02 April 2008
Local councils need to explain how their loss of $200 million will affect local communities, according to Aaron Gadiel, CEO of the Urban Taskforce.
The loss of such a large sum of money will be a blow to home buyers who have been paying large levies to prop up council investment portfolios, Mr Gadiel said.
Instead of spending their levies straight away on new community facilities, many councils have been putting the cash into massive investment portfolios.
Some councils have been amassing a massive hoard while essential infrastructure is ignored.
The best thing local councils can do for their local communities is provide services not speculate on risky investments.
Every levy a council slaps on new homes makes them more expensive for young families.
Levies on new homes are supposed to cover the cost of community amenities needed by residents of new housing developments.
These local council levies have been skyrocketing every year. A home buyer could face an extra $70,000 for their own home just to cover local council levies, Mr Gadiel said.
Local councils need to explain to their communities the implications of this loss for local roads, bridges, footpaths, kerbs and gutters, buildings and drainage infrastructure.
The NSW development industrys annual turnover is $35 billion and employs 180,000 people, accounting for six percent of the States total employment. It is the fifth largest contributor to the State economy.
