Senator EGGLESTON: I would like to ask a question about a company called Polar Aviation based in Port Hedland. Are you aware of that company?
Mr McCormick: Yes, I am.
Senator EGGLESTON: I wish to make some inquiries about the cost of CASA's various legal cases against Polar Aviation. Polar Aviation is a small Port Hedland aviation company which I understand has been in dispute with CASA since 2004. This has led to a series of legal actions beginning with the Administrative Appeals Tribunal and then the Federal Court, all of which Polar Aviation has won and all of which cases have been appealed by CASA. I understand that now, eight years later, CASA is still appealing the decisions made about Polar Aviation. In fact, the managing director of Polar Aviation has said to me in a letter describing this process:
What followed was a relentless vendetta to close the company down. The court action that followed was defended in the AAT and the Federal Court and Polar Aviation has won on all occasions.
This case is now eight years old, as I said. All this man, Clark Butson, says he wants to do is:
… tell my story to a judge. All CASA wants to do is avoid that process at any cost. This case has real relevance and should be tested in a court. If CASA has nothing to fear why will they not bring it on?
What bothers me is that this is a small company. CASA represents the Commonwealth government and has used the financial resources of the Commonwealth government to try to shut down this very successful and respected airline in the Pilbara. I would like to have—and I ask for it to be provided on notice—a detailed summary of the costs incurred by CASA in the various legal actions against Polar Aviation.
Mr McCormick: I will ask the chief legal officer to actually give you some background. It is fair to say that Mr Butson is a bit delusional—
Senator EGGLESTON: I beg your pardon?
Mr McCormick: He is a bit delusional if that is what he thinks the outcome of the court cases has been so far.
Senator EGGLESTON: He has won them all so far. If that is a delusion, then perhaps we should go to the judges.
Mr McCormick: I have asked the chief legal officer, Mr Adam Anastasi, to fill you in.
Mr Anastasi: By way of background it is correct that in 2005 CASA cancelled Mr Butson's chief pilot approval and the air operator's certificate of Polar Aviation. There was a subsequent hearing of the AAT. In the course of that hearing the matters were resolved by consent between the parties and that resulted in the decision to cancel Mr Butson's chief pilot approval being affirmed and the decision to cancel Polar Aviation's air operator's certificate being set aside.
Subsequent to that, Polar Aviation and Mr Butson commenced legal proceedings against CASA and various of its officers in the Federal Court of Australia; that is, his action against CASA. In that regard, on 30 September 2011, the Federal Court dismissed his statement of claim in its entirety. Mr Butson and Polar Aviation have now appealed that judgment to the Full Court of the Federal Court of Australia and, as I said, that is his action against CASA. It is a claim for damages against CASA. The court has dismissed his claim—so I will stop there.
CASA can provide information concerning its legal costs in the tribunal proceedings. The current Federal Court litigation is one in which Comcover, as our insurer, has instructed external lawyers to represent CASA and its officer, so CASA is not paying legal fees in that regard. That is a matter for Comcover as to whom they instruct and on what basis. But in that regard, at least at this point in time, Polar Aviation has been ordered to pay CASA's legal costs.
Senator EGGLESTON: Is it not the case that Polar Aviation’s operating licences were restored and the case against you was for damages, for loss of income and other factors? I am not so much interested in the legal issues, which of course at the moment are sub judice; I am very interested in the total cost of the legal cases which CASA has brought against this small company over the last eight years.
Mr Anastasi: CASA has brought no action against those persons or the company. On odd occasions it has been either Polar Aviation and Mr Butson’s applications either to the tribunal or to the Federal Court. Obviously, when a party is aggrieved with an administrative decision of the authority they can seek review in the Administrative Appeals Tribunal. As I said, I am happy on notice to give you information about our legal costs in the tribunal proceedings. But in terms of the Federal Court proceedings, again commenced by those parties against CASA, we are not privy to Comcover’s legal expenditure.
Senator EGGLESTON: Your story is not quite what I have heard. I think you are resisting the damages claim. I would seek leave to table this letter.
CHAIR: Do you have further questions on those?
Senator EGGLESTON: No, I will not. I may put further questions on notice.
CHAIR: Thank you.