Monday, 8 September 2014

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

“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.


Tuesday, 10 June 2014

Housing Projections for Mosman


The NSW Department of Planning has released housing projections for all NSW LGA's.  For Mosman they are predicting an increase of 7,800 people over the next 15 years.  This will require 3,250 additional dwelling over this time.  This means more than 200 new dwellings need to be approved and built each year.

It is yet to be seen how Mosman Council will respond to these figures which are projections at this stage and not targets.

Mosman Council recently rejected the draft Spit Junction Master Plan which it commissioned in 2011. The NSW Government paid more than $200,000 for the consultants to prepare Master Plan.

Read more at http://www.planning.nsw.gov.au/projections

This is a screenshot of one of the Dept of Planning webpages.






















Department of Planning Projections
Current Mosman population 27,550  projected to be 35,350 by 2030.
Current dwelling 13,750 projected to be 16,900 by 2030.

Saturday, 3 May 2014

Committee For Sydney Calls for Council Amalgamations


The Committee for Sydney says we ""must overcome the lack of metropolitan leadership and disjointed approach created by a multitude of small local councils and poor coordination across government."
"We know already some of what we need to do. We must grow in a way that improves the liveability of the city.  We must fix Sydney’s infamous urban sprawl that causes some of us to commute for up to 90 minutes each way every day. We must explore ways to make Sydney’s housing more affordable and put jobs closer to where people live. We must work towards a model where all Sydneysiders have an opportunity to benefit from Sydney’s growth."
Read their arguments on the Committee Sydney website  click here or see the piece in full below. 

The Future of Sydney Lies in Our Hands: staying Australia’s no:1 city


02 May 2014

On current trends, Melbourne overtakes Sydney as Australia’s biggest city in 2053. As we find it hard to believe that Sydney can continue to be Australia’s global city while being No 2 – or that Sydneysiders want that to happen – we believe that there needs to be a dynamic response from government, business and the community to this wake up call. We can and must remain the nation’s No 1 city but only if we take radical and concerted action now.

Melbourne is growing faster partly because it has managed to ensure its housing stays more affordable. Melbourne also has more jobs that are accessible within an hour’s travel. To add insult to injury, Melbourne – aided by local council amalgamations and greater collaboration between tiers of government - has a long term plan that sets out just how they’re going to beat us.

Sydney is growing. It’s just doing so in a haphazard way and without a coordinated vision, supported by its citizens, that embraces our growing population needs, our economy, our infrastructure or even the basic liveability of Sydney. We have no strategy in place to stay No 1. And with our 40 councils there is no single voice or forum for Sydney through which a ‘One Sydney’ vision and strategy can be developed.

We need to get our act together like we did for the Olympics. We must develop a vision for Sydney at mid century that plans for a vibrant yet balanced city of almost 7 million.

A Sydney 2054 strategy, developed collaboratively across all tiers of government and capturing the imagination of Sydneysiders, must overcome the lack of metropolitan leadership and disjointed approach created by a multitude of small local councils and poor coordination across government. Business-as-usual will not keep us No 1, something we believe our new Premier gets.

Our strategy must be ambitious and coordinated. It must integrate jobs, liveability and urban development, transport and housing connectivity, productivity, social participation, governance and infrastructure investment.

It must bring together the west and the east of Sydney in a ‘One Sydney’ approach. Only then can we create a prosperous and equitable Sydney that deserves its title as Australia’s Global city.

So we are creating a Sydney 2054 Taskforce comprised of experts across a wide range of specialisms and united by ambition, a global mindset, a passion for Sydney and an urgency around creating a sustainable 2054 vision for a global Sydney. And because we are developing a vision for our city for 40 years from now we have provided the Taskforce with a sounding board of Sydney’s Future Leaders. We urgently need the ambitions and new thinking of our talented young leaders to put Sydney on the right path.

This vision will not be ‘more of the same but bigger’. Sydney must be better as well. We must capitalise on innovation in new economic sectors and the incredible assets Sydney and its people offer. We must ask the questions that others are not and understand the key forces and policies which will drive Sydney to greater success - and the key barriers to overcome. Above all, we need to challenge traditional thinking.

While this initiative will be led by the Committee and its members from business, community, private sector and government, it is not confined to them. We want the community of Sydney to shape this strategy. So we will call for evidence and involvement from all those across Greater Sydney who share our passion for Sydney and a determination to make it even more successful.

We know already some of what we need to do. We must grow in a way that improves the liveability of the city. We must fix Sydney’s infamous urban sprawl that causes some of us to commute for up to 90 minutes each way every day. We must explore ways to make Sydney’s housing more affordable and put jobs closer to where people live. We must work towards a model where all Sydneysiders have an opportunity to benefit from Sydney’s growth.


This is an opportunity to create the future of Sydney, and that future lies in our hands. Hands up those who want to be No 2? We didn’t think so either.


by Dr Rob Lang, Chair of the Committee's Sydney 2054 Taskforce and former CEO of Parramatta City Council;

Lucy Hughes Turnbull, AO, Chair, Committee for Sydney; and

Dr Tim Williams, CEO, Committee for Sydney

Wednesday, 5 March 2014

Crikey's Alan Davies Points To The Elephant In The Room


Alan Davies, Crikey's Transport and Urban Development Consult and Urbanist blogger has pointed to the elephant in the room, small councils hold up unit devopments exacerbating the affordable housing problem in Sydney.

This is a extract from an excellent article.

"There are a number of potential benefits from amalgamating Councils. One is economies of scale in management and in providing services that benefit little from highly-localised administration e.g. rubbish collection, recycling, pet registration. 
With fewer Councils there’d also be fewer border problems where Councils adjoin. There’d be better coordination of policies and operations acropolitan-scale implications of planning and heritage decisions. 
The ability of residents to improve the value of their properties by suppressing multi-unit developments in their neighbourhood would likely be weakened if Councils were larger. At present, resident opposition to development has a deleterious effect on housing affordability in established suburbs. 
But that also highlights one of the disadvantages of amalgamation; it would weaken local representation and increase the distance between residents and those making decisions about their neighbourhood.
A larger Council would spread the benefits of a key revenue source like CBD businesses across a larger population rather than spending disproportionately on gold-plated facilities for a relatively small number of residents."

Government have already taken some steps to take Council out of the process for approving larger scale unit development with planning approval powers for $20M developments now lying with Joint Regional Planning Panels.

A prime example of a council going slow is Mosman Council, which is not supporting its own master plan for  Spit Junction despite this long overdue urban renewal project being right next to the council chambers.  There just seems to be no political will at the Council to provide the necessary leadership.
http://www.mosman.nsw.gov.au/planning/spitjunction

Submissions can be made on the final recommendations of the Panel and Taskforce and the next steps for local government reform.  Reports are here.

Submissions close on Friday, 4 April 2014



Sunday, 19 January 2014

Report Recommends Amalgamations Or Joint Organisations

The ILGRP report was made public in the second week of January 2014 and can be downloaded here.

The committee has maintained its view that councils should amalgamate. It  recommends that Hunters Hill, Lane Cove, Mosman and North Sydney, parts of Ryde and Willoughby Councils amalgamate or form 'Joint Organisations'

However, the NSW Government has reiterated its policy of no forced amalgamations.

The ILGRP has proposed a mechanism for councils or rate payers to ask the Boundary Commission to look into specific amalgamations.

This is a map of the ILGRP's recommended amalgamations.


Friday, 13 December 2013

O'Farrell Says Planning System More Important Than Council Amalgamations


One of the drivers of the push to amalgamate councils in NSW is the NSW governments need to streamline planning approvals to allow development to cope with the 1.3 million people coming to Sydney in the next 20 years.

New planning legislations has passed the Lower House of the NSW Parliament, been amended in the Upper House and is now back in the Ministers hands and should return to Parliament in early 2014.

The Daily Telegraph recently quoted Premier O'Farrell on talkback radio.
As the government got ready yesterday to release the disappointing economic news, Premier Barry O'Farrell announced he would not be amalgamating any of the state's 152 councils despite a two-year review into the process. 
Asked by a talkback radio caller on 2UE yesterday why the government would not amalgamate councils, rather than stick with a structure set up 100 years ago, Mr O'Farrell said the government had no intention of forcing any councils to merge. 
"I'd argue the most important thing to reform local government is to reform the planning system," the Premier said. 
"We believe local councils, just like federal government are an important part of the governance of this state and the best way to improve local govt is to improve the legislation that governs local government and that is the Planning Act."

You can almost hear the sighs of relief at the Mosman Council Chambers, muted by the prospect of strengthened government planning powers.  Has the threat of council amalgamations been a diversionary tactic to reduce council planning powers?

Friday, 1 November 2013

Mosman's Parish Pump Politics

This week Mosman hit the front page of the Sydney Morning Herald with a silly story about how Deputy Mayor Roy Bendall is promoting local place names in Mosman saying that 'it was crucial it re-establish and preserve their historical place names given the "threat" of amalgamation with North Sydney Council.'

The local community is not entirely in favour Joseph Arena, a local business owner and resident of more than 40 years, says “ludicrous." “I'm struggling to understand why this would happen,” “It will only add confusion and cost to business owners who will have to change their signboards and stationery. “I can't work out who postulated these splits because there's nothing positive that could come out of it."

Perhaps it silly parish pump initiatives like this, on behalf of a small group of Balmoral residents, that is the greater threat to Mosman councils continuing unique existence.


Meanwhile in the real world the NSW Government has passed new planning laws through the lower house.  The Government is under pressure to streamline development to accommodate the 1.3 million people coming to Sydney by 2031 and this is also one of the drivers for local government boundary reform.

The Independent Local Government Review Panel is due to provide their final report to the Minister.