06 August 2008
Key Points:
However, as with all complex reform, the devil is in the detail. The role of the Implementation Advisory Committee established by Planning Minister Frank Sartor will be crucial in giving definition to the new regime, and there will be keen interest in the outcomes of the fine-tuning process.
From the tourism industry’s perspective, the introduction of a three-level approvals model for development applications represents a significant improvement on the previous, polarised model. There is now a clear frame of reference for developers seeking timely and transparent assessment of their projects.
Similarly, the rationalisation of state agency concurrences and the introduction of time-frames for the consideration of projects will make NSW a better and simpler place to do business. Tourism developers such as the Mawland Group, which operates the Q Station site on Sydney’s North Head, would appreciate the removal of a thicket of red tape from the planning system.
There is also scope for, and TTF strongly supports, the inclusion of tourism expertise on both the Government’s Planning Assessment Commission and on the Joint Regional Planning Panels created by the legislation.
Against this, we will be looking for the correction of tourism’s status in relation to the criteria for evaluation by JRPPs. Tourism projects are currently defined as "residential", and therefore must be worth at least $50 million to qualify for assessment by a JRPP. Clearly, tourism projects would be more appropriately defined as "commercial", allowing them to qualify for JRPP assessment at the lower threshold of $20 million.
In the parallel strata reform process, we will continue to investigate how councils could be mandated to enforce residential planning, zoning or approval to prevent unauthorised short-term commercial letting of accommodation. The proliferation of illegal serviced apartments is a huge problem for legitimate tourism accommodation providers, and there remains insufficient scrutiny of this damaging practice.
TTF will also continue to make the case for wider reform of strata title laws to simplify the unlocking of stata schemes. This would remove a significant impediment to vital new tourism accommodation investment – but, without political will, there is a risk that the opportunity for further microeconomic reform will be missed.
Ultimately, the reforms enacted in NSW are a significant breakthrough, putting the NSW Government in a position to advocate national reform through the Council of Australian Governments. With the Rudd Government committed to harmonising Federal-State execution in areas such as infrastructure, the conditions are right for a concerted push towards the nationwide rationalisation of planning regulations.
The tourism industry would strongly support such an initiative, not least because the Federal Government has made supply-side development a priority of the National Tourism Strategy. Australian tourism is suffering from a lack of innovative new product, compounded by impediments to investment in the planning system. Planning reform is a means of releasing investment opportunities and revitalising the "hardware" of the industry.
Minister Sartor deserves credit for initiating the debate – he now has the opportunity to work with his Federal, State and Territory colleagues and lead the debate on the national stage.
