The Greater Sydney Commission’s proposed Growth Infrastructure Compacts will need careful management to ensure that development and infrastructure are both achieved, says the Urban Taskforce.
“The Greater Sydney Commission’s approach to ensure infrastructure is related to new development is a welcome initiative,” says Urban Taskforce CEO, Chris Johnson. “The real issue will be one of sequencing where there is a ‘chicken and egg’ reality about which is first. An example is the announcement of a new metro rail from Sydenham to Bankstown clearly must stimulate new development around stations but the new development must also stimulate new education and health infrastructure.”
“Our concern is that communities may not support any new development unless the related infrastructure is fully funded and provided upfront. The reality is that much of the related infrastructure is funded by levies applied to the new development. It is important that the relationship between housing our growing population and the timing of infrastructure provision is dynamic. Government must play more of a role in forward funding infrastructure to ensure this is provided in a timely and efficient manner, recouping some of the cost from property development in a fair and transparent manner where possible.”
“The Urban Taskforce is also concerned that with state government funding under pressure that the Growth Infrastructure Compact may simply pass the responsibility for funding all infrastructure onto private developers. The result of excessive levying on new housing will be to increase the cost of Sydney housing even further.”
“Local councils who often see private development as the source of infrastructure funding will need to be given clear guidelines on shopping lists for new infrastructure.”
“The Urban Taskforce is keen to work with the Greater Sydney Commission in refining the compact approach so that it is fair to all parties and does not deter the development of much-needed housing.”