Page 501 - Week 02 - Wednesday, 19 March 2014
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MR BARR (Molonglo—Deputy Chief Minister, Treasurer, Minister for Economic Development, Minister for Sport and Recreation, Minister for Tourism and Events and Minister for Community Services) (12.01): The government will not be supporting Mr Coe’s motion this morning, and I have circulated an amendment to the motion.
First, though, I would like to make some comments in relation to the construction sector. As we have just noted in this place, through Dr Bourke’s constructive motion, construction is a key driver of economic growth and jobs in the territory. Measured in terms of output, it is the second largest industry in the ACT and contributed $3.4 billion or around 10 per cent to real territory output in the 2012-13 fiscal year. It also accounts for around 6½ per cent of employment in the territory, with just short of 13½ thousand people employed as at November 2013, an increase of nearly 50 per cent on the level of employment of 10 years ago. As such, the government will continue to play an active role in supporting the sector, and today presents an opportunity to further discuss some aspects of this support.
Turning specifically to the issues raised by Mr Coe in his motion, extension of time fees encourage the timely development of land without undermining the security of the crown lease. They have been used in the ACT since well before self-government and have always been an integral part of the land administration system. There are a number of adverse social and policy consequences associated with having too many undeveloped blocks, particularly in residential areas. As such, extension of time fees provide the government with a policy lever to help reduce development delays and to ensure that land sold is developed in a timely manner.
The government has announced significant changes to the EOT fee structure. The changes will effectively extend the time that a lessee has to develop land and to reduce fees, whilst maintaining the integrity of the EOT fee structure. These reforms seek to strike a balance for all parties involved. The new fee structure provides a predictable, clear and transparent fee moving forward that is able to be easily calculated by lessees. The changes will benefit those within the community trying to develop land where they have outstanding commitments against their crown lease. However, it takes into account the concerns of industry stakeholders as well as the community who want to ensure that blocks do not sit vacant indefinitely.
As part of the government’s reform package, it was also announced that EOT fees relating to a period between 1 July 2012 and 31 March 2014 would be waived or refunded if fees had been paid. The government is aware of a number of projects with high EOT fees which have been dramatically reduced as part of this announcement. This will help stimulate development of these specific blocks but also encourage lessees to commence construction in a timely manner because the requirements now will be that the extension of time fees be paid annually rather than at the commencement of a development.
The lease variation charge was introduced in 2011 to replace the change of use charge, and this applies when an ACT leaseholder seeks to vary the provisions of their crown lease that results in an increase in the economic value of the land, a windfall gain in
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