Case Law[2023] ZACC 17South Africa
City of Cape Town v Independent Outdoor Media (Pty) Ltd and Others (CCT 36/22) [2023] ZACC 17; 2024 (1) SA 301 (WCC); 2024 (4) BCLR 483 (CC) (23 June 2023)
Constitutional Court of South Africa
23 June 2023
Headnotes
Summary: Declaration of constitutional invalidity — Section 29(8) of the National Building Regulations and Building Standards Act 103 of 1977 — Minister’s supervisory role in making regulations for matters falling within Part B of Schedule 4 of the Constitution
Judgment
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## City of Cape Town v Independent Outdoor Media (Pty) Ltd and Others (CCT 36/22) [2023] ZACC 17; 2024 (1) SA 301 (WCC); 2024 (4) BCLR 483 (CC) (23 June 2023)
City of Cape Town v Independent Outdoor Media (Pty) Ltd and Others (CCT 36/22) [2023] ZACC 17; 2024 (1) SA 301 (WCC); 2024 (4) BCLR 483 (CC) (23 June 2023)
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sino date 23 June 2023
CONSTITUTIONAL
COURT OF SOUTH AFRICA
Case
CCT 36/22
In
the matter between:
CITY
OF CAPE
TOWN
Applicant
and
INDEPENDENT
OUTDOOR MEDIA
(PTY)
LIMITED
First
Respondent
BODY
CORPORATE OF THE OVERBEEK
BUILDING,
CAPE
TOWN
Second
Respondent
MINISTER
OF TRADE, INDUSTRY
AND
COMPETITION
Third
Respondent
and
OUT
OF HOME MEDIA SOUTH AFRICA NPC
Amicus Curiae
Neutral
citation:
City of Cape Town v
Independent Outdoor Media (Pty) Ltd and Others
[2023] ZACC 17
Coram:
Maya DCJ,
Baqwa AJ,
Kollapen J,
Madlanga
J, Majiedt J, Mathopo J, Mbatha AJ, Mhlantla J and Rogers J
Judgment:
Mbatha AJ (unanimous)
Heard
on:
3 November 2022
Decided
on:
23 June 2023
Summary:
Declaration of constitutional invalidity — Section 29(8) of
the National Building Regulations and Building Standards Act 103
of 1977 — Minister’s supervisory role in making
regulations for matters falling within Part B of Schedule 4 of
the
Constitution
Section
151(2) of the Constitution — Legislative authority of a
municipality vests in the Municipal Council — section
156(2) of
the Constitution — a municipality has the power to make and
administer by-laws for the effective administration
of matters over
which it has the right to administer — separation of powers
ORDER
On
application for confirmation of an order of constitutional invalidity
granted by the High Court of South Africa, Western Cape
Division,
Cape Town:
1.
The order of the High Court declaring section 29(8) of the National
Building
Regulations and Building Standards Act 103 of 1977
inconsistent with the Constitution and invalid is confirmed.
2.
The first respondent’s purported appeal is struck from the
roll.
3.
The first respondent must pay the applicant’s costs occasioned
by its purported
appeal, including the costs of two counsel.
JUDGMENT
MBATHA
AJ (Maya DCJ,
Baqwa AJ,
Kollapen J,
Madlanga J, Majiedt J, Mathopo J,
Mhlantla J and Rogers J concurring
):
Introduction
[1]
This
is an application by the City of Cape Town (City) for confirmation of
an order of constitutional invalidity of section 29(8)
of the
National Building Regulations and Building Standards Act
[1]
(Building Act) granted by the High Court of South Africa, Western
Cape Division, Cape Town. Section 29(8) of the Building
Act
requires municipalities to obtain the approval from the relevant
Minister before promulgating by-laws “relat[ing] to
the
erection of a building”.
[2]
The City’s application for confirmation is unopposed. In
this Court, Independent Outdoor Media (Pty) Ltd (IOM)
served a
notice of appeal, purportedly in terms of section 172(2)(d) of the
Constitution.
[3]
IOM’s
ostensible appeal is opposed by the City.
The
parties
[2]
The City, a metropolitan municipality, is the applicant in the
confirmation proceedings and a respondent in the appeal. IOM
is
a company engaged in the display and management of advertising signs
and spaces on behalf of its clients. IOM is the first
respondent in the confirmation proceedings and the appellant in the
appeal. The second respondent is the Body Corporate of
the
Overbeek Building (Overbeek), which owns the building on which the
two advertising spaces relevant to these proceedings are
erected.
Overbeek abides the decision of this Court.
[3]
The third respondent is the Minister of Trade, Industry and
Competition (Minister), who is responsible for the administration of
the Building Act and is the Minister contemplated in section
29(8). The Minister abides the decision of this Court but
made
submissions regarding the interpretation of the Building Act.
[4]
Out of Home Media South Africa NPC (OHMSA) was admitted as an
amicus curiae and made written submissions. OHMSA is a
non-profit
company that represents the interests of media owners in
the outdoor advertising industry. Its members collectively own
and
operate approximately 80% of all outdoor advertising signs in
South Africa.
Background
[5]
The applications arise from a dispute relating to two
billboards on the Overbeek Building, a prominent building on Long
Street in
Cape Town. In 1999 and 2000,
Overbeek
leased two billboards on the building’s facades to IOM.
IOM describes the billboards as follows:
“
[T]he physical
structure is a galvanised steel frame bolted onto galvanised steel
brackets, set into the plaster and brick of the
building’s
external walls using 1100 mm long, 12 mm diameter expanding
Rawl bolts. The changeable artwork
[is affixed onto] that.”
It is common cause
between the parties that these structures are buildings under the
definition of “building” in the
Building Act.
[4]
[6]
The City authorised IOM to use these billboards for a period
of five years, in terms of the by-laws applicable at the time.
These authorisations lapsed on 3 March 2004 and 5 November
2005 respectively. However, IOM continued to display
advertisements on the building without authorisation from the City.
[7]
The City’s enforcement efforts against IOM’s
unauthorised display of the advertisements, which included imposing
fines,
initiating criminal proceedings and issuing compliance
notices, were fruitless. IOM would simply pay the fine or
temporarily
remove the advertisements, but the advertising structures
would remain in place in defiance of the City’s enforcement
measures,
and a new advertisement would go up.
Litigation
history
High
Court
[8]
In March 2016, the City
brought an
enforcement application against Overbeek and IOM for the removal of
the advertisements. In March 2021, Overbeek
made an application
in which it sought an order directing IOM to remove the allegedly
unlawful advertisements on its building
on the basis that they
were not authorised in terms of the
Outdoor
Advertising and Signage By-Law, 2001 (Advertising By-Law).
The
two applications were consolidated.
IOM, in
opposing the City’s application, brought a counter-application
for a declaration that the Advertising By-Law is void
for
non compliance with section 29(8) of the Building Act
because the City had not obtained ministerial approval before
promulgating the By Law.
IOM contended that outdoor
advertising in Cape Town was “completely unregulated”.
In response, the City deployed a collateral
defence
, arguing
that section 29(8) of the Building Act is constitutionally
invalid.
After engaging with the Minister in the spirit
of cooperative governance
, the City joined the
Minister to the proceeding
s and launched a direct
constitutional challenge to
section 29(8) of
the Building Act.
The direct
challenge, which was unopposed, displaced the collateral defence.
[9]
The Minister
did not oppose the
constitutional challenge, but made submissions on the interpretation
of the provision and argued that, if his
interpretation was correct,
the facts of the case did not warrant a declaration of constitutional
invalidity. The Minister
pursued the same argument in this
Court, but did not oppose the confirmation application.
[10]
The
High
Court
held that section 29(8) of the Building Act is constitutionally
invalid and, consequently, dismissed IOM’s counter-application
to declare the Advertising By-Law void for non-compliance with
section 29(8). It reasoned
that
section 29(8) violates the independent and exclusive legislative
authority of municipalities by requiring the Minister’s
approval before a by-law that “relates to the erection of a
building” may be validly promulgated,
[5]
and that section 29(8) violates the mutual respect provisions in the
Constitution that require each sphere of government to respect
the
constitutional status of the other spheres.
[6]
[11]
The
High Court held that municipal autonomy ensured by the mutual respect
provisions in the Constitution must inform the interpretation
of
municipal powers
[7]
and it endorsed the City’s argument that the effect of section
29(8) is to grant the Minister a constitutionally impermissible
veto
power over by-laws that relate “to the erection of a
building”.
[8]
[12]
The
High Court reasoned that, although Parliament may legislate on
“building regulations” because it is a Schedule 4
functional area,
[9]
these powers are limited in nature and cannot be interpreted as
concurrent with municipal legislative powers.
[10]
The national government may only regulate a municipality’s
executive authority, not its legislative authority.
[11]
It held that the national government’s powers are limited, in
relation to municipalities, to a “monitoring, supervising
and
support function”.
[12]
Section 29(8) exceeds this function and was accordingly
constitutionally invalid.
[13]
[13]
In
respect of the separation of powers, the High Court held that the
Minister’s veto power “imposes a different legislative
process and a different legislator from that which is
constitutionally envisioned”.
[14]
This was held to be contrary to the scheme set out in sections
43(c),
[15]
151(4),
[16]
and 160(2)(a)
[17]
of the
Constitution.
[18]
[14]
Although
it is not in issue in this case, the High Court noted that
section 29(8) creates the possibility that the Minister
will
have veto power over by laws covering functional areas of
exclusive municipal competence.
[19]
Further, citing
Tasima
,
the High Court held that, by giving the Minister the ability to
determine the validity of by laws, section 29(8)
unconstitutionally
ousts the courts’ role as the “sole
arbiters of legality”.
[20]
[15]
The
High Court rejected the Minister’s argument that billboards and
public advertisements are not covered by section 29(8),
instead
preferring the interpretation of the High Court in
SAPOA
[21]
and
Independent
Outdoor Media (Pty) Ltd
.
[22]
It reasoned that, in any event, interpreting section 29(8) so
that it does not apply to billboards and public advertising
is
unhelpful because the provision will “jeopardise [the City’s]
current and future law-making, as well as a number
of other by-laws
of other municipalities, countrywide” in spheres other than
public advertising that “relate to the
erection of a
building”.
[23]
The High Court further rejected the contention that the
doctrine of avoidance found application in this matter and held that
it only applies if the dispute is “capable of being decided
differently in its entirety”.
[24]
The High Court commented that, if the constitutional validity of
section 29(8) was not decided, the validity of a number
of municipal
by-laws would be uncertain.
[25]
[16]
Consequently,
the High Court dismissed IOM’s counter-application and
supplementary challenges.
The
High Court also ordered that the impugned advertisements, which were
unauthorised
under
the Building Act and the Advertising By-Law, be removed. IOM
was ordered to pay the City’s costs in relation to
the
counter-application and the supplementary challenges to the
lawfulness of the Advertising By-Law.
[26]
IOM appeals these costs orders in this Court.
Proceedings in this Court
[17]
These are confirmation proceedings in terms of section 167(5)
of the Constitution. The order to be confirmed is the High
Court’s
declaration of constitutional invalidity of section
29(8) of the Building Act. In terms of section 172(2)(d)
read with
section 167(5) of the Constitution, this Court must make
the final decision and confirm any order of constitutional invalidity
made by the High Court before that order has any force or
effect.
[18]
In respect of the appeal, section 172(2)(d) of the
Constitution provides that “[a]ny person or organ of state with
a sufficient
interest may appeal, or apply, directly to the
Constitutional Court to confirm or vary an order of constitutional
invalidity”.
To the extent that IOM’s appeal arises
from the High Court’s order of constitutional invalidity, it is
properly before
this Court. Therefore, those elements relating
to IOM’s counter-application and supplementary challenges, for
example,
which are discrete from the confirmation orders, should have
been brought by means of an application for leave to appeal.
Those elements are not properly before this Court.
City
of Cape Town’s submissions
[19]
The City submits that section 29(8) is unconstitutional for
several reasons. First, it infringes on the legislative
autonomy
of municipalities, as it impedes a municipality’s
ability and right to exercise the legislative powers assigned to it
in
Schedule 4 Part B and Schedule 5 Part B of the Constitution
by requiring prior ministerial approval for the making of by laws
regarding “the erection of a building”.
[20]
Second, the Building Act is old-order legislation passed
during the era of parliamentary sovereignty and fails to recognise
that
Parliament has limited authority in matters relating to building
regulations under the constitutional order. Parliament can
only
play a supportive role but has no power to regulate the passing of
municipal legislation.
[21]
Third, the City submits that section 29(8) infringes upon the
doctrine of separation of powers because the making of by-laws falls
exclusively within the terrain of municipal councils. However,
section 29(8) empowers the Minister to veto municipal legislation
and
replaces a legislature with an executive functionary in a different
sphere of government.
[22]
Fourth, the City contends that Parliament is not competent to
legislate in respect of a Schedule 5 functional area. The
relevant
functional area, the City argues, is “billboards and
the display of advertisements in public places”, which is the
subject of the Advertising By-Law. Section 44(1)(a)(ii) of the
Constitution empowers Parliament to legislate on any matter,
excluding a matter within a functional area listed in Schedule 5.
[23]
Fifth, section 29(8) usurps the powers of the courts in that
it provides that a by law which does not comply with its terms
is void. The City argues that only a court of law has the
constitutional authority to declare an exercise of public power
invalid and determine the consequences of invalidity, including
whether it is void.
[24]
Lastly,
section 29(8) applies in respect of any by-law that “relates to
the erection of a building”. It is of
wide application
and incorporates many municipal competencies which relate to the
erection of a building, including “billboards
and the display
of advertisements in public places”, “amusement
facilities”, “facilities for the accommodation,
care and
burial of animals”, “fencing”, “local
amenities” and “municipal abattoirs”.
This
does not only affect the City but impacts negatively on all
municipalities with by-laws containing provisions that “relate
to the erection of a building”.
[27]
Minister’s
submissions
[25]
The Minister does not oppose the confirmation proceedings.
However, he submitted an explanatory affidavit in which he argued
that section 29(8) can be interpreted in such a way that a
constitutional challenge is not necessary on the facts of this case.
[26]
The Minister is of the view that the High Court did not engage
in the interpretative exercise to determine whether the Building Act,
correctly interpreted, applies to the City’s by-law in respect
of “billboards and the display of advertisements in
public
places”. The Minister submits that the facts of this case
do not warrant a declaration of constitutional invalidity.
[27]
The Building Act, contends the Minister, is intended to
promote uniformity in the law relating to the erection of buildings
in municipalities
across the country. He submits that the Act
(and specifically section 29(8)) does not apply to “billboards
and the
display of advertisements in public spaces” and,
therefore, does not encroach on municipalities’ Schedule 5 Part
B
competence. The Minister submits that section 29(8) is
only constitutionally offensive if a billboard or outdoor
advertisement
signage is a “building” for the purposes of
the Act. The Minister concedes that if section 29(8)
applies
to the Advertising By-Law, the section would be non-compliant
with the Constitution.
[28]
The Minister argues that where a court can avoid declaring
national legislation inconsistent with an exclusive municipal
competence,
it should do so by reading the provisions harmoniously
and purposively. He argues that there is no conflict between
the Building
Act and the Advertising By-Law because the purpose of
the Act is to regulate buildings, which do not include billboards and
advertisements
in public spaces.
[29]
On remedy, the Minister argues that there is no need for an
order regulating retrospectivity because Parliament is in the process
of drafting new legislation to regulate building norms and standards
that will be scrutinised for constitutional compliance in
the
parliamentary process. The Minister also submits that the order
need not be suspended.
The
City’s response to the Minister
[30]
In
response to the Minister’s arguments on interpretation, the
City submits that the proposed interpretation does not address
any of
the grounds of constitutional invalidity beyond the Schedule 5 Part B
argument and even then it does so only in respect
of one by-law (i.e.
the Advertising By-Law). The suggested interpretation does not
cure any of the following defects: (a)
infringement on
municipalities’ power to legislate autonomously; (b) exceeding
Parliament’s competence; (c) infringement
of the separation of
powers; (d) infringement of the powers of the courts; and
(e) impermissible regulation of Schedule 5
Part B matters other
than “billboards and the display of advertisements in public
spaces”. The City submits that
section 29(8) is “too
extensively riddled with constitutional invalidity to be saved by a
restrictive interpretation”.
It argues further that the
doctrine of constitutional avoidance, on which the Minister’s
argument is based, is no longer
part of our law.
[28]
The City points out that its direct constitutional challenge was made
not only in respect of the Advertising By-Law, but
concerned
section 29(8), to the extent that it affects
all
by-laws relating to the “erection of a building”.
IOM’s
submissions
[31]
IOM
’s main contention
in
support of its purported appeal in terms of section 172(2)(d)
is
that
t
he High
Court
failed to determine
whether the
declaration
of invalidity of section
29
(8) of the Building Act was retrospective and, if so, to
what extent. Therefore, IOM submits that the declaration is not
retrospective
and that, for this reason, the Advertising By-Law
remains void for failure to comply with section 29(8) of the Act.
In other
words, in the absence of retrospective invalidation,
section 29(8) was in force at the time the Advertising By Law
was
enacted, and non-compliance with section 29(8) thus
invalidated the By Law.
[32]
IOM also argues that, because the High Court’s order of
constitutional invalidity has no force or effect until confirmed by
this Court, the High Court was wrong in two respects. First,
the High Court incorrectly dismissed its counter-application,
which
was premised on the fact that the Advertising By-Law remains void
until this Court confirms the declaration of constitutional
invalidity with retrospective effect. Second, the High Court
should not have granted the order declaring IOM’s
signage
unlawful and directing IOM to remove it. IOM submits that in
order to keep the Advertising By-Law alive, a suspended
order of
invalidity should have been made and the removal order should have
been granted as temporary relief.
[33]
IOM
also takes issue with the fact that the High Court ordered it to pay
the City’s costs in respect of its failed counter-application
and supplementary challenges. It contends that the
counter-application and supplementary challenges were constitutional
in nature and thus, according to
Biowatch
,
each party should bear its own costs.
[29]
It submits further that the High Court ought to have found that
the signage had been approved as required under the Building
Act and,
thus, no order for its removal was warranted.
[34]
In addition, IOM submits that the impact of the
retrospectivity of the order should be limited in respect of criminal
liability.
It does not object that section 29(8), if
confirmed to be invalid, should be invalid retrospectively from
4 February
1997, the date that the Constitution came into force,
provided that the Advertising By-Law is not applied in criminal
proceedings.
IOM argues that it should not bear the adverse
criminal consequences of an ambiguity created by the legislative
scheme. IOM’s
argument is that, until now, the
Advertising By-Law has been invalid due to non-compliance with
section 29(8). If section
29(8) is declared invalid with
retrospective effect, the Advertising By-Law will acquire
retrospective validity. In the absence
of some qualification,
this will expose IOM and similarly placed advertisers to criminal
liability for failure to comply in the
past with the retrospectively
validated Advertising By-Law. On this aspect, they are
supported by the amicus curiae, OHMSA.
The
City’s response to IOM
[35]
Though the City pointed out that the appeal was not properly
before this Court, it made submissions in response to IOM. The
City argues that there is no basis for the contention that the
Advertising By-Law should not be applied in criminal proceedings
pending at the date of the order. It submits that the criminal
sanctions in the Advertising By-Law are constitutionally valid
and
serve an important public function. The City submits that
if IOM wished the High Court to depart from the default
position on
retrospectivity, it should have adduced evidence in support of such a
prayer. IOM did not do this. The
City argues that the
present proceedings are not concerned with reviving the Advertising
By-Law, but recognising that it has always
had legal force because it
was never voided by section 29(8). It argues that the
declaration of invalidity should be given
its ordinary legal effect,
in accordance with the doctrine of objective constitutional
invalidity, namely, that it be declared
invalid from 4 February 1997,
when the Constitution came into force.
OHMSA’s
submissions
[36]
OHMSA accepts that section 29(8) is constitutionally invalid.
Like IOM, OHMSA submits that its members have arranged their
affairs
on the basis that various by laws regulating outdoor advertising
across the country were void for non compliance
with section
29(8). As a result, they submit that the declaration of
invalidity should be suspended to enable outdoor advertisers
to
regularise their activities. Regarding the retrospective effect
of the order of invalidity, OHMSA submits that the by-laws
were void
at the time they were promulgated and cannot be made valid by an
order of constitutional invalidity of section 29(8).
[37]
OHMSA argues that it has, for a long time, taken the position
that outdoor advertising by-laws across the country are void due to
the lack of ministerial approval, as required by section 29(8).
Thus, its members have not been applying for various approvals
required in terms of those by-laws. It argues that, if this
Court confirms the High Court’s order, with the declaration
of
invalidity taking immediate effect and applying retrospectively, it
will validate a by-law that was previously void, leaving
outdoor
advertisers in a position of not having the approvals required in
terms of the Advertising By-Law. This will render
their
advertising structures immediately illegal, opening them up to
criminal prosecution and severely hampering their ability
to continue
doing business.
[38]
OHMSA also submits that the entire Building Act is
unconstitutional because its subject matter is a Schedule 4 Part B
functional
area (“building regulations”). These
submissions are beyond the scope of the present application.
[39]
OHMSA argues that the High Court did not take cognisance of
the consequences of a finding that section 29(8) is constitutionally
invalid for those in the industry. According to OHMSA, an order
of this kind requires a remedy that provides time for parties
to
arrange their affairs as a consequence of the finding – for
example, a suspension of the declaration of invalidity for
a period
of time and a limitation on the retrospective effect of the
declaration.
[40]
OHMSA submits that the finding of constitutional invalidity
should be confirmed, but that the matter must be referred back to the
High Court with guidelines from this Court as to what should be taken
into account in order for the High Court to consider the
appropriate
remedy. They contend that an order limiting the retrospectivity
of the declaration of invalidity needs to be
carefully crafted to
ensure there is no period in which the industry at large would
operate without regulation.
[41]
The City’s response to OHMSA’s submissions is
similar to its response to IOM. It is superfluous to restate
that
response.
Issues
[42]
Three issues arise for this Court’s determination:
(a)
Should the order of invalidity be confirmed?
(b)
Is the Minister’s interpretation of section
29(8) of the
Building Act correct? If so, does this preclude this Court
from considering the validity of section 29(8)?
(c)
Lastly, what is the appropriate remedy in
the event that the order of
invalidity is confirmed?
The
legal framework
[43]
Section 151(2) of the Constitution vests the executive
and legislative authority of a municipality in its Municipal Council.
The powers and functions of a municipality are regulated by the
provisions of section 156 of the Constitution, which provides
as
follows:
“
(1)
A municipality has executive authority in respect of, and has the
right to administer–
(a)
the local government matters listed in Part B of Schedule 4 and
Part B of Schedule
5; and
(b)
any other matter assigned to it by national or provincial
legislation.
(2)
A municipality may make and administer by-laws for the effective
administration of
the matters which it has the right to administer.
(3)
Subject to section 151(4), a by-law that conflicts with national or
provincial legislation
is invalid. If there is a conflict
between a by-law and national or provincial legislation that is
inoperative because of
a conflict referred to in section 149,
the by-law must be regarded as valid for a long as that legislation
is inoperative.
(4)
The national government and provincial governments must assign to a
municipality,
by agreement and subject to any conditions, the
administration of a matter listed in Part A of Schedule 4 or Part A
of Schedule
5 which necessarily relates to local government, if–
(a)
that matter would most effectively be administered locally; and
(b)
the municipality has the capacity to administer it.
(5)
A municipality has the right to exercise any power concerning a
matter reasonably
necessary for, or incidental to, the effective
performance of its functions.”
[44]
Section 156(2) provides that a municipality may make and
administer by-laws for the effective administration of the matters
which
it has the right to administer. Section 160(1)(a) of
the Constitution empowers a Municipal Council to make decisions
concerning the exercise of all the powers and the performance of all
the functions of the municipality.
[45]
In
considering the impugned provision, one needs to consider the
empowering provisions of section 43(c) of the Constitution, which
provides that the legislative authority of the local sphere of
government is vested in the Municipal Councils, as set out in section
156. This entitlement connotes a regulatory and policy-making
role more than a mere authority to administer and implement
prescripts.
[30]
This
position was confirmed by this Court in
Fedsure
,
where it was held that municipal councils are deliberative,
legislative assemblies with constitutionally guaranteed legislative
powers.
[31]
[46]
Notwithstanding
the powers outlined above, municipal authority is not boundless. A
municipality’s right to govern is
subject to national and
provincial legislation.
[32]
The responsibility to ensure that municipalities adequately
perform their functions inheres
in
the
national and provincial spheres.
[33]
Subject to section 151(4) of the Constitution, by-laws
that conflict with national or provincial legislation are
invalid.
[34]
In respect
of original legislative powers, municipalities are only competent to
legislate on those areas enumerated in Part
B of Schedule 4 and 5,
save where national or provincial legislation devolves additional
legislative competence to local government.
[35]
[47]
National
and
provincial
governments are not authorised to legislate for the minutiae of Part
B of Schedule 4 and 5 competencies but are instead limited
to
enacting minimum standards and frameworks for municipal legislating
and enabling the
monitoring
of municipal functions (that is, a hands-off or indirect governing
role). In
Premier,
Western Cape
,
this Court stated that “[l]ocal governments have legislative
and executive authority in respect of certain matters but national
and provincial legislatures both have competences . . . for
overseeing
its
functioning”.
[36]
Constitutionality of
section 29(8)
[48]
Section
29(8) overshoots the national government’s supervisory role.
Exercising a veto or being empowered to block legislation
not only
interposes the Minister into the legislative process, but also gives
the Minister authority over the minutiae of local
government
competencies – something this Court has determined to be
reserved for municipalities. That is a far cry
from a “
broad
managing or controlling rather than direct authorisation
function”.
[37]
None of the parties dispute that section 29(8) is
unconstitutional.
[49]
On a proper reading, section 29(8) usurps the powers of the
municipality to exercise its original legislative powers by requiring
that prior ministerial approval is given for the making of by-laws
relating to the erection of a building. Parliament has
no power
to cross this constitutional boundary as the exercise of such powers
by the municipality is not delegated legislation.
Section 29(8)
goes even further to state that a by-law which does not comply with
its terms is void.
[50]
In the light of the aforementioned constitutional provisions,
section 29(8) encroaches on the sacrosanct functional areas in
Schedule 5 Part B of the Constitution, which are the preserve of a
municipal council insofar as those functional areas relate to
the
erection of a building. Parliament is barred from legislating
Schedule 5 matters, except in certain exceptional circumstances.
The
impugned section 29(8) provision displays the typical traits of
old-order legislation which are reflective of an era
in which
legislative powers were centralised to Parliament. Municipalities
have original legislative competence to make and
administer by-laws
on matters listed in Part B of Schedule 4 and 5 of the
Constitution. Sections 43(c), 151(2)
and 156(1)(a) of
the Constitution support this position. It is
impermissible for the Minister to legislate, control
and veto
legislation that is the sole preserve of the Municipal Councils.
[51]
The
scenario envisaged in section 29(8) infringes the doctrine of
separation of powers, as it gives the Minister powers relating
to the
legislative process – the Minister’s approval is a
necessary component for enacting a by-law that “relates
to the
erection of a building”. It is impermissible for one arm
of government to exercise the powers of another sphere
of
government.
Executive
Council
held that the legislature may delegate the power to make
regulations.
[38]
However, it emphasised the distinction between delegation of
authority to make subordinate legislation within the framework
of the
statute and assigning plenary power to another body.
[39]
[52]
A municipality enjoys constitutionally entrenched powers in a
co operative government in terms of section 151(4) of the
Constitution.
The national and provincial spheres of government
may not intrude on its terrain. This Court affirmed this
position in
Robertson
:
“
The
Constitution has moved away from a hierarchical division of
governmental power and has ushered in a new vision of government
in
which the sphere of local government is interdependent, ‘inviolable
and possesses the constitutional latitude within which
to define and
express its unique character’ subject to constraints
permissible under our Constitution. A municipality
under
the Constitution is not a mere creature of statute otherwise moribund
save if imbued with power by provincial or national
legislation.
A municipality enjoys ‘original’ and constitutionally
entrenched powers, functions, rights and duties
that may be qualified
or constrained by law and only to the extent the Constitution
permits. Now the conduct of a municipality
is not always
invalid only for the reason that no legislation authorises it. Its
power may derive from the Constitution
or from legislation of a
competent authority or from its own laws.”
[40]
The
Minister’s interpretation
[53]
The
single jurisdictional requirement of section 29(8) – “erection
of a building” – brings the
Advertising By-Law
within the ambit of the Building Act. The
Minister
accepts that, if section 29(8) of the Act applies to the Advertising
By-Law,
the
provision would be non-compliant with the Constitution. The
Minister also accepts that the billboards fall within the definition
of “building” in the Building Act.
[41]
However, the Minister argues that section 29(8) can be interpreted in
a constitutionally compliant manner by giving the word
“building”
in section 29(8) its ordinary grammatical meaning and not the
technical and broad meaning of the word “building”
as
defined in the Building Act.
[54]
However, even if the restrictive interpretation advocated for
by the Minister was correct (and this is most doubtful), it does not
prevent the infringement of municipal powers to legislate
autonomously, the infringement of the separation of powers and the
encroachment
on Schedule 5 Part B functional areas in spheres others
than advertising signage. The mischief still remains. The
purpose
of the Building Act is to regulate the erection of buildings
in municipalities across the spectrum. Its impact is felt
beyond
the erection of billboards and display of advertisements.
[55]
The applicability of section 29(8) to advertising signs has no
bearing on its constitutionality. The City launched a direct
challenge to section 29(8) to the extent that it impacts
all
by-laws that relate to the “erection of a building”, and
not only in relation to the Advertising By-Law. The
Minister
contends that his interpretation is “dispositive of the
constitutional harm”. The interpretation argument
misses
all of the grounds of unconstitutionality advanced by the City, save
for the argument that section 29(8) unconstitutionally
encroaches on the Schedule 5 Part B functional area of “[b]illboards
and the display of advertisements in public places”.
The
Minister’s argument fails to appreciate that section 29(8)
deprives municipalities of their legislative autonomy
in respect of
all
by-laws that relate to the erection of a building.
[56]
The High Court correctly acknowledged the inadequacy of the
Minister’s proposed interpretation as follows:
“
[T]his approach
helps little because the result would be that an unconstitutional law
would simply be allowed to remain in force
with potential
far-reaching and harmful consequences for municipal governance. . . .
The interpretation chartered for by
the [Minister] does not
decide all the constitutional issues raised by the [City].”
[42]
[57]
The Minister’s submission that the declaration of
invalidity was not the primary relief sought by the City is
incorrect.
When the City’s direct challenge was launched,
it was clear that the challenge was not limited to the Advertising
By-Law
but also concerned the extent of section 29(8)’s impact
on all by-laws that relate to the erection of a building. The
Minister’s interpretation does not save the unconstitutional
provisions of the Building Act. It remains constitutionally
offensive.
IOM’s
notice of appeal
[58]
IOM filed a notice of appeal in terms of section 172(2)(d) of
the Constitution. The City objected to it on the basis
that the appeal was not properly before this Court, among others,
because IOM had not sought leave to appeal directly to this Court.
Furthermore, the issues raised by IOM as grounds of appeal do
not fall within the scope of section 172(2)(d). The
provisions of section 172(2)(d) only apply to the confirmation or
variation of an order of constitutional invalidity. The
submission by counsel for IOM that section 172(2)(d) is of wider
application is incorrect. The arguments relating to the
demolition order and other orders that IOM purported to appeal cannot
be entertained without IOM having sought leave to appeal.
Counsel
for IOM grudgingly conceded that the purported appeal was not before
this Court. Consequently, the purported
appeal should be struck
off the roll.
Remedy
[59]
In line with the doctrine of objective constitutional
invalidity, section 29(8) was invalid from the date that the
Constitution
came into effect.
This Court
explained the doctrine as follows:
“
In the context of
declaring a statutory provision invalid for its inconsistency with a
constitution that means that the declaration
proclaims the finding
that the inconsistency exists. It also means that
the
inconsistency is proclaimed to have arisen and subsisted since first
it arose. Thus, in the case of an inconsistent statute
antedating the Constitution, the inconsistency arose on 4
February 1997, when the Constitution came into force and its norms
were superimposed on the existing legal system.
If a statute enacted after the inception of the Constitution is found
to be inconsistent, the inconsistency will date back
to the date on
which the statute came into operation in the face of the inconsistent
constitutional norms. As a matter of
law, therefore,
an
order declaring a provision in a statute such as that in question
here invalid by reason of its inconsistency with the Constitution,
automatically operates retrospectively to the date of inception of
the Constitution.
As
will be shown in the next two paragraphs, however, courts are given
the power to qualify this effect of their orders of
invalidation.”
[43]
(Emphasis added.)
[60]
The retrospective effect of the constitutional invalidity of
section 29(8) is necessary for the validity of various by-laws that
enable municipal governance. However, unqualified retrospective
effect gives rise to unfair criminal consequences.
[61]
Section
172(1)(b) provides that a court may make a just and equitable order
to accommodate potentially harsh effects of the operation
of the
doctrine of objective constitutional invalidity. This was the
approach taken by this Court in
Walters
.
[44]
Walters
involved
a constitutional challenge to a provision of the Criminal
Procedure Act
[45]
that
permitted the use of force, including lethal force, in making an
arrest. Although in
law
,
conduct that was justifiable under the impugned provision was
criminal at the time of commission by operation of the doctrine
of
objective invalidity, an unqualified striking down “in
effect
retrospectively
criminalise[s] conduct that was not punishable at the time it was
committed”.
[46]
The
Court struck down the part of the provision that justified the use of
lethal force in making an arrest, subject to the
qualification that
the striking down is prospective only.
[62]
However,
we need not resort to section 172(1)(b). The doctrine of
objective constitutional invalidity should be interpreted
harmoniously with the Constitution as a whole. Section 35(3)(l)
of the Constitution guarantees the right of an accused
person “not
to be convicted for an act or omission that was not an offence under
either national or international law at
the time it was committed”.
In
Savoi
,
this Court held that the interpretation of section 35(3)(l) must be
informed by the right’s rationale.
[47]
The purpose of the rule against retrospectivity in respect of
criminal liability is to enable the public to arrange their
behaviour
so as to avoid falling foul of a criminal proscript.
[48]
The retrospectivity occasioned by the doctrine of objective
constitutional validity, therefore, cannot include retrospective
criminal consequences.
[63]
Further, unlike in
Walters
, limiting the retrospective
effect of the invalidity in totality is not tenable in this case.
The effect of a wholesale limitation
on retrospectivity is that
section 29(8) would have been valid in the period between
the Constitution coming into effect and
the order of invalidity
and, therefore, would have the effect of voiding a raft of by-laws
across the country that relate to “the
erection of a building”
for want of ministerial approval. I place no qualification on
the retrospective effect of the
order of invalidity because the
operation of the doctrine of constitutional invalidity cannot
retrospectively create crimes in
the face of section 35(3)(l) of
the Constitution.
[64]
In
respect of suspension, it is clear from IOM and OHMSA’s
submissions that a number of outdoor advertisers, throughout the
country, have been flouting various outdoor advertising by-laws.
Suspension is typically ordered to avoid disruption of a
legal
system.
[49]
In
J
v Director General, Department of Home Affairs
,
this Court said that, when contemplating suspension, “the Court
must consider, on the one hand, the interests of the successful
litigant in obtaining immediate constitutional relief and, on the
other, the potential disruption of the administration of justice
that
would be caused by the lacuna”.
[50]
The immediate effect of the order of constitutional invalidity, in
this case, is not of such a destabilising nature as to
require this
Court to limit the prospective effect of its order. As is
evident from OHMSA’s participation in this matter,
outdoor
advertisers are aware of the developments surrounding the
constitutionality of section 29(8) of the Building Act and
are
in a position to act to regularise their conduct soon after this
judgment is handed down. If a short time must inevitably
pass
from the date of this order until outdoor advertisers are able to
regularise their positions, the authorities will no doubt
bear in
mind the maxim that the law does not compel the impossible.
Costs
[65]
In respect of the confirmation proceedings in this Court,
there is no order as to costs, since the challenge was not opposed by
any parties. In respect of the appeal, IOM is ordered to pay
the City’s costs because its appeal was not properly before
this Court. IOM did not, as it should have, apply for leave to
appeal the High Court’s orders based on non-compliance
with the
Building Act or the High Court’s dismissal of its
counter application or the costs order made by the High Court
in
respect of the counter application. Those purported
appeals were not covered by the automatic right of appeal conferred
by section 172(2)(d) of the Constitution. IOM is not entitled
to
Biowatch
protection – it raised no constitutional
issues.
Order
[66]
The
following order is made:
1. The
order of the High Court declaring section 29(8) of the National
Building Regulations and Building
Standards Act 103 of 1977
inconsistent with the Constitution and invalid is confirmed.
2. The
first respondent’s purported appeal is struck from the roll.
3. The
first respondent must pay the applicant’s costs occasioned by
its purported appeal, including
the costs of two counsel.
For
the Applicant:
R
Paschke SC and A Pillay instructed by
QJ Williams
& Associates Incorporated Attorneys
For
the First Respondent:
H
J de Waal SC instructed by Ashersons Attorneys
For
the Third Respondent:
I
Jamie SC and K Perumalsamy instructed by State Attorney, Cape Town
For
the Amicus Curiae:
A C
Botha SC and W Krog instructed by Smit Sewgoolam Incorporated
[1]
103 of 1977.
[2]
Section 29(8) of the Building Act, which is headed “[r]epeal
of laws” reads:
“
(a)
A local authority which intends to make any regulation or by-law
which relates
to the erection of a building, shall prior to the
promulgation thereof submit a draft of the regulation or by-law in
writing
and by registered post to the Minister for approval.
(b)
A regulation or by-law referred to in paragraph (a) which is
promulgated
without the Minister previously having approved of it
shall, notwithstanding the fact that the promulgation is effected in
accordance
with all other legal provisions relating to the making
and promulgation of the regulation or by-law, be void.”
[3]
Its grounds of appeal were that the High Court should have
specifically addressed the retrospectivity of the order of
invalidity
but failed to do so; the High Court incorrectly dismissed
its counter-application premised on section 29(8) of the
Building
Act impugned in the confirmation application; the High
Court’s orders flowing from the declaration of invalidity of
section
29(8) were erroneous because the declaration did not make
provision for the validity of the relevant by-law pending this
Court’s
confirmation of the order of invalidity; the High
Court’s costs orders in respect of its counter-application and
supplementary
challenges were incorrect; and the High Court was
incorrect that the relevant sign was not approved in terms of the
Building
Act.
[4]
However, the Minister, as explained later, submits that, in the
context of section 29(8), the word “building” should
be
given its ordinary meaning and not the defined meaning. The
word “building” is defined in the Building Act
as:
“
(a)
any other structure whether temporary or of a permanent nature
irrespective
of the materials used in the erection thereof, erected
or used in connection with—
(i)
the accommodation or convenience
of human beings or animals;
(ii)
the manufacture, processing, storage,
display or sale of any goods;
(iii)
the rendering of any service;
(iv)
the destruction or treatment of refuse or other waste materials;
(v)
the cultivation or growing of any plant or crop;
(b)
any wall, swimming bath, swimming pool, reservoir or bridge or any
other structure connected therewith;
(c)
any fuel pump or any tank used in connection therewith;
(d)
any part of a building, including a building as defined in paragraph
(a), (b) or (c);
(e)
any facilities or system, or part or portion thereof, within or
outside but incidental to a building, for the provision of a water
supply, drainage, sewerage, stormwater disposal, electricity
supply
or other similar service in respect of the building.”
[5]
Body
Corporate of the Overbeek Building, Cape Town v Independent Outdoor
Media (Pty) Ltd
2022 (4) SA 167 (WCC) (High Court judgment) at para 21.
[6]
Id at para 22. See for example section 41(1)(e) and (g) of the
Constitution. Section 41(1)(e) reads: “All spheres
of
government and all organs of state within each sphere must respect
the constitutional status, institutions, powers and functions
of
government in the other spheres”. Section 41(1)(g)
reads: “All spheres of government and all organs of state
within each sphere must not assume any power or function except
those conferred on them in terms of the Constitution.”
[7]
Id at para 24.
[8]
Id at para 25.
[9]
Section 44(1)(a)(ii) of the Constitution reads:
“
The
national legislative authority as vested in Parliament confers on
the National Assembly the power to pass legislation with
regard to
any matter, including a matter within a functional area listed in
Schedule 4, but excluding, subject to subsection
(2), a matter
within a functional area listed in Schedule 5”.
[10]
High Court judgment above n 5 at para 26.
[11]
Id at para 27. Section 155(7) of the Constitution reads: “The
national government, subject to section 44, and the
provincial
governments have the legislative and executive authority to see to
the effective performance by municipalities of
their functions in
respect of matters listed in Schedules 4 and 5, by regulating the
exercise by municipalities of their executive
authority referred to
in section 156(1)”.
[12]
Id at para 28.
[13]
Id at paras 29-30.
[14]
Id at para 31.
[15]
Section 43(c) of the Constitution provides that “the
legislative authority of the local sphere of government is vested
in
the Municipal Councils, as set out in section 156.”
[16]
Section 151(4) of the Constitution provides that “[t]he
national or a provincial government may not compromise or impede
a
municipality’s ability or right to exercise its powers or
perform its functions.”
[17]
Section 160(2)(a) of the Constitution provides that “a
Municipal Council may not delegate the passing of by-laws.”
[18]
Id at para 31 fn 16.
[19]
Id at para 33. Schedule 5 Part B of the Constitution.
[20]
Id at para 32. See
Department
of Transport v Tasima (Pty) Ltd
[2016]
ZACC 39
;
2017 (2) SA 622
(CC); 2017 (1) BCLR 1 (CC) at para
147.
[21]
South
African Property Owners Association v City of Johannesburg
Metropolitan Municipality
unreported
judgment of the High Court of South Africa, Gauteng Local Division,
Johannesburg, Case No 19656/18, undated at para
63.
[22]
High Court judgment above n 5 at para 34. See
City
of Cape Town v Independent Outdoor Media (Pty) Ltd
unreported judgment of the High Court of South Africa, Western Cape
Division, Cape Town, Case No A9346/2009, 23 December
2011.
[23]
High Court judgment id at para 36.
[24]
Id at para 40.
[25]
Id at para 42.
[26]
The
supplementary challenges repeated arguments that had been previously
dismissed by the Supreme Court of Appeal in
Independent
Outdoor Media v City of Cape Town
[2013]
ZASCA 46; [2013] 2 All SA 679 (SCA).
[27]
In the City of Cape Town alone, these include the Community Fire
Safety By-Law, 2002 and the Coastal By Law, 2020.
[28]
Jordaan
v Tshwane Metropolitan Municipality
[2017]
ZACC 31
;
2017 (6) SA 287
(CC); 2017 (11) BCLR 1370 (CC).
[29]
Biowatch
Trust v Registrar, Genetic Resources
[2009] ZACC 14
;
2009 (6) SA 232
(CC);
2009 (10) BCLR 1014
(CC).
[30]
Steytler and de Visser “Local Government” in
Constitutional
Law of South Africa
Service 1(2007) at 44.
[31]
Fedsure
Life Assurance Ltd. v Greater Johannesburg Transitional Metropolitan
Council
[1998] ZACC 17
; 199 (1) SA 374 (CC);
1998 (12) BCLR 1458
(CC)
at para 26.
[32]
Section
151(3) of the
Constitution
provides: “A municipality has the right to govern, on its own
initiative, the local government affairs of its
community, subject
to national and provincial legislation, as provided for in the
Constitution.”
[33]
Section
155(7) of the
Constitution
reads: “The national government, subject to section 44, and
the provincial governments have the legislative
and executive
authority to see to the effective performance by municipalities of
their functions in respect of matters listed
in Schedules 4 and 5,
by regulating the exercise by municipalities of their executive
authority referred to in section 156(1)”.
[34]
Section
151(4) of the Constitution provides: “
The
national or a provincial government may not compromise or impede a
municipality’s ability or right to exercise its powers
or
perform its functions
.”
[35]
Part B of Schedules 4 and 5 read with sections 155(6) and 156,
reveal the following: Schedule 4 Part B enumerates competencies
shared by national, provincial and local spheres of government; and
Schedule 5 Part B lists competencies vesting jointly
in the
provincial and local spheres.
[36]
Premier,
Western Cape v President of the Republic of South Africa
[1999]
ZACC
2;
1999 (3) SA 657
(CC);
1999 (4) BCLR 382
(CC) at para 51 (emphasis
added).
[37]
Ex
Parte Chairperson of the Constitutional Assembly: In re
Certification of the Constitution of the Republic of South Africa,
1996
[1996] ZACC 26
; 1996 (4) 744 (CC),
1996 (10) BCLR 1253
(CC) at para
377.
[38]
Executive
Council of the Western Cape Legislature
v
President of the Republic of South Africa
[1995] ZACC 8
[1995] ZACC 8
; ;
1995 (4) SA 877
(CC);
1995 (10) BCLR 1289
(CC)
at para 51.
[39]
Id.
[40]
City of
Cape Town v Robertson
[2004] ZACC 21
;
2005 (2) SA 323
(CC) at para 60.
[41]
In
City
of Cape Town v Independent Outdoor Media
above
n 19 the High Court held at para 17 that—
“
the
connection between a sign erected and used to advertise goods or
services to the public is sufficiently close for it to be
said that
such sign is ‘erected or used for or in connection with the
display or sale of the goods or the rendering of
any service’,
within the extended definition of ‘building’ in the
Building Act.”
In
SAPOA
, above n 18, the High Court commented that large
advertising signs affixed to the tops or sides of tall structures
are buildings
for the purposes of the Act. Billboards as
described by IOM are so firmly affixed to the exterior walls of the
building
that they could be regarded as “part of the building”
for purposes of the definition. However, and because it
is not
in dispute in this case that the billboard structures are
“buildings” as contemplated in the Building Act,
it is
unnecessary to determine the precise basis on which this is so.
[42]
High Court judgment above n 5 paras 39-40.
[43]
Ex
parte Women’s Legal Centre: In re Moise v Greater Germiston
Transitional Local Council
[2001] ZACC 2; 2001 (4) SA 1288 (CC) at para 11.
[44]
Ex
Parte Minister of Safety and Security: In Re S v Walters
[2002] ZACC 6
;
2002 (4) SA 613
(CC); 2002 (7) BCLR 663
(CC) (
Walters
).
[45]
51 of 1977.
[46]
Walters
above
n 41 at para 74 (emphasis added).
[47]
Savoi v
National Director of Public Prosecutions
[2014]
ZACC 5
;
2014 (5) SA 317
(CC); 2014 (5) BCLR 606 (CC)
at
para 75.
[48]
Id.
[49]
Bishop “Remedies” in Woolman et al (eds)
Constitutional
Law of South Africa
Service
5 (2013) at 113.
[50]
J v
Director General, Department of Home Affairs
[2003]
ZACC 3
;
2003 (5) SA 621
(CC); 2003 (5) BCLR 463 (CC) at
para 21.
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