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Fixing Town Planning Laws

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Fixing Town Planning Laws Fixing town planning laws Identifying the problems and proposing solutions Submission by the Urban Taskforce to the Productivity Commission in response to its issues paper: Performance Benchmarking of Australian Business Regulation: Planning , Zoning and Development Assessments September 2010 Contents Executive Summary .................................................................................................................................................... 5 1. Introduction...........................................................................................................................................................10 1.1 This submission focuses on NSW ...................................................................................................................10 1.2 Allan Fels report: Choice Free Zone ............................................................................................................14 1.3 Going Nowhere and Deny Everything reports ..........................................................................................15 1.4 NSW Government’s own reports ..................................................................................................................18 1.5 Anti-competitive features of the planning system ..................................................................................19 2. The objectives of the planning system ............................................................................................................26 2.1 The current objectives ...................................................................................................................................26 2.2 Alternative objectives for the Act ...............................................................................................................32 2.3 The statutory role of the Minister for Planning ...........................................................................................34 3. The economic test ................................................................................................................................................36 3.1 Explaining the economic test ......................................................................................................................36 3.2 NSW’s proposed Competition SEPP ............................................................................................................39 4. Planning strategies ...............................................................................................................................................49 4.1 Strategies need to be implemented .........................................................................................................49 4.2 Integrated Land Use and Transport planning package .........................................................................52 4.3 Draft subregional strategies ..........................................................................................................................63 5. Prescriptive planning controls ............................................................................................................................68 5.1 Plenty of prescription, but little certainty ....................................................................................................68 5.2 Development control plans ..........................................................................................................................72 5.3 Too many extraneous polices ......................................................................................................................74 5.4 Environmental planning instruments ...........................................................................................................74 5.5 Limiting development to preserve a centres hierarchy ..........................................................................82 6. Spot rezoning ........................................................................................................................................................84 6.1 An excess supply of zoned land should be encouraged ......................................................................84 6.2 Spot rezoning processes ...............................................................................................................................85 7. Development assessment ..................................................................................................................................88 7.1 Predictability and flexibility ...........................................................................................................................88 7.2 A lack of support for state and regionally significant projects .............................................................89 Fixing town planning laws Page 2 7.3 Presumption in favour of development approval ..................................................................................90 7.4 Deemed approval for development consents .......................................................................................91 7.5 Code assessable development ...................................................................................................................92 8. Development levies .............................................................................................................................................93 8.1 The burden of levies .......................................................................................................................................93 8.2 Local council infrastructure charges ..........................................................................................................94 8.3 State infrastructure contributions .................................................................................................................96 9. Competitive neutrality ..................................................................................................................................... 100 9.1 Discrimination against private sector developers ................................................................................ 100 9.2 Discrimination against private sector when setting levies .................................................................. 101 9.3 Discrimination against private landlords and providers of community facilities ............................. 101 9.4 Government-owned property developers ............................................................................................. 102 10. Confiscation of property rights..................................................................................................................... 103 10.1 Taking land for a public purpose, but giving no compensation ..................................................... 103 10.2 Stealing the existing use rights of landholders ..................................................................................... 104 10.3 Expropriation of private land for commercial development without proper compensation .... 105 10.4 Down-zoning ............................................................................................................................................... 106 10.5 Heritage listings .......................................................................................................................................... 107 11. The response of urban policy-makers to the affordable housing crisis ................................................ 109 11.1 The Affordable Housing SEPP................................................................................................................... 109 11.2 Making rental housing more affordable .............................................................................................. 110 11.3 Affordable housing levies ........................................................................................................................ 111 11.4 Density bonuses will reduce the supply of housing and increase the costs of home buyers.... 112 11.5 Preferential development rights for non-profits or public authorities ............................................. 113 12. Further information ......................................................................................................................................... 115 Appendix: Case studies ........................................................................................................................................ 116 1. Permissible supermarket within walking distance of public transport refused consent ................... 116 2. Shopping centre approved because it is not a competitive threat ................................................... 117 3. Warring consultants reports on the impact on existing traders ............................................................ 117 4. A supermarket in Wyong – anti-competitive rules fine .......................................................................... 119 5. A bulky goods retail outlet in Warringah Council will compete .......................................................... 120 Fixing town planning laws Page 3 6. A bulky goods outlet, next to an existing shopping centre, will compete with Newcastle CBD ... 121 7. An extension of a fruit and vegetable store ............................................................................................. 123 8. Supermarket in a centre not “small-scale” enough ..............................................................................
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