Political Interference in Key Melbourne Developments
The Property Council has condemned the revocation by the Opposition, Green and Australian Conservatives’ representatives in the Legislative Council that blocked a mixed use development over Ormond Railway Station and a public housing project in Ashburton.
Despite the Ormond project being endorsed by a planning panel, the final planning stage was blocked in Parliament overnight.
The move creates planning uncertainty and will undermine the delivery of desperately-needed housing located near jobs and transport hubs.
The Shadow Minister for Planning, David Davis has indicated that the revocation tool could be further used to block other projects. This creates a quasi-planning authority that usurps both planning and democratic processes.
While the Property Council does not usually comment on individual projects, these decisions have industry-wide ramifications. Projects that include density on transport hubs have state significance given the role these projects can play in managing population growth.
Speaking to the media today, Executive Director Sally Capp said that this decision will drive up costs, delays and create even more uncertainty to a system that already generates lengthy costs and delays.
It is also a threat to investment and development in the State. Provision of finance to the property industry is fundamentally dependent on a robust and conclusive planning process. Uncertainty results in financiers less willing to advance finance until the uncertainty is ultimately resolved.
The revocation also undermines the State’s ability increase density in established areas, placing further pressure on housing supply in the fastest growing population in Australia.
The Property Council supports density done well. It is essential to provide quality and diverse housing choices close to transport infrastructure and other amenities.
This actions undertaken in Parliament will stall new housing supply and drive up costs for the industry and ultimately renters and home owners.
We will fight on behalf of the industry to limit interference in the planning process and work with all members of Parliament to ensure the pipeline of appropriate housing in the right locations can continue without political gamesmanship.
For further information contact the Policy Team on 03 96 8300.