Actions Speak Louder Than Words

March 2007
Our parents always said, “actions speak louder than words”, obviously politicians have forgotten this age-old mantra.  With the state election looming (March 2007) the New South Wales Department of Planning (DoP) is attempting to look as if they are dealing with the many issues facing the state, particularly Sydney, i.e. a forecast population increase, residential land supply shortage, the location of future employment lands, infrastructure issues etc.  Since March 2006 the DoP has released 15 plans/strategies, including drafts and finals, for various regions around the state.  The plans/strategies released, according to date, are as follows:

During this period the DoP has also released numerous documents in relation to Sydney’s Metropolitan Strategy.  Whilst it is all very well to release these documents little action has been seen since.  Is this because the documents are not specific enough and there is little detail on how these plans will be put into place? 

These plans have a 25 year time frame and are based on the premise of a growing population base.  The four documents released to date in 2007 specify that the Mid North Coast will see an increase of 91,000 people, the Far North Coast is planning for an increase of 60,400 people, the Illawarra region is planning for an additional 47,600 and the South Coast region is planning for an additional 60,000 new residents, all by 2031.

In terms of geography the draft Mid North Coast Strategy applies to the eight Local Government Areas (LGA) of Coffs Harbour, Bellingen, Clarence Valley, Nambucca, Port Macquarie – Hastings, Great Lakes and Greater Taree.  The Far North Coast Regional Strategy applies to six LGAs including Ballina, Kyogle, Byron, Lismore, Tweed and Richmond Valley.  The Illawarra Regional Strategy applies to Kiama, Shellharbour and Wollongong LGAs and the South Coast Regional Strategy applies to the LGAs of Shoalhaven, Eurobodalla and Bega Valley.

Where will this significant increase in population arise from and what will draw the people to these areas?  The unemployment rates in the Mid North Coast and Far North Coast are higher than in Sydney.  The Mid North Coast Strategy identifies Coffs Harbour and Port Macquarie being areas of substantial growth.  According to the Department of Employment and Workplace Relations as at the September quarter 2006, the unemployment rate for Coffs Harbour was 8.6%.  The LGA of Hastings, which includes Port Macquarie, has a respectable 5.8% unemployment rate.  The Far North Coast Strategy identifies Lismore and Tweed Heads as areas of substantial growth.  The Lismore LGA has an unemployment rate of 8.7% whilst the Tweed LGA has an unemployment rate of 7.9%.  The Illawarra Regional Strategy identifies Wollongong and Shellharbour as areas of substantial residential growth with unemployment rates of 9.4% and 8.7% respectively.  The South Coast Strategy is expecting and planning for the highest growth in Shoalhaven, where the unemployment rate is currently 12.8%, and Eurobodalla with an unemployment rate of 11.8%.  How can these strategies have job targets set but no economic strategies to attract new business to the area?  Setting aside employment lands is not enough.

Does this mean that those wishing to retire will be the only ones stimulating the housing boom in this area?  Both North Coast strategies have stated that the number of those over 65 years of age will double.  The median age in the Mid North Coast is forecast to increase from 41 years to 55 years and on the Far North Coast the median age is expected to increase from 39 years to 51 years.  The median age in the Illawarra is also expected to increase from 36 years to 44 years.  The proportion of people over 65 years on the South Coast is expected to increase from 20% to 35% by 2031.  Thus arises the question as to whether or not there are appropriate housing choices for those wishing to downsize and retire to these areas and whether there is sufficient health care throughout the region.

The Draft Mid North Coast Planning Strategy aims to increase the current level of housing in urban areas from 20% to 40% by 2031 by way of medium density development.  But do the elderly want room to live and enjoy the outdoors or would they rather be cramped up in small units and townhouses or living in a retirement village or health care facility?  The Mid North Coast Strategy lacks detail in regards to health care, retirement villages and hospitals.  It aims “to provide the type of housing style and dwelling mixes that are appropriate to the ageing population”.  But what is appropriate?

The Far North Coast Strategy aims to add 51,000 new dwellings to the housing stock by 2031 with 60% being single dwellings and 40% being multi-units.  The strategy states that “councils will plan for a range of housing types of appropriate densities, locations and suitability that are capable of adapting and responding to the ageing of the population.”  Although this is more detailed than the Draft Mid North Strategy the strategy still doesn’t explain what is appropriate housing.

The Illawarra Regional Strategy would have to be the most detailed strategy, however, the document still lacks depth and direction.  The strategy aims to add 38,000 new dwellings by 2031 with 50% being single dwellings and 50% medium to high density.  The strategy sets out the percentage of housing types planned in each area, however, there is still no discussion of retirement villages and hospitals.  This region compared to the other two has the largest affordability issue caused by its proximity to Sydney.  Housing affordability has declined over the last five years due to increasing housing prices, in particular Kiama where 72.3% of low income households are experiencing housing stress.  The strategy aims to “support affordable housing strategies, as appropriate, for specific areas and development.”  However there are no further details.

The South Coast Regional Strategy aims to provide 45,600 new dwellings for 60,000 new residents.  The strategy aims to “provide the right type of housing in the right place at the right time” but what is the right type of housing, where is the right place and when is the right time? No targets have been set for the housing mix i.e. detached houses, medium density and high density with vague statements throughout the draft stating a “10,500 dwelling supply gap will be accommodated through medium-density development” but what about the rest of the housing being planned?  Will this medium density development be located in the established areas or in greenfield locations?

In theory these planning documents are a good outline of what to expect in the area, however, there is no real outline of what housing types are ‘appropriate’ and what will be provided in the area.  As the unemployment rates are high in these municipalities the elderly or those looking to retire will have to be the first to move to the region to improve the economic activity in the area and create jobs.  Furthermore if there is a change in government what will happen to these plans/strategies?  Will a new government implement change or will there finally be some form of action?

To be fair, the Growth Centres Commission (GCC) has been established with the objective of managing the planning and infrastructure coordination for the land release areas in the North West and South West of Sydney.  The GCC has released a document extensively detailing the urban design requirements for any future DCP within the Growth Centres precincts.  The cost for the special infrastructure contributions, for residential and industrial land, within the North West and South West Growth Centres that require development consent has also been released.  This creates some certainty and a pathway forward for developers.

For these plans/strategies to become a reality and be implemented a lot more detail needs to be covered.  The current depth is currently adequate for pre election purposes, however, the devil is in the detail.