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Legislative Assembly for the ACT: 1996 Week 3 Hansard (28 March) . . Page.. 822 ..

MR HUMPHRIES (continuing):

Mr Speaker, the Government acknowledged the view of the board of inquiry that "the increase in the value of land resulting from new use rights belongs in whole, or in part, to the Government and the community". The Government, therefore, proposes to scrap the current betterment regime and replace it with a so-called "use rights charge".

Mr Berry: Get out! I will tell you what it is going to be. It is going to be a development rights clause, Gary. Forget what you think you are going to see.

MR SPEAKER: Order! Interjections are out of order. They are particularly out of order when you are out of your seat.

MR HUMPHRIES: Mr Speaker, the board of inquiry notes that "unless the owner of public land takes the full increase in value (or close to it) there will be little betterment". In the interests of simplicity and consistency, the same rate of use rights charging should apply to all classes of land, irrespective of location.

Mr Moore: Explain the reason why you changed from development rights to use rights?

MR SPEAKER: Order! This is a ministerial statement. Would you proceed, Mr Humphries. We will have the debate later, I have no doubt.

MR HUMPHRIES: However, Mr Speaker, the Government recognises the potential for "use rights charges" to be used as a tool to help in the achievement of the Government's economic, planning and land management objectives. While it is necessary to have a consistent system to promote a clear understanding of the Territory's planning and development "rules", it is also appropriate to provide for some flexibility within that system, subject to appropriate accountability.

Acknowledging the recommendations of the board of inquiry and the stated views of a majority in this place, the Government proposes to levy a "use rights charge" at 100 per cent - - -

Mr Moore: No; let me tell you, you will not.

MR HUMPHRIES: That is what I am saying, Mr Speaker. It proposes to provide for remissions within the context of the Government's strategic plan, on the basis of specific published policy objectives. An example would be encouraging development in and around neighbourhood centres. It also proposes to table details in the Assembly when the Government decides to waive or remit a "use rights charge", including its reasons for doing so. This should provide the necessary transparency to ensure public accountability, and hence remove the need for future inquiries of the kind we have just seen.

I turn now to concessional leases. Concessional or free-of-charge lessees will be able to remove the concessional status of their lease after 10 years by paying to the Territory the full market value of the lease, providing the proposed use is consistent with the Territory Plan and any necessary development or leasing approval has been given. The process for effecting this change will be in accordance with the policies outlined today. It will be transparent and accountable.

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