28 October 2009
Property developers today welcomed the Prime Ministers announcement that his government will take a stronger role in the planning of our nations major cities, but they highlighted the need to avoid the mistakes of previous strategic plans.
Were pleased that the Federal Government is clearly moving beyond funding ˜one-off transport projects, to a more enduring commitment, Mr Gadiel said.
State governments can no longer afford to fund all of their cities infrastructure needs, Mr Gadiel said.
The states need ongoing, sustained, federal assistance.
Last night, in a speech to the Business Council of Australia, Prime Minister Rudd raised the possibility that the Commonwealth may foot [a] significant part of the urban infrastructure bill.
However, the Commonwealth willingness to take this step was linked to the integrity of the strategic planning system in our major cities.
The Prime Minister said that he wanted to lay down national criteria for the future strategic planning of our major cities.
Strong federal financial backing for credible strategic transport plans will solve one of the biggest urban challenges we face, Mr Gadiel said.
Its crucial that public investment infrastructure be guided by a coherent long-term vision.
That vision should cut across party politics and the federal-state divide.
We strongly support the policy moves set out by the Prime Minister.
However, Mr Gadiel said that it was important that any federally-backed strategic plans did not repeat the mistakes of previous state plans.
Weve seen a series of strategic plans that unnecessarily restrict the ability of property developers to build housing, workplaces and shops desperately needed by local communities.
Strategic plans of this kind carry huge social and economic costs.
The sweeping prohibitions in some state plans are one of the reasons that Australia is currently so short of housing.
The key will be ensuring that the federally-backed plans make iron-clad commitments about publicly funded infrastructure, but still give the private sector the flexibility to respond to changing market needs.
Strategies should be adaptable – so they accommodate a wide range of potential changes in population and economic activity.
“Plans must also ensure that the supply of land available for development – in greenfield and infill areas – always exceeds market demand.
This will help ensure that government regulation doesnt force up land values and depress development activity.
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.
