Property Council Lunch with the Chief Minister

Property Council Lunch with the Chief MinisterWhile the federal government has stopped downsizing, ACT Chief Minister Andrew Barr says the “rivers of gold have stopped flowing” and Canberra must build its wealth beyond the public service.Speaking to a packed crowd of property professionals at the Hotel Realm on Friday 12 June, the Chief Minister argued that “it doesn’t matter if the Liberal or Labor party is in government, the Commonwealth is broke – with a massive deficit – and Canberra needs to build its wealth elsewhere”.That wealth will be found in education, tourism and services, Barr believes. “There is massive opportunity for growth, and for the property sector,” he said.”We must play to our strengths as a city. We are the happiest, healthiest and best educated, longest living people in Australia. We have a lot going for us.” It is up us to translate this into an “ever-increasing economic success story”.The ACT Government’s budget has been challenged by cuts to the public service, a reduction in GST revenue, and the $1 billion Mr Fluffy buyback. The federal public service job cuts in particular “sapped confidence”, Barr argued. “The Territory Government saw that we had an important role to play in stepping into the breach and investing in an infrastructure program,” Barr says, adding that we are already seeing positive results. “The latest retail trade and economic growth statistics show the Territory is the strongest in the country. We have turned the corner and the worst is behind us.”Barr, who unashamedly calls himself the ‘Mayor of Canberra’, is overseeing a record $2.8 billion public infrastructure program covering health and education facilities, court buildings, an active transport network and the largest public housing renewal program ever seen in the nation’s capital. The room welcomed the Chief Minister’s commitment to abolish inefficient taxes, such as stamp duty and duties on insurance. “These are bad taxes that reduce economic activity and reduce housing affordability,” Barr said, adding that “one third of stamp duty has been removed, making buying a home in the Territory much more affordable.” According to the Chief Minister, the ACT Government’s objective was to have the lowest commercial stamp duty rates in the country, which would “save money and give our city significant advantage.”The Chief Minister also announced the introduction of a parking offset scheme, whereby developers could make payments to the government to offset parking requirements. Barr promised that the government would “use that money to invest in sustainable transport or in parking offsite.” The Property Council looks forward to seeing more detail on this scheme.Barr acknowledged that the “way people want to live is changing and business-as-usual won’t cut it. Housing options, planning and urban services must change as the city changes.” Barr cited investment in the light rail, work with Canberra’s universities to capitalise on our knowledge base and urban renewal programs as three ways the ACT Government is moving beyond business-as-usual to make the nation’s capital a “truly international city and a knowledge economy.”The Property Council welcomes the Chief Minister’s commitment to urban renewal, and to revitalising Canberra’s CBD. “The ACT Government is keen to work with the private sector to see our CBD grow, prosper and evolve” Barr said, adding that there was “much that we can learn from projects like Postcode 3000 in Melbourne.” The Property Council’s report, Transforming Canberra City Centre, recommends the ACT Government adopt a similar scheme to attract more residents into the CBD and rejuvenate the city’s tired existing buildings.Barr acknowledged that partnership is an essential ingredient as we look to revitalise our city centre, improve land release and roll out an ambitious urban renewal agenda. The property industry is committed to working with the ACT Government to build a vibrant city that reflects our inimitable national identity, creates prosperity and jobs, and builds strong communities.Catherine Carter is the ACT Executive Director of the Property Council of Australia