Director, Strategic Infrastructure Planning and Delivery NSW Department of Planning and Environment GPO Box 39 SYDNEY NSW 2001

Enquiries Please ask for Sharon Pope Direct 02 6549 3868 Our reference Your reference

18 March 2019

Dear Director,

Subject: Hunter Region Special Infrastructure Contribution

Thank you for the opportunity to comment on the NSW Government’s draft Hunter Region Special Infrastructure Contribution (SIC) determination. Staff from Muswellbrook Shire Council have reviewed the proposal and provide comments below.

Please note that this letter is a staff submission and has not been supported by a Council resolution.

Council staff object to the Upper Hunter Contribution Rate on the basis that no infrastructure is proposed to be provided within the Upper Hunter Region, and there is no demonstrated linkage between the infrastructure to be funded under the SIC and the role the Upper Hunter plays in providing employment for people who live in the Lower Hunter, and the general health of the Hunter economy.

1.0 Contribution a deterrent to housing provision

Schedule 2 of the Environmental Planning and Assessment (Special Infrastructure Contribution – Hunter Region) Determination 2018 - Public Consultation Draft (December 2008) contains the list of infrastructure towards which the SIC contributions would be levied. Based on the determination, the SIC Upper Hunter Contributions Rate would help fund the provision of health facilities (which appears to be a new ambulance station at Rutherford based on the submissions report map) as well as Planning and Review of SIC costs.

A contribution of $658.00 per lot or per dwelling would generate an increase in the cost of undertaking housing and subdivision development within the Upper Hunter Region. The cumulative effect of additional costs to housing development will adversely impact upon the desirability of developing land for housing in the Upper Hunter. The lower average house sale prices in the Upper Hunter Region, as compared to the Greater Newcastle Metropolitan area, makes it harder for developers to absorb increases in development costs, particularly if there are no direct improvements in infrastructure.

Housing growth would help facilitate the growth and diversification of the Upper Hunter economy, through provision of employment in the construction sector, and growth in the service and retail industries that support an increased population. Housing growth in the Upper Hunter Region would play a role in achieving Goal 1 of the Hunter Regional Plan (HRP) 2036, which is for the Hunter to become the leading regional economy in Australia.

2.0 Infrastructure required in the Upper Hunter to support a strong economy

Housing growth would also reduce some of the impacts the current ‘drive in drive out’ workforce has on regional road infrastructure. According to the 2016 ABS Census, approximately 28% of the Upper Hunter Region employees reside within the Lower Hunter Subregion

To support growth across the Hunter Region, in accordance with the goals of the HRP 2036, infrastructure required to support regional growth needs to be provided in the Upper Hunter Region. Preparation of studies to investigate, identify and justify regional infrastructure requirements for the Upper Hunter Region are currently beyond the resources of the respective Council’s in the Upper Hunter Region. With Planning Reform funding and similar grant funding not being made available to local Council’s to help fund studies and strategies into infrastructure requirements for the Upper Hunter, the ability of the Upper Hunter Council’s to justify projects for inclusion in the Hunter Region SIC is difficult.

It is noted that mining developments are not subject to the proposed Hunter Region SIC. While the State Government’s Resources for Regions funding program allows Upper Hunter communities to seek funding for local infrastructure projects to activate their local economies, project funding is subject to an application process that must be supported by base study information comprising detailed justification, deliverability and management information. Projects in the Upper Hunter are also competing against projects in other eligible Local Government Areas. As such there is no guarantee that necessary infrastructure in the Upper Hunter will be funded under that program, even though the Upper Hunter community is subject to mining- related impacts.

If a contribution is to be levied in the SIC Upper Hunter Contributions Catchment, these contributions should be for the provision of infrastructure in the Upper Hunter Region, or at least a study into the infrastructure needed within the Upper Hunter to support the growth and prosperity of the Upper Hunter Region.

Muswellbrook Shire Council ABN 86 864 180 944 Address all communications to The General Manager Mail PO Box 122 Muswellbrook NSW 2333 Phone 02 6549 3700 Fax 02 6549 3701 Email [email protected] Web www.muswellbrook.nsw.gov.au

Such a study should consider, but not be limited to:

 Road and transport infrastructure (including road and rail infrastructure);  Civic and community infrastructure (including schools, healthcare and emergency services); and  Regional open space and recreation facilities.

Representatives of Singleton Council, Muswellbrook Shire Council and the Upper Hunter Shire Council have met to discuss the draft SIC, and the views outlined in this letter are considered to be shared amongst the respective Councils.

Should you have any further questions in relation to this matter, please contact me on 02 6549 3868 or email [email protected].

Regards

Sharon Pope Assistant Director Environment and Community Services [email protected]