01 June 2009
Todays reports that 13,000 jobs and more than $5 billion in housing development in Sydney and NSW is being tied up in federal “green tape” shows how hard it is to secure approvals for new urban expansion, according to the Urban Taskforce.
The Urban Taskforces chief executive officer, Aaron Gadiel, said that, in some areas, it has been increasingly difficult to secure investment for urban expansion plans because of the wide discretion exercised by federal authorities.
The Federal Government has the power to unilaterally block development proposals and applicants are left with no right of appeal against unfair or delayed decisions.
Its difficult to pour money into new urban expansion projects, when federal environmental laws may send major proposals to oblivion based on a political whim.
Mr Gadiel said a recovery in residential development is the key to a broader economic recovery.
But this wont just happen by itself governments at every level have to support development by issuing swift approvals to new proposals.
More urban development projects need to be lifted out of the red tape swamp.
After all, the construction industry is Australias third largest source of employment.
For every $1 million in construction expenditure, 27 jobs are created throughout the broader economy.
The construction activity made possible by property developers traditionally contributes $69 billion to the national economy each year and creates 709,000 direct jobs.
In March this year, Federal Environment Minister, Peter Garrett, blocked urban expansion plans at the Heritage Estate near Jervis Bay.
Local landholders were devastated, Mr Gadiel said. They had received the backing of both the local council and a commission of inquiry under NSW environmental laws, but their proposal was still refused.
A public environment report prepared by Shoalhaven City Council stated development of about 700 blocks on the 1200-lot estate would inject about $175 million into the Shoalhaven economy, together with road and infrastructure work of about $35 to $40 million.
This project is one of many that could have reduced unemployment and set us on the path to recovery, Mr Gadiel said.
Mr Gadiel said the following steps must be taken to reform the federal Environment Protection and Biodiversity Act:
- there should be no need for separate approvals both at a state and a federal level;
- places of environmental and/or heritage significance should not be listed twice;
- environmental offsets (such as the dedication of land to the national park estate) agreed at a state level should be recognised federally;
- if the Commonwealth retains an approvals role, then applicants should have the right to appeal unjust or delayed decisions.
The Urban Taskforce is a property development industry group, representing Australias most prominent property developers and equity financiers.
