Page 3406 - Week 11 - Wednesday, 18 September 2013
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Unfortunately, I was spot on. The auction was delayed a couple of times and negotiations fell through. Now the government is going to be going it alone and skewing the market. Property is one of the most competitive sectors of our economy, yet this government arrogantly thinks it can do a better job than the professional private sector.
When Denman Prospect failed to sell, the message to government should have been: “What can we do to make this more attractive? How can we remove the obstacles?” Instead, the ACT Labor government took it as an opportunity to further taint the market.
The issue of the redevelopment of the ABC flats and the territory plan variation is a sorry saga. Of course, yesterday the Speaker ruled that the document that Mr Gentleman had tried to ram through the planning committee and Assembly and claim was a committee report was questionable. The Assembly sent the questionable report back to the planning committee for proper process and consideration. However, on the more substantial issue, the government is seeking to do an ad hoc territory plan variation for a key part of inner Canberra at the same time that the government is spending hundreds of thousands of dollars on a city plan with commonwealth funds. It seems bizarre that during the time in which a city plan is taking place, the government will be seeking to undertake a major rezoning of part of the city.
There is no coordination of planning in and around the city. The city is being pulled in every direction. It is being pulled to the west with the City West, New Acton and ANU Exchange developments; to the north with redevelopment in Braddon; to the south with City to the Lake; and now, with draft variation 308, to the east.
Independently, each of these may be a good thing, but there needs to be some coordination, something which actually links the plans together. That is why the city plan is a good idea, and I am glad that the commonwealth government is funding it. However, it seems a slap in the face to that plan when the government goes and announces draft variation 308 at the same time that city planning process is being undertaken.
Further to this, the government states that the redeveloped ABC site will house hundreds of dwellings with only 10 per cent to remain as social housing. This means that the government will be acting as a developer by selling 90 per cent of the units to the private market. Therefore, the government will be interfering in a competitive market at a time when the property sector is struggling. Further to this, given that the government would not be paying for the land, or the lease variation charge, the government would have the ability to deliver units to the market at a considerably lower price than the private sector. This means that the government could undercut other sellers’ units. Further, as a contingency, if the government fails to sell units it is likely that Housing ACT would retain ownership of apartments for use as social housing stock.
There is no other developer in Canberra, or anywhere, that has the luxury of not paying for land, not paying the lease variation charge, and then being able to self-
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