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FOREWORD by the Minister for Planning and Local Government

r:-~~NNING & EPA L LIDAARY The reform process set in train five years ago is now well underway. You will notice throughout the document that substantial new legislation has been enacted to facilitate the reform process during the past year.

Much of the structural and legislative framework is now in place to take planning, local government, building and associated industries into the next century. The way is now clear for the Department to concentrate on applying the principles of good urban design and effective land use and transport planning to everything we do.

Design has been a consistent theme in our initiatives since the reform process began in 1993. These have included the introduction of the Good Design Guide for Medium Density Housing, the ongoing review of existing planning policy and, most recently, the establishment of a dedicated urban design group.

Urban design encompasses much more than mere aesthetics. Good urban design addresses both the finer detail and the broader context of the project. It is responsive to the special characteristics of the site and its surrounds, it takes into account the diverse needs of all who must use it, and it is concerned with optimising the efficiency and amenity of towns and cities.

In the coming years the Department will take a lead role in many of the projects which will shape our city, and our state, into the next millennium. These include the new Melbourne Museum, Federation Square and the redevelopment of our world famous National Gallery. We are committed to ensuring that these landmark projects not just meet, but exceed, the highest urban de ign standards.

The Department of Infrastructure has made great strides in the past twelve months. Jon Hickman has now almost completed his first year as Deputy Secretary of Local Government, Planning and Market Information Services. l take pleasure in offering Jon a belated welcome. Peter Bettess, formerly Director Planning, has moved into the newly expanded role of Executive Director, Planning, Building and Development.

Earlier this year senior policy officer Robin Saunders retired after thirty years with the Department. Robin presided over the preparation of Environment Effects Statements for many years with great integrity and dedication. I thank Robin for his excellent work.

One of the challenges facing Dr John Paterson, Secretary of the Department of Infrastructure, on his appointment last year, was to draw together the disparate organisations which made up the Department, to create a single, unified whole, with shared objectives and a clear strategic focus.

The first step was to bring the Department together physically. In June this year it was my pleasure, along with my Ministerial colleagues Geoff Craige and Robin Cooper, to officially welcome Departmental staff to our new centre in Nauru House. I thank Dr Paterson for a job well done. 711 .3 09945 13383773 VIC A better future for Statement Victorians : design, 1997 diversity, development Through the reform process the Department of Infrastructure is well positioned to take our state into the next century, and to help provide an interesting, exciting and dynamic future for all Victorians.

Robert Maclellan Minister for Planning and Local Government.

Portfolio Responsibilities since 1996:

Planning

Local Government

Heritage Victoria

Heritage Council

Major Projects

Building Services Agency

Melbourne City Link Authority

Docklands Authority

Building Control Commission

Architects Registration Board

Urban Land Authority

Plumbing Industry Board

Victoria Grants Commission CONTENTS

INTRODUCTION 1

1. BUILDING ON SUCCESS 2

A. Planning 2 B. Urban Design 8 C. Local Government 11 D. Heritage 14 E. Building 16

2. MARVELLOUS MELBOURNE 20

A. Major Projects 20 B. Docklands 22 C. Melbourne City Link 22 D. Revitalisation of Collins Street 23 E. Capital City Policy Annual Review 23 F. Better Cities Program 23

3. CREATING A BETTER VICTORIA 25

A. Charting the way ahead 25 B. Facilitating Development 28 C. Regional Victoria 29

4. TAKING VICTORIA TO THE WORLD 31

A. International Projects 31

5. YOUTH 33

6. PLANNING ADVISORY COUNCIL 34 A BETTER FUTURE

INTRODUCTION

The reforms in place

The local government arid planning system reforms initiated fi ve years ago are now in place, providing a clear fr amework for the applica tion of the principles o f good urban design and integrated land use planning. The ongoing reforms to the building and development sector a re also progressing, ensuring that strategic vision and commitment to effective urban design are supported by effi cient work practices and hi gh standards o f safety and workmanship in constructi on.

Elected co uncillors are in office in all but two municipalities and the reform process has moved into a new phase, focusing on developing cooperative and supporti ve relati onships between state and local government. The Vi ctori a Planning Provisions, launched in N ove mber last year, give in coming councils a structure for the develo pment o f an appropriate, streamlined and achievable vision for the future growth and development o f their municipality.

T he Department com es of age

The new Department of In frastructure is now full y o perati onal, encompassing the complementary areas of local government, planning, major projects, building and heritage and the former Departments of Transport and Roads and Ports. Each o f the Ministerial portfolios is responsible fo r a number of statutory authorities, including the Public Transport Corporation, Vi cRoads, the M elbourne C ity Link Authority, the Urban Land Autho rity, the Building Control Commission, the Plumbing Industry Board, the Dockl ands Authority and the H eritage Council.

Fi ve fully integrated o ffi ces have been set up in regional Vi cto ri a, and a further two in metropolitan M elbourne, to provide a full range o f planning, transport and council support services. T he establi shment of the new regional offices underlines the Department's commitment to the fac il itati on of growth and development in regional Vi ctoria, bringing the organi sati on cl oser to the community it serves.

Already the new Depa rtment has undertaken several landmark integrated land use and transport pl anning projects, including the development of the Freeway Se rvice Centre G uidelines, launched in June, and the Scoresby Transpo rt Corridor Environment Effects Statement. Similarl y, the Department continues ro look beyond Victori a's bo rders, and rook part in a range of overseas projects over the past year. 1. BUILDING ON SUCCESS

A . Planni ng

The Pl anning and Environment (Planning Schemes) Act 1996 came into operati on on 17 December 1996, enabling the formal introduction of the new Victori a Pl anning Provisions.

This fo ll owed the introducti on in Se ptember, 1996 of standard definiti ons sim pli fy in g all Pl anning Schemes and makin g them more consistent.

Planning Reform Implem entation Program

The Victori a Pl anning Provisions (VPPs) were launched in December 1996 foll owing nearly 18 months o f work by the Department's Planning Reform team and five pil ot council s, Alpine, Ball arat, Brimbank, Port Phillip and Mornington Peninsul a.

Under the Pl anning Reform Program, the number of planning schemes in operati o n in Victori a has been reduced tro m 206 to 80, and th e number of zones cut fr om 2871 to 25, with ] 9 overl ays. T he new pl anning system w ill reduce th e number of pl anning scheme amendments from more than 900 a year to fewer than 200.

The Provisions incorporate:

• State Pl anning Po li cy Framework; 25 standard zones; 19 overl ays; and particular provi sions and administrative requirements.

Each new Pl anning Scheme is underpinned by a municipal statement providing the strategic base fo r the application o f th e zones and overlays.

By mid August 44 counci ls had either completed or were completing publi c exhibition of their new pl anning schemes, with th e remaining 34 expected to fo ll ow soon afterwards. T hirteen council s whi ch completed their new scheme ahead of the target date received special payments of $1 0,000, fo r the pro motion of good urban design in thei r municipaliti es.

Advisory Committee

In March, 1997 the Department called for submissions on the VPPs focusing on gaps, anomalies, inconsistencies or weaknesses, and the need for technical or other improvements. The Advisory Com mittee, headed by H elen Gibson, received

99 submissions, and its recom mendations are being considered. A BETTER FUTURE

The Department and key stakeholders are developing a system which will review the new pl anning provi sions annuall y. The Department will continue to work with councils ensuring a smooth transiti on to the new system.

Planning Panels System

T he new pl anning panels system was introduced in 1996, and is headed by H elen G ibson, with full-time members Paul Jerome, Kathryn Mitchell and M argaret Pitt. A furth er 75 sessional panelli sts were se lected with expertise in field s ranging from engin eering to oceanography. Pl anning panels are integral to the pl anning reform program, rev iewing the new pl anning provisio ns and assessing all new municipal planning schemes.

T he aim of the new system is to improve panel hearings and reports, and to all ow public participation in planning and environmental matters. Poli cy review by advisory committees has already involved areas as di ve rse as advertising controls and bee-keeping.

Independent Panels and Appeals

Table 1. Panels appo inted by the Minister July 1996-June 1997

Panels appointed 203

Panel reports received 202

Ministerial acceptances o f panel recommendati ons 92%

Table 2. Appeals call ed in by the Minister 1992-97 and 1996-97

November 1992-June 1997

Pl annin g Appeals lodged with AAT 9806

Appeals ca ll ed in by the M inister 100

Percentage of all AAT appeals ca ll ed in 1.02%

July 1996-June 1997

Pl anning Appeals lodged with AAT 1997

Appeals call ed in by the Mi ni ster 15

Percentage of all AAT appeals call ed in 1.06% During the year the Minister called in appeals relating to projects totalling over $640 million in value, employing 2500 people during construction, and creating 4 700 permanent jobs.

Policy Review

Land use planning policy has been collated into one easy-to-use source, the State Planning Policy Framework (SPPF), a key component of the new Victoria Planning Provisions with the capability of reflecting any changes to State planning policies. The Department is developing SPPF guidelines promoting sound planning practice and focusing on performance based approaches to decision-making rather than prescriptive solutions.

Victoria has been asked to coordinate the National Planning Systems Performance Review, a joint State, Territory and Commonwealth project to develop, by December 1997, a performance evaluation framework for planning systems.

The application of competition policy to urban and regional planning issues is part of the Department's contribution to the Competition Policy review process.

During the year the Department undertook policy reviews, including:

• Urban fringe issues, • Parking in Victorian planning schemes, • Policy on advertising signs on major routes, • Development controls aimed at sound design outcomes, Planning policies for cinemas, • Victorian Code for Residential Development - subdivisions and single dwellings.

The reviews ensure current planning policy complies with the State Government's commitment to sound urban design and appropriate development controls. Conducted with the assistance of expert Advisory Committees, the review process emphasises consultation with a wide range of interests before recommendations for change are made to the Minister.

Recommendations of the Retail Development Policy Review have been incorporated into the next edition (mid 1997) of the Victoria Planning Provisions. Implementation of recommendations from other reviews has begun, with changes to the Victoria Planning Provisions arising from the Review of Advertising Signs on Major Routes and the Review of Car Parking provisions.

The next twelve months will see the implementation of the policy review recommendations endorsed by the Minister, including urban design initiatives, VicCodel and parking.

Other reviews underway in 1997 include the Review of Subdivision (Body Corporate) Regulations 1989, the Review of Implied Easements Provisions in the Subdivision Act and the Review of Referral Authorities.

A reference guide to planning policies and guidelines, published in June 1997, details policies and background material on urban and regional planning and environmental issues. An electronic version is available on diskette. Environment E ffects Statements

During the year 40 requests for advice were received from developers considering Environment Effects Statements (EES) for their projects. An EES was deemed necessary in six cases. The Department worked on 19 EESs, seven of which were completed and put on public exhibition. Independent panels were appo inted to consider submi ssions on ten completed EESs, five of whi ch have submitted their reports for the Minister's assessment.

The Department developed draft guidelines fo r Independent Peer Rev iew in the EES Process, which would allow work on a particul ar EES to be independently reviewed by other environmental specialists, in the event of di sagreement regarding the findings . The guidelines were adopted and are applied when necessary to consultants' repo rts, ensuring the integri ty of the EES process.

M ajor EESs completed since August 1996 include:

Bl ack Forest secti on of the Calder Highway • Eastern Gas pipeline • Al bury Wodonga bypass • Fostervill e gold mine expansion.

Projects subject to EESs include: • T hree mining projects in Bendigo • The Scoresby transport corridor • Shepparton bypass • T he prescribed waste landfill at Werribee • Webb Dock development.

M ount St irling EES

In February 1997 the State Government announced it would retain M ount Stirling as an all -season, nature-based recreational and educational destination, ruling out development of downhill skii ng on the mountain fo r at least 15 years. T he decision ended decades of controversy over the futu re of the mountain, and fo ll owed the preparati on of an EES by the Department involving extensive consultati on with interest groups, and analys is of social, economi c and environmental issues.

T he EES went on publ ic display fo r two months before an independent panel was appointed to consid er more than 600 submissions. T he panel eventuall y recommended again st allowing downhill skiing, arguing that Mount Stirli ng provides an unspoiled wi lderness fo r the educati on and personal development of young Victoria ns wh ich would be seriously impaired by such development.

T he State Government endorsed this finding, accepting panel recommendations incl uding constraints on future commercial development.

T he Department and the State Government have been acclaimed fo r their handling of the issue. T he Victorian National Parks Association descri bed the Mount Sti rli ng EES as the most com p re h e n s i v~ pl anning study ever conducted into a proposed Alpine resort development in Victoria, which would have "important implications for future Alpine development and planning."

Women's Planning Network

Established in 1994 to raise the role and profile of women in planning and related fields, the Women's Planning Network (WPN) received funding of $25,000 from the Minister and the Department in 1996/97. The Minister has approved funding for the next three years.

WPN published Women's Guide to Town Planning, a user-friendly booklet designed to demystify the planning process. The booklet, launched at the Queen Victoria Women's Centre, has been distributed to every local Council in Victoria, Community Advisory Centres and neighbourhood houses, other community centres and interested persons.

With the City of Melbourne, WPN funded a study by the Department of the Constructed Environment at RMIT, titled Women's Perceptions of the Central City. The study provided information for the City Plan '97 project, currently being undertaken by the City of Melbourne, and a number of its recommendations have been adopted.

Development Contributions

Under a system introduced in May 1997 responsible authorities seeking levies must contribute to the provision of works, services and facilities, under Part 3B of the Planning and Environment Act 1987. This requires a Development Contributions Plan (DCP) to be included as an amendment to the planning scheme. Councils may prepare a DCP for exhibition at any time, including those matters set out in s. 46K of the Act. legislative review

Planning Appeals

The Attorney-General in late 1996 released a discussion paper on the review of various tribunals, including the Administrative Appeals Tribunal. Responding to concerns over proposals in that paper on the operation of the AAT, Minister Maclellan met with various groups and passed on comments to the Attorney-General, to ensure changes do not impair the AAT's role in planning appeals.

Live sexually explicit entertainment venues

Numerous requests have been received for the prohibition of live sexually explicit entertainment venues, the introduction of more restrictive planning controls, or a change to planning legislation to allow municipal councils to reject these venues on moral, religious or ethical grounds. Minister Maclellan has not agreed with these requests, but is prepared to review the wider regulatory approach when the Attorney-General's advisory committee completes its report. Subdivision Act 19 8 8

The Minister was asked to amend the implied easement provisions of the Act, following a Supreme Court decision in Burford v Wichlin ki in early 1996, affecting owners obtaining lower cost servicing and reducing their costs. The Department's Subdivision Act Consultative Group will make its recommendati ons fo llowing discuss ion with industry and other affected groups.

Codes of Practice

Bee keeping

The Apiary Code of Practice, published in M ay 1997, was th e result of four years consultation with agri cultural officers, foresters, Crown land and nati onal park managers, environmentalists, planners, and the Victorian Farmers Federation. The Code all ows hi ves to be placed in any zone without a planning permit, except where they fall outsid e Code provisions, when a permit is required.

Circuses and Carnivals

The Good neighbour Code of Practice for a Circus or Carnival, published in April 1997, all ows both to operate without planning permiss ion except where permanent buildings or works are constructed, and where operation falls outside Code provisions. The Code deals with sites, noise, adve rtising signs, durati on, operating hours, food, sanitary fac ilities, traffic, parking, roads, access, and obj ecti ons.

Bed and Breakfast

The Bed and Breakfast industry is a major contributor to the State's economy and its tourism industry. The Department is working with the Department of State Development to improve pl anning processes for the industry. B. Urban Design

The Victorian Government is committed to the application of good urban design principles to enhance the unique character of Victoria's towns, cities, streetscapes and open spaces, and to improve the quality of development outcomes.

Urban design encompasses far more than the mere appearance of our built structures and streetscapes. It is concerned with optimising the performance and efficiency of suburbs, towns and cities. Urban design is an infrastructure planning tool which has a direct influence on the way decision-making, growth and change occur, including its expression in formal planning controls. Specifically urban design provides greater flexibility in planning decisions, outcomes that respond to and complement local conditions and greater community input into shaping our environments.

Good urban design is underpinned by a set of values which include the recognition of local cultural and physical identity and diversity, amenity and safety for all the community and the sustainability of the community and its environment. Expression is given to these values through a range of design principles which include the protection and enhancement of landmarks, views and vistas, the use of design to complement the quality of existing environments and the adoption of the highest architectural standards.

The new century will see the completion of a number of major projects which embody the elements of good urban design, including:

Federation Square • The new Museum of Victoria City Link, with its landmark treatment of key sites • Melbourne Docklands • Sports and Entertainment precinct at the city's south east corner.

The Department has established a dedicated urban design unit, a key objective of which is to establish a state urban design agenda. The Victorian Urban Design Framework will be a first step in achieving this goal. It will establish the range of urban environments of state significance which require urban design attention.

Other areas of interest could include: • urban transport nodes such as St Kilda Junction; • gateways to towns and cities, particularly to our regional centres; • areas of significant change including new medium density housing concentration, town and city centres or areas affected by a major projects; • a revision of the Southbank Strategy; urban design frameworks for selected areas of state significance such as development around Port Phillip Bay, and tourist nodes such as Lorne and Torquay; • coordination with the Capital City Policy and City Plan'97, in particular as they address the CBD. The Good Design Guide

Since its introduction in 1995 the Good De ign Guide has contributed to the community's acceptance of medium density housing, the supply of which has almost doubled in two years. The Guide has encouraged communicati on between the community, council s, planners and developers ensuring effici ent medium density homes that are compatibl e with their neighbourhoods and comply with good design principles.

During the year seminars for small business and design practitio ners were held in suburban and country Victoria, to promote the Good Design Guide as a too l for improving medium density housin g design and environmental sensitivity.

To further support the use of the Guide, a seri es o f ten practical notes covering consultati on processes, vi sual privacy, tree protection, innovative architectural styles and other design iss ues, will be published later this year.

The results of a study, conducted by the Victo ri an Pl anning and Environmental Law Association, and sponsored by the Department, were released during the year. The Housing Choice Research Project Pilot Study investigated the importance o f location of medium-density housing in light of the Good Design Guide. Interviews with recent home bu ye rs and tenants in Brimbank, M oreland and Boroondara identified a need fo r greater focu s on consumers' housing needs and preferences in medium-density housin g design and development.

Pride of Place

The Department has set up a $3 .2 millio n program to pro mote planning refo rm and sound urban design , and to help communities make thei r urban environment mo re attractive, effi cient and safe. The program will provid e funding to local government, utility service providers and private developers to undertake studies, set up urban design fr ameworks, and initiate projects to enhance the urban environment.

The Pride of Pl ace program will encourage Vi ctorians to take pride in their citi es, towns and public pl aces. The program will enhance rh e State's competitive adva ntage by develop­ ing a strategic approach to design and encouraging priva te in vestment in metropolitan and country centres.

Communities, local government and developers will be encouraged to use urban design initia tives to improve efficiency and economi c performance of Victorian urban centres and to better integrate heri tage assets into the overall urban context.

Applications for fund ing will be assessed according to a range o f selecti on criteri a including their strategic importance, and o n issues including accessibility, social identity and urban context. Other selection cri teria wi ll include the relevance of the proposal to State Government plannin g and economic development policy, potential sy nergy with other opportunities and the potential of the project to act as a model for other locati ons. Under the Pride of Place program, new projects to be funded will include:

• Urban Design Framework Plans; • Urban Design Advisory Services; • "On the ground" Urban Design Works; • Assistance for initiatives that create linkages between the private and public sectors that generate good Urban Design; • Heritage Identification Studies; • Supplementary funding for Heritage Council Programs.

Visiting Fellows Program

To meet urban design challenges facing fast developing Victoria, the Department will draw on the best expertise which will include a selection of national and international designers. Through the Visiting Fellows Program these experts will work with the Department on key projects and take part in lectures and workshops. It is envisaged that the appointment to a position of Visiting Fellow would involve an intensive period of work in Victoria and be followed by visits and consultations. The use of multimedia technology for "virtual" global studios could greatly increase the range of international experts while limiting the cost of travel to Australia.

Good Urban Design Outcomes

Docklands Completion of the Urban Design Guidelines which assisted Docklands Authority in development of project bids.

Southland Shopping Centre Completion of the design facilitation of the significant shopping centre development proposal (value of the project $300 million).

Design facilitation of medium density housing within Southbank area Four major residential development projects were facilitated resulting in greatly improved design solutions.

Lorne In cooperation with the Surf Coast Shire, the Department assisted in the development of urban design guidelines and the foreshore strategy for the township of Lorne.

Nobbies - Phillip Island

Major intervention to provide design facilitation and resolution of the proposal to site a visitors' centre on the Nobbies car park.

Out of the facilitation process, changes were developed to both the architectural design and the landscape and siting design Alpine Resorts

The new management system for Alpine resorts will transfer planning responsibilities from the Alpine Resorts Commission to the Minister on ovember 1, 1997. This wi ll bring clarity and consistency to planning controls for the area, within the parameters of sound environmental management. Planning controls will not fundamentall y alter the existin g patterns of land use, however the second stage of the planning reform program will allow comprehensive development plans, including po sible changes to zone boundaries, identification of areas for future expansion, and possible change of land use.

Webb Dock Development EES

The Department and the Melbourne Port Corporation are ensuring that the 14 per cent of Melbourne's port trade affected by the City Link Bridge is accommodated at alternative port facilities. Webb Dock Development EES was responsible for ensuring future ports development is compatible with the surrounding communities.

C. Local Government

The Local Government (Amendment) Bill 1996, passed in October last year, increased councils' accuunLability. The new legislation requires each coun r. il's Annual Report to include a performance statement, which measures its performance against the targets set out in its annual Business Plan. The Bi ll also tightens provisions regarding pecuniary interests and confidentiality.

The Local Government (Further Amendment) Bill 1997 was passed in May this year, consolidating the reforms achieved by local government. The new legislation clarifies the role of and powers available to the Chief Executive Officer (CEO) in relation to the establishment of an appropriate organisational structure and employment arrangements for council staff. The new legislation changes the Compulsory Competitive Tendering (CCT) provisions in response to community and local government sector concerns.

Under the new legislation the Local Government Board has been replaced with a series of panels which will be speciall y appointed to review local government reform. The Board, previously chaired by Mrs Leonie Burke, had fulfilled its charter to oversee the restructur­ ing of council boundaries; the implementation of CCT; the review of local laws and the functions of local government.

Elections

Elections were held for 55 of Victoria's 78 councils in March 1997. A total of 1392 candidates contested the 394 vacancies, representing an average of 3.53 nominations for each vacancy, more than double the 1.60 average for the 1993 elections. A total of 323 women ran for office, and 84 were elected.

Participation rates were hi gh, with 72.4 per cent of the 2.3 million eli gibl e Victorians choosing to vote. Of the 55 elections, 39 were conducted by postal voting. More than 1.2 million ballot papers were distributed for councils holding postal elections, and a total of 918,000 postal votes were cast- the biggest postal ballot in Australia's history. As in 1996, postal votin g achieved a higher participation rate than attendance voting. All but two Victorian municipalities now have elected councillors in place. In December, residents of the Shire of Melton voted overwhelmingly to retain the Commissioners appointed by the State Government until March 1999. In June, the elected council was suspended and an administrator appointed to the City of Darebin, following a six month inquiry conducted by the commissioner, David Elsum, into the good governance of the municipality.

Rate Capping

The State Government remains opposed to general rate increases for Victorians. All councils' rates are capped according to a State Government formula forcing councils to examine expenditure and to focus on providing services to the community.

Variations to the rate capping regime will be allowed in 1997/98, to provide for a projected $393 million shortfall in unfunded liabilities from the Local Authorities Superannuation Fund. In addition to the cap, councils may raise rates by up to three percent, provided this increase is used for the retirement of unfunded superannuation liabilities. Beyond 1997-98 councils will be expected to absorb any increase in their repayments due to indexations or future redundancies. The funding of local government superannuation remains, as always, the responsibility of local councils as the employer.

Councils which retained proceeds from the privatisation of electricity distribution businesses in 1995 have not been permitted to raise additional rate revenue to fund superannuation liabilities. Councils may raise additional rate revenue to fund environmental initiatives, including the meeting of EPA requirements for waste management.

Indicators

The Department is developing, with councils, a comprehensive set of performance indicators for local government. From 1997/98 each council will measure its performance against targets published in its annual Business Plan. The adoption of clear and consistent performance indicators by all councils should lead to major improvements and greater accountability in their operations.

Identification and development of a broader range of comparative indicators will allow councils to benchmark their service performances against one another.

Compulsory Competitive Tendering

All but nine of Victoria's 78 councils met the 30 per ct>nt target for expenditure subjected to competitive tender in 1995-96. This meant a total of almost $940 million worth of work was subject to competitive tender, about 3 7 per cent of the aggregate operating expenditure of Victorian councils, the majority of which are on-track to achieve the 1996- 97 target of 50 per cent. The Department worked closely with the remaining nine councils to ensure that their CCT targets are met.

The CCT performance of all Victorian councils is being surveyed by the Department. Along with significant cost savings, market testing has expanded services, and improved service specifications, and council work practices. The Local Government (Further Amendment) Bill 1997 was passed in May, changing CCT provisions in response to an independent panel's recommendations. The panel was appointed in October 1996 to undertake the first comprehensive review of CCT, and received more than 130 submissions. It recommended:

• Changes to the CCT base to redefine "total expenditure" to exclude depreciation and abnormal expenses, but include capital expenditure; • Changes enabling councils, for CCT purposes, to obtain a minimum of three verbal quotes for contracts up to $5000; and a minimum of three written quotes for contracts between $5000 and $50,000; • Changes allowing councils to count, for CCT purposes, contributions to contracts under State or Commonwealth projects or services contracts; and • The elimination of Section 186 of the Act, meaning councils are no longer required to put out to tender a subcontract under $100,000; and part of an in-house agreement, already subjected to market testing.

National Competition Policy

From July 1, 1997 councils must comply with competitively neutral pricing principles under National Competition Policy. These principles require that the prices charged by government businesses (including council in-house teams) include the net effect of any competitive advantages/disadvantages caused by public ownership.

A pricing guide to assist local government in implementing competitively neutral pricing was released in May. Supplementary guidelines will be released in 1997/98.

Victoria Grants Commission

The Victoria Grants Commission is a statutory body operating under the Victoria Grants Commission Act 1976. Its role is to determine allocations of Commonwealth general purpose grants to councils.

In 1997/98 the VGC will allocate $208.9 million of financial assistance grants and $76.9 million of roads funding to municipalities throughout Victoria.

Beach Clean-ups

The State Government has provided total funding of $1 million to help councils fund cleaning of sanded areas of beaches, lakes and inland waterways. The funding allocation represents about half of each region's expenditure on beach cleaning in 1997/98.

Libraries

A total of $21,485,000 has been provided for public library funding in 1997/98, an increase of 2.28 percent over the funds available in 1996/97.

Negotiated service agreements will also be introduced in 1997/98, affecting the funding received by individual corporations.

There ;He now 1 () regional library corporations, with 50 of the State's 78 councils as members.

L Customer Service Initiatives

An advisory committee has been established to help introduce a new charter of service for councils including timeframes and quality levels, and self-imposed penalties where commitments are not met.

Local government is pl ayi ng a leading role in the State Government's initiative aimed at enabling Victorians to conduct all their business with government electronically by the year 2001. The initiative is part of the Government's Victoria 21 strategy positioning the State as a leader in multimedia service technology.

Moira Shire Council and Manningham City Council, with Multimedia Victoria, have pioneered the first round of local government transacti ons available electronically from kiosks across Vi ctoria, via the Internet, and through keypad telephone technology.

A major study examining the service delivery interaction between seven Koori e communities and their local councils was released in November 1996, and was well received by both the councils and the communities.

A seminar showcasing superior examples of local responses to culturally and linguistically diverse communities was held in partnership with the Multicultural Affairs Unit of the Department of Premier and Cabinet in May.

D. Heritage

Heritage (Amendment) Act 1997

The H eritage (Amendment) Act 1997 was enacted in May to finetune the operati on of the Heritage Act 1995. T he new legislation amended section 45 of the Mineral Resources Development Act to allow some mining acti vity cl ose to heritage assets, provid ed a permit has been granted by the Executive Director (Heritage).

Greater protection for Victoria's heritage assets

T he implementation of the H eritage Act 1995 has brought a wider range of places and objects under the protection of the Heritage Counci l, and has simplified the heritage registration process. The new legisl ati on has been welcomed by both conservation and heritage bodies and the property industry.

Heritage Victoria has been invited to manage the two-year, Australia-wide Centenary of Federation project, to develop a comprehensive in ventory and history of places relevant to Federation. Associated research will look at previously neglected themes, including Federati on and its effect on aboriginals, women, architects, and Federation-related sites in small towns and rural areas. National projects, including conservati on of important places, will be identified for funding by a Commonwealth program in the lead-up to Federation.

Heritage Victoria is reviewing the Government Buil dings Register (GBR) to reduce confusion over dual registers for private and publicl y owned buildings, and to ensure protection for important historic buildings included on the GBR but no longer in government ownership. Heritage Victoria is working with government agencies to identify their heritage assets and to protect significant State-owned sites. State and Local government are promoting heritage iss ues at the local level. Funding of $150,000 has been provided to 30 municipalities for th e employment of heritage advi sers. A pilot program has been set up to trial the delegati on o f H eritage Act permits to local council s. H eritage Victori a's in creased emphasis on granting permit exemptions at the time o f registrati on has saved time and reduced the number of works requiring heritage approvals.

In addition, land owners and property developers will be abl e to learn of heritage restricti ons from a Vi ctoria Pl anning Provisions (VPPs) overlay control identifying local historic sites and pl aces included in the Victori an H eritage Register.

The $16 milli on Government Heritage Restoration Program has funded the restorati on of more than 160 hi storic public buildings in urgent need of repair across the State. Allocations fo r 1996/97 totall ed $3 milli on and included the restoration of a number of hi storic, publicly owned buildings incl uding the facade of Vi ctoria's Parli ament H ouse in Melbourne; the Ball arat Parcels Office; the 1887 facade of the Gordon Institute of TAFE at Geelong; Beechworth Primary Sch ool; three nineteenth century basalt stone factories in Pipemakers Park at Maribyrnong, and Kyneton Di strict Hospital's sid e and rear faca des.

More than 120 places and obj ects were added to the Vi ctori an H eritage Register. The program foc used on Melbourne's hi stori c inner west, and the municipalities of Bendigo and Mt Al exander. A co mprehensive study of the 40 shipwrecks around Port Phillip H eads by H eritage Vi ctori a's M aritime Unit has been translated into a colourful guide fo r visitors to the area.

The Royal Melbourne Zoo receive d a $23,705 grant fro m the Government H eri tage Restoration Fund to restore the histori c giraffe enclosure, all owing the species' return to th e Zoo after 18 mo nths. The giraffe exhibit is one of ten hi sto ric structures o f special cultural signi ficance at the Zoo included in the H eritage Council's Vi ctori an H eritage Register. T he upgrade breached the rear wall to merge the giraffe and zebra enclosures, providing an enviro nment simulating the Afri can pl ain s.

New legislation creates a number of fi rsts

Vi ctori a's new Heritage Ac t has brought a broad range of significant heritage pl aces including histori c and archaeological sites, precin cts, gardens, trees, cemeteries, shipwrecks and objects, buildings and structures under the protectio n of one area of legislation fo r the firs t time.

First t ree

Under the new legislation, the Federati on Tree, in the ga rdens of Parli ament H ouse, became the first tree to receive heritage protecti on in Victoria. Known as the Federal Oak, it was pl anted by the Premier of New South Wa les, Sir H enry Parkes (18 15-1 896), to commemorate the Australasian Federal Convention of 1890-91. This was the first meeting of colonial statesmen to agree to Federati on, and signall ed the first steps towards the framing of a Federal Constitution. l First park

In November 1996 Footscray Park became the first garden to be added to the Victorian Heritage Register. Noted architect Rodney Alsop won a competition for its design in 1911. The citizens of Footscray successfully lobbied the State Government and the Victorian Racing Club for the reservation of the park, and then contributed to its development with labour and plants.

Footscray Park holds great historic, aesthetic, scientific (horticultural) and social significance for Victoria. It is the largest and most intact Edwardian period garden in the State and houses a fine col lection of palms, trees and shrubs, garden structures and ponds in both formal and informal layout.

First heritage precinct

In January 1997, Albert Park's St Vincent Place became the first heritage precinct to be registered under the new legislation. It was designed in 1854 or 1855, probably by Andrew Clarke, the Surveyor-General of Victoria, and is considered aesthetically important for the quality of its urban landscape, and historically significant as the first 'square' development in Victoria based on similar precincts in London.

E. Building

The Building Amendment Act 1996, passed in October last year, allowed the establi shment of the new Plumbing lndustry Board, and the introduction of a range of reforms to the licensing and regulation of plumbers and gasfitters. The new legislation will bring significant efficiencies and improved consumer protection.

The Building (Further Amendment) Act 1997, which came into effect on August 1997, took Victoria closer to a "level playing field." Under the new legislation State and Local Government and all statutory authorities are subject to the same building permit requirements and levi es as private sector clients. The legislation also raised the threshold for payment of the building permit levy from $3000 to $10,000 and removed the requirement for a building permit for jobs under $5000.

Building Reforms

The building industry continued to enjoy strong growth in Victoria, with the value of private construction work requiring a building permit up by 17 per cent from $4.8 billion at the end of June 1996 to $5.6 billion at the end of June 1997.

Overseen by the Building Control Commission, Victoria's program of regulatory reform continued with the transfer of responsibility for building industry regulation from the State Government to the private sector.

To streamline and simplify the building process, building permits will no longer be required for projects with a total value of $5000 or less under the Building (Amendment) Regulations 1997, which came into effect in August. The Building (Further Amendment) Act also raised the threshold for payment of the building permit levy from $3000 to $10,000. Several key safety reforms also came into effect during the year. The installation of smoke alarms in all houses, flats and units within 30 days of the sale of the property, or by December 1, 1998 is now mandatory. A public awareness campaign throughout 1998 will reinforce the new legislation.

Safety barriers are now required for all private swimming pools and spas to prevent unsupervised access. A "Safepool" publicity campaign achieved considerable press and radio coverage, and 120,000 information brochures (including Arabic, Turkish, Vietnamese, and Chinese versions) were distributed through local councils and child health care centres. The "Safepool" campaign will be strengthened in 1997/98 with TV advertising and a second issue of information brochures.

A performance based Building Code of Australia is now available for adoption into each state's building legislation. Victoria introduced the Code into its Building Act and building regulations on 1 August 1997, continuing the Government' program of reform by encouraging a flexible approach to building approvals, while maintaining health and afety levels. The Code allows building surveyors and designers to develop creative design solutions.

In addition to its work in the implementation of key building reforms, the Building Control Commission initiated a range of research and development projects including:

Fire safety systems for sprinklered low-rise shopping centres CFA mapping of special building areas throughout Victoria • MBNHIA joint training development • Plasterboard peaking research at Monash University • Cost effective fire safety measures for residential buildings.

The Commission also developed a computerised collection and data base system, coll ating information at source either electronically or manually. The Australi an Bureau of Statistics used the base for collection of its building statistics in Victoria from 1 July 1997. The simplification of mandatory reporting requirements for surveyors will also provide building activity information which the Commission will make available to government and industry.

The Commission is responsible for policing health and safety at AFL Grounds, and in 1996/97 provided building permits for work worth $10.9 million at five grounds.

Building work undertaken before May 1, 1996, continues to be covered by the Housing Guarantee Fund. From May 1, 1996, consumers are protected by the requirement that all domestic builders are registered with the Building Practitioners Board. A condition of registration is that domestic builders carry a minimum level of professional indemnity 1nsu ranee.

Building on our Achievements

The Department led or participated in a range of key building initiatives over the past year.

The Department's Tendering Guidelines and the Draft Guidelines on Project Initiation were released in early J 997. Ministerial Direction No.2 - Contractual Provisions for Public Construction were released in December 1996, to standardise contractual arrangements for government building works, and to ensure security of payment in the industry. A Contracts Advisory Panel will reduce the number of building and purchasing contracts used within the public sector. / The Department continues to participate in peak industry groups at a State and national level, and produced, through the Australian Procurement and Construction Council (APCC), a set of guidelines for risk management titled Infrastructure Through Private Resourcing. The establishment of the Construction Supplier Register has led to improved service delivery to government clients.

The Building Services Agency now works on a competitive, fee-for-service basis. In addition to overseeing the Department's move to Nauru House, the Agency completed a range of projects including :

• Provision of strategic advice for Latrobe Regional Hospital. • Renovations to Melbourne Remand Centre. Compliance and condition audits of all police stations, courts and TAFE colleges. • Major maintenance and upgrade for 49 schools. • Assessment of 1800 schools. • Provision of technical advice for three new privately owned prisons. • Project management of Malmsbury Juvenile Justice Centre building works. • Management of asbestos removal in schools. • Management of the $11 million redevelopment of Janefield training centre as a community house for the intellectually disabled. • Design of the new $27 million Ballarat Police and Court complex. • Management of the stonework and landscaping renovation of Parliament House.

• Provision of advice to Latrobe and Melton Councils on asset management. • Project management for the refurbishment of Wangaratta Base Hospital.

Plumbing Reforms

The enactment of the Building (Amendment) Act 1996 in November saw the implementa­ tion of sweeping reforms to the plumbing and gasfitting industry. Under the new legislation the industry has moved to self regulation, and the former Plumbers Gasfitters and Drainers Registration Board has been replaced by the eight member Plumbing Industry Board.

Under the new legislation licensed plumbers must provide a cenificate on all jobs valued at more than $500 demonstrating their work c_omplies with quality and safety standards. The new requirements are backed by randoin ' i;~s'pec·i;"ons a~d performance standards, and all licensed plumbers must carry professiona-l inde.u'i.nity insurance and provide a 10 year installation warranty. _:•,·

Interactive voice response computers and processors linked to a 1300 telephone number now provide 24-hour access to plumbers across Victoria. The previous Plumbers Gasfitters and Drainers Registration Board offices throughout Victoria (Ballarat, Bendigo and Sale) are being used as service and information centres for the consumer and the industry, creating new jobs at all locations. The inaugural John Rutherford Overseas Trainer Scholarship, involving an essay and an eight-minute presentation, was awarded to Neale Maxwell from Holmesglen Coll ege of TAFE. The Jack Williamson New Zealand Exchange Scholarship, awarded on an essay and interview, went to Robert Goschnick. Both are sponsored by the Plumbing Industry Board through publication royalties.

Architects

The Architects Registration Board of Victoria responded to National Competition Policy by streamlining its regulations.

The Board made submissions during reviews of laws relating to architecture in the Northern Territory and New South Wales, prompting an internal review in Victoria. Its conclusion was that the continued registration of architects ensures the highest professional standards are maintained.

The Board reviewed three architectural education courses and adopted standard accredita­ tion guidelines. Also under review was the assessment of the professional experience of applicants for registration. The Architects Accreditation Council of Australia (AACA) is expected to establish a nationally agreed assessment process this year. Reciprocity agree­ ments are also being negotiated in the ASEAN region.

The Board also worked with the AACA to provide a successful national program of assessment for practitioners who lack accepted qualifications, but can demonstrate the capacity to become architects.

PLANNING & EPA LluRARY 2. MARVELLOUS MELBOURNE

A. Major Projects

The Office of M ajor Projects managed civic constructi on and developments worth more than $1.9 billion, including those launched under the Government's Agenda 21 initiative . Agenda 21, Melbourne's bi ggest ever civic projects program, is aimed at restoring th e city to commercial and cultural leadership in Australi a by the turn of the ce ntury.

Key achievements fo r 1996/97 included:

• Completi on of the M elbourne Sports and Aquatic Centre at Albert Park in July 1997; • Completi on of the Reference and In fo rmati on Centre at the State Library in April 1997; Restorati on and opening of the Regent Theatre in August 1996, and • Completi on o f the M o reland Annexe of the Museum of Victoria.

Other mil estones included the start of constructi o n on the M elbourne Museum at Carlton, the largest civic project in Au strali a this decade; and the start of the $19 million restoration of Old Customs H ouse, which will house the new Immigrati on M useum, the Greek Antiquities coll ecti o n and function fa cilities.

T he completi on of the $64 milli on M elbourne Sports and Aquatic Centre in July 1997 provid ed M elbourne with an international standard venue for basketball , sq uas h, badminton and table tenni s. The Centre includes a 75 metre O lympic standard swi mming pool; leisure pool with wave machine, waterslide, and diving pool; show courts, gy mnasium, aerobi c fac ili ties, and a creche.

T he hi sto ri c Regent Theatre opened for busin ess earli er this year, foll owing a $25 million renovation jointly fu nded by the State Government, City of Melbou rne and Staged Developments. The once-derelict theatre fea tures a 2,000 seat auditorium for ci nema and stage shows, and the former Pl aza T heatre has been conve rted into a ba ll room.

T he State Li brary of Victoria's Reference and Information Centre includes expanded public displ ay spaces, upgraded reading room fac ilities, automated book storage and retrieval systems, and im proved client access. T he Centre now provides a copy centre, on-line and telephone services. H eritage Victoria ensured the se nsitive transformation of the building into a modern fac ili ty, incorporating current computer technology.

T he $6.6milli on Moreland Annexe is the new, off-site conservation laboratory and storage faci lity for the bu lk of the off-exhib it coll ection of the M useum of Victoria. The conversio n of a fac tory as storage space is the first step in the moderni sation of the Museum. A BE TT ER

Highlights for 1997-9 8 include:

Federation Square

Constructi on to begin in earl y 1998 foll owing th e recent architectural competition. Federation Square will feature a civic plaza, a new gall ery for Au strali an art, cinemedi a and performance spaces at the entrance to M elbourne's CBD.

National Gallery of Victoria

The $136 million redevelopment of the Gall ery will in crease exhibition space, add sto rage and improve education and vi sitor faciliti es at the St. Kilda Road site.

Arts Centre

Includes the $40 million redevelopment of the Centre; a feasibility study on the Performing Arts Museum, and minor refurbishment o f the Sidney Myer Music Bowl.

Docklands Stadium

A $250 million high-technology multi-purpose stadium to be built adj acent to Spence r Street Stati on within the M elbourne Docklands precin ct.

Mont Park Precinct

This 115 hectare, $180 milli on residential and educati onal development will be sy mpathetic to the natural fea tures and habitat of the area, and has a completion date set for 2002.

Old Customs House

Completion in April of the construction work in preparati on fo r exhibition fitout for the Immigration Museum.

Beacon Cove

A 30 ha former waterfront site at Port M elbourne becoming a medium density resid ential devel opment o f 900 houses and apartments, with a waterfront pedestrian promenade.

Kensington Banks

T he fo rmer Newmarket Sa leyards and Abattoir, and the Kensin gton Army Depot are being transformed into a medium density, affordabl e resid ential estate under the Federal Building Better Citi es program.

Old Treasury

T he M inister retain s responsibili ty for the full y restored Old Treasury building, and has appointed a Committee of Management to run it. During the year a new corporate logo was adopted, reflecting Old Treasury's history as the state's gold repository. A permanent exhibitio n, " Built on Gold ," explo ring M elbourne's earl y prosperi ty as a gold centre, has been established.

The Old Treasury Function Centre traded we ll in its firs t year, and the temporary exhibition space on the ground fl oor, a popular exhibition venue, is booked out until mid-1 998. Work on a new M elbourne city exhibition will begin at th e end of 1998. B. Docklands

The bid proposal and selection system is reaching final stage for the 220 hectares of land and water next to the central city which is Melbourne Docklands. The phased urban development project involves private sector investment of about $2.5 billion over the next 10 to 12 years.

A key task facing the Docklands Authority is to attract private investment offering high-quality design and public amenity features integrating land use and transport to link the development site with the CBD.

On 30 October 1996, the Authority short-listed 20 developers to bid for five of the seven precincts ranging in size from seven to 36 hectares. A number of the original bidders amalgamated, and 12 consortia placed 21 bids for one or more of the five individual precincts, making three to five bids for each. Consortia lodged their bid proposals by April 1997, and the successful developers will be announced by the end of 1997.

Docklands was chosen as the site for a state-of-the-art, multi-sport and entertainment stadium after ten sites were assessed. Docklands satisfied all criteria including public transport access, road access, car parking , environmental effects, safety, security and the potential to become a significant focus for Melbourne. Expressions of Interest for the Stadium were received in November 1996, and three consortia submitted final bids in June.

Expressions of interest to finance and build trunk infrastructure for all precincts were lodged in January 1997. Infrastructure includes major road improvements and the provision of utility services (electricity, gas, water, telecommunications, sewerage, and stormwater drainage) and the extension of tram services. A short list of respondents was selected in March 1997, and detailed bid proposals were submitted in July.

All bid proposals for Docklands are assessed by panels of national and international experts on their design and amenity; integration within and between precincts; and market and financial viability. By the third quarter of 1997 agreements with winning consortia will be in final negotiation.

C. Melbourne City Link

The public had its first view of the $2 billion, 22 km-long City Link project at the 1996 Capital City Open Weekend, when thousands of Victorians visited a temporary display at the Victorian College of Arts. The display attracted sufficient public interest to prompt the opening of a permanent display centre, complete with ten-metre high viewing platform overlooking the Swan Street construction site, the Domain tunnel and Punt Road interchange.

The Western Link is due for completion within two years, doubling capacity of the Tullamarine Freeway from Bulla Road to Flemington Road. A new five kilometre, six lane elevated freeway will join the Tullamarine and West Gate Freeways, and in December 1999 the Southern Link, including two tunnels and the upgrading of the South Eastern Freeway, should be complete. Substantial progress has been made on the City Link project over the past 12 months, including:

• Earthworks, pavements, overpasses and bridges on the Tullamarine Freeway; • Earthworks and columns for the Western Link viaduct; • Foundations and peers fo r the bridge taking the Western Link over the Yarra River; • Widening of the South Eastern Freeway; • More than 150 metres of the Burnley tunnel completed, including a 65-metre shaft for excavati ons; • The crossing under St Kilda Road, and the Domain tunnel crossing of the Yarra River.

This rapid constructi on work has cost $30 million a month - more than $350 million for the peri od between August 1996 and July 1997. The project has already provided substantial employment, and will have generated up to 8000 jobs by completion. Typical of the project's high standard of urban design, is Grant Street's new landscaped pedestrian area between Dodd Street and St Kilda Road.

D. Revitalisation of Collins Street

The addition of fiv e new four and fiv e star hotels in Collins Street will enhance the street's li vely and sophisticated ambie nce. Current planning approvals have been give n to a proposed 1,471 rooms in five new hotel approved fo r:

• T he City Square • Scots Church site • The former Stock Exchange site • 303 Collins Street • Cathedral Pl ace.

Complementin g the newly-opened Crown Entertainment Complex, the new hotels will consolidate the tourism and entertainment role of the CBD.

E. Capital City Policy Annual Review

Victoria's Capital City Policy "Creating Prosperity," a join t initiati ve of the State Government and the City of M elbourne launched in November 1994, provides a cl ear blueprint fo r Melbourne's central activity di strict in to the 21st Century. The 1996-97 Capital City Annual Review, published in November 1996, summari ses achi evements over the previous twelve months including many of the Government's Age nda 21 projects. T he next Annual Review will in cl ude statistics detailing progress of the policy since 1994, and will detail the major projects contributing to Melbourne's prosperity.

F. Better Cit ies Program

The joi nt Commonwealth and State Government Better Cities Program was wound down durin g the year, fo ll owin g the successful completion of a range of ambitious urban management and infrastructure projects in Melbourne and Geelo ng. Over its six year life the program received funding of $209 milli on fr om the Commonwealth Government and $140 million from the State Government.

Projects completed in 1996-97 included:

• Redevelopment of Ebsworth H ouse in Little Collins Street into affordable housing. • The provision of affordable housing at 8-1 0 Guildfo rd Lane, Melbourne. • Redevelopment of unacceptable public housing at Hotham Estate, N orth M elbourne, and • Redevelopment of sub-standard public housin g in East Preston.

Victoria is helping the Commonwealth document the demonstrati on aspects of the Victorian Better Cities Program by the end of September, 1997. Major achi evements of the program include:

• The innovati ve provision of affordabl e housing. • Support for institutional reform in the deli ve ry of psych iatric and disabili ty services across the State. • Development of underutilised, institutional, bli ghted or industrial land for innovati ve housing (eg Kensington Banks), and • Public transport improvements on the Dandenong, Cranbourne, Pakenham lin es and M elbourne-Werribee-Geelong line.

Central Geelong benefited from the Busport and the Deakin Unive rsity woolstore ca mpus refurbishment projects. The associated Steampacket Place project will receive further State Gove rnment support. 3. CREATING A BETTER VICTORIA

A . Charting the Way Ahead

Victoria in Future

Victoria's population will rise by more than 860,000 people to 5.4 million by 2021, with much of the growth in the older age groups as post-war "baby boomers" move into their 50s and 60s, according to Victoria in Future, the official demographic projections released by the Department in November 1996. Over the same period, Melbourne's population will rise by almost 600,000 to 3.8 million, while regional Victoria will gain an extra 280,000 people.

In the Melbourne metropolitan area growth will be strongest in the municipalities of Casey and Cardinia, where population figures will increase by around 2.8 percent until 2021. Wodonga will experience the strongest population increase in regional Victoria, with 2.26 per cent. Regional and coastal towns close to Melbourne will also enjoy steady population growth, the projections show.

Graph one: Age Structure of population, Victoria, 1996 and 2021

400000 r- II 1996

f- 350000 11 2021

Q) 300000 a. 0 Q) ....a. 250000 0 Qj ..c 200000 E J 2 150000

100000

50000 I II I I II II 'I I I II I I I. D I

Age group Victoria in Future, which includes the official demographic projections for each of the State's 78 local government areas, provides an essential guide to Victoria's health, housing, transport and education needs into the next century. The projections are a key element of the State Government's commitment to Victoria's long term economic growth through detailed, high quality strategic planning information for the public and private sectors.

As part of the planning reform program, information kits have been provided to every Victorian council to assist in the collection of key demographic information at local government level. The kits were reinforced by Research Unit workshops for the 31 metropolitan councils. Reports on population trends have been published for ten regions in non-metropolitan Victoria.

The demographic projections contained in Victoria in Future are available in hard copy and on CD-ROM.

Victoria in Time

Released with Victoria in Future in November 1996, Victoria in Time complements the highly successful Melbourne in Fact and Regional Victoria in Fact publications, released in 1995. Victoria in Time provides new information on census statistics for the 78 local government areas, from the 1981, 1986 and 1991 censuses.

Publication of the 1996 census

The Australian Bureau of Statistics and the Department provide a high quality information service to government and business. The Minister officiated at the release of the ABS 1996 census data in July, cementing the cooperative working relationship between the two organisations. The Department's publications can now be purchased through ABS outlets, and ABS publications are available at the Department's bookshop. An updated version of Victoria in Future, incorporating the 1996 census data, is to be released next year.

Monitoring and Forecasting Melbourne's Growth

Effective strategic planning for future housing, infrastructure and transport needs requires up-to-date, accurate information about population movement and development trends. The Department's extensive monitoring and forecasting program provides detailed development information for metropolitan Melbourne.

The first edition of the Department's twice-yearly Residential Redevelopment in Melbourne publication demonstrates that new residential development on the city's outer fringe has slowed, as more housing is developed in middle and inner suburbs. The report identifies a growing market preference for a wide range of housing choices, providing opportunities for more efficient use of land and existing infrastructure. A BETTER FUT

Graph Two: Inner and Outer Melbourne Comparison, September 1996 to March 1997

60% "'m c: 50% Qi • Inner Melbourne ~ ..._c 40% .... "'0 • Outer Melbourne ...... J 30% 0 "'c: 0 20% 't a. a. 10% a.e

Lots in Lots Released Tota l Dwell ings Subdivision Plans Approved

Indicator

The report identifies 627 redevelopment sites with the potential to generate around 56,800 new dwellings over the next decade. Almost three quarters of these sites are located in the 15 inner-city municipalities. Medium to high density housing accounts for 73 per cent of development opportunities in inner Melbourne, with a potential 27,011 town houses and apartments.

Building on the success of last year's Residential Land Release Forecast, the Department will release the first comprehensive ten-year land release projections for the entire Melbourne metropolitan area in late 1997. The Department's land development monitoring and forecasting program will help measure the success of strategic planning policy outcomes and the new planning system.

Graph Three: Redevelopment Sites, Comparison of Dwelling Types

40000

35000 • Inner Melbourne "'m c: 30000 Qi • Outer Melbourne c~ 25000 ..... 0 20000 Qj .0 E 15000 :J z 10000

5000

0 Detached Houses Medium Total Dwellings & Higher Densiry

Type of Dwelling The Department is broadening its monitoring work to include industrial land use and development across the metropolitan area. The Department will later introduce industrial monitoring, covering all of Melbourne and providing comprehensive data to the development industry.

The twelve month project to convert 2000 hard copy rural Victorian planning scheme maps into digital format has been completed and the information stored in the Department's Geographic Information System (GIS). In partnership with a Victorian company, Stratagem Infobase Ltd, the Department's rural digital planning schemes project will expand pData's mapping coverage, which provides planning scheme maps and ordinance on CD ROM.

The Department delivers information and services through a variety of electronic distribution media, and is participating in the Electronic Services Delivery (ESD) project, part of the Government's Victoria 21 Strategy to promote economic activity through multimedia. In order to make Government land related services more accessible, the State Government is establishing a Land Channel, using the Internet, through Multimedia Victoria.

The Transport Research Centre

For the last three years, the Department has supported the TRC's development of a strategic transport data base for Melbourne. Sample sizes are large enough for the survey to be a valuable planning tool for a range of businesses seeking information on the daytime location of people, the characteristics of users of facilities including shopping centres, what modes of travel people use, and how long it takes them.

B. Facilitating Development

Urban Land Authority

The Urban Land Authority (ULA) continues to play a leading role in residential develop­ ment in Melbourne. During the year the ULA's commitment to good design and innovation in residential development, environmental integrity and efficient use of urban infrastructure was reflected in increased sales results and client satisfaction.

This year the ULA's Home Plus marketing initiative, which offers new purchasers up to $3000 in incentives, including contributions to fencing, driveway construction and landscaping costs, has helped support the upswing in Melbourne's housing market. The ULA achieved sales of 1340 lots in 1996/97, with total sales revenue of $95.4 million.

The ULA will open Display World 200 at Roxburgh Park in October. With the adjacent Henley Display Village, this will form one of Melbourne's largest and most diverse housing displays, with over 55 homes available for viewing.

Construction began at the ULA's Jackson's Hill development, on the site of the former Caloola Training Centre in Sunbury; and the ULA's Forest Glen, Copperfields and Cresswell Grange estates continued to achieve strong sales. The Range, in Williamstown, achieved excellent sales during 1996, with the final stages released in mid 1997.

During the past two years the ULA has refocussed its development activities in line with the State Government's commitment to revitalise established suburbs as an alternative to continued broadhectare development at the urban fringe. In 1996-97 the ULA derived almost half its total revenue from lot sales on redevelopment estates in established suburbs. New dwelling approvals in the establi shed urban area now make up 45 percent of the total in the Melbourne region.

Following a State Government review the ULA will be fully corporatised and retained as a State Business Corporation. Necessary legislation is proposed for Spring 1997. Under its new charter the ULA will continue to add pre-disposal value to surplus Government land assets, particularly on difficult and complex sites. The ULA also works for the private sector and other entities on a fee for service basis, enhancing the value of land for development.

Government Land Monitor

The Government Land Monitor provides advice and assistance to State Government departments and agencies to ensure that land sales and acquisitions comply with State Government policy. During ] 996-97 the GLM processed more than 700 submissions for the sale or purchase of land, with a total value of approximately $650 million.

The State Government Policy And Guidelines on the Purchase and Sale of Land are under review, with a draft version to be released this year. The GLM is upgrading techno logy to allow the electronic lodgement of documents by government agencies and departments.

C. Regional Victoria

The Department is improving service delivery to regional and rural Vicruria, with the creation of five "one-stop shop" regional offices in rural Victoria, and two in metropolitan Melbourne. The new regional offices will offer the full range of Departmental services, and required the relocation of around 40 staff to combine the former Department of Planning and Development regional offices with existing VicRoads offices. A number of Departmental staff will move to the new Burwood and Sunshine regional offices by the end of the year.

Regional offices in Traralgon, Barwon/South-west, Goulburn/North-east, Wodonga, Ballarat and Bendigo assisted local authorities to become familiar with Government planning reforms in their various strategies, developments and studies.

The Department became involved in high-profile issues including the proposed $ ]2 million Tourist Visitors' Centre at The Nobbies on Phillip Island, where the eventual granting of a permit by the Department followed extensive community consultation and considerable modification of the original proposal.

The South West Gippsland Township Study dealt with coastal settlements between Griffith Point and Waratah Bay intended to accommodate part of Melbourne's growth without jeopardising the surrounding landscape. Gippsland's brown coal fields, and sand extraction between Grantville and Lang Lang, involved the Department in complex environmental, social and economic issues.

In the Barwon/Southwest region the Department oversaw the $15.3 million State Government funding for improvements to the Geelong Waterfront Steampacket Place Precinct, and helped achieve environmentally sustainable planning outcomes for the Anglesea Heathlands in Surf Coast Shire. The Department, with the Western Coast Regional Coastal Board, also developed initiatives for a coordinated approach to coastal planning and management. In the Northeastern/Goulburn region, on the New South WalesNictorian border, the Department made an amendment to the Wodonga Scheme to allow urgent repairs to the Hume Weir Wall. The repairs prevented potentially catastrophic results for Murray River communities downstream from the dam.

In Ballarat the Department is acquiring land for a new Police and Courts complex, and in Bendigo has administered EES Consultative Committees for four mining projects. Through the Government Building Restoration Fund (Heritage Victoria), the Department has provided $60,000 towards the Mount Alexander Heritage Diggings Project, a self-drive tour of historic mining relics.

The Department's Bendigo office will also administer a State Government funded $2.25 million program to upgrade the Castlemaine Central Historic Precinct. These improvements include restoration work to the Castlemaine Market Building, one of Victoria's most significant structures, and the upgrading of Victory Park.

During the year the Department was involved in a range of overseas projects and initiatives in Western Samoa, Malaysia, China, Vietnam, Pakistan and the Philippines. 4. TAKING VICTORIA TO THE WORLD

A . International Projects

Tianjin

The Department took part in a $1.5 to $2 billion urban development project for the CBD of Tianjin, China. The project's success led to improved relations with key Chin ese urban development authorities, and the recognition of Australia's professional ski lls in urban design and development. One tangible outcome is an Australian bid for the project, with the Macquarie Bank, CSR and Bora] currently negotiating a development deal with the Tianjin authoriti es.

Asset Management Adviser - Western Samoan Public Works Interim Assistance Project

The Department assisted the Public Works Department of Western Samoa to establi sh asset management planning, policies and practices. The Western Samoan Government believes the program was so successful it will form the foundation for the nation's public sector asset management.

Management Information Systems, Community Infrastructure Project, North West Frontier Province Pakistan

The Department helped establish an Information Management System for a community infrastructure project in North West Frontier Province, Pakistan. The project will provide basic infrastructure to low-income communities, helping develop their organisational skil ls .

Commercial Projects in Malaysia

A Department submission for consultancy services resulted in the awarding of two consultancy projects to the Building Services Agency for urban development of Malaysian Railways properties.

Seminar in the Philippines

The Eastern Regional Organisation for Planning and Housing (EAROPH) has sought help in organising a seminar on asset management to be held in Manila in November 1997. The seminar will include presentations by Department staff, and exhibits of Victorian asset management techniques and technology. Metropolis

The Minister was elected Chairman of Commiss ion 1: ''Ai rports and their Surrounding Zones as Catalysts of Metropolitan Development." The first meeting of the commission will be held in Melbourne on 10 and 11 November 1997.

Training Seminars

A total of 19 briefin g and trai ning seminars were conducted during 1996/97. Delegates from China, Japan, Indonesia and Thailand were in structed in planning, transport, local government, heritage, environment, redevelopment of old industrial precincts, and public sector administrati on. Presentations were made by Departmental staff.

Guangzhou

The Department assisted the Guangzhou Municipal Government in overcoming urgent traffic problems. Senior staff from VicRoads worked with the Paris based Metropolis Secretariat on th e project, the first phase of which was completed in October 1996. The second stage will be undertaken late in 1997.

Hanoi

The Hanoi Pl anning and Development Control Project is complete providing recommendations for an urban management system for Vietnam as it changes to a market based development economy. Department staff worked with private sector consultants in exporting professional knowledge and technical experience to a rapidly developing country.

MIPIM

The Department is representing the State Government at MIPIM Asia, an international property market exhibition to be held in Si ngapore in mid September 1997.

The ex hibit, which wi ll showcase Victoria's sk ill in large construction projects and highlight private sector infrastructure provision, should attract overseas in vestment to Victoria. 5. YOUTH

The Department is keenly aware of the unemployment problems facing much of Victoria's youth, and as part of its working philosophy continually seeks opportunities to employ, train or assist young people. Activities in this area have included sponsorship of the Young Achievement Australia's Business Skills Program, aimed at developing work related competency in secondary and tertiary students. The Department provides staff, a venue and a $3300 grant covering half the total cost of the scheme.

Since 1994 the Department has provided practical work experience for town planning students from Melbourne University, RMIT, Victoria University and Swinburne University. In 1995 seven students were employed, and three were offered permanent positions. Eight stuJeuts were engaged in 1996, and a number are still employed by the Department. Another three young people are employed under the Industry and Public Sector Traineeship Program, and four graduates have been engaged under the Graduate Recruitment Scheme. 6 . PLANNING ADVISORY COUNCIL

Planning Advisory Council members are involved in law, local government, the environment, the Administrati ve Appeals Tribunal, development industry and private practi ce. This di verse range of backgrounds gives the PAC a shared vision for cl ear strategic directi ons in the preservati on of Vi ctoria's hi story, the protection o f the environment, and the encouragement of economic growth.

The PAC meets once a month, and members are also assigned to fo ur sub-committees: H eritage; Strategic Initiati ves and Regional Development; Planning and Statu tory Reform; and Organisation and Legi slation.

Planning Reform

In the 1993 August Statement Minister Macl ellan emphasised that clari fication and expediency of the pl anning system were of paramount impo rtance in opening up Victo ri a for busi ness. During 1993-97 the PAC worked with the Department to reduce the number of zones, simplify the planning schemes and develop the Municipal Strategic Statements. T hese Statements would provid e the blue print for development consistent w ith a municipali ty's Corporate Pl an, and would in corporate the Business Pl an, Vi ctori a Planning Provisions and th e State Pl anning Poli cy Framework. The Municipal Strategic Statement, drawn up with council and co mmunity involvement, gives local government th e responsi­ bility and opportunity to think and act strategica ll y.

This strategic directi on will assist the PAC in purs uing the next challenge - delegation of pl anning in local government to the most appropriate level to enhance expedi ency. T he Municipal Strategic Statements will defin e possible land use and provide oppo rtunities fo r design, performance indicators and ameni ty issues.

Policy Reviews

The PAC supports continuati on o f the review process and is working on the need fo r a more structured system providing a continuous review of all poli cy, w hile streamlining the implementation process.

Review of Tribunal Systems

The PAC has been in volved in the review of the Tribunals within the Department of Justi ce. Concern within the PAC over the draft di scussion paper of December 1996 and its implicati o ns fo r pl anning has been resolved. T he PAC will continue to be in volved where possible in this review, and implementati on of the new Tribunal System. A BETTER FUTURE FOR

Building and Planning Approvals

The introduction o f private certification of building surveyors has achieved many of its desired outcomes, including the overall decrease in turnaround times for building applications, both at Council level and with private building surveyors.

Concern over poor co-ordinati on between building and planning approvals resulted in endorsement of the Municipal Association of Victo ri a (MAY) and the Victori an Planning and Environmental Law Association's (VPELA) joint workshop in N ovember 1996. Titled "Building Better Approva l Practices", the workshop identified key issues and practicable solutions for examinati on by the PAC.

General

Throughout 1996-97 the PAC has been in volved in:

• Revi ew of the Liquor Licensing Co mmiss ion (internal) Panels and the Administrative Appeal s Tribunal • Transporting M elbourne • Building and Planning Approvals (Wo rkshop -Building Better • Approval Process- joint forum with MAY and VP ELA) • Draft Coastal Strategy • Review of the Commonwealth State Roles and Responsibilities fo r the Environment Parks Victoria Legislati on.

The Coming Year

The coming year wil l see investi gation o f meth od of improving the new planning system. Reform is by no means over, and is a process that requires continuous monitoring to ensure the pl anning system provides a cl ear strategic direction for Victori a.

The PAC is aware of the need fo r the development of more codes or guidelines to assist in the development of good built fo rm. The Good Design Guide is an example o f the type of code the PAC approves fo r developments in the new industrial and business zones.

The PAC wants the Panels Division to initiate change, and is keen to see improvements in its already comprehensive operation.

The PAC has identified the need for a background paper on the National Competition Policy ex pl o ring the hi story o f planning in Victo ri a, and the principles and objectives underl ying the Vi ctorian pl anning system, with emphasis on community benefit.

I would like to express my gratitude and appreciati on to the members of the PAC who have provided me with tremendous support throughout this chall engin g year.

M y special thanks goes to Chris Gallagher, who has recently resigned from the PAC. C hris was with the PAC fr om its inception in 1993, and made a great contribution in relati on to pl anning and local government issues. My thanks and appreciation are also extended for the su pport of members of the Department particularly Peter Bettess, Christine Zafiris and Jodi Hemming.

Finally, our appreciation and thanks to the Minister of Planning and Local Government, T he Hon Robert Maclell an who has respected the independence of the PAC and has been accessibl e, approachable and supportive.

Planning Advisory Council Members

Sub-committees

Strategic Initiatives and Regional Development Chris Gallagher (Chair - resigned 29/7/97) Owen Lennie Jane Nathan Paul Jerome

Organisation and Legislation Helen G ibson (Chair) Rob Milner Peter Barber Janet Dore

Statutory Reform David Whitney (Chair) John Watson Geoff Underwood Jane Monk

Heritage Jeff Akehurst Sim on Molesworth Geoff Wescott Legislation passed from July 1, 1996, to June 30, 1997

Minister for Planning and Local Government

Local Government (Amendment) Act 1996 -October 29, 1996.

Building (Amendment) Act 1996 - November 12, 1996.

Planning & Environment (Planning Schemes) Act 1996 - 17 December 1996.

Amendments to the Docklands Authority Act 1991, included in the Miscellaneous Acts (Further Omnibus Amendments) Act 1996 - 17 December 1996.

Heritage (Amendment) Act 1997 -May 6, 1997.

Local Government (Further Amendment) Act 1997- May 27, 1997.

Melbourne City Link (Further Amendment) Act 1997- June 3, 1997.

Building (Further Amendment) Act 1997- June 3, 1997.

Project Development & Construction Management (Amendment) Act 1997- June 11, 1997. I

PLANNING & EPA LIBRARY

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