ALGA News: August 18, 20066

» Email a colleague

Councils not to blame for drop in housing affordability

A report released on 14 August by the Local Government Association of Queensland (LGAQ) puts to rest the assertions of the building industry that councils are responsible for driving up house prices. Critically, the research prepared for the LGAQ shows that across Queensland as a whole, the rate of production of housing lots by developers has been 30% below the rate of council approvals. The Report builds on an earlier inquiry by the Productivity Commission in 2004 which found that much of the increase in housing prices in recent years is the result of cheaper and more readily available finance and not land release, approvals processes or taxes and charges.

"Claims by the building industry that council fees and charges are causing house prices to rise are wrong", said Cr Paul Bell, President of ALGA. "The report prepared for LGAQ also shows that the development approvals processes of councils are not to blame for the delays in the release of land." The Report also shows that leading developers continue to make strong profits with leading companies making 20% returns on investments.

The findings in the Report and the Productivity Commission's findings are also at odds with the comments of Treasurer Peter Costello earlier this week that State Government land release policies and taxes are responsible for increased housing costs and reduced affordability. The Treasurer's comments came hot on the heels of an increase in interest rates and coincided with the release of a hounding affordability report which says housing affordability dropped 5 per cent in the June quarter.

From the President

Housing affordability has become a major issue for individual purchasers, particularly the young, and for governments and it's a concern shared by local government. ALGA, through its role on the Local Government Planning Ministers Council, has participated in a joint effort with Housing Ministers to develop an action plan to address housing affordability. Our efforts to tackle the issue in a constructive and cooperative way, however, have been in contrast to the disingenuous claims by the development industry that councils' land release policies, development processes and fees and charges are responsible for declining affordability.

The leading research in this area was undertaken by the Productivity Commission in 2004. The Commission's report found that factors such as greater access to finance and a surge of demand for established inner city housing have driven prices up, not fees and charges. The Commission's findings have been supported by local government's own research which finds that developers are not releasing the blocks made available to them by councils. Our research also shows that while purchasers might be struggling with housing costs, developers continue to make handsome returns. It is too easy to try to jump on a bandwagon of blaming local government for the problem and I am disappointed that Peter Costello also tried to push this line earlier this week by stating that restrictive land supply policies and taxes are responsible for the housing affordability problem.

Cr Paul Bell AM
ALGA President

NGA06: Pushing the Agenda

Registrations are now open for this year's National General Assembly - Pushing the Agenda. The General Assembly will focus on progress of the Triple F campaign - launched at NGA 2005 - Fair federal funding, Fair treatment, Formal recognition. It will build on three significant milestones for local government achieved so far this year - securing an intergovernmental agreement, or IGA, on cost shifting; the $300m boost to the Roads to Recovery program in the Federal Budget, coming on top of an additional $100 million for the AusLink strategic regional program announced by the Australian Government at NGA 2005; and the PricewaterhouseCoopers major study on local government financing commissioned by ALGA. Work has also progressed on a resolution to recognise local government, expected to be presented to Parliament this sitting. In addition, the ALGA President, Cr Paul Bell, will launch the National Local Roads and Transport Strategy - the subject of this year's National Local Roads and Transport Congress held in Alice Springs. This year's NGA will Push the Agenda as local government prepares for the next federal election in 2007 - an Assembly not to be missed!

Beazley, Carr head politicians to speak at NGA06

The Leader of the Opposition, Kim Beazley, will close this year's National General Assembly, while Senator Kim Carr, Shadow Minister for Housing, Urban Development, Local Government and Territories will also address Assembly delegates. ALGA President, Cr Paul Bell, said, "We are delighted to have the support of leading federal parliamentarians - it demonstrates the spirit of cooperation that exists between the local and federal spheres". This year's keynote presentation will be given by Grahame Morris, the head of PricewaterhouseCoopers Office of Federal Government Services and heading ALGA's local government financing study. He will be joined by Barry Easther, Mayor of West Tamar Council - put under the media spotlight after the rock fall disaster at the Beaconsfield gold mine on Anzac Day - Robyn Moore, multi-skilled communicator, and the Founder and Chairman of Clean Up Australia, Ian Kiernan. Program and registration details are now available on the recently refurbished National General Assembly website.

Motions for Debate - closing soon

Councils are invited to submit Notices of Motion for the 2006 National General Assembly of Local Government. Motions are to be received by ALGA no later than Friday 8 September. In order to address delegates' strong concerns regarding motions for debate, a General Assembly Review Committee has been set up by the ALGA Board. Two significant changes for this year's Assembly are the return of full plenary debate and strict assessment of all motions submitted against the criteria of national significance. Issues not included for debate in the Business Papers are welcomed in Open House - a networking space specifically designed for delegates to discuss issues not on the main agenda - why not make a booking in advance of the National General Assembly? This is your opportunity to discuss what's happening on your home patch.

Quote of the week

Who was the first guy that looked at a cow and said, "I think that I'll drink whatever comes out of those things when I squeeze them?"
- Calvin and Hobbes

Stocktake of emergency management

ALGA is undertaking a stocktake of the roles and responsibilities of local government in emergency management nationally as part of a project funded under the Australian Government's Working Together to Manage Emergencies initiative. The stocktake will recommend that a nationally consistent message on the role of local government in emergency management be adopted by state and territory governments given the consistency in the prevention, preparedness, response and recovery (PPRR) framework, within which local governments operate across Australia. Council officers who wish to contribute to the stocktake through national focus groups on communication, risk assessment, remote area needs, simulations and exercises or community recovery should contact the project's manager, Sharyn Csanki - sharyn.csanki@alga.asn.au - 02 6122 9420

Reducing regulatory burdens

This week the Federal Treasurer announced the Australian Government's final response to the Banks Taskforce report Rethinking regulation: Report of the taskforce on reducing regulatory burdens on business. The government's response addresses all 178 recommendations. In summary the Government has agreed in full or in part to 158 of the recommendations. Action in specific areas includes:

tougher rules for making new regulation, including cost benefit analysis
screening of all regulation at least every five years
work to harmonise state and territory conveyancing laws
work towards a single regulator for mine safety
an FBT reporting exclusion for pooled motor vehicles
improved education and advice for occupational health and safety
a review of the thresholds for the definition of a large proprietary company
a simplified accounting method to be developed for small restaurants, cafes and caterers
commencement of work on the national streamlining of business names through the ABN/ABR system
alignment between definitions of small business, employer and associate
aligning training and licensing and mutual recognition of occupational licensing.

The Australian Government's final response is available for download at www.treasury.gov.au
The report of the Taskforce is available at www.regulationtaskforce.gov.au

Proposed BCA 2007 Amendments

The draft amendments for the 2007 edition of the Building Code of Australia (BCA) are now available for review and public comment.

The proposed changes to Volume One and Volume Two of the BCA follow research and consultation with industry and other stakeholders. They include, among other things, updated cross-referencing to Standards and other documents, updated energy efficiency provisions, and technical and editorial changes. If adopted, the changes would take effect from 1 May 2007.

The draft BCA changes are available from the Australian Building Code Board.

Comments are invited until Friday 25 August 2006, and are to be sent to BCA2007@abcb.gov.au using the response sheet template available from the ABCB website.

Building access FAQ

There are two types of law that cover access to buildings and facilities within them, the Building Code of Australia (BCA) and anti-discrimination law such as the Disability Discrimination Act 1992 (DDA). In most states and territories there is a similar anti-discrimination law covering access to buildings. Compliance with the BCA does not necessarily mean the building complies with the requirements of the DDA or state and territory anti-discrimination laws.

A Frequently Asked Questions has been placed on the Australian Human Rights and Equal Opportunity Commission's website. The FAQ covers the question of whether or not the Commission can grant exemptions from the DDA or the BCA in relation to access requirements to buildings. This will be of particular interest to local government and building certifiers who are trying to address access issues and the current inconsistencies between the BCA and DDA.

International news

Line in the sand

The city council of Riccione, a popular resort on Italy’s eastern coast, has altered its bylaws to create all-female beach sections for Muslim women to enjoy the sun in privacy. It hopes to combine the delights of sun, sea and sand with a respect for sharia law. Muslim women on holiday in the area would be able swim and enjoy themselves on the beach while respecting Islam's injunctions against mixed bathing and displaying their bodies to members of the opposite sex. Loretta Villa, the councillor responsible for the initiative, said it was prompted by requests from Muslim tourists.
- Corriere della Sera