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Legislative Assembly for the ACT: 1999 Week 7 Hansard (1 July) . . Page.. 1948 ..

MR SMYTH

All other recommendations of the report also have the support of the Government but I intend referring them to the Urban Services Committee for consideration and public comment.

The report is far-reaching. It recommends substantial changes to the change of use charge because of its negative impact on investment. Amongst other things it noted:

Over the last nine years there have been seven variations to the Change of Use Charge or betterment charging system in the ACT - all this after a period of stability of 20 years when the betterment levy was fixed at 50 per cent.

This unstable environment since February 1990 has led to lack of clarity, inconsistent decision making and a perception, at least, that investing in Canberra's development is too hard, too time-consuming, too costly and too uncertain.

In fact, it is much more than a perception. Professor Nicholls showed examples of the impact CUC has on investment here compared with South Sydney. At the current 75 per cent level the CUC on a twobedroom unit in Braddon was $115244. In South Sydney the comparable development contribution on a similar unit would be $2588. Even at 50 per cent, as the Government is proposing, the ACT CUC would still be $7496 compared with the South Sydney developer contribution of $2588.

It is little wonder then that Professor Nicholls also found that that the present system for the determination of the CUC has a negative impact on investment in the ACT.

It is for this reason and because of the Government's vision for Canberra to be the clever, caring Capital with a dynamic sustainable economy that I am today tabling various amendments to the Land Act. These amendments give effect to the short term recommendations of the Nicholls report.

Professor Nicholls made it quite clear that immediate change is necessary in order to restore viability and stability to the current system, and to make the ACT nationally competitive.

The Bill before the Assembly, and the accompanying 'consequential' Regulations, encompass those changes the Government believes are necessary to achieve those purposes.

Some of the other recommendations - there were 19 recommendations in total - relate to changes that should not be made until their implications have been fully examined.

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