Page 1499 - Week 05 - Wednesday, 14 May 2014
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video
differing views in considering further adjustments as needed. Most recently this involved a workshop held to discuss the issue of the solar envelope, and this workshop was well received by members of industry that attended. A subgroup from the workshop has been set up to address future options. This is a good demonstration of the ongoing stakeholder engagement that this government is committed to.
Turning to the issue of fees and charges, in response to industry concerns the government started a new system for the payment of fees associated with leases that had not commenced or where development was not completed within the time frames prescribed in the crown lease. These fees are not contrary to the government’s stated intentions. From 1 April this year, new leases no longer include commencement dates. A completion date will be included for standard single-residential leases and the completion covenant will be 24 months. For all other leases, the completion covenant will be 48 months or longer if that is considered appropriate for that particular development. In addition, fees for breaching the lease completion covenant will not be charged until the lease has been in breach for a further four years or 48 months.
The effect of this change is that a standard single-residential block will have a period of up to six years for construction to be completed before any fees will accrue. All other leases will have a period of up to eight years or greater for construction to be completed before any fees accrue.
If a development is not completed within the extended periods of six or eight years and a fee is charged, the extension of time fee will be set at the value of the general rates for the lease from the year that the breach commences, and this means that for single-residential leases the fee will not accrue until the seventh year after the lease was granted and, for all other leases, not until the ninth year after the lease was granted. There will no longer be a requirement to agree to a new complete date, as EOT fees will be charged with the rates until the development is completed.
To further stimulate the industry as part of a package announced by the Chief Minister, the government has agreed to provide a waiver and refund of EOT fees accrued between July 2012 and March this year. This measure is particularly targeted at leases that have accrued significant debts. Lessees who receive a waiver will still be required to nominate a new completion date, because that is important, and for all leases which are already in breach, the revised fee, which is a value of the rates, will be used to calculate the fee going forward. This again is a great example of the government listening and responding to the issues that are raised by stakeholders in the planning system.
Mr Coe’s claims about the project facilitation amendment bill are fundamentally ill conceived. The Planning and Development (Project Facilitation) Bill would have cut building industry red tape. It would have fast-tracked priority developments in the territory, with the aim of helping the development sector through what are tough economic times. The bill had two main attributes: transparency and efficiency. The bill would have enabled the government to continue to make open and accountable planning decisions while improving efficiency and reducing delay for major projects in the territory.
Next page . . . . Previous page . . . . Speeches . . . . Contents . . . . Debates(HTML) . . . . PDF . . . . Video