It’s been another fortnight of gratuitous developer bashing.
 

The NSW Parliament has passed a new law which amends the Ministerial code of conduct to prohibit both Ministers and Parliamentary Secretaries from accepting commissions from property developers.
 

This is a sideshow.  Developers are being punished for the mis-behaviour of politicians.  Why is it ok for a politician to get extra income from a mate who is a farmer (let alone through an illegal visa scam)?  Why is it ok for a politician to get income for work as a lawyer or doctor on the side?
 

Politicians are desperate to limit the bans as much as they can – but why?
 

Keep it simple - all income for hours worked, or commissions from anyone, should be banned, Full Stop

Politicians are well paid.  They should be spending 100% of their working hours serving their electorates and the people of NSW by mastering and advocating on their portfolio responsibilities.
 

No Member of Parliament should be getting income from “work on the side”.
 

When MPs are elected to parliament with business or property interests, these should be fully declared and then placed into arm’s length management.  Any evidence of active management (or income) creates the potential for a conflict of interest and should be banned.  Failure to declare interests must be rigorously policed and sanctions made mandatory.
 

But it’s worse – imagine if a developer got caught out shredding critical documents that related to payments – we would have been put into stocks in Martin Place!  Even if this is not illegal (that is being investigated) – it really should be.  It stinks.
 

How can all paper and electronic evidence associated the allocation of with a $250 million grants program just disappear? That is the question former Auditor General Tony Harris is now asking along with Members of the Upper House Parliamentary Inquiry.
 

It is time politicians from all sides stopped scapegoating the property and development industry.

In a rare but welcomed acknowledgment from Elizabeth Farrelly in Saturday's SMH she says."Forrest rightly notes that developers are not the only culprits here, ... There’s a much broader issue of undue influence."
 

Our industry delivers over 10% of the jobs in NSW.  The vast … vast majority of our industry do the right thing.  They obey the law.  They create homes and communities. They employ hundreds of thousands of tradies, labourers, engineers, planners, architects, urban designers, landscape designers, real estate employees and even bank workers and financiers. 

Politicians created a planning system which is the slowest in Australia.  Then some of them (too many) put their hands out with phoney offers to help.  That really is corrupt!

Republicans are represented by the Elephant and are “Red” – sometimes called the Grand Old Party (GOP). Democrats and represented by the Donkey and are “Blue”

The key swing states are firming up to be:

The 2016 Electoral College tally was Donald Trump 306 vs Hilary Clinton 232

In total, there are 538 members of the electoral college.  Thus, a majority of 270 are required to win.

California has the most electoral college votes with 55 (FYI only).

If the Democrats win the top five States (shaded blue), unless there is an unexpected loss elsewhere, Joe Biden wins.

If the Democrats win any of the three yellow shaded states in the middle (N Carolina, Florida or Arizona) – then they can afford to lose one of the states above the line in the top section and still win.

If the Republicans win all three of the yellow shaded states in the middle, they still must win one of the states in the top group (shaded blue) for Donald Trump to win.

If Donald Trump loses any of the pink States, then Joe Biden is likely to win the Presidential election.

This week the Urban Taskforce protested strongly against Penrith and Liverpool Council’s proposal to proceed with two massive levies, that if made, will be a monster tax on jobs.

On Monday night Penrith Council endorsed a plan to impose massive new development contributions which will apply to land surrounding the new airport, to pay for local physical and social infrastructure upgrades.

The Council endorsed report applies to both Penrith LGA and Liverpool LGA and recommends a 6.5% s7.12 local infrastructure contribution to pay for all the physical and social infrastructure in the various Aerotropolis precincts. The current levy is 1%. Anything above 1% must be approved by Planning Minister Rob Stokes.

This massive hike in local Council charges alone will kill off investment feasibility and squeeze out funding for any State Infrastructure charges. This contribution would be in addition to any State Government SIC levy.

Urban Taskforce, on behalf of members, strongly objected to this matter being rushed through Penrith Council before the Department of Planning (DPIE) has finalised their work on s.7.12 local infrastructure contribution and also before Peter Achterstraat and the NSW Productivity Commission has completed their review (due at the end of November).

The charges proposed in Council’s paper will have a significant impact on employment growth and seriously undermine the work of the GSC and their efforts to develop the Western Sydney airport surrounds for employment and jobs.

Industry acknowledges the need for this land to be properly serviced by physical and social infrastructure. However, the presumption that this should all be funded by industrial developers will be a massive handbrake on the creation of new jobs. Everyone in NSW benefits from economic growth, from jobs and from employment areas. So it is reasonable that the burden of infrastructure costs is spread across the population.

The ball is now in the Minister’s court. We call upon him to say no to this 6.5% levy – immediately.  However – we support funding for local infrastructure.  Western Sydney airport will generate jobs and taxes for decades to come.  It is critical to the development of all of NSW and Australia.  It is therefore appropriate that local infrastructure funding is supported by State and Commonwealth funding. 

In the Mamre Rd precinct, the Council Papers detail Council’s intention to propose a Section 7.11 contributions plan for the precinct. It should be noted that almost all this precinct is currently owned or controlled by developers who will be managing and constructing all local roads and stormwater infrastructure required for their estates. Urban Taskforce notes that the rates proposed in Council’s paper are substantially in excess of referable precincts in the Western Sydney Employment Area and would make critical employment generating development impossible to deliver in this area.

Urban Taskforce has reached out to the Mayor of Penrith Council in an effort to re-focus the conversation on State and Federal Government contributions to the funding of local infrastructure and making sure these important employment areas get off the ground. This should not be a fight between residents and developers.  This is much bigger than that.

Read the Urban Taskforce media release in full here.
Read the Penrith Council Meeting paper here.

Read and watch the extensive media coverage:

Urban Taskforce CEO Tom Forrest on 7 News
Urban Taskforce CEO Tom Forrest quoted in the Daily Telegraph
Urban Taskforce CEO Tom Forrest quoted in the Sydney Morning Herald
Urban Taskforce CEO Tom Forrest quoted in Property Observer

The NSW economy is being suffocated by extra taxes and a planning system which is the slowest in Australia.

CommSec’s State of the States Report into economic performance confirms that NSW is struggling.

On overall economic performance - NSW was ranked equal fourth with South Australia – behind Tasmania, the ACT and Victoria.

On economic growth – NSW was ranked sixth - NSW down 1.7% on the 10 year average level of output compared to Victoria which was actually up 23.2%.

In fact, the only area of our economy which is still growing is construction and this is because works which approved in 2016 are being finished off today. Since then the Planning system has strangled growth in NSW. We even have a new State Government policy that mandates a Design Competition for new industrial warehouses the Aerotropolis and surrounding precincts.

That’s why industry is so concerned about Penrith Council’s proposal to add a massive new tax to development in Western Sydney. (See article one above).) Extra costs to development, in addition to the price of land and operating in the slowest planning system in the country, will not bode well for NSW’s economic growth and competitive edge.

Industry supports making a contribution to infrastructure like roads and water, but this is a massive impost which will work against the creation of employment precincts around the Western Sydney Airport. Everyone in NSW benefits from economic growth, from jobs and from employment areas.  So it is reasonable that the burden of infrastructure costs is spread across the population.

Proposed new infrastructure levies, such as the ones being proposed by Penrith, are a tax on new jobs and they must be rejected. If allowed, they will render the Western Sydney Airport employment area uncompetitive with other areas of Sydney, let alone outside of Sydney and interstate.

Affordability of NSW and, in particular, Sydney for industrial occupiers was a significant issue before the onset of Covid 19 with rent and land values at historic highs compared to Brisbane and Melbourne.

The COVID 19 pandemic has only worsened affordability for occupiers. Given the current economic environment, it is essential that business investment in NSW is encouraged by providing affordable options for businesses to grow and relocate, therefore avoiding the flight of finance and labour to other states (Brisbane + Melbourne) as seen over the last few years.

Read Urban Taskforce CEO Tom Forrest’s opinion piece published in full in the Daily Telegraph here.

Urban Taskforce members dominated yesterday’s Greater Sydney Commission’s Planning Awards. Award recipients announced at the virtual ceremony included:

Mirvac winning the Development supported by infrastructure award for Marrick and Co

Campbelltown City Council winning the Place-based collaboration award for Campbelltown City Centre Master Plan

DKO Architecture (with Breathe Architecture and Oculus) receiving a commendation in the Great new place to live and/or work category for Arkadia

Congratulations to our members!

View all award category recipients here.