When exercising a discretion to cancel a licence for breach of conditions, the decision-maker must take into account the uncertainty or vagueness of the conditions breached, the regulator's failure to provide adequate guidance on compliance, inconsistent enforcement, and the effect of cancellation on the licensee's livelihood. A finding of 'reckless disregard' for licence conditions requires that the licensee recognised the risk but proceeded regardless; it cannot be sustained where the licensee had reasonable grounds for believing no risk existed.
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