18 March 2010
The Federal Governments declaration today that high speed broadband was becoming a critical utility service like water, electricity and gas, is over-stating the case, according to the Urban Taskforce.
The Taskforces chief executive, Aaron Gadiel, said that high speed broadband is a desirable service and developers would want the service to be provided wherever it was viable.
Theres a difference between a desirable service and an essential service, Mr Gadiel said.
Essential services, such as electricity, water and sewerage must be provided in order for an urban development to proceed.
If it isnt viable for, say, electricity to be connected, then an urban development project shouldnt take place.
However, the same cannot and should not be said in relation to high speed broadband.
Urban development without electricity, water and sewage arrangements is rightly prohibited.
There may some instances where the costs of linking a new urban development to the national broadband network, known as ˜backhaul make such a service unviable.
Australias housing shortfall is already approaching 200,000 homes, if the government prohibits development that does not have high-speed broadband, our housing supply problems will get much worse.
Mr Gadiel said the legislation introduced to parliament today was broadly phrased and more detail would need to be supplied before the industry could pass judgment on it.
Theres currently no clarity about the extent of off-site linkage infrastructure (backhaul) that might have to be funded by developers and home buyers.
Nor are the technical details resolved.
These issues will need to be addressed by the government if Parliament is to have any idea on what it is voting on.
Off-site infrastructure contributions for water and sewerage services have been known to add more than $15,000 a residential lot.
In NSW, the situation got so bad that those off-site levies for water and sewerage services were abolished in Sydney and in the Hunter Valley.
The Urban Taskforce is a property development industry group, representing Australias most prominent property developers and equity financiers.
For every $1 million in construction expenditure, 27 jobs are created throughout the broader economy.
The construction activity made possible by property developers contributes $78 billion to the national economy each year and creates 849,000 direct jobs.
