Government rule changes threaten vital local infrastructure

Blacktown City Council has joined 22 other metropolitan Councils in demanding the NSW Government works with Councils to abandon or modify its plans to radically change the system of developer levies in new housing developments.

Blacktown City Mayor Tony Bleasdale OAM said under the proposed changes, the Government could take billions of dollars in levies earmarked for local roads, footpaths, parks, sports fields, libraries, community centres and aquatic centres, and divert it to State revenue.

“The proposed changes will have the greatest impact on Blacktown City Council because it shoulders the largest development burden in NSW.

“Economic modelling has shown that the changes could result in rate rises of over 40% because Councils cannot levy developers for community facilities buildings such as libraries, community meeting halls and aquatic centres, demanded by residents of new communities.

The demand for these buildings comes from development and developers should therefore be required to pay their fair share.

The Councils have published an open letter to the Premier in the Sydney Morning Herald and Daily Telegraph, to raise public awareness of the detrimental impact this levy change will have on their communities.

In part the letter says:

Premier, the NSW Government imposes housing targets onto local Councils to accommodate Sydney’s population growth.

Our communities rely on Councils to deliver the essential facilities and local infrastructure needed to support this growth, and make people’s lives and local environments better.

We can only deliver these facilities because we are able to collect contributions from property developers to help fund them.

However, the changes now being planned by the NSW Government will divert a large proportion of these developer contributions away from Councils and into a Treasury-controlled fund, with no clear accountability or transparency of how it will be spent.

And the Government is proposing Councils raise rates to make up the revenue we are losing.

Mayor Bleasdale said, under the changes, the Government was forcing Councils to choose between cancelling projects and raising rates.

“Under the proposed changes, the NSW Government could regulate to collect a contribution from a development in Marsden Park and spend it in Moss Vale – this is outrageous.

“Developers profit from density and development and it is only right that they meet the cost of the demand that their developments create.” Mayor Bleasdale said,

The 23 signatory Councils are directing communities to: www.saveourcommunities.com to find out more, and to also voice their concern with local members of Parliament.

The signatory Councils are: Bayside, Blacktown City, Blue Mountains, Burwood, Campbelltown, Canterbury Bankstown, City of Sydney, Cumberland, Hawkesbury, Hunter’s Hill, Inner West, Lane Cove, Liverpool, Mosman, North Sydney, Penrith, Randwick, Ryde, Strathfield, Sutherland Shire, Waverley, Willoughby and Woollahra.

/Public Release. View in full here.