten, and with his situation unreviewed except by the staff of the institution. It is inherent in the conception and operation of such a board that its recommendations will virtually always be accepted.
I accept that considerations unrelated to the Council's expertise might lead the Minister or Governor in Council to decline to follow its recom mendations. Nevertheless, the role of the review board described in Abel and the role of the Coun cil in the scheme of the present Act are, in my opinion, quite similar.
A tribunal which enquires and recommends but does not decide may be required to observe proce dural fairness. Whether or not the requirement exists in a given situation depends on either or both of two considerations: (1) the actual role of the inquiry in the decision-making process; and (2) the potential effect of the recommendation itself absent an ensuing decision. Saulnier and Abel exemplify the requirement based on the first con sideration; Saulnier and Pergamon exemplify the second, particularly in their concern for personal reputations.
I do not think the present case can turn on the second consideration. However, I am satisfied that Parliament has, in the Act, given the Council's inquiry a role in the decision-making process that requires it to afford procedural fairness to those whose rights and interests would be affected by a decision based on its recommendation.
In reaching that conclusion, I am persuaded by the aggregate of the provisions which Parliament has made respecting the Council's duties and powers and the reality of the process that would ordinarily ensue upon a recommendation if it were to be considered by the Minister and the Governor in Council. As to the establishment of an agency, the Council has the duty to advise the Minister "on all matters" and to consult interested provin-
cial governments; it is required to inquire into the merits of such establishment if producers request it; when it inquires, it must hold a public hearing and, in holding it, the Council has been given the powers of a commissioner under Part I of the Inquiries Act. While representations may be made to the Minister and to the Governor in Council, the nature of the process at those levels does not admit of a fair hearing in the sense of a person having an opportunity to answer contrary positions because he simply may not know what they are. Parliament has plainly recognized that, when an agency is established and a marketing plan adopt ed, a decision affecting rights and interests is taken and that it should not be taken without first affording all affected the opportunity of a fair hearing. It has expressly provided that opportunity as part of the Council's inquiry and the Council is obliged to conduct the hearing accordingly.
The alleged denials of natural justice are all concerned with a report, hereinafter "the 1983 C.O.P. Study", which the Ontario Board commis sioned a few days before it submitted its proposal that an agency be established. The proposal, sub mitted to the Council on October 15, 1984, alleged that Ontario producers had not, in seven of the preceding eight years, recovered their cost of pro duction plus a reasonable return. Notice of a public hearing was published by the Council call ing on interested persons to file submissions by March 1, 1985. On February 12, the Ontario Board filed a supplement to its proposal stating, in part:
Cost of production pricing is one of the fundamental objec tives of the Proposal. The Proposal states that, based on Ontario Board estimates, producers in Ontario, over a number of recent years, have received a price for their product which is less than the cost of producing tobacco and a reasonable return.
The Ontario Board retained Touche Ross & Partners to make an independent assessment of the matter.
Touche Ross & Partners has concluded that, in 1983, Ontario flue-cured tobacco growers received a minimum aver-
age price which was below the cost of production and a reasonable return for producing that crop.
The respondents duly filed their submission, which put the alleged shortfall in price into issue. They were recognized as intervenors by the Council. Public hearings were scheduled on 11 days be tween April 16 and May 31, 1985, inclusive.
Prior to the commencement of the hearing, the Council sent a Notice of Deficiency to the Ontario Board noting that its material did not include the 1983 C.O.P. Study. On the first day of the hear ing, the respondents sought an order
... that the Ontario Board produce the Touche, Ross cost of production study in time so that the manufacturers can consid er that for the purpose of this Inquiry.
The Council disposed of that application by sug gesting that, and then permitting, the Ontario Board delete the reference to the 1983 C.O.P. Study from its supplementary proposal. On May 8, the respondents moved for an order that the Ontario Board be required to produce all docu mentation in its possession and that of Touche, Ross & Partners concerning the 1983 C.O.P. Study, that the respondents be given a reasonable opportunity to examine it and, if necessary, that the inquiry adjourn until the documentation was produced. At the time, further public sessions were scheduled for May 9, 10, 16, 17, 30 and 31. On May 14, the Council dismissed the motion in a written decision stating, in part:
By deleting all reference to it in its submission, though, the Ontario Board has indicated that it does not wish to advance any arguments based upon the 1983 study. The Board has also elected to refuse to answer any questions about the study. For the reason previously stated the panel regrets this decision by the Ontario Board and views the omission as a missed opportu nity to make a significant contribution to its objective of assisting the panel to understand how the proposed agency would operate to improve the situation in the tobacco industry.
The panel, however, has a stated policy of allowing parties to choose the submissions and supporting evidence they wish to make in this hearing. Accordingly, it is the view of the panel that to allow this motion would unduly prejudice the rights of the other parties to this proceeding who have operated through out under this general guideline of non-compellibility when
either presenting evidence or cross-examining witnesses. Fur ther, given the late date at which this motion is made, in the view of the panel, to allow it would necessitate a complete rehearing on the matter which would involve considerable delays and additional costs and expenses to all parties. Finally, the panel believes that in the evidence and cross-examination of the witness representing Touche -Ross & Partners considerable information has been brought to light on the subject of cost of production and that as this cross-examination proceeds in the area of appropriate methodologies it may well serve to partially alleviate the fact that the report for 1983 is not yet available.
The 1983 C.O.P. Study was, in fact, delivered to the Council after the hearing had ended. The respondents immediately sought to have the hear ing reopened. They were advised that a decision to reopen could not be made until the Council met again and that a meeting could not be held before the intended date of delivery of the Council's report to the Minister.
The learned Trial Judge made the following order:
1. It is ordered that pursuant to Rule 307(3) of the Rules and Orders of the Federal Court of Canada service of the originat ing notice of motion in this matter on the respondent, the Ontario Flue Cured Tobacco Growers' Marketing Board, the Prince Edward Island Tobacco Commodity Marketing Board, the Simcoe Leaf Tobacco Co. Ltd., Dibrell Brothers of Canada Ltd., Standard Commercial Tobacco Company of Canada Ltd. is sufficient for the purpose of this hearing.
2. An order of mandamus is hereby made requiring the respondent to re-open its hearing held in accordance with section 9 of the Farm Products Marketing Agencies Act in connection with an inquiry into the merits of establishing a marketing agency for flue-cured tobacco. The respondent is required to consider the Touche, Ross & Partners 1983 Cost of Production Study, and to compel the attendance of such wit nesses as are necessary to lead evidence on the said study. The respondent is required to permit cross-examination by the applicants, and if necessary permit the introduction of rebuttal evidence by any party.
3. An order of certiorari is hereby made quashing the Inquiry Panel report dated on or about August 21, 1985 and the respondent's report to the Minister of Agriculture.
4. An order of prohition is hereby made preventing the respond ent, until the above hearing has been completed from reporting its recommendations to the Minister of Agriculture pursuant to section 7(1) of the Farm Products Marketing Agencies Act.
5. It is further ordered that notice of the reopening of the hearing shall be deemed sufficient if served on the parties to this application. Any other person, group or corporation who participated in the previous four hearings at London, Ontario;
Charlottetown, P.E.I., Montreal, Quebec; or Ottawa, Ontario may apply to the respondent to be heard but it shall not be necessary to notify these parties.
6. The applicants are entitled to their costs of this motion as against the respondent forthwith after taxation thereof.
Since the 1983 C.O.P. Study is now in existence and the Council has it, it would be otiose to dwell on the alleged refusal of the Council to exercise its jurisdiction by adhering to its stated policy in totally inappropriate circumstances. Suffice it to say, Parliament has, by subsection 8(5) of the Act, vested the Council with powers which it may be required to invoke from time to time in the exer cise of its jurisdiction and its failure to do so may well amount to an improper refusal of jurisdiction. For the same reason, no useful purpose would be served in dwelling on the panel's suggestion that reference to the 1983 C.O.P. Study be deleted from the supplementary submission nor the dispo sition of the initial motion to compel its production.
The 1983 C.O.P. Study does exist. The Council has it. It is a timely, professional study relevant to an issue of crucial importance to the Council's report to the Minister. The relief granted by the learned Trial Judge was warranted and appropri ate.
I have only reservation as to his order. The record discloses that 61 submissions were filed with the Council. It does not disclose how many persons were permitted to intervene at the hearing. Paragraph 1 of the order restricted nunc pro tunc the persons given notice of the proceedings in the Trial Division and that effectively defined those given notice of this appeal. Paragraph 5 of the order puts an onus on interested persons, not party to these proceedings, which, with respect, seems impractical. I would vary paragraph 5 to read:
5. It is further ordered that notice of the reopening of the hearing be served by the Council on all persons who were permitted to intervene at the initial hearings.
I would otherwise dismiss this appeal with costs.
STONE J.: I agree.
* * *
The following are the reasons for judgment rendered in English by
MACGUIGAN J.: I am in full agreement both with the disposition of the case proposed by my brother Mr. Justice Mahoney and with his reasons for that disposition. I wish merely to add some supporting considerations with respect to the issue of reviewability by this Court of the report to the Minister of Agriculture ("the Minister") by the National Farm Products Marketing Council ("the Council") in relation to the merits of establishing a national tobacco marketing agency.
In my view the approach to judicial review of administrative action since Ridge v. Baldwin, [ 1964] A.C. 40 (H.L.) in England and Nicholson v. Haldimand-Norfolk Regional Board of Com missioners of Police, [1979] 1 S.C.R. 311 in Canada was accurately stated by Dickson J. (as he then was) in Martineau v. Matsqui Institution Disciplinary Board, [ 1980] 1 S.C.R. 602, at pages 628-629:
The authorities, in my view, support the following conclusions:
1. Certiorari is available as a general remedy for supervision of the machinery of government decision-making. The order may go to any public body with power to decide any matter affecting the rights, interests, property, privileges, or liberty of any person. The basis for the broad reach of this remedy is the general duty of fairness resting on all public decision-makers.
2. A purely ministerial decision, on broad grounds of public policy, will typically afford the individual no procedural protec tion, and any attack upon such a decision will have to be founded upon abuse of discretion. Similarly, public bodies exercising legislative functions may not be amenable to judicial supervision. On the other hand, a function that approaches the judicial end of the spectrum will entail substantial procedural safeguards. Between the judicial decisions and those which are discretionary and policy-oriented will be found a myriad deci- sion-making processes with a flexible gradation of procedural
fairness through the administrative spectrum. That is what emerges from the decision of this Court in Nicholson. In these cases, an applicant may obtain certiorari to enforce a breach of the duty of procedural fairness.
The new approach involves a recognition of a spectrum of judicial review of government deci- sion-making with greater procedural safeguards at the judicial end of the spectrum, diminishing to no safeguards/no review at the other end, where purely legislative functions are in play. In the case of the Council, section 10 of the Farm Products Marketing Agencies Act ("the Act") provides for such purely legislative action, which would prob ably not be subject to judicial review:
10. The Council may make rules respecting the conduct of public hearings under section 8 and generally respecting the conduct of business of the Council in relation thereto.
But Council action under section 8, which provides for public hearings by the Council in connection with an inquiry into the merits of establishing an agency, as here, is not in the purely legislative area, and so must be reviewable.
It is true that the Council's report to the Minis ter affects no rights directly. It is true that the Minister is not bound to act on its report. It is true that its report is a prerequisite neither to a minis terial proposal to the Governor in Council nor to a proclamation by the Governor in Council.
Nevertheless, in my view the clear implication of the Act, which allows an association such as the Ontario Flue-Cured Tobacco Growers' Marketing Board in this case to initiate an inquiry,' which must be by public hearing, 2 in which the Council is
' 7. (1) ... the Council
(a) on receipt of a written request ... inquire into the merits
of
(i) establishing an agency in respect of a farm product or
farm products ....
2 8. (1) A public hearing shall be held by the Council
(a) in connection with an inquiry into the merits of establish
ing an agency ....
armed with all powers under Part I of the In quiries Act,' and which must culminate in a report to the Minister containing the Council's recommendations, 4 is that, once the report is made, the Minister must at least take it into account, and if he makes subsequent recommendations to the Governor in Council, the Governor in Council also must take it into consideration in reaching his decision. Any other interpretation of the Act would reduce the deliberately expressed intention of Parliament in this statute to a meaningless sham. Even though leaving the Executive with the power to act on its own initiative entirely, Parlia ment clearly intended an integral process stretch ing from public hearings to executive proclama tion, and in particular intended that, when a report had been made, its consideration should become a precondition of ministerial and executive action.
In Saulnier v. Quebec Police Commission, [1976] 1 S.C.R. 572, at page 579, the Supreme Court of Canada found it sufficient for judicial review that an investigation report "may well" adversely affect a police director's reputation and future, being a report "on which normally the Minister will act". In In re Pergamon Press Ltd., [1971] Ch. 388 (C.A.), at page 400, Lord Denning M.R. justified review on the ground the inspectors' report "may lead" to adverse consequences for company directors. The adverse effects must, it seems, be more than merely possible; they must be somewhere close to probable, or perhaps even probable. 5
3s....
(5) The Council has, in respect of any public hearing under this section, all the powers of a commissioner appointed under Part I of the Inquiries Act.
4 7. (1) ...
and report its recommendations to the Minister including the terms of an appropriate marketing plan where, in its opinion, it is appropriate that an agency be vested with power to imple ment such a plan in relation to the farm product or farm products to which the inquiry relates;
somewhere close to probable, or perhaps even probable.'
Here, Parliament has established as the normal route to the establishment of a marketing agency a public process affording wide participation by those potentially affected. It intends that, when a report has been made, it shall be taken seriously. I believe it is not necessary for a Court to weigh out in mathematical fashion the degree of probability of the adverse result in order to conclude that, since the Council's report, if favorable to the inter ests of the tobacco growers, may well and indeed probably will adversely affect the interests of manufacturers of tobacco products, the case is made for judicial review.
In Re Abel et al. and Advisory Review Board (1980), 31 O.R. (2d) 520, at pp. 532-533, the Ontario Court of Appeal per Arnup J.A. found it to be "inherent in the conception and operation of such a board [an advisory review board for psy chiatric facilities] that its recommendations will virtually always be accepted" [emphasis added]. However, this was advanced as a conclusion on the facts rather than as a require ment of the law.
 You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.