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Sydney Towards Tomorrow 10+ MILLION PEOPLE BY 2050 HOW TO MAKE GREATER SYDNEY THE WORLD’S MOST LIVEABLE CITY IN 40 YEARS ACEA INFRASTRUCTURE REPORT contents INTRODUCTION 2 SUSTAINABILITY 3 PLANNING 5 ATTRACTIVE DENSITIES AND LAND USE MIXES 8 FUNDING 12 SOCIAL ISSUES 15 GOVERNANCE 19 October 2009 Version No.1 executive summary SYDNEY IS AN INTERNATIONAL CITY WITH A VIBRANT CULTURE, STRONG BUSINESS AND ECONOMIC OPPORTUNITIES AND A STRONG AND DIVERSE COMMUNITY. Critically, however, Sydney’s provided a forum for innovative thinkers It advises and recommends the policy, infrastructure needs (in particular from across a wide range of engineering planning and regulatory reforms required transport infrastructure to service and consulting firms to develop a plan to help protect Sydney’s future growth both commuters and freight) have not for Sydney (the Newcastle/Sydney/ and prosperity. Its strategic focus is on kept pace with the rate of population Wollongong conurbation) as the ‘City of urban planning integration and transport growth in the Sydney basin area or Cities.’ The plan integrates sustainability into infrastructure rather than providing a list of with the needs and expectations of the infrastructure planning to provide a robust infrastructure priorities for Sydney. community or industry. This trend is strategy to respond to the challenges, The themes targeted in Sydney Towards not only set to continue, but if we are which is flexible and adaptable to the Tomorrow include: to prepare adequately for the future, uncertainty of the future while maintaining the ACEA Infrastructure Roundtable Sydney as a vibrant community. 1. Sustainability; contends that Sydney should be 2. Planning; Sydney Towards Tomorrow is intended to 3. Attractive densities and planning now for the infrastructure complement other plans such as the NSW land use mixes; required for a larger population target. Government’s Metropolitan Strategy (2005), 4. Funding; Sydney Towards Tomorrow has been City of Sydney’s Sustainable 2030 Plan developed to provide thought leadership, (2008), Metropolitan Water Plan (2005), and 5. Social issues; and promote community debate and prompt a number of local government plans. 6. Governance. more integrated and thorough planning, These themes are highly interrelated Sydney Towards Tomorrow identifies six key so that Sydney might live up to the vision and should be approached in areas of priority that will help to address of being the world’s most liveable city with an integrated matter. Sydney’s future infrastructure requirements. a population of 10+ million by 2050. It has KEY RECOMMENDATIONS One Plan for Sydney - Focus on quality medium density urban forms within the existing urban footprint and high density around existing transport corridors and nodes. This means an increased focus on urban consolidation and less focus 1 on fringe development. Live, work, play communities delivered by a structure planning process that brings together all elements of infrastructure in a single spatial strategy. Infrastructure that delivers carbon neutrality to Sydney via both short term sustainability based procurement and longer 2 term sustainable planning. 3 Abolish the transport tax base and introduce a user pays system. Consolidate local urban councils from 42 to 11 (in the Sydney Basin) and one regional council for each of Newcastle, 4 Illawarra and the Central Coast. Reform governance structures so that there is one body responsible for the policy, planning, safety and funding of 5 transport infrastructure management, development, maintenance and operation across all modes. introduction 1 introduction SYDNEY - A WORLD CITY SYDNEY IS THE LARGEST CITY IN AUSTRALIA AND THE CAPITAL OF THE STATE OF NEW SOUTH WALES. Sydney (including the Central Coast Australia’s largest city, it is vital that the NSW Therefore, as Sydney prepares to become and Blue Mountains) covers an area Government consider a broad planning a city catering for over five million people of approximately 12,000 square policy that at the very least takes account of in the short term and ten plus million kilometres and is surrounded by a a significant parallel increase in population people in the longer term, it is vital wealth of natural resources including for Sydney. to guarantee that the population has famous beaches, World Heritage listed consistent, first-rate and equal access The burden on Sydney’s infrastructure has national parks and vast hinterlands. It to housing, employment, education weakened its ability to function as a world has a current population of 4.4 million, and recreation facilities and services. city, threatens its economic competitiveness which is estimated to grow dramatically and jeopardises its liveability. The character The ACEA Infrastructure Roundtable in the next 25 years. and health of communities is also challenged believes that all future cities and regions of Sydney is the economic gateway to through the reduced choice and availability Australia should encompass the following Australia. The New South Wales economy is of essential infrastructure such as housing themes, which have been adopted larger than that of Hong Kong SAR, Malaysia and access to goods and services. throughout Sydney Towards Tomorrow: and Singapore and accounts for more than A sustainable legacy; Without a strong commitment by one third of Australia’s GDP. Population Quality of life; government, business, community, growth has allowed Sydney to expand Preservation and respect for the public and private investors, as well as steadily into a diverse multinational city with natural environment; a clear, well-conceived and targeted a skilled workforce employed in numerous strategy to plan, prioritise and deliver the An urban form that responds to industries including finance, information city’s future urban fabric and associated multiple sustainable demands; technology and manufacturing. infrastructure, Sydney risks losing its status Strong local community engagement As the city grows in stature, international as a leading, world-class city and will and support; appeal and population, so too does the reduce the quality of life for the millions of Connectivity and access; and pressure on its infrastructure, utilities people who call greater Sydney home. Integrated planning through and services such as transportation, strong leadership. distribution networks, communication, energy supply systems, health care and education. The pressure on Sydney’s transport corridors, housing and water supplies has increased to critical levels. In September 2009, Treasury announced a revised forecast population for Australia SYDNEY TOWARDS TOMORROW of 35 million people by the year 2049, an ENVISAGES AN ONGOING increase of 65% from the existing 22 million people. Given its predominant position as COLLABORATIVE APPROACH BETWEEN GOVERNMENT, INDUSTRY AND THE COMMUNITY, INCLUDING UTILISING THE EXPERTISE OF ENGINEERS, PLANNERS, ENVIRONMENTAL AND SUSTAINABILITY PROFESSIONALS, INDUSTRY ASSOCIATIONS AND LOCAL COMMUNITY LEADERS IN DECISION MAKING IN THE PLANNING PHASE AND ONGOING PROJECT DEVELOPMENT. 2 Sydney Towards Tomorrow sustainability OVERVIEW The concept of sustainability was A report commissioned by the Built placed on the international political Environment Meets Parliament (BEMP) agenda with the publication of ‘Our partners, which includes the ACEA, Common Future’ report from the UN states that there continues to be World Commission on Environment ‘broad agreement that reshaping the and Development (WCED) in 1987. future development of cities through This report defined sustainable better integrated infrastructure and development as ‘development that land-use planning arrangements will meets the needs of the present world be critical to Australia’s future GDP without compromising the ability of and productivity growth as well as future generations to meet their needs.’ providing improved access to services Australia followed, adopting the term for the growing populations of the ‘ecological sustainable development’ in nation’s cities, enhancing the quality of 1990. (Australian Government, 1992.) life and conserving the environment.’ (The Allen Consulting Group, 2009.) Sydney Towards Tomorrow 3 CHALLENGES SOLUTIONS PATHWAYS Despite these acknowledgements of the There are two opportunities to incorporate The ACEA Infrastructure Roundtable importance of integrating sustainability sustainability into infrastructure planning: has identified the following detailed with infrastructure, limited progress has Building towards a sustainable recommendations for actions which been made. Social and environmental vision; planning infrastructure to meet will provide sustainability outcomes for criteria are rarely considered equally with the objectives of a sustainable future Sydney Towards Tomorrow. economic criteria in decision making and potential variability by prioritising 1. Infrastructure constructed post 2010 for infrastructure, and life cycle costs solutions that improve the connectivity is to be carbon neutral and be a net are rarely used as the basis for options of communities, account for variability, exporter of water and energy. assessment. The failure to incorporate reduce emissions and minimise energy, 2. Infrastructure decision making must sustainability into decision making leaves waste generation and water use. consider the full life cycle cost in significant opportunity for improvement. Sustainable decision making; options assessment. The emerging evidence of climate change ensuring any decision made for 3. Infrastructure contract documentation is convincing, as detailed in the consensus infrastructure incorporates social, must include sustainability, greenhouse report by the Intergovernmental Panel environmental and economic criteria, gas emissions and reduction of resource on Climate Change (IPCC, 2007). Climate which among other benefits may result use targets. change poses a significant and immediate in sustainable procurement decisions, 4. Minimise the expansion of threat to Australia and the world. Significant recycled material selection, improved geographical footprint. changes combine to pose a serious threat energy efficiency and consideration of 5. Fully integrated connectivity to the integrity of infrastructure. alternative water supplies. between modes of transport If the predicted changes occur there These pathways are not incompatible and (road/rail/sea/air/pedestrian). will be catastrophic loss of infrastructure the latter - sustainable decision making, 6. Integrated transport plan must be along coastlines, including in the can be implemented immediately on developed and directed towards great Sydney area. These impacts on current infrastructure projects whilst the improving access to goods and infrastructure have the potential to sustainable vision and subsequent planning services rather than focus on one compromise the health, social and is developed and agreed. or more specific mode(s) with an economic systems of our cities and towns objective to reduce total trips/trip In aiming for a sustainable vision for Sydney in addition to the ecological systems. time, encourage healthier modes is critical to get buy in from stakeholders in of transport (eg, walking/cycling) With Australian federal, state and local the community and industry. This vision and optimise resource use. governments making substantial should lead to a robust long term plan for Sydney that is layered with a strategic plan 7. Create critical infrastructure corridors investment in long term infrastructure that allow co-location of major linear it is essential that the decision process having measurable objectives and actions for 50 years, 20 years, 10 years and 5 years. infrastructure such as water, electricity, incorporate sustainability and ensure that gas and communications. infrastructure is adaptable to potential The five year plan for Sydney should be committed to and funded. 8. The promotion and use of a recycled changes in Australia’s regulatory, market and water grid in Sydney. community needs over the full design life - Acknowledging the uncertainty arising from often over fifty years. 9. Develop a plan to upgrade ageing/ climate change, the plan must endeavour unsustainable infrastructure. These challenges are immense, but when to accommodate the potential physical 10. Provision of community and recreation considering Sydney Towards Tomorrow changes (variability in annual rainfall, sea facilities as well as green spaces within they can be viewed as opportunities. level, wind and extreme events, soil loss), living nodes. Engineers have a long history of planning resulting chemical and biological changes (species loss and habitat destruction), and 11. Preserve green belt land zones. and building Australia’s future. By working towards sustainable decision legislation (emissions trading scheme, making and ensuring variability due to renewable energy target, corporate liability; such as for safety) which will all have the TIMEFRAME climate change is considered, ACEA is The sustainability actions identified in confident the Sydney of the future will potential to alter planning assumptions. Pathways have been prioritised into an be a liveable and sustainable city. implementation timeframe split into three general time periods: immediate (0 - 3 years) intermediate (3 - 10 years) long term (10 - 50 years). CLIMATE CHANGE POSES A Pathways 1, 2, 3, 4 and 6 should be immediate goals, as they can be effectively SIGNIFICANT AND IMMEDIATE implemented in the short term. Pathways THREAT TO AUSTRALIA AND 7, 8, 9, 10 and 11 are intermediate goals as they will require significant planning. THE WORLD. SIGNIFICANT Should these pathways be implemented, it is envisaged that 5 will be achievable in the CHANGES COMBINE TO POSE longer term. A SERIOUS THREAT TO THE INTEGRITY OF INFRASTRUCTURE. 4 Sydney Towards Tomorrow planning OVERVIEW Planning is standard practice in a Cities are complex and interrelated by wealthy, modern society. ‘Thinking their nature. They are the economic ahead’ brings efficiency and improved centre of the national economy and are security, whether it is planning of the home for a majority of Australians. an individual’s finances, planning The efficient function of cities, their of a country’s healthcare system or contribution of wealth to the nation, planning for the future of a city. Good the preservation of quality of life for planning provides the potential their inhabitants and management of to achieve integrated, sustainable environmental impacts cannot be left outcomes more efficiently. It solely to market forces, nor can it be left provides a robust framework to to chance. Robust planning is critical guide funding, project development to provide vision, direction and a firm and delivery over a long period. basis for the myriad of considerations affecting a metropolis as large and complex as Sydney, especially given the slow-evolving nature of how these cities develop. Robust planning must include ample opportunity for stakeholder involvement. While there are a multitude of social, economic and environmental functions occurring at any time within a modern city, the common denominator is that it is happening in the one space. Thus spatial planning is a powerful means of understanding and resolving the effective integration of these activities. This spatial planning of the city is referred to here as urban planning. Sydney Towards Tomorrow 5 CHALLENGES The ACEA believes that currently, in Planning and Governance - Strategic Sydney Towards Tomorrow, rather than NSW, there is a strong need for strategic, planning cannot be viewed in isolation re-state these actions, proffers two broad integrated urban planning. Too much of the mechanisms which regulate solutions that will address a large proportion of the ‘strategic’ planning currently it. This regulation needs a sensitive of the range of issues outlined earlier and happening is considered short-term, balance between well-conceived which are not regularly discussed. These are: ad hoc and occurring within isolated and robustly assessed infrastructure Strategic, integrated planning through a sectors rather than as part of an outcomes and the potential to realise structure planning approach integrated and balanced system. projects within the timeframe set by Establishing a nexus between strategic financial and political imperatives. planning and the community (explored Governance structures (both at the political and bureaucratic level) often work against Planning and Funding - There is an in Chapter 5 – Social Issues, page 15). more integrated planning. Within many intimate interrelationship between planning parts of the government and the broader community there is a generally poor level of and funding. Although investigation of funding mechanisms is beyond the scope PATHWAYS of this report, it needs to be made clear The ACEA believes a strategic, integrated understanding of what strategic planning is that the whole concept of funding the plan would provide a single, robust, first and what benefits it can deliver. vision, value capture and financing of point of reference for the range of planning This situation is leading to a range of processes affecting the urban area. infrastructure and development is as much inefficiencies and lost opportunities that are Integrated planning would bring together all a planning issue as it is a finance issue. Too less than ideal in the context of a city such the key elements of the urban system: land often, strategic planning is undertaken as Sydney, including: use, transport, utilities, and environment without sufficient consideration of the Poorly identified needs, visions overall economic implications and financing and human (social) considerations. and aims; mechanisms. The concept of achieving best Strategic planning should be undertaken Projects and outcomes of lower value value for money should not be the only for a horizon appropriate to the rate of delivered less efficiently; driver of strategic planning, but it should be evolution of (and investment in) the urban Negative impacts on investor a key consideration. system i.e. in the order of 20 to 50 years. confidence; While it would be developed with a Slowed development, diminished quality of development; and SOLUTIONS long-term view, it would be reviewed (and potentially revised) regularly. It would Short term decision making. The ACEA believes good planning provides always constitute the highest order of the potential to achieve integrated, planning for the urban system. Planning and the Community - Despite sustainable outcomes more efficiently a clear understanding of key issues and provides a robust framework to guide Strategic integrated planning should be affecting strategic, integrated planning in funding, project development and delivery firmly focussed on understanding the full NSW, numerous attempts by peak bodies, over a long period. Spatial planning of extent, complexity and ‘interrelatedness’ of professional associations, advocates, the city (referred to in this report as urban the urban system in a balanced way and activists and media have failed to bring planning) provides a powerful means at a consistent level of detail, rather than about a resolution of these issues. It is of understanding and resolving the attempting to resolve certain components in argued that as with many such impasses, effective integration of social, economic isolation or to a higher level of detail. the most effective way to bring about and environmental functions within the As a result of its scope and horizon, the plan landmark change to planning within NSW complex urban system. would need to be based on a vision and at the political level is through community To address the extent of these issues will baseline assumptions that are sufficiently (i.e voter) pressure. require numerous actions, undertaken bi-partisan that it spans changes in political in a coordinated approach. Many of leadership. It would enunciate objectives these actions are well understood, that are robust over time, guiding shorter- fairly generic in nature and the need term planning decisions within a framework for them is well recognised. driven by this long-term horizon. THE ACEA BELIEVES THAT CURRENTLY, IN NSW, THERE IS A STRONG NEED FOR STRATEGIC, INTEGRATED URBAN PLANNING. TOO MUCH OF THE ‘STRATEGIC’ PLANNING CURRENTLY HAPPENING IS CONSIDERED SHORT-TERM, AD HOC AND OCCURRING WITHIN ISOLATED SECTORS RATHER THAN AS PART OF AN INTEGRATED AND BALANCED SYSTEM. 6 Sydney Towards Tomorrow THE ACEA ARGUES THAT SHOULD THE STRUCTURE PLANNING CONCEPT BE ADOPTED, THERE WOULD BE A SKILLS GAP THAT COULD AFFECT IMPLEMENTATION. IT WOULD APPEAR THAT IN ORDER TO SUCCESSFULLY DEVELOP AND IMPLEMENT STRUCTURE PLANS, IT WOULD BE NECESSARY TO RECOGNISE THE ROLE OF URBAN PLANNERS WITHIN THE PROCESS, AND EDUCATE POTENTIAL STAKEHOLDERS AND USERS OF THE PLAN AS TO HOW THE PROCESS WORKS. THE STRUCTURE The strength of a structure plan rests in This nexus between people, their level PLANNING CONCEPT the robustness of the baseline studies that of service expectations, the associated – MOVING FORWARD inform its development. Although as a infrastructure requirements and its Structure Plans provide a proven document the structure plan often appears costs needs to be better communicated tool for driving strategic, integrated simplistic, this quality of the plan is the result and addressed in order to instil a planning processes. The structure of a clear understanding of its composite clear understanding of the planning planning concept is used in numerous parts. These include investigations of process required to best achieve cities (including Sydney). Sydney’s environment and land capability, transport, optimal land use and infrastructure Metropolitan Strategy exhibits several of utilities, socio-economic issues etc. outcomes. This is further explored in the features of a structure plan, but has Chapter 5 - Social Issues, page 15. The ACEA argues that should the structure not achieved all the aims of the process. planning concept be adopted, there Even within Sydney’s planning community, would be a skills gap that could affect implementation. It would appear that TIMEFRAME the term structure plan can refer to a range As mentioned earlier, the horizon of the of planning instruments. For this reason, the in order to successfully develop and structure planning process is, by necessity, concept is defined in broad terms below. implement structure plans, it would be long-term. While the plan at any stage Should the structure planning concept be necessary to recognise the role of urban should constitute the ‘standing’ guiding adopted within NSW, it will be necessary planners within the process, and educate document, it should be reviewed and to develop a more in-depth and carefully potential stakeholders and users of the plan updated at regular intervals (say every considered definition. as to how the process works. 5 years for the broad plan). This iterative A structure plan is a spatial plan that process of review and revision is a key ESTABLISHING A to the relevance and ‘implementability’ provides vision and guidance for the NEXUS BETWEEN organisation and management of an urban of the structure plan but should not be STRATEGIC PLANNING area. It does not need to be a statutory viewed as an opportunity for unwarranted AND THE COMMUNITY instrument, but does need to have buy-in compromise of the intent of the plan. – OVERCOMING A from the key stakeholders affecting the MAJOR BARRIER It is expected that there would be a range urban structure. A structure plan can be Strategic planning, whether of the urban of planning and funding instruments that developed at a range of scales – from a structure or of the infrastructure that are influenced by the Structure Plan. Most region, to a city, to centres within a city serves it, is rarely readily understood by importantly there would be a funded, or even to neighbourhoods. The level of the community – the value, the costs, the publically available, short-term action plan resolution of the plan reflects its scope role it plays. The main exception to this (3 to 5 year timeframe) that focuses on and the extent of the area it covers. assertion is in the face of implementation, implementing the structure plan. Structure plans can effectively deal with where communities might rally to oppose a urban regeneration and renewal as well as project due to its impacts on them. There is Greenfield development. an acute need for the community to better understand the need for infrastructure and how to plan for it, as well as engage in the process that results in the plan that affects their community. planning 7 Attractive densities and land use mixes OVERVIEW The mix and density of land uses are Density and mix can apply to a range fundamental characteristics of different of employment and workforce and cities. Density in each different land residential uses. Density is usually use or mixture of land uses creates referred to in terms of persons opportunities and limitations to the per square kilometre. Current live/work/play choices available to Australian and global benchmarks citizens of that city. Those choices for the bulk urban densities of are currently under pressure from major cities are summarised in influences such as population growth Table 2. Sydney has, by a significant which adds an estimated 1000 persons margin, the highest urban density per week to some of Australia’s of any Australian city but its density major cities; housing shortage/ is well below that of comparable affordability, rising fuel costs resulting European capital cities or other in mortgage stress in car-dependent major southern hemisphere cities. outer suburbs; a trend towards obesity in suburbs not conducive to healthy living; and a decline in the quality of the environment. Sydney Towards 8 Tomorrow CHALLENGES It is important to distinguish between The broad issue is to inform the choices Gaining acceptance of appropriate and population density and dwelling density. of Government, developers and consistent international benchmarks In many Australian cities the density of communities to: to support community debate around dwellings has been increasing but the Establish acceptable densities and good quality denser living; number of persons per dwelling or per mixes for different parts of Sydney; Quantifying and analysing efforts to household has been decreasing. The ACEA Assess suitability of existing date that have been made in denser recognises this is an ongoing trend that infrastructure for an increase population planning and design; and needs to be taken into account in urban in densities; Investigating what can be done to planning decision making. Research best practice in medium/high minimise the adverse environmental Increased density reduces the cost and density planning and design; impacts and carbon footprint of increases the efficiency of most forms of Ensure infrastructure precedes the many Australians who make a infrastructure networks, including water, or coincides with higher-density deliberate choice to live and work in waste, telecommunications, electricity and development; lower density areas. gas and transport. However, people do not Plan for nourishing quality denser There is a strong linkage between the urban make their lifestyle choices on the basis of suburbs, e.g. incorporate open spaces; density of a city and lower levels of car cost and efficiency alone. and dependence for its population. The higher The current focus on high density, high Resolve conflicts between State and population density of Sydney in comparison rise housing for urban consolidation in local governments on density planning. to other Australian cities is the main reason Sydney has been largely driven by the for it having much higher levels of public Specific challenges that arise include: desire by government and others for a transport use for commuting to work. The alignment of planned transport quick fix to achieve the maximum possible routes and the corridors of denser This is illustrated by Figure 1, which “density benefit” from the minimum population and how this will affect shows the percentage of people who use available land area in the shortest the success of Sydney’s transport their car to drive to work, plotted against time. In the longer term this ignores infrastructure strategy; population density for the 42 different local the clear potential adverse community government areas of the Sydney region The community embracing a denser and social implications of developing (the data for some of the larger Local housing model and the effect that this large concentrations of high rise, high Government Areas (LGA)’s is divided into will have on private car use, and how density housing in inner urban areas. two or more Statistical Local Areas (SLA). this will interface with moderation of traffic congestion; SOLUTIONS The development industry in Sydney is well set up at the moment to provide two main types of new housing: low density detached FIGURE 1: housing at the urban fringe and more TRAVEL BY CAR TO WORK % BY DENSITY recently, high rise high density housing in inner Sydney and regional transport nodes. These two housing types represent 100% a polarisation of the market which ignores the growing need for a new middle ground 90% type of family housing, primarily three 80% bedroom dwellings, in the inner and middle ring suburbs of Sydney and also in some 70% cases in outer suburban areas. 60% An alternative retro “London-style” % Using Mode 50% model of terrace housing should be considered for major urban infill and 40% urban renewal sites in Sydney, based on conventional terraced housing on lots 30% 5-6 metres wide by 30 metres deep. This 20% type of future development footprint will provide attractive density, providing 10% some 30 dwellings per hectare in these 0% areas, which with 2.7 to 3 persons per 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 household, is equivalent to a future Density (population/sq km) population density of around 8000- 9000 persons per square kilometre. As indicated by the trend line in Figure 1, increased densities for the Growth Centres, in conjunction with improved access facilities and amenities for “Active Transport” and public transport systems, plus cost of Attractive densities and land use mixes 9 fuel, should reduce the journey to work by the central CBD area. Also, for optimum urban density which will help over time to car travel mode share from approximately patronage along the route, Metro Stations stimulate development and increase urban 70 to 80 percent in the “business as usual” need to be located with a maximum densities along the parallel corridors. scenario (generally 1000 persons per square spacing of 1 to 1.5 kilometres between In determining the future target population kilometre or less), to approximately 65 stations in developed areas. densities, regard should be given to percent with the higher overall density of In a scenario where metro lines run directly international benchmarks, such as the 1800 to 2000 persons per square kilometre. underneath major roads, they will effectively relative London urban benchmark density In the Inner and Middle ring suburbs of replace “line haul” surface bus movements levels of 8000-9000 of persons per square Sydney, the existing and future potential along existing corridors. This will indirectly kilometre for stations within 10 kilometres of population densities of different areas are have a flow on public amenity benefit by the Sydney CBD and 3900-4000 of persons a critical issue in determining the future removing several thousand existing bus per square kilometre for stations within the economic viability and justification for movements from the surface streets of the 10-20 kilometre radius ring. These urban developing any rail network in Sydney. Sydney CBD and other major road corridors density transitions should be relative to total Based on the London example, Metro in both the morning and afternoon population growth and amortised over the Rail is a transport system that is primarily commuter peak periods. In addition, new long term, e.g. 20-50 years, but the future suitable for development within urban areas transport lines that might run parallel but planning framework for urban renewal in in an approximate 20 kilometre radius of separate from the current areas of highest these areas needs to be determined now. TABLE 2: WORLD URBAN AREAS: POPULATION AND DENSITY 2008 Groupings City Persons Population of Cities (Year of Data) (persons per square kilometre) Australian Brisbane (2006) 900 1,676,000 State Hobart (2001) 1000 126,000 Capital Cities Canberra (2006) 1100 356,000 Perth (2006) 1200 1,256,000 Adelaide (2006) 1400 1,040,000 Melbourne (2006) 1550 3,372,000 Sydney (2006) 2050 3,641,000 Major Johannesburg (2001) 2500 6,000,000 Southern Durban (2003) 3500 2,900,000 Hemisphere Cities Cape Town (2001) 3950 2,700,000 Buenos Aires (2001) 4650 12,000,000 Santiago (2002) 6800 5,390,000 Major Milan (2001) 1750 4,200,000 European Rome (2001) 3200 2,750,000 Cities Paris (2005) 3400 10,400,000 Berlin (2001) 3750 3,675,000 Manchester (2001) 4000 2,245,000 Barcelona (2001) 4850 3,900,000 London (2001) 5100 8,278,000 Madrid (2001) 5200 4,900,000 Athens (2001) 5400 3,685,000 Source: www.demographia.com 10 Sydney Towards Tomorrow SYDNEY IS AUSTRALIA’S WORLD CITY, IN A NATIONAL AND INTERNATIONAL RACE. ATTRACTIVE DENSITY IS A COMPETITIVE ADVANTAGE IN SYDNEY. PEOPLE ARE ATTRACTED TO EFFICIENT AND EXCITING DENSE LIVE-WORK-PLAY “VILLAGES” WITH EASY ACCESS TO PARKS AND BEACHES. Research by the RTA NSW established that land use mix and density was by seven PATHWAYS times the most powerful policy lever to Urban form influences travel mode and should prevent most of the long term reduce road congestion and vehicle- the more dense our cities are (in terms problems in some existing old cities. kilometres-travelled, followed by road of dwellings per land area) then the The development of well connected pricing policy and car parking policy. more likely it is that we can afford to live/work/play communities can be part provide high quality, frequent passenger More research is required as to how this of this process of renewal of ageing/ transport systems like light rail or heavy would be applied, and into the combination unsustainable infrastructure in established rail. Consideration of utility corridors or of stopping approval of new land releases areas of NSW cities. Less than 2 percent ‘critical infrastructure corridors’ (a term used on the fringe in the Sydney basin together of infrastructure is newly built each year in Queensland) where power, water and with slower release in the Hunter, Illawarra and retro-fitting of the existing 98 percent telecommunications assets are co-located and Central Coast. This research would look of buildings and infrastructure is both an in a single infrastructure corridor makes at subdivision and multiple land uses, the urgent need and opportunity. financial, environmental and sustainability efficient mix of uses as well as the overall sense and facilitates density with quality Sydney is Australia’s world city, in a national quantum of land. open space. This can re-institute and and international race. Attractive density is There is room for millions of residents preserve green belt land zones. a competitive advantage in Sydney. People and workers in the “middle ring” of are attracted to efficient and exciting dense Future access to leisure areas should not Sydney – those suburbs around regional live-work-play “villages” with easy access to necessarily be a major issue for higher cities (Sydney, North Sydney, Parramatta, parks and beaches. population densities in Sydney. In addition Liverpool and Penrith) and major centres to the many public parks, Sydneysiders (Bondi Junction, Green Square, Randwick, Sydney Airport, Port Botany, Sutherland, also have access to numerous beaches, foreshore reserves, regional parks, and TIMEFRAME Density and land use are long term issues Hurstville, Kogarah, Chatswood, Brookvale/ National Parks for recreation. Sydney that are best addressed by long term Dee Why, St Leonards, Macquarie Park, Harbour itself is a major recreation area planning of land use and infrastructure, Burwood, Bankstown, Olympic Park, Rhodes, that typically does not figure in any urban rather than the largely unproductive Hornsby, Westmead, Prairiewood, Fairfield, density calculations. Dense walkable access argument that surrounds “quick fix” Cabramatta, Leppington, Campbelltown, encourages healthy lifestyles, with massive development actions. Castle Hill, Norwest, Blacktown, Rouse Hill, savings in preventable health care costs. Mt Druitt) all nominated in the Metropolitan The ACEA believes the best available Strategy and their transport links. The perception that higher density living means would be to regularly update a is undesirable is counterbalanced by revitalised Metro Strategy by the new Overseas experience indicates that high(er) international examples such as London. The Planning and Local Government Authority. density housing can be more attractive if boroughs of Kensington and Chelsea have The updates on a regular cycle would designed and marketed appropriately. Class the highest urban population density at provide an opportunity for global expert and race issues can arise in redensification, 13609 persons per square kilometre in 2001 and wide community input. The Metro and good design needs to appeal to and yet is nowadays considered a highly Strategy should include wider consultation egalitarian and social fabric values. desirable place to live. This can also be mechanisms employed to good effect in demonstrated by lessons in Transit Oriented the Melbourne 2030 plan and the 30 Year Development (TOD) around transport Plan for Greater Adelaide. nodes based on recent North American examples. Similar patterns are emerging in the denser and well-connected dense areas of inner and regional Sydney centres. There is however a need to ensure that attractive density does not come at the cost of quality of life, especially for persons with a low social economic status. Controls on the quality and sustainability, the Building Sustainability Index (BASIX) and open space Attractive densities and land use mixes 11 OVERVIEW The Sydney metropolitan region The new reform agenda must is experiencing a severe lack address the failures and limitations infrastructure services brought about of the current infrastructure system by continued population growth, poor openly and honestly. These reforms planning, insufficient investment in key will require sustained government projects, inadequate funding sources commitment and leadership, co- and in the case of transport, reliance ordinated and integrated industry on a tax-based financing system. input and broadly-based community consultation and engagement. The ACEA believes this condition is unsustainable and calls for change. In particular, we believe that significant social, environmental and economic benefits are achievable by reforming the funding arrangements for Sydney’s infrastructure. They include the development of new policy, managing peak infrastructure demand, setting prices based on real costs, raising revenue from user pays charging and more efficiently allocating funds for new infrastructure. funding Sydney Towards 12 Tomorrow CHALLENGES SOLUTIONS Today, the most important challenge There are other issues and concerns which The ACEA recommends that new user pays is the decline in network industry relate to government’s inability to commit funding objectives must be: system performance, especially in to and fund a long term infrastructure plan Understandable (transparent); transport and the shortage of funds for Sydney, including: Affordable; to invest in needed infrastructure. Focus on short term election (4 year) Linked directly to government policy planning cycles; (for example increasing public transport Most goods and services in NSW are sold to consumers at prices determined by Funding some projects with limited mode share across Sydney); and the interplay of supply and demand. This economic justification; Accepted by community stakeholders. interplay has supported the development Narrow interpretation and application of consistent project assessments across The resulting infrastructure plan, its and modernisation of industries such infrastructure sectors; method of implementation and any new as telecommunications and electricity. funding methods must also have political Yet there is a reluctance to embrace the Limited view of project economic acceptance from all sides of government market-based mechanisms in the case of benefits; and must be sustainable over the long transport and there is continued reliance on Treasury policy to avoid debt; term. The ACEA presents the following a tax-based financing system that has little Treasury’s consolidated revenue policy objectives as the basis for funding reforms or nothing to do with the true costs of using failure to allocate funds to economic which, when combined into a new funding or providing transport infrastructure. This infrastructure; framework would redress most of the is not a sustainable policy. The continued Inconsistent and narrow application of limitations identified above: dependence on fuel taxes not only fails to user pays principles (applied to energy align supply and demand properly, it also To ensure existing infrastructure is used and water use but not to transport, and and maintained effectively; results in a shortage of investment funds for full costs of service provision are not transport infrastructure. To enhance the efficiency of public always included in the price e.g. water); finances regarding building, operating The NSW Government’s 2009/10 budget Lack of equity in pricing (between and maintaining new infrastructure; plans did not provide adequately for the urban and regional and between To price fairly according to the full planning and procurement of key economic eastern and western Sydney, e.g. whole of life costs of infrastructure and infrastructure projects, especially in the M4/M5 Cashback Scheme); service provision, including congestion, transport sector mainly because of a lack No strong linkage or accountability and price through direct user charges, of funds. In addition, funding allocated between agency long term instead of indirect taxes; to Sydney projects from the Federal infrastructure plan and Treasury 5 year To encourage private finance and Government (at the recommendation of budget plan process; greater involvement of Public Private Infrastructure Australia (IA)) is limited in Lack of accountability in asset Partnerships (PPP) in infrastructure comparison to the size and importance of management and government provision under new funding and risk projects in Sydney due to the demands from agency balance sheet valuations sharing models; other States and the remainder of NSW. (alternative use and value of lazy To allow greater flexibility in the way The Global Financial Crisis (GFC) which has assets, e.g. public opposition to risks are allocated and managed to led to reduced private finance for large the sale of surplus Department of alleviate the short to medium term projects and falling government revenue Education school sites and under- capital market shortfalls; and has also contributed to the significant utilised RailCorp land holdings); To link investment to high funding gap between needed projects and Infrastructure focus on servicing peak capacity transport corridors and government’s ability to implement them. demand and failure of policy to manage high density transport nodes peak demand (e.g. journey to work); (CityRail and Metro stations). Sustainable infrastructure consistent with national energy policy; The ACEA believes the funding shortfall Managing the transport effects of is most noticeable in transport. The plan climate change; and for transport would borrow the principle of user pays from the utilities sector (gas, Poor planning, low population density, electricity and water), where users are peak oil (relevance of oil). charged according to how much of the service is used, based on a unit charge and the costs of provision. This is unlike current transport policies under which private users are taxed on an access charge (road TODAY, THE MOST IMPORTANT tax, licence fee, vehicle sales tax etc) and through a fuel excise tax (based on fuel CHALLENGE IS THE DECLINE IN use at the pump), depending on distance travelled and size of vehicle, while public NETWORK INDUSTRY SYSTEM transport users are charged subsidised fares which typically do not cover the full costs of PERFORMANCE, ESPECIALLY provision and operation1. IN TRANSPORT AND THE 1 As part of the Henry Tax Review, the Australian SHORTAGE OF FUNDS TO INVEST Treasury has released a wide ranging paper on the reform of road and transport taxes. The paper, IN NEEDED INFRASTRUCTURE. A Conceptual Framework for the Reform of Taxes Related to Roads and Transport by La Trobe University examines the benefits of taxation and funding reform. funding 13 The removal of subsidies for public nodes) policy. Subsidising infrastructure The new funding framework would require transport does not necessarily equate to costs through the capture of land value a significant change in Treasury policy an increase in fares, as there are other ways improvements associated infrastructure towards hypothecation to transport, political of accounting for the subsidy. However, assets should also be promoted. understanding and will and community evaluation of the true cost of transport will acceptance of road pricing to fund much faciltate the equitable allocation of user NEW FUNDING SOLUTIONS needed public transport infrastructure. Its charging methodologies. Infrastructure includes water supply, implementation would lead to a more sewerage systems, ports, energy/power sustainable transport sector and the A key funding solution in transport is and telecommunications all of which achievement of the 20 year Sydney Plan. therefore the derivation of revenue from have existing pricing regimes to fund new direct pricing of road use. Such a reform would also assist in helping to solve Sydney’s reoccurring road congestion infrastructure and because of this their long- term benefit and future should be assured. PATHWAYS Priority should be given to transport problem as well as allowing government to Unlike communication, electricity and other funding and consideration given to a reduce taxes. utility networks, transport lacks a strong range of options outlined below and to funding and sustainable pricing regime. implementing Integrating Funding shown in Importantly, efficiencies could also be realised if Sydney had seamless intermodal New funding and pricing solution options are concept form by Figure 2. transport and ticketing systems. briefly described which would satisfy social, Significant short-term benefits could be environmental and economic objectives gained from implementing options relating The long term transport funding goal including the new funding objectives to Demand Management, Ownership, Land would be to implement a new and indentified above. Further research Use and Motorways. sustainable Infrastructure plan for Sydney. and investigation would be required to The success of this plan and the new Demand Management determine priority according to short term transport funding regime would depend and longer term strategy components of an Extend use of user-pays principles and on a policy shift towards transport users infrastructure plan for Sydney. introduce to transport sectors; being charged for their use of transport infrastructure (based on the full costs of Introduce prices to recover full costs; Community debate would be required to the trip) and on a trip distance (kilometre) extend the development, acceptance and Introduce time of day pricing to reduce travelled basis. Users could then be staged introduction of a road pricing policy transport demand in peak hours; billed monthly transport accounts in the which Sydney should lead in Australia. Introduce revised retail hours in Centres same way we receive gas and electricity Demand Management-related funding to spread traffic demand; and bills. Any social policy subsidies could be and policy options would both reduce Extend clearways programs (road and identified under such arrangements. peak demand and defer the need for new rail), e.g. 15 hour clearways along peak infrastructure funding2. In the case of major roads. SUSTAINABLE transport, their implementation could reduce Ownership INFRASTRUCTURE peak demand by up to 20 percent and defer FUNDING Review Government Agency assets and investment by up to 10 years. Another key principle in funding Balance Sheets and identify lazy assets; infrastructure would be to recognise Figure 2 shows a conceptual arrangement Sell lazy assets and hypothecate revenue the importance of sustainability in for a new Transport Integrated Funding to infrastructure; terms of population and employment Framework. Its application would deliver Privatise inefficient State-owned density with respect to the effective significant long term benefit in: operations to relieve funds for and efficient use of resources. Priority Funding public transport (PT); infrastructure; should be given to improvements Achieving government’s PT Withhold agency funding for new works which demonstrate the efficiency and mode share targets; until existing infrastructure is effectively effectiveness of the investment, such Delivering a world class Metro system; used and maintained; and as those projects supporting freight Funding active transport (walk and cycle); Bring to account future maintenance transport and developments at transport and liabilities, and fund through nodes in keeping with the Department Deliver high quality roads including Integrated funding. of Planning’s 2006 Metropolitan Strategy missing links. of developing a City of Cities (Planning Land Use Related Fund projects in key economic corridors serving freight as a priority; Fund projects serving high density centres and transport nodes as a priority; and COMMUNITY DEBATE WOULD Introduce Tax Increment Financing (TIF) to regeneration projects and urban BE REQUIRED TO EXTEND THE renewal projects. DEVELOPMENT, ACCEPTANCE AND STAGED INTRODUCTION OF A ROAD PRICING POLICY WHICH SYDNEY SHOULD LEAD IN AUSTRALIA. 2 See Road Transport Future Directions, NSW RTA 1991. 14 Sydney Towards Tomorrow FIGURE 2: NEW TRANSPORT INTEGRATED FRAMEWORK Active Transport Mode share targets Programs (Social, Environment Objectives) (Walk, Cycle) Health Objective Real PT Prices (Economy Objective) Hypothecation CityRail, Treasury Metro & Bus Reform Improvements Reduced subsidy over time (Economy, Social Objective) Car User Better use of lazy assets/balance sheets Revenue (Effectiveness Objective) Higher quality PT Services Tolls (Social Objective) Tax Increment Financing Road Pricing (Network PPP (Public Private Partnerships) distance based charges) Higher levels of Government debt Less private (Economy to fund infrastructure road use/users Objective) (Environment Objective) Political Will Revised Road Higher Quality Charges Roads/Services Public (Economy Acceptance Objective) Motorways Private Sector Finance/PPP Research Retain toll beyond life of toll Outsource non-core government Research costs of infrastructure concession and invest revenue to new agency operations, including and services by peak/off-peak infrastructure in the corridor; maintenance of assets; and demonstrate (to community) Introduce time of day tolling for better Move to new PPP model for economic value for money from investment use of assets; infrastructure in which government including the infrastructure costs Introduce Dynamic Pricing on shares revenue risk; and of infill in established suburbs; Motorways (Dynamic Pricing is a Delivery of major PPP projects Efficiency review of Government combination of time of day and through a combination of shadow Agencies and move to self regulation; distance based tolls. Its application prices, availability payments, private Review mechanism and benefits for would achieve greater use of the investment and government debt. hypothecation and review of sales tax; motorway network and improve off- Prepare Discussion Papers on Integrated Funding (see Figure 2) peak effectiveness.); and Road Pricing for community Introduce Road Pricing to increase Extend Multi Lane Fee Flow (MLFF) consultation/debate; revenue to transport. A key reason across motorway network. Review Project Assessment Guidelines for the success of the London Congestion Charge is that revenues Across Infrastructure and Benefit SECONDARY OPTIONS Assessment of Infrastructure Investment; are used to improve public transport FOR CONSIDERATION and (hypothecation); Public Transport and Investigate new PPP model for delivery Introduce Treasury hypothecation Active Transport Improvements of economic infrastructure. to infrastructure; Implement Integrated Funding Increase PFI and PPP and introduce TIF TIMEFRAME and allocate revenues to public for delivery of infrastructure (see above); transport, see Figure 2; and Increase State Treasury debt for All options would need to be fully Implement Integrated Funding to fund needed infrastructure; and investigated and measurable actions, walking and cycling infrastructure at transport nodes. Use revenue from sale of lazy assets to benefits and timeframes established within fund infrastructure. a business case assessment framework. However we should not wait for change. The ACEA believes that the significant amount of work which would need to be done to achieve the above is critical for the success of future infrastructure development and therefore necessary actions must be initiated as a matter of urgency. funding 15 OVERVIEW There is a need for better It also requires that communication and understanding and support by the interaction are based on an integrated, community towards infrastructure well configured and majority supported development and investment. strategic plan that the community can This is because there is currently feel it has had a role in developing. a lack of transparency due to a It is important to note here the link perceived “arrogance” and a “head between urban planning and transport office” mentality which leave the infrastructure, economic outcomes community cynical and suspicious. through increased productivity and NSW has lagged behind other states in social issues such as employment recent years with regards to population opportunities and work/life balance. growth, which has resulted in lack of A key social objective should be to opportunities compared to other states reduce overall commuter time, not that have been actively competing only by improved transport links, for business and social investment. but a strategic focus on what types Higher demand for housing has created of employment will be represented affordability issues in NSW which in the future, what strategies should has driven people to other states. be adopted to ensure these jobs are Increasing migration from NSW has located close to where employees lead to a reduction in infrastructure live (rather than a focus on CBD) and development and investment. what strategies can be implemented to spread the peak over the day. The ACEA believes that increased community understanding, trust and support must be based on the fact that change will only happen if attitudes change, that a high level political focus is required and that all stakeholders agree that the community deserves to be involved. social issues Sydney Towards 16 Tomorrow CHALLENGES The ACEA believes there is a lack of community trust in government decision making and a perceived reluctance by THIS NEXUS BETWEEN government to make unpopular decisions despite long term benefit. In addition, PEOPLE, THEIR the community does not always welcome LEVEL OF SERVICE infrastructure development and investment, especially as the public (community) is EXPECTATIONS, impact focused. This is a result of a lack of communication by the government with THE ASSOCIATED the community. INFRASTRUCTURE There is also no clear link or understanding between level of service, user pays and the REQUIREMENTS built infrastructure. AND ITS COSTS NEEDS TO BE BETTER SOLUTIONS Key to planning reform is creating a nexus COMMUNICATED AND between strategic planning and the community. The success will be dependent ADDRESSED IN ORDER on a programme of civic engagement and resulting community buy-in. TO INSTIL A CLEAR Strategic planning, whether of the urban UNDERSTANDING structure or of the infrastructure that OF THE PLANNING serves it, is rarely readily understood by the community i.e. the value, the costs, the PROCESS REQUIRED role it plays. The main exception to this assertion is in the face of implementation, TO BEST ACHIEVE where communities might rally to oppose a project due to its impacts on them. There is OPTIMAL LAND USE an acute need for the community to better AND INFRASTRUCTURE understand the need for infrastructure and how to plan for it. OUTCOMES. This nexus between people, their level of service expectations, the associated infrastructure requirements and its costs needs to be better communicated and addressed in order to instil a clear understanding of the planning process PATHWAYS required to best achieve optimal land use The ACEA supports the need for a stakeholders, such as government, should and infrastructure outcomes. stronger commitment to develop a plan be prepared to make hard and sometimes for infrastructure by building community unpopular decisions on infrastructure The solutions need to be carefully trust and understanding of infrastructure development and investment. developed in consideration of the specific planning (transparency). attributes of the planning process and the The ACEA advocates a link between community which it serves. There should be a focus on the movement infrastructure and jobs, e.g. introduce of people/goods to find the right mode of integrated public transport fares and to There are several examples of cities transport and that infrastructure needs to educate the wider community (including undergoing major growth, where the be dense and frequent where needed. children) about the long-term benefits of community has been dissatisfied with infrastructure development and investment. the direction being taken by their elected Better planning will help to determine officials. To do this they formed a coalition the level of service needed to support There must be a strong commitment from in order to raise awareness of the planning the community and gain community government (i.e. NSW Premier) to engage process within the community and used buy-in before implementation. This with the community, as this will be the this influence to bring about change can be achieved by engaging with foundation for any future infrastructure within the political process and direction. communities and the private sector to development and investment. A well-known example of this is the communicate and prepare for delivery. It is recommended that a model for ‘1,000 Friends of Oregon’ group. A similar The ACEA believes we must collect the engagement with the community organisation exists in Sydney (10,000 best minds to form an infrastructure should be based on the IAP2 Spectrum Friends of Greater Sydney), although it has leadership group (Infrastructure Advisory (International Association for Public not yet managed to achieve the level of Council – see Chapter 6 – Governance, Participation: A Model for Engagement), influence of the Oregon organisation. page 19) and develop a partnership as represented in Figure 3. This can be model for Sydney’s infrastructure that used as a base/best practice approach includes the community. This group for community engagement which can along with other key infrastructure help support the angle that infrastructure social issues 17 creates jobs and contributes to social and appointed in each region. This should examples of user pays models that could be environmental sustainability. The IAP2 include implementation of a Community reviewed to establish an appropriate model. Spectrum is useful for determining the Education Policy, “Campaign” and reporting Pathways for civic engagement should be purpose of engagement and the level of mechanisms. explored via the full range of communication participation of a defined stakeholder/ There is a need to integrate social issues into media, including specifically web based community, as well as tapping into the transport planning process, with the consultation mechanisms as well as face to groups already working on similar emphasis on reducing the (perceived/real) face engagement. projects or agendas, see Figure 3. negative impact on communities. North To achieve broad communication The ACEA supports the implementation West Rail Link is an example of community regarding such consultation programmes of a Community Communication Policy dislocation, which should be avoided in those conducting them should not and the creation of responsibility within future planning. The issues surrounding only consider public communication Infrastructure NSW (discussed in Chapter modes of transport should be extensively pathways, but industry professional and 6 – Governance, page 19) for delivery of investigated to see what infrastructure community associations building on the Policy (vision for Sydney and NSW). services and facilities, routes, networks and already well established networks to There should be an onus and accountability nodes would be most effective and efficient. obtain broader input and feedback. on government to regularly report to Issues surrounding user pays should also be the community on progress achieved in meeting the overall plan for Sydney and NSW. There should also be a Regional targeted and the adoption of a fair system, allocation of costs and hypothecation TIMEFRAME should be promoted and implemented. Models for civic engagement should be Planning Authority Leader for Community Other issues to be targeted should reviewed and adopted to ensure long term Communication (sitting under either include, intergenerational equity, cost of strategic planning success. Successful Infrastructure NSW or the new Department homeownership, travel to work costs, and consultation and communication of Planning and Local Government) travel to educational facilities. There are programmes (such as that conducted for Sustainable Sydney 2030) should be expanded to engage a broader spectrum of community interests (community groups, businesses, individuals etc). FIGURE 3 IAP2 PUBLIC PARTICIPATION SPECTRUM Inform Consult Involve Collaborate Empower Public Public Public Public Public Participation Participation Participation Participation Participation Goal: Goal: Goal: Goal: Goal: To provide the public To obtain public To work directly To partner with To place final with balanced and feedback on analysis, with the public the public in each decision-making objective information alternatives and/or throughout the aspect of the in the hands of to assist them in decisions. process to ensure decision, including the public. understanding the that public concerns the development of problems, alternatives and aspirations alternatives and the and/or solutions. are consistently identification of the understood and preferred solution. considered. Promise to Promise to Promise to Promise to Promise to the Public: the Public: the Public: the Public: the Public: We will keep you We will keep you We will work with We will look to you We will implement informed. informed, listen to you to ensure that for direct advice what you decide. and acknowledge your concerns and and innovation in your concerns and aspirations are formulating solutions provide feedback directly reflected and incorporate on how public input in the alternatives your advice and influenced the developed and recommendations decision. provide feedback into the decisions to on how public input the maximum extent influenced decisions. possible. Example Example Example Example Example Tools: Tools: Tools: Tools: Tools: fact sheets public comment workshops citizen advisory citizen juries web sites focus groups deliberate polling. committees ballots open houses. surveys census building delegated public meetings. participatory decisions. decision-making. 18 Sydney Towards Tomorrow OVERVIEW The NSW State Government has This section of the report therefore realigned the public sector into a will address the two key areas super agency model. This model of government that are critical identifies thirteen ‘lead’ agencies to to the planning, development, deliver a more integrated service for delivery and management of NSW and ensure greater client focus infrastructure; Planning and Local and to cut Government red tape. Government, and Transport and There is also overall support by a Infrastructure. It also comments on Coordinator General for Infrastructure. the role of the Coordinator General and the need for an independent This model is generally supported board to oversee this role. by the ACEA provided the formation of super agencies actually proceeds, In addition, reform of local government efficiencies are realised, integration has proceeded slowly in NSW and takes place and the private sector has not kept pace with reforms is engaged to deliver where it can successfully delivered in both Victoria add value or provide more efficient and Queensland. The ACEA considers services than Government. that the urban conurbation from Newcastle, through the Central Coast Reform of the management and and Sydney to Wollongong be the delivery of social infrastructure appears focus for the formation of new more to be proceeding however, the recent efficient regional governments to appointment of Chief Executive replace current Local Councils. Officers (CEOs) to lead agencies that are contained within a cluster such as Transport and Infrastructure, does not support the concept of amalgamation, like with like and the formation of super agencies. There also appears to be little reform in the areas of Planning and Local Government. governance Sydney Towards Tomorrow 19 CHALLENGES There has been a lack of integration that can lead the planning function a body would provide independent between the current Department of Local for NSW and partner with industry, the governance, oversight and the checks and Government (DLG) and Department of community and government and, where balances required in the planning system. Planning (DoP). There is a disconnect required, act as a credible independent Development decisions at regional level between the planning policies of DoP and regulatory planning approval body. should be able to be appealed by the the management of local government A Deputy Director General (DG) should proponents to the Deputy DG of Regulatory policy by the DLG. be appointed for regulatory planning Planning in the first instance, who may enlist The current DoP has also had its credibility approvals, a Deputy DG for local the support of the independent council for called into question by the community, government and regional planning, advice, before any referral to the Land and the planning fraternity, the development a Deputy DG for state planning and Environment Court. industry and in some respect government. a Deputy DG for development and Credible and achievable long and medium delivery authorities. The formation of There are currently thirteen separate term plans for NSW, the Hunter, Illawarra the DPLG and the appointment of the agencies managing the transport portfolio and greater Sydney will need to be prepared DG and four Deputies should proceed in NSW with little integration between the by the DPLG in consultation with and then as a high priority, see Figure 4. modes or with broader government. accepted by the community as well as With the formation of regional government, government, then published and regularly Funding for local assets and services regional planning committees will not be updated to be contemporary. All thirteen has reached a crisis point in NSW with required as separate entities. However, it is state government super agencies and all some local council’s recently requesting critical that the state department have a role regional councils need input into those plans. greater than 20 percent rate rises just in regional council planning committees All the relevant state CEOs need to sign-off to maintain basic services. The market and be represented by a voting senior the content of the plans and commit to the has lost some confidence in the greater professional at all meetings. delivery of the policies required to achieve Sydney conurbation and the fragmentation the outcomes specified. of local government with inconsistent The Department should have available an local planning policies and decisions has ‘Independent Planning Advisory Council’ Planning for Sydney in particular should contributed to this position. of senior experienced professionals build on the exemplary Transit Orientated to provide independent advice to the Development work of the past in refocusing SOLUTIONS Minister and the Department and to densification along the current and future review decisions where required. Such heavy and medium rail networks. PLANNING AND LOCAL GOVERNMENT Management, Development and Delivery Authorities (e.g. Barangaroo Delivery Authority and the Sydney Harbour Foreshore Authority) have their place. THE ACEA CONSIDERS However, they must remain fully responsible to the Director General (DG) of Planning, THAT THE URBAN be a subset of the Planning Department and not separate agencies and have sunset CONURBATION FROM clauses in their establishment, such that they can only continue following a period of NEWCASTLE, THROUGH review and subsequent formal agreement. THE CENTRAL COAST The current ‘independent’ model has led to definition of boundaries, ‘turf wars’ and AND SYDNEY TO a separation from the core planning policy and outcomes the community desires. WOLLONGONG BE The Department of Local Government (DLG) THE FOCUS FOR should be abolished and the functions amalgamated into a new Department of THE FORMATION Planning and Local Government (DPLG). OF NEW MORE The ACEA also proposes to abolish the current urban Local Councils and form EFFICIENT REGIONAL Regional Local Government. A major plank GOVERNMENTS TO in that proposal is regional planning and the integration between state and regional REPLACE CURRENT planning. That proposal relies on integrated state government policy for planning and LOCAL COUNCILS. local government. The Department of Planning (DoP) should also be abolished and amalgamated into the new DPLG. The new Department will need to recruit senior credible planners and managers 20 Sydney Towards Tomorrow FIGURE 4: REFORMED NSW GOVERNANCE STRUCTURE Premier Minister Minister Independent Independent Advisory Planning Advisory Council Council Department of Department of Office of the Planning and Transport and Co-ordinator General Local Government Infrastructure (Infrastructure NSW) (DPLG) (DTI) Deputy Director Transport General for Infrastructure Regulatory Procurement Approvals Corporation Deputy Director Transport General for Local Infrastructure Government and Asset Management Regional Planning Corporation Deputy Director Transport for State Operations Planning Corporation Deputy Director for Development and Delivery Authorities TRANSPORT AND OFFICE OF THE COORDINATOR INFRASTRUCTURE GENERAL (INFRASTRUCTURE NSW) The ACEA supports the concept of one Therefore, in addition to the Department of This office provides government with the body that is responsible for the policy, Transport and Infrastructure there should be: ability to coordinate across all infrastructure planning, safety and funding of transport A Transport Infrastructure Procurement programs and all agencies. The ACEA infrastructure management, development, Corporation that is responsible for the supports this role reporting directly to the maintenance and operation across all delivery of all transport capital works Premier with similar legislative support modes, see Figure 4. A funding and over $50M; and powers used for the Nation Building finance model should be developed A Transport Infrastructure Asset Economic Stimulus Plan. (see Chapter 4 Funding, page 12) for Management Corporation that is It is recommended that ‘Infrastructure NSW’ the Department of Transport and responsible for the management, be established and have an Independent Infrastructure (DTI) with all funds then maintenance and minor improvement, Advisory Council (similar to Infrastructure hypothecated to the transport task through (<$50m) of all transport assets; Australia) set up to support and advise published five year rolling programs. road, rail, port etc. All current the Coordinator General and provide All other bodies that are established as direct delivery of maintenance and independent advice to the Premier. This separate entities should be operational; their minor improvements should be preeminent group of individuals will review services should be measured, benchmarked considered for market testing; and all of the state’s infrastructure programs and and reported by the DTI and market tested A Transport Operations Corporation ensure alignment and provide independent where appropriate. that is responsible for the running governance and oversight to the process of of all rail, road, port, bus and ferry developing infrastructure programs. services, including operations and ticketing, that are owned and/ or managed by government. All services should be prepared and considered for market testing. governance 21 It is recommended that Infrastructure NSW and its Council focus on four key roles: Overall governance of the process; Setting performance objectives for agencies like the DTI; Provide an independent assessment and review role for government and treasury of all state capital programs; and Lead delivery and coordination of one off special programs such as the Federal 4 3 Government’s stimulus package for 2 Education and Housing. 5 1 Over time Infrastructure NSW could take on a delivery role for major capital works across government and incorporate other delivery agencies such as Health Infrastructure. This would be on the basis on providing consistency of approach MAP 1 and the development and retention of procurement knowledge and expertise within Government. GREATER NEWCASTLE REGIONAL COUNCIL Lake Macquarie 1 LOCAL COUNCIL REFORM TO INCLUDE THE COUNCILS OF: The ACEA proposes the formation Newcastle 2 of strong, efficient regional local governments to manage the greater urban area, delivering services at a lower Port Stephens 3 net cost to the community. This would require all existing Local Councils to Maitland 4 be abolished and their services in the identified region being amalgamated into the new regional governments. Cessnock 5 This proposal would include: A Greater Newcastle Regional Council of over 500,000 residents with control of all the areas of major development in the Lower Hunter from Cessnock, Maitland, Port Stephens and Newcastle through Regional local government would enable: maintain the local focus by electing to Lake Macquarie, see Map 1; well resourced engineering up to 30 Councillors (proportionally) A Central Coast Regional Council with departments with the ability to manage, to represent their communities. over 300,000 residents and control of develop and maintain council’s assets Regional local government should have the growth areas of Gosford and Wyong, and drive efficiencies in the delivery of a strong planning focus with a Regional see Map 2; all local services; Planning Committee that will include a An Illawarra Regional Council with well resourced planning departments to senior planning professional from the state approximately 300,000 residents and have stronger links to the state agencies department and one independent as voting control of Wollongong and the growth and industry; and members. Any member will have the ability areas of Shellharbour and Kiama, efficient management of council’s to refer a decision to the state department see Map 3; and social, revenue, and financial functions. for review. A maximum of eleven (11) regional The ACEA believes that overall there Regional local government will have local councils for Sydney that would include would be an expected 20 percent planning committees that will involve ward a City of Sydney with at least 500,000 savings in administration costs as a councillors and council’s own professional residents, a City of Northern Sydney that result of amalgamation. Such savings staff to deal efficiently with local minor would include approximately 500,000 would fund services and much development matters. Any member of that residents and a City of Parramatta that needed asset maintenance. Regional committee can refer/appeal a matter to the would include at least 500,000 residents, local government would allow the Regional Committee for decision. Regional see Map 4 (page 24). rationalisation of Council assets and the councils will review all ‘services’ currently release of capital for re-investment in delivered by council’s own workforce and line with community expectations. look to market test those services. They will Regional local government would also publish a service charter that will be also facilitate local representation measured and reported to the state agency and would mean a smaller number of and the community. Councillors than at present, but it should 22 Sydney Towards Tomorrow 2 1 THE ACEA BELIEVES THAT OVERALL THERE WOULD MAP 2 BE AN EXPECTED CENTRAL COAST 20 PERCENT SAVINGS REGIONAL COUNCIL Gosford 1 IN ADMINISTRATION TO INCLUDE THE COUNCILS OF: COSTS AS A RESULT Wyong 2 OF AMALGAMATION. SUCH SAVINGS WOULD FUND SERVICES AND MUCH NEEDED ASSET MAINTENANCE. REGIONAL LOCAL 3 GOVERNMENT 2 1 WOULD ALLOW THE RATIONALISATION OF COUNCIL ASSETS AND THE RELEASE OF CAPITAL FOR RE-INVESTMENT IN LINE WITH COMMUNITY MAP 3 EXPECTATIONS. ILLAWARA REGIONAL COUNCIL Kiama 1 TO INCLUDE THE COUNCILS OF: Shellharbour 2 Wollongong 3 governance 23 9 10 11 2 8 3 7 1 4 6 5 MAP 4 11 REGIONAL COUNCILS PATHWAYS City of Sydney, Randwick, FOR SYDNEY Botany Bay, Marrickville, Ashfield, 1 Leichhardt, Woollahra, Waverly Reform of governance in NSW is overdue and the government’s decision to focus North Sydney, Mosman, on thirteen super agencies is welcomed. Lane Cove, Willoughby, Manly, 2 However, there will be no reform without Ku-ring-gai, Warringah, Pittwater radical change to the management of government and the use of the private Burwood, Strathfield, sector in support where appropriate. Canada Bay, Ryde, Parramatta, 3 Holroyd, Auburn The ACEA recommends that leadership on this issue is required from the Department Bankstown, Canterbury, of Premier and Cabinet in the NSW Rockdale, Hurtsville, 4 Government as a matter of urgency. Kogarah Sutherland 5 TIMETABLE The ACEA recommends that complete reform of the State Planning, Local Campbelltown & Camden 6 Government, Transport and Infrastructure agencies in line with Sydney Towards Liverpool & Fairfield 7 Tomorrow proceed in 2010 with new plans for NSW published in 2011, in time Blacktown 8 for the 2011/12 financial year. It is then proposed that reform/amalgamation of Local Government itself occur in the Penrith & Hawkesbury 9 conurbation of Newcastle, Sydney and Wollongong by the end of 2011/12 in The Hills & Hornsby 10 order to begin the new financial year (2012/13) as Regional Governments. Blue Mountains 11 24 Sydney Towards Tomorrow The ACEA would like to thank the following individuals and their respective firms for their generous contributions to Sydney Towards Tomorrow; Tom Pinzone (Chair), GHD Pty Ltd ABOUT THE ACEA THE ACEA Stephen Barrett, Golder Associates Pty Ltd The Association of Consulting Engineers Australia (ACEA) is an industry body INFRASTRUCTURE Erin Cini, representing the business interests of firms providing engineering, technology ROUNDTABLE Kellogg Brown & Root Pty Ltd Roger Collins-Woolcock, The ACEA Infrastructure Roundtable Cardno (NSW) Pty Ltd and management consultancy services. (the Roundtable) was established Paul Davis, There are over 270 firms, from large in early 2009 to provide a member Hyder Consulting Pty Ltd multidisciplinary corporations to small forum to discuss and exchange Patrick Fernandez, niche practices, across a range of views on the future sustainable Aurecon engineering fields represented by the ACEA development of economic and Luke Fisher, with a total of over 45,000 employees. social infrastructure in Australia. Kellogg Brown & Root Pty Ltd The ACEA presents a unified voice for The Roundtable aims to promote Jill Hannaford, the industry and supports the profession the sustainable development of GHD Pty Ltd by upholding a professional code of infrastructure (whether it’s upgraded, Geoff Hardy, ethics and enhancing the commercial expanded or new) which improves The Peron Group environment in which firms operate Australia’s national economic productivity Colin Heath, through strong representation and and international competiveness, Kellogg Brown & Root Pty Ltd influential lobbying activities. The ACEA develops our cities and regions, and Colin Henson, also supports members in all aspects of increases our standards of living. Arup Pty Ltd their business including risk management, The Roundtable seeks to actively David Kinniburgh, contractual issues, professional indemnity engage with all levels of government, GHD Pty Ltd insurance, occupational health and industry and the community and to Peter Prince, safety, procurement practices, workplace/ become a trusted advisor and provider Sinclair Knight Merz Pty Ltd industrial relations, client relations, of professional engineering knowledge, marketing, education, sustainability and Dan Reeve, industry leadership and valuable business development. SMEC Australia Pty Ltd qualified insight towards the future Ed Rogers, development of national infrastructure AECOM Australia Pty Ltd policy, planning and regulation. Sebastian Smyth, The ACEA Infrastructure Roundtable GHD Pty Ltd membership encompasses a range of Ross Speers, senior consulting engineering industry Opus International Consultants (PCA) Ltd leaders who are key members of David Stuart-Watts , national and international professional Parsons Brinckerhoff Australia Pty Ltd service delivery organisations. Bruce Tanner, Arup Pty Ltd Peter Tonkin, GHD Pty Ltd Colin Tull, Hatch Associates Pty Ltd DISCLAIMER Sydney Towards Tomorrow is published by the ACEA. It represents collective viewpoints for consideration by governments and industry stakeholders. The information contained herein does not necessarily represent the views of individual contributors or their respective firms. Level 6, 50 Clarence Street, Sydney NSW 2000, Australia P: 02 9922 4711 F: 02 9957 2484 E: firstname.lastname@example.org W: www.acea.com.au
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