30 January 2008
Local government shouldnt try to bury its head in the sand and ignore the current state of the NSW planning system, according to Aaron Gadiel, chief executive of the Urban Taskforce.
Mayors and general managers are meeting in Sydney today to discuss a proposed shake up of the planning system by the State Government. The most recent Local Department of Planning data revealed that the average time for councils to determine a development application was 68 days. Twelve councils take 100 days or more.
A report by the Department of Local Government last week showed the time it takes to get a development approval has blown out by more than 10 per cent for 37 local councils.
Theres no denying – the planning system is in a state of gridlock, Mr Gadiel said.
At a time when the underlying demand by NSW home buyers is strong and there is an increasing shortfall in the supply of homes, the States building industry should be booming.
Instead, high development costs and poor affordability have prevented production of new homes and land subdivisions.
The planning system makes the development of new homes in Sydney a highly risky and expensive proposition.
Developers are simply unable to profitably produce enough new homes to satisfy the needs of Sydney.
Thats why new dwelling construction in Sydney has sunk to levels not seen for fifty years.
Economic forecaster BIS Shrapnel predicts that lot production will be well below 7,600 lots per annum (the average over 1997-2001).
As Sydney broad hectare subdivisions have become more expensive the number of lots released has declined to an estimated 3,100 lots in 2004/05, and a low of 2,800 lots in 2005/06, Mr Gadiel said.
In what should be the ultimate blow to Sydneys morale lot production has fallen to Adelaide levels.
Wholesale reform of the planning system is required, Mr Gadiel said.
Delays and disputes in the development application process are hurting home owners, aspiring home owners and those looking to rent affordable properties.
More matters can be handled by private certifiers without the involvement of council.
Theres no reason why approving a pergola or a minor home extension should take more than seven days.
Applicants for small developments should have quick and easy access to arbitration if a council has not issued a swift approval.
Larger matters should be dealt with by regional planning panels instead of councillors.
These panels would include council representatives.
Average approval times have blown out for Ballina (by 38 per cent), Great Lakes (35 per cent), Liverpool (26 per cent), Newcastle (23 per cent), Canterbury (22 per cent), Baulkham Hills (19 per cent), Kogarah (18 per cent), Kiama (16 per cent), Cessnock (13 per cent), Sutherland (13 per cent) and Leichhardt (11 per cent).
The five councils which reported the highest average times were Leichhardt (185 days), Strathfield (158 days), Canterbury (152 days), Ashfield (130 days) and Botany Bay (115 days).
The Urban Taskforce is a property development industry group, representing Australias most prominent property developers and equity financiers.
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.
Media Enquires:
Aaron Gadiel,
Chief Executive Officer,
Phone: 0417 477 904 or (02) 9238 3955
