Today's announcement from NSW Premier Chris Minns will do nothing to deliver roads, schools and footpaths faster unless it is backed by significant additional funding, according to The Hills Shire Mayor Dr Michelle Byrne.
The proposed reforms will delay when developers must pay councils for essential infrastructure. The reforms may also permit the NSW Government to divert Council funds earmarked for critical local infrastructure, such as parks, playing fields, road upgrades and stormwater management works, to State Government projects selected through processes that lack transparency and clear justification.
Mayor Byrne said this was a cynical attempt to blame councils for feasibility issues that have plagued the construction industry since the May Federal budget.
"The NSW Government is doing what it does best - blaming councils for issues not of its making. Development feasibility has fallen through the floor since the Prime Minister Anthony Albanese's disastrous May budget," Mayor Byrne said.
"Local contributions fund footpaths, sporting fields, playgrounds and all the essential infrastructure each community needs to function. Delaying when contributions are paid will only delay the completion of essential infrastructure even further.
"The NSW Government claims councils are sitting on billions in unspent infrastructure contributions. Maybe they should take the time to understand why. Developer contributions do not come close to funding the infrastructure required to support growing communities.
"It takes time to negotiate and acquire land for the infrastructure and in certain precincts, that could involve negotiating with over 200 individual landowners just to widen the roads. It can then take up to five years for Transport for NSW to approve a set of traffic signals.
"Then there's often not enough money to acquire land needed for parks and roads, nor is there enough to cover the cost of construction.
"We've been begging the state and federal governments to step in and top up the contributions - but they haven't.
"If the NSW Government now wants to take on responsibility for local infrastructure delivery, that's fine, but it will reach the same conclusion as Councils have - there is simply insufficient funding available to deliver the infrastructure that communities need. The challenge has never been a lack of willingness to deliver projects, but a persistent gap between funding available and infrastructure required.
"This reform will do nothing to address the risks to Council and do nothing to cut the red tape in spending that money. Why does it take years for Transport for NSW to approve traffic lights when we've already collected money to provide them?
"We all know that when the NSW Government steps in to spend Council's contributions, we will get less. Every project they touch costs more, takes longer to deliver and costs blowouts are a given.
Mayor Byrne also questioned whether the NSW Government would delay the collection of its own state infrastructure contribution from developers.
"The Government has talked a big game on housing feasibility. Have they delayed the collection of their own contribution? Of course not," Mayor Byrne said.
"This Government has tried to upzone and approve its way out of a housing crisis, and they've barely moved the dial after three and a half years in Government. Under this Government, we are seeing approved projects stall and housing completions drop.
"They're suffering because the Federal Government's changes to the capital gains tax discount and negative gearing have wiped out private investment into new homes.
"We have precincts of land which are owned by the Government at Kellyville and Bella Vista that have been shovel ready for 10 years and not a single home has been built on them.
"If the Government cannot deliver housing on land it acquired at low cost for rail infrastructure and subsequently rezoned for high-density development, how can it reasonably expect the private market to do so?
"A lack of local infrastructure is also a barrier to feasibility of projects. The Government should be looking for ways to forward fund this essential local infrastructure instead of further delaying contributions and giving the green light to new substandard neighbourhoods.
"I call on the Government to sit down with councils and attempt to understand the issue before making sweeping changes to the way we deliver for our communities."
