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Productivity Commission Paul Coghlan and Rosalyn Bell Productivity Commission 1 June 2011 Performance Benchmarking of: Planning, Zoning and Development.

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Presentation on theme: "Productivity Commission Paul Coghlan and Rosalyn Bell Productivity Commission 1 June 2011 Performance Benchmarking of: Planning, Zoning and Development."— Presentation transcript:

1 Productivity Commission Paul Coghlan and Rosalyn Bell Productivity Commission 1 June 2011 Performance Benchmarking of: Planning, Zoning and Development Assessments

2 Productivity Commission2 Areas benchmarked functioning of cities supply of land infrastructure – delivery & developer contributions development approvals retail competition issues governance of planning community involvement referrals to state and territory agencies Commonwealth EPBC Act

3 Productivity Commission3 Complexity of planning Natural disaster risk management (fires, floods) Environment (water, air quality, green space & noise) Tourism Sport & recreation Culture & heritage Immigration Population density (closeness to services) Environment policies Transport & communication policies Industry & competition policies Macro policies Public health, welfare & safety policies Education policies Housing policies Population policies Traditional ownership Housing affordability Urban transport networks Energy and water resources Waste management Employment opportunities Business opportunities Public safety Economic growth & development objectives / ease of doing business Amenity & lifestyle objectives / liveability Built infrastructure (hospitals, schools, community centres) Social inclusion ZONING & REZONING Residential, retail/commercial, industrial, primary production & other (greenbelts, waterways, space & noise) LAND PLANNING Greenfields & established areas DEVELOPMENT ASSESSMENTS

4 Productivity Commission4 Supply of Land – planning for it jurisdictions take somewhat different approaches, most notably in how they define and plan for: urban boundaries/footprints activity centres protected lands, eg conservation areas all give most emphasis to monitoring and analysing the supply of residential land industrial land receives less attention commercial land receives the least

5 Productivity Commission5 Stylised land supply process Structureplan a Locate and assemble land Initial planning and due diligence Rezone land / amend planning scheme (where mandatory) Prepare subdivision application Planning authority approval to subdivision Address approval conditions Install infrastructure Final certification and issue of new land titles Locate and assemble land Initial planning and due diligence Rezone land / amend planning scheme Structure plan (where mandatory) Prepare subdivision application Planning authority approval to subdivision Address approval conditions Install infrastructure Final certification and issue of new land titles all processes can take up to 15 years planning processes & infrastructure can take up to 10 years

6 Productivity Commission6 Gap between underlying demand and supply - dwellings 0 50 100 150 200 20022003200420052006200720082009 Dwellings ('000s) Cumulative gap between underlying demand and stock of dwellings Increase in underlying demand Net additions to stock of dwellings b c b c

7 Productivity Commission7 Land: zoned residential, subdivision approved, lots created

8 Productivity Commission8 Supply of Land – leading practices broadly defined zones and other land use controls government land organisations as the first developer in new complex settlements better protected buffer regions around active industrial areas, such as ports complete structure plans for new areas before development commences better monitoring of land supply outcomes, especially for commercial and industrial land community engagement

9 Productivity Commission9 Infrastructure charges – 2009-10 greenfield residential: highest in NSW at $37000 per lot lowest in SA at $3700 per lot infill residential: highest in Brisbane ($25,000 per dwelling) and Sydney ($15,000 per dwelling) - full cost recovery lowest in Melbourne at $1609 commercial/industrial highest in NSW ($550,000 per hectare) and Queensland ($340,000 per hectare) lowest in Victoria at $175,000 per hectare

10 Productivity Commission10 Infrastructure – leading practices a designated body responsible for coordinating infrastructure in new development areas developers should pay for infrastructure which will primarily benefit those occupying the development where the benefits will be spread more widely, general revenue or user charges are more efficient ways to pay for the infrastructure

11 Productivity Commission11 Development Assessment - 2009-10 Statutory time limits vary - 21 to 196 days Actual approvals data Victoria had the longest approval times – a median of 73 days the ACT had the shortest approval times – a median of 27 days.

12 Productivity Commission12 Development Assessment – leading practices increase incentives to deliver adequate DAs first time streaming applications into assessment tracks by risk (potential size of impact on others) electronic DA systems better skilled assessment staff facilitate access to relevant information consider using deemed approval provisions transparent criteria for use of alternative assessment pathways reduce vexatious appeals

13 Productivity Commission13 Competition and retail markets planning affects competition by limiting the number, size, operating model & product mix of businesses on particular sites: prescriptive zone & business definitions … floorspace minimums & caps … building heights … road setbacks … green space … building materials used … trading hours … activities allowed at street level … distance from similar businesses … consideration of impacts on existing businesses and/or centres … NSW and ACT - highly prescriptive definitions and zones Qld, NSW & SA - most likely to consider impacts on existing businesses and/or centres

14 Productivity Commission14 Leading practices for competition land use controls & requirements in activity centres (broaden the zones) less prescriptive available to a broad range of businesses industrial zones limited to high-impact industry eliminate consideration of impacts on the profitability of existing businesses only address impacts on viability of existing centres at the strategic planning stage (not with every DA)

15 Productivity Commission15 State and territory referrals differences in how referrals are triggered differences in the number of depts/agencies to which referrals are made differences in timeframes Western Australia - trying to improve the coordination by drafting mutually agreed, clear and concise pro-forma conditions

16 Productivity Commission16 Referrals – leading practices for strategic and other higher level plans – make referrals requirements publicly available collectively detail and locate requirements in one document (eg: South Australia) apply binding timeframes, with limited stop the clock provisions deemed approval provisions for referrals not meeting the time limit mutually agreed clear and concise pro-forma development approval conditions resolve referrals simultaneously not sequentially

17 Productivity Commission17 Impact of the Commonwealth Environment Protection and Biodiversity Conservation Act 1997: 36 per cent of referrals (137 referrals) undertook compliance work (substantial for some) to find no further action was required. the cost of environment studies and flora and fauna assessments necessary for an EPBC Act referral can range from $30 000 to $100 000 per study on average takes 19 months to get the Ministers final decision for controlled actions In some jurisdictions, developers need to consult two lists of threatened species

18 Productivity Commission18 Changing the focus from DA to strategic plans Development Assessment Development Assessment Strategy Typical planning system GOAL FOR PLANNING EFFORT Typical planning system CURRENT PLANNING EFFORT Strategy

19 Productivity Commission19 Leading practices – in summary provide clear guidance in strategic plans but allow for change (with good engagement, transparency and probity provisions) engaging the community fully broader and simplified land use controls rational and transparent allocation rules for infrastructure costs risk-based and electronic development assessment timeframes for referrals, structure planning and planning scheme amendments transparency & accountability for DA assessment paths limit anti-competitive objections and appeals collect and publish data on land supply, development assessment, rezoning and appeals


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