The 黑料大事 (PIA) has today warned the NSW Government that the zoning reform signalled in the Budget could weaken the economy of our state.
The Budget sets aside $17 million for reviews of elements of the planning system. This includes reviews slated to slash the number of employment zones and increase flexibility on ‘retain-and-manage’ industrial and urban services land.
PIA supports Budget measures intended to improve the performance of the planning system, but these must be applied in ways that make our cities and towns more productive.
Major zoning reform should not be done in isolation and should instead seek to achieve long term city strategy with the lightest regulatory touch necessary. PIA has consistently made this point, including in its response to the Productivity Commission Green Paper.
The Government indicates this approach would boost economic growth, but PIA disputes the evidence presented thus far. The program would likely see more retail permitted in employment zones, crowd out businesses from some centres and push important services and employment-generating industries to the city fringe.
PIA NSW President Juliet Grant argues, “Having a range of employment zones helps planners unlock the value of a well-conceived city strategy. Attempts to dilute this system must be carefully considered to ensure there are no unintended consequences.”
PIA holds strong concerns that the push to “review the retain-and-manage industrial and urban services land” would also see the Government succumb to pressure to allow residential development on land currently used for critical economic activities.
“Any move from the NSW Government to allow residential uses on ‘retain-and-manage’ industrial and urban services land would fly in the face of policy from their own advisors at the Greater Sydney Commission,” said PIA NSW President Juliet Grant.
The ‘retain-and-manage’ approach currently applies to much of the inner and middle ring suburbs of Sydney where industrial and urban services land is scarcer.
PIA has welcomed other elements of the NSW Budget, including social housing spending, funding for improvements to the e黑料大事 system and the development of an infrastructure contributions tool to allow developers to understanding costs up front.
PIA has noted with concern a lack of funding for climate change, sustainability or renewable energy projects.
The planning industry will also watch with interest as the consultation for stamp duty reform commences.