'Fit For the Future' with some measly pieces of silver

The NSW Government has announced its response to the Sampson Review  (media release) and it has not been well received by Mosman Council.

This is what the Mayor had to say in his 'occasional letter'.

'Secondly, the State Government has nearly done a full U-turn on its frequent pledges not to force council amalgamations. Councils have been told that by June 2015 they must come up with proposals for scale and capacity that are consistent with the recommendations of the recent Independent Local Government Review Panel (ILGRP) which recommended that council areas in Sydney should contain some 250,000 people. Councils are also being offered some measly pieces of silver (which works out at about $100 per household) to amalgamate. It is not clear at this stage what happens to Councils (communities) that do not wish to be part of huge local government areas or whether they will have the opportunity to show that they are “Fit for the Future”, whatever that may mean. If the review panel for “Fit for the Future” is similar to the ILGRP, whose three members were wholly pre-committed to amalgamation, it could be another hatchet job. I will provide more details as they become clearer. We will of course consult our community in setting our position.'

The Seven Things Keeping House Prices High

The Conversation recently published an article "The Seven Things Keeping House Prices High"

One of the seven is the fact that population growth is outpacing dwelling approvals.

Local Councils are seen to be slowing up approvals.

Something has to change.

http://theconversation.com/seven-things-keeping-house-prices-high-and-foreign-investment-isnt-one-of-them-31345

Reserve Bank Glen Stevens - Funding conditions are not an impediment to infrastructure

Sydney like most capitals in Australia is having a housing price boom and there is concern that we are in a boom bust cycle.  The problem is the shortage of land for development.  

Glen Stevens, Reserve Bank Chair, recently made this point albeit in a diplomatic way, 'monetary policy (very low interest rates) could not add to the amount of land available for housing or improve the ability of the construction sector to respond to demand for extra housing.'  'Funding conditions are not, in fact, an impediment to infrastructure.'

For the sake of the economy and the need for affordable housing for an extra 2 million people, the State and Federal Governments must make a priority the release of development land. The problem is local government and small councils which are captive to anti development local politics.

Mosman Council is a prime example, having refused to endorse its own Spit Junction Master Plan, because of fears of an residents backlash to building heights going from 5 stories to 7 stories in a few highly selected places.  The master plan recommend higher building heights and increased FSR (2.5 to 3.5) to allow for  public amenities in the form lane way setbacks, public arcades and bus terminals.

The State Government funded the Spit Junction Master Plan, they must now be shaking their heads in disbelief.  The obvious solution from their point of view, make councils larger  and more responsible.

Extract from Glen Stevens speech reported in the Fin Review

http://www.afr.com/p/national/rba_glenn_stevens_urges_action_to_zQDQkxTeiTKlXdg9qXSN8H

“It is stating the obvious that at present, while we may desire to see a faster reduction in the rate of unemployment, further inflating an already elevated level of housing prices seems an unwise route to try to achieve that.” Mr Stevens indicated to a function organised by the Committee for the Economic Development of Australia in Adelaide on Wednesday that it was the task of state and federal gov­ernments to help ensure price gains didn’t become unsustainable.

He said monetary policy could not add to the amount of land available for housing or improve the ability of the construction sector to respond to demand for extra housing.

“Other policies have to do that – and it’s important that they do, if we are to see easy credit result in more dwellings as opposed to just higher prices for the existing dwellings,” he said. “Monetary policy can’t create the additional in­frastructure that most people agree we need. Funding conditions are not, in fact, an impediment to infrastructure.