ABS confirms (again) NSW planning system is the handbrake on economic recovery

Figures released by the ABS today confirm the NSW planning system continues to hold back the economic recovery of the entire nation with a laggard approvals performance record in September.

In the month of September, Victoria was still in complete COVID lockdown, but even while working from home, Victoria still saw their total number of dwellings approved in September grow by 12.4%, with total approvals in the month being 5,822. In comparison, NSW has been relatively free of COVID-19 restrictions, but the number of approvals only increased by 4.6% with only 3,529 dwellings approved.

It’s time something was done to fix it. The ABS statistics don’t lie. We need the State Government, starting with DPIE, to take action. We need more than talking about fast-track systems. We need to see it happen. For too long planners seem to have been distracted by the political side-show at ICAC. We need focus now on fixing the planning system to deliver a pipeline of planning approvals and thus a pipeline of investment and employment.

The strategic plans are now complete – so we need to broaden the number of developments which comply with the controls under the “complying development” provisions of the Act. This is how it works in every other State in Australia. Just this simple reform would speed things up.

The battles for investors with the NSW Planning system are many.

Battles with those Councils which object to any change in the local character of their neighbourhoods; battles with Roads and Maritime as they take years to deal with the most basic of applications; battles with the complexity of the system which is in desperate need of a complete re-write; and battles with a system that prioritises the good of the few (local NIMBYs) over the interests of the many (the economy).

All other States in Australia showed double digit increases to the percentage of dwellings approved during the month of September, with NSW cementing its dead last position and providing further evidence of having the slowest planning system in the country.

It was only last week that CommSec’s State of the States Report into economic performance confirmed that NSW is struggling. On overall economic performance – NSW was ranked equal fourth with South Australia – behind Tasmania, the ACT and Victoria. On economic growth – NSW was ranked sixth – NSW down 1.7% on the 10 year average level of output compared to Victoria which was actually up 23.2%.

The NSW government has been talking about planning reform since November last year when the Premier declared it the “Number 1 policy priority for 2020”. Twelve months on and there has been no substantive reform to the planning system apart from some welcome COVID-tweaks.

The situation is now dire. Given the current economic environment, it is essential that business investment in NSW is encouraged by a planning system that delivers; a planning system that provides housing approvals which meet demand; a planning system that drives investment in new workplace opportunities, options for businesses to grow and thrive.

The business community in NSW is ready, willing and able to invest – but without planning approvals, they must look elsewhere.

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