A bill to funnel infrastructure contributions away from local councils and into state government has been roundly critiqued for leaving councils without funding for local projects.
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The Environmental Planning and Assessment Amendment Bill would see the NSW Government taking stewardship of infrastructure contribution funds, while the costs of putting forth that infrastructure remains on local councils.
Developers in NSW contribute some funds to the local council when starting new projects. The funds are specifically set to be used on local infrastructure like parks, drains and roads, providing vital finances to city developments.
The Department of Planning, Industry and Environment put forward a bill on the idea that those contributions being handled at a state level would make infrastructure contributions more consistent and simplify the process of developing new projects.
Councillor Doug Curran described it as a step backwards.
"We haven't been briefed on it, but it sounds like it would be another case of the state government taking away money from local councils and then having to ask for it back," he said.
"I'd be concerned, we've got limited sources of funds already. Other than rates and developer charges, our only funding is grants and we don't want to be even more reliant on that."
Anytime the state government tries to take our destiny out of our hands, that's a negative
- Councillor Doug Curran
He likened it to the Federal Assistance Grant schemes, which are based on population without any further context.
"The FAGs grants are from the Federal government but - that's population based so most of the large city councils use it for a variety of community wellbeing programs and things. That's great, but regional councils use it to survive," he said.
Councillor Curran highlighted that it would take away power from local councils to adjudicate and govern themselves.
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"What's the incentive for a community to grow if the state government gets the money? Already there's a disparity based on who your local member aligns with, this just adds further to that ... Anytime the state government tries to take our destiny out of our hands, that's a negative."
NSW Planning Department deputy secretary Marcus Ray has addressed doubts about the new bill and assured local councils that the reforms would not leave them out of pocket.
"No council will be worse off under the proposal," Mr Ray said. "The reforms make sure councils get the money they need from development to deliver the infrastructure communities require, without needing to raise rates to do it."
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