ABCD
Toowoomba Regional Council Economic Impact Assessment of the TRPS Volume 1 – Best Practice Assessment
Final Report This report was prepared for the Toowoomba Regional Council December 2011
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ABCD Toowoomba Regional Council Volume 1 – Best Practice Assessment Final Report December 2011
Disclaimer Inherent Limitations This report has been prepared as outlined in the Introduction Section of the report. The services provided in connection with this engagement comprise an advisory engagement, which is not subject to assurance or other standards issued by the Australian Auditing and Assurance Standards Board and, consequently no opinions or conclusions intended to convey assurance have been expressed. No warranty of completeness, accuracy or reliability is given in relation to the statements and representations made by, and the information and documentation provided by, the Toowoomba Regional Council (TRC) personnel and other stakeholders consulted as part of this process. KPMG have indicated within this report the sources of the information provided. We have not sought to independently verify those sources unless otherwise noted within the report. KPMG is under no obligation in any circumstance to update this report, in either oral or written form, for events occurring after the report has been issued in final form. The findings in this report have been formed on the above basis.
Third Party Reliance This report is solely for the purpose set out in the Introduction Section and for the TRC’s information, and is not to be used for any other purpose or distributed to any other party without KPMG’s prior written consent. This report has been prepared at the request of the TRC in accordance with the terms of KPMG’s deed of agreement dated 25 August 2011. Other than our responsibility to the TRC, neither KPMG nor any member or employee of KPMG undertakes responsibility arising in any way from reliance placed by a third party on this report. Any reliance placed is that party’s sole responsibility.
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Liability limited by a scheme approved under Professional Standards Legislation.
ABCD Toowoomba Regional Council Volume 1 – Best Practice Assessment Final Report December 2011
Contents Executive Summary
3
1
Introduction
8
1.1 1.2 1.3
Purpose Approach Structure of the report
8 8 8
2
Overview of demographic and development trends in the TRC local government area
9
2.1
Recent demographic trends
9
3
Best practice approach to planning
10
3.1 3.2 3.3
Overview of planning processes Recent initiatives to improve planning frameworks Best practice principles for planning schemes
10 11 15
4
The TRPS’s detailed framework for further assessment
18
4.1 4.2 4.3
Overview of the TRPS Assessment against best practice principles Benefits of the TRPS
18 19 22
5
Qualitative Assessment
23
6
Conclusion
24
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ABCD Toowoomba Regional Council Volume 1 – Best Practice Assessment Final Report December 2011
About this Report In 2011 the Toowoomba Regional Planning Scheme (TRPS) was the first to be adopted under the Sustainable Planning Act. The focus of the TRPS was to reduce levels of assessment, facilitate development and stimulate the regional economy where appropriate. The TRPS brought with it a higher risk appetite for residential and non-residential development as well as a Priority Infrastructure Plan to provide greater clarity around timing and provision of infrastructure investment. Since its introduction, TRC has commissioned KPMG to assess and quantify the impact of its new TRPS on the regional economy – a complex exercise which serves to raise understanding of the economic consequences of specific planning scheme provisions. The result is an Economic Impact Assessment of the TRPS presented in a four volume suite; Volume 1 – Best Practice Review of the TRPS Volume 2 – Priority Infrastructure Plan and Charging Volume 3 – Residential Sector Volume 4 – Commercial and Industrial Sectors These reports have been presented to independently quantify the impact of the TRPS on sectors of the regional economy and to contribute to the growing discourse regarding the link between planning and economics.
1 © 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. _ KPMG and the KPMG logo are registered trademarks of KPMG International.
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ABCD Toowoomba Regional Council Volume 1 – Best Practice Assessment Final Report December 2011
Key legislation referred to in the report Policy document
Policy intent
Integrated Planning Act 1997 (IPA)
This was repealed in 2009 and replaced by the (Sustainable Planning Act 2009).
Queensland Planning Provisions (Sustainable Planning Act 2009)
Integrated (IDAS)
Development
Assessment
(QPP)
The Queensland Planning Provisions (QPP) are the standard planning scheme provisions made under the Sustainable Planning Act 2009 (SPA) that provide a consistent format and structure for local government planning schemes across Queensland.
System
The process for assessing and deciding developments is known as the Integrated Development Assessment System (IDAS).
Development Assessment Monitoring Performance Program (DAMMP) State Planning Instruments Program
and
Program to review the progress of the IDAS.
The State Planning Instruments Program provides a mechanism for articulating planning and development related issues of state interests through state planning instruments (SPIs).
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ABCD Toowoomba Regional Council Volume 1 – Best Practice Assessment Final Report December 2011
Executive Summary Introduction and scope This report is a best practice review of the Toowoomba Regional Council’s (TRC) Toowoomba Regional Planning Scheme (TRPS). This review of the TRPS involved identifying the rationale for change, the main areas of change and the main types of anticipated benefits. Once these areas were assessed and documented, the current best practice approaches to planning schemes within Australia were identified. These best practice approaches were then compared against the TRPS design. It is noted that the economic benefits from the provisions of the new TRPS and the Priority Infrastructure Plan Capital Works program are to be subject of assessment in separate reports. Current conditions in the TRC local government area Population growth in the TRC local government area averaged 1.8% between 2001-2010, and projections for the next 20 years indicate that growth is likely to remain strong. The TRC local government area also has a strong labour market, with an unemployment rate of 4.4%. These conditions are significant, as population growth and a strong economy underpin demand for housing along with commercial and industrial floor-space requirements. Meeting this demand in a timely manner is a key challenge for the local planning framework. In terms of development trends, historical data indicates that both the volume and value of dwelling approvals have declined in recent years, suggesting conditions in the development sector are reasonably soft although more recently there has been signs of recovery and this could be linked to the key role of Toowoomba as the primary service centre for the Darling Downs and Surat Basin regions. One key potential challenge for the TRC is the concentrated ownership of land in the TRC local government area, where the top seven land holders account for 62% of all land holdings over 10 hectares in size. This concentrated land ownership is an issue because it impacts upon market competition and thus the level of development activity — this, in combination with high development related compliance costs, can act to constrain the supply of land for development. Crucially, where supply is constrained, issues of housing affordability can arise and economic activity may be less than would otherwise be the case. In this context, the TRPS is an important instrument in facilitating housing and economic development outcomes through the timely supply and sequencing of land facilitated through the Priority Infrastructure Plan (PIP) and a recalibrated assessment framework that aligns with strategic intent.
Best practice planning frameworks Within Queensland and across Australia more broadly, major reforms to planning frameworks have been initiated in recent years. In Queensland for example: •
The Sustainable Planning Act 2009 has been introduced to support the coordination and integration of local, regional and state planning activities. 3 © 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. _ KPMG and the KPMG logo are registered trademarks of KPMG International.
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ABCD Toowoomba Regional Council Volume 1 – Best Practice Assessment Final Report December 2011
•
The Queensland Planning Provisions have been established to provide local governments with guidance on the design and structure of their planning schemes.
These reforms have been underpinned by a desire to reduce the level of prescription within planning frameworks, which in turn will assist with reducing the compliance burdens faced by developers. Fifteen best practice principles for planning frameworks were identified based on the reforms above, the Productivity Commission’s report on Performance Benchmarking for Planning, Zoning and Development Assessments, and KPMG’s analysis. These principles cover the full spectrum of planning frameworks from zoning and structure planning through to infrastructure delivery and charges, development assessment and performance monitoring. Assessing the consistency of the TRPS against these principles was a central part of this report. The TRPS The TRPS is one of several mechanisms developed as part of the recent reform of the local broader planning framework — a Strategic Directions framework which outlines the future directions for the TRC local government area, the Community Plan has also been developed, along with a Corporate Plan which identifies the priorities for TRC over the period to 2014. The TRPS entails a number of new aspects — as summarised in the Table overleaf — which are intended to be consistent with current best practice and the Queensland Planning Provisions mentioned above.
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ABCD Toowoomba Regional Council Volume 1 – Best Practice Assessment Final Report December 2011
New aspects of the TRPS
Features retained from the previous Scheme
•
A standard structure and standard suites of zones, overlays and definitions.
•
Prevent conflict between incompatible land uses.
•
A Priority Infrastructure Plan, which identifies priorities for infrastructure investment to support dwelling targets outlined in the TRPS.
•
Preserve existing urban character and rural landscapes.
• •
• •
Protect the environment.
A new framework for infrastructure charges.
• •
•
New approach to minimum lot sizes.
Identify areas suitable for higher density development (i.e. units).
•
Greater emphasis on housing diversity and walkable neighbourhoods.
• •
Expansion of urban zones areas.
Provisions which will apply consistently across all of TRC.
Use overlays activity.
to
guide
development
Lower levels of assessment for complying development.
Provision for implementation of the City Centre Master Plan.
KPMG has determined that the TRPS is consistent with the Productivity Commission’s best practice principles and Queensland Government policy requirements. This consistency is important in terms of supporting future development activity in the TRC local government area — especially through the provision of certainty for developers and a reduction in compliance costs relative to the previous Scheme — and ensuring TRC is eligible for future infrastructure funding allocations from the Federal Government. Key aspects of the TRPS KPMG’s assessment of the principles and their respective issues concluded that: •
•
The TRPS is considered to be consistent with the Queensland Planning provisions (QPP) and the Sustainable Planning Act 2009. This consistency is provided through: -
The consultation that has occurred.
-
Infrastructure planning through a PIP.
-
Use of standard zones with set core outcome statements.
-
Reforms to IDAS and the introduction of deemed approvals for certain types of code assessable development applications.
TRC has developed a Strategic Directions plan which outlines a vision for development activity over the medium to longer term, and has engaged with the Community in relation to this. The TRPS — through its strategic intent — provides clear guidance on the desired outcomes associated within its framework, breaking each strategic element into specific outcome areas 5 © 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. _ KPMG and the KPMG logo are registered trademarks of KPMG International.
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ABCD Toowoomba Regional Council Volume 1 – Best Practice Assessment Final Report December 2011
•
•
•
such as the network of communities, urban form and centres of activity. As these outcome areas align with land use strategies, the potential for land use conflict is minimised. The TRPS also incorporates a PIP that outlines infrastructure networks to support dwelling targets. While structure planning is not that applicable to the TRC local government area (given its established urban form), a series of local area plans for areas with high projected growth are to be completed. The TRPS does, however, include a number of simplifying reforms to zoning provisions in the TRC local government area. The urban zones designation has been expanded and the level of prescription associated with different zones — enforced through impact and code assessments — has been reduced. Land use has been calibrated to assessment levels in the strategic framework — where a change of use is proposed but the strategic intent is unchanged, the need for an impact assessment has been removed. Ancillary structures (for example sheds), extensions and dual occupancies are now exempt from DA process. The TRC will coordinate with state agencies as necessary for major projects. The PIP has created an effective link between land release (and related dwelling targets) and the infrastructure networks required to support the development intent. The charge schedule will act as the link back to TRC’s broader financial planning strategies. It is expected that the amalgamation of TRC schemes will support better forward planning and coordination between zonings, approvals and the need for infrastructure. In relation to the area of development assessment, it is noted that: -
The TRC has developed standard terms and conditions for different types of development activity.
-
Guidance will be provided on the different types of development assessment processes and their associated requirements.
-
Code-based frameworks have been adopted, and an electronic development assessment mechanism is being pursued in parallel with implementing the new TRPS.
-
In relation to major / complex projects, the TRPS will be robust enough to support these and designated staff will also be available to support the processing of these applications.
-
Referral requirements for state interests are consistent with Queensland’s legislative requirements.
Qualitative benefits A range of qualitative benefits were identified, including: •
Cultural considerations.
•
Internal efficiency dividend (in terms of how TRC staff are likely to operate under the new TRPS with respect to the development sector).
•
Fewer information requests.
•
Savings in inter-agency coordination and liaison. 6 © 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. _ KPMG and the KPMG logo are registered trademarks of KPMG International.
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ABCD Toowoomba Regional Council Volume 1 – Best Practice Assessment Final Report December 2011
•
Eligibility for Federal funding.
•
Improved coordination of the TRPS with capital works spending and infrastructure provision.
While these benefits cannot not be quantified, they are tangible and will generate positive economic impacts. Conclusion Although this report does not estimate the full economic benefits associated with the TRPS, the analysis undertaken within this paper provides clear examples where benefits will arise. Despite the presence of limitations it is concluded that the TRPS is consistent with best practice principles for planning schemes and will appropriately position the TRC to meet the challenges associated with a growing population and strong economy in the years ahead from a planning point of view.
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Liability limited by a scheme approved under Professional Standards Legislation.
ABCD Toowoomba Regional Council Volume 1 – Best Practice Assessment Final Report December 2011
1
Introduction
1.1
Purpose This analysis of the Toowoomba Regional Planning Scheme (TRPS) has involved the following key steps: •
Review of the Scheme to identify the rationale for change, the main areas of change and the main types of anticipated benefits;
•
Identification of the current best practice approach to planning schemes within Australia, drawing upon Productivity Commission’s recommendations in its report on Performance Benchmarking for Planning, Zoning and Development Assessments;
•
An assessment of the TRPS’s design against current best practice approach;
•
Identification of qualitative benefits associated with the Scheme.
It is noted that the economic benefits from the provisions of the TRPS and the Priority Infrastructure Plan Capital Works program are subject of assessment in separate reports.
1.2
Approach In undertaking the tasks outlined above KPMG has:
1.3
•
Engaged with officers of the TRC to further develop our understanding of the TRPS and the previous approach to planning activities in the TRC local government area.
•
Reviewed recent studies and reports on planning frameworks in Australia to identify principles of best practice, relevant national standards and Queensland policy requirements.
•
Identified qualitative benefits associated with the TRPS.
Structure of the report This report is structured in the following sections: •
Section 2 provides an overview of demographic and development trends in the TRC local government area.
•
Section 3 discusses best practice approaches to planning.
•
Section 4 overviews the TRPS’s detailed framework.
•
Section 5 outlines the qualitative assessment.
•
Section 6 presents conclusions based on the analysis undertaken.
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ABCD Toowoomba Regional Council Volume 1 – Best Practice Assessment Final Report December 2011
2
Overview of demographic and development trends in the TRC local government area This section seeks to establish the context for the reform of planning arrangements in the TRC local government area by overviewing recent demographic and development trends.
2.1
Recent demographic trends The TRC local government area has experienced strong population growth in recent years — as depicted in Figure 1 the annual rate of population growth averaged 1.8% between 2001-2010, up from a rate of 1.1% between 1991-2001. According to medium series population projections prepared by the Queensland Government, population growth will remain strong over the next 20 years, with the regional population expected to reach 229,000 in 2031.1 Figure 1 TRC local government area growth in resident population
Source: Queensland Office of Economic and Statistical Research, Resource communities report’, July 2011
The labour market in the TRC local government area is currently strong, with the unemployment rate estimated to be 4.4%.2 One of the main drivers of this situation is resource sector activity in the Surat Basin. This activity is a source of the population growth referred to above. Population growth and a strong economy are key factors driving the demand for housing and commercial and industrial floor-space in the TRC local government area. In order to ensure this demand is met in a timely manner, and potential issues of affordability issues are managed, it is important that the supply side of the market operates effectively. Supply is influenced by the operation of the local planning scheme, thus it is important for the TRPS to provide certainty to the community and developers about the framework for future development activity and minimise compliance costs which are imposed on those undertaking development activity. 1 2
TRC, Strategic Directions Overview, p 4. http://www.deewr.gov.au/lmip/default.aspx?LMIP/EmploymentData/SouthernQLD/Toowoomba 9 © 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. _ KPMG and the KPMG logo are registered trademarks of KPMG International.
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3
Best practice approach to planning This section outlines the best practice approach to planning in Australia, drawing upon recommendations made by the Productivity Commission in its report on Performance Benchmarking for Planning, Zoning and Development Assessments, changes to Queensland’s policy framework for local planning schemes and KPMG’s experience in the development and application of planning frameworks.
3.1
Overview of planning processes Planning processes encompass a variety of activities including strategic frameworks for future development, frameworks for the provision and delivery of infrastructure and frameworks for the assessment of development applications against the provisions of local planning schemes and related state planning and building policy instruments. The successful integration and operation of these activities can have wide ranging implications for economic growth and the competitiveness of local economies. Ultimately, the function of the planning process is to support the efficient supply and development of land for residential, commercial, industrial and public purpose whilst ensuring that broader societal objectives are addressed, and any negative impacts are mitigated to the extent possible. As a precursor to the discussion which follows, it is useful to briefly consider — for contextual purposes — a generic model of the planning process. Figure 5 outlines such a model and includes some general observations about each step in the model, including comments on the allocation of institutional responsibilities. Figure 2 Generic model of the planning process and associated observations 1. Future urban designation
This stage involves the designation of urban land for future urban development. This typically occurs within the applicable metropolitan strategy.
2. Specific use zoning
Specific use zoning involves the determination of appropriate land use and/or the form of development . In infill areas rezoning tends to be about density, in greenfield areas it is about land use
3. Structure planning 5. Development / subdivision approval
4. Provision of social & economic infrastructure
Structure planning is about the spatial dimensions of development in a given area. This is often accompanied by the provision of infrastructure. Greenfield areas have a greater need for structure planning and infrastructure than infill areas due to their undeveloped status.
Subdivision of land into blocks for residential development occurs in both greenfield and infill areas (but is more prevalent in the former). Irrespective of location, all proposed development activity needs to be approved. Approvals tend to be managed by local government.
6. Civil works & issue of title
Civil works, such as the provision of water infrastructure and roads, are a prerequisite for residential development. Developers tend to organise civil works. Once works have occurred local government can issue land titles recognising readiness for development.
7. Development approval and completion
Development approval is required before a new dwelling can be constructed. Local councils tend to manage development approvals. This step marks the completion of the regulated component of development activities.
Source: Housing Supply Council, 2nd state of supply report 2010 (slight adaptation). 10 © 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. _ KPMG and the KPMG logo are registered trademarks of KPMG International.
Liability limited by a scheme approved under Professional Standards Legislation.
ABCD Toowoomba Regional Council Volume 1 – Best Practice Assessment Final Report December 2011
From a practical viewpoint it is important that the planning process: •
Provides certainty to the community, developers and other key stakeholders.
•
Operates in a manner which minimises compliance costs while still meeting associated strategic objectives.
•
Is responsive to prevailing market conditions.
Steps 4 to 7 outlined in Figure 5 are those which are most applicable to the TRPS — accordingly, most of the discussion in this chapter is focused on activities associated with these steps.
3.2
Recent initiatives to improve planning frameworks There have been a number of recent initiatives within Australia and Queensland that are aimed at improving the operation of planning frameworks. The Council of Australian Governments (COAG), for example, has had a focus on capital city planning systems. In 2010 COAG, under the direction of the Business Regulation and Competition Working Group, requested that the Productivity Commission (PC) undertake a benchmarking study to examine and report on the operations of the states and territories' planning and zoning systems. Within Queensland, the Government has initiated the State Planning Instruments Program which focuses on planning and development related issues and has also established the Queensland Planning Provisions (QPP) to provide local governments with guidance on the design and structure of their planning schemes. In order to track the performance of planning frameworks across the State the Queensland Government has established the Development Assessment Monitoring and Performance Program (DAMPP) — the first annual report under this program was released in April 2011. The DAMPP examines the performance of high growth councils (including Toowoomba) and state agencies in meeting assessment requirements under the Integrated Development Assessment System (IDAS). The discussion below considers the key initiatives outlined above and their implications for the design of local planning schemes.
3.2.1
Productivity Commission Report on Planning, Zoning and Development Assessments The main objectives of the Productivity Commission’s study3 were to: •
Assess how planning systems impact on competition and the functioning of cities.
•
Identify leading practices to avoid unjustifiable restrictions on competition and to ensure adequate supplies of urban land.
The Commission’s report identified seven areas of best practice — these are briefly discussed below. 3
Productivity Commission, Performance Benchmarking of Australian Business Regulation: Planning, Zoning and Development Assessments, May 2011. 11 © 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. _ KPMG and the KPMG logo are registered trademarks of KPMG International.
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ABCD Toowoomba Regional Council Volume 1 – Best Practice Assessment Final Report December 2011
Area 1: Early resolution of land use and coordination issues Issue Balancing the needs of constituents and strategic needs of the community as a whole is a major challenge for planning systems and land use planning. While the cost of some land uses may be borne primarily by people in specific geographical areas, benefits may be shared by the community at large — airports, roads and railway lines are examples of land uses where there can be a disconnect between costs and benefits. As a general principle, potential conflicts about land uses are best resolved as early as possible within the planning process. Observed best practice Best practice approach to the resolution of land use and coordination issues involves the development of strategic land use plans which outline spatial plans for broad land uses and the infrastructure needs of the community. The Local Government and Planning Ministers’ Council, in its National Planning Systems Principles Report, have noted that best practice systems have a consistent hierarchy of future oriented and publicly available plans, including long-term strategic plans, coordinated infrastructure and land use plans and near-term prioritised infrastructure plans. Area 2: Engaging the community early and in proportion to likely impacts Issue Strategic plans are given effect by instruments such as land use zoning and residential development controls, thus it is important that the community is engaged in the development of these. Early engagement ensures that the process is well understood, trade-offs are identified and community preferences are provided for in the development of structure/master plans. Once preferences have been identified and provided for, these can be given effect through instruments such as land use zoning and residential development controls.4 Observed best practice The Productivity Commission found that the community engagement process was most effective where it is required by statute. Area 3: Broad and simplified development control instruments Issue Using prescriptive zonings to segregate land uses is ineffective in supporting innovation in business and service delivery, and can constrain the ability to realise planning objectives. Observed best practice Broad uses of land rather than prescriptive definitions, and a broadening of zoning definitions, would facilitate greater flexibility for developers and would increase competition by allowing a wider range of businesses and developers to bid for the same land.5 This is best achieved by allocating land to its most valued use without the need for rezoning.
4
Development Assessment Forum, Good Strategic Planning Guide, December 2001. Productivity Commission, Performance Benchmarking of Australian Business Regulation: Planning, Zoning and Development Assessments, May 2011.
5
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Area 4: Rational and transparent allocation rules for infrastructure costs Issue The costs of infrastructure provision are not always borne by the beneficiaries of that infrastructure. Observed best practice In order to support equitable outcomes, infrastructure costs should be allocated in a rational and transparent manner so that as many beneficiaries as possible contribute to these costs. This essentially requires application of the ‘user pays’ principle. In practice contributions from State and/or Federal governments may be required if wide reaching community benefits are identified as being associated with given infrastructure developments. Area 5: Improving development assessment and rezoning criteria and processes Issue In recent decades, the expectations placed upon planning systems have become increasingly complex. In response to these expectations planning frameworks have had additional layers of process added and these in turn have resulted in an escalation in compliance costs for the proponents of development activity. Instead of a situation where clear and rational policies are developed and implemented, the focus is often on contesting individual projects.6 Observed best practice Best practice approach involves linking development assessment requirements to stated policy intentions and enabling assessment against specific rules, tests or decision criteria. Streamlining development and rezoning applications into assessment ‘tracks’ (i.e. exempt, prohibited, self assessable, code assessable, merit assessable and impact assessable) that correspond with the level of assessment required has also been identified as being important for supporting informed decision making and more timely assessment of applications. Area 6: Disciplines on timeframes Issue Delays in processing applications are a major source of uncertainty amongst developers and the community. Observed best practice More extensive use of timeframes for planning processes would provide better discipline on agencies and give developers more certainty. Given that some processes necessarily vary greatly, Queensland’s practice of adjusting the statutory timeframes for structure planning according to the particular characteristics of each major project provides both certainty and flexibility. Furthermore, in recent years there has also been a shift towards the specification of target timeframes for different types of development applications.
6
Development Assessment Forum, Leading Practice Model of Development Assessment Processes, August 2003 13 © 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. _ KPMG and the KPMG logo are registered trademarks of KPMG International.
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ABCD Toowoomba Regional Council Volume 1 – Best Practice Assessment Final Report December 2011
Area 7: Transparency and accountability Issue If there is a lack of transparency in planning processes, appeals will be encouraged and the relationships between developers, communities and planning authorities may not be constructive. Observed best practice Best practice response involves maximising community consultation, ensuring that planning scheme amendments are subject to public scrutiny in the same way development assessments are, and ensuring there is a consistent approach to planning decisions based on the use of specific rules, tests or decision criteria.
3.2.2
Queensland Government guidance on planning frameworks The Queensland Sustainable Planning Act 2009 (the Act) plays an important role in the coordination and integration of local, regional and state planning activities. The State Planning Instruments Program and the associated Queensland Planning Provisions (QPP) provide specific guidance for local governments on the design and structure of their planning schemes. Under the Act and the QPP, local council planning schemes are required to align with state planning instruments such as regional plans and state planning policies and must also detail Priority Infrastructure Plans (PIP) and related infrastructure charging arrangements. Additionally, the Act prescribes specific requirements for the development of 10-year community plans and the need to report annually on their implementation.7 All development assessment activity within Queensland is assessed under the Act through the Integrated Development Assessment System (IDAS). The Act sets out minimum requirements for councils to improve on operational and cultural components of planning systems8 aimed at facilitating consistency across Queensland planning schemes. The introduction of deemed approvals for certain types of code assessable development applications (if they are not decided within IDAS timeframes) is intended to encourage Councils to improve overall timeliness within their development application assessment processes. Broadly, the following principles were the drivers for the establishment of the Act and its instruments: •
More effective State planning policies.
•
Clear and more effective State planning instruments.
•
Proactive roles for the Minister and Department in managing the planning framework and its operation.
•
Comprehensive statutory regional planning.
7
Queensland Government, Department of Local Planning and Government, Module 6- Community Planning accessed on 8 October 2011 at: http://dlgp.qld.gov.au/so-you-want-to-be-a-councillor/module-6-communityplanning.html 8 Allens Arthur Robinson, 2009. Focus: Queensland's new Sustainable Planning Bill, accessed at: http://www.aar.com.au/pubs/env/foenvjun09.htm 14 © 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. _ KPMG and the KPMG logo are registered trademarks of KPMG International.
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ABCD Toowoomba Regional Council Volume 1 – Best Practice Assessment Final Report December 2011
•
Improving community engagement in planning scheme preparation.
•
Standard planning scheme provisions and improved State interest reviews.
•
Reforming preliminary approvals which override a local planning instrument.
•
Transparent and equitable infrastructure planning and charging.
•
Better manage historic approvals and leases to reflect current expectations.
•
Better stakeholder communication and supporting information.
•
Greater stakeholder capacity and support.
•
More accessible dispute resolution.
•
Streamlining and simplifying IDAS.
The levels of guidance within the QPP framework is set out in Table 1 below, along with observations on how this guidance links to planning processes as discussed in section 3.1 Table 1 Impact of state guidance on local planning outcomes
3.3
Guidance within the QPP
Impact on the planning process
Statutory requirements for consultation and the development of community plans.
Designation of urban land to cater for planned growth ensures that uses are flexible enough to cater for local diversity, expected population growth and the requirements of the community.
Set of standard zones with set core outcome statements.
Through guidance on zoning for residential uses, the QPP ensures that local schemes provide for an efficient land-use that is well connected to other parts of the local government area. This insures that planning schemes cater for flexible land use and ensure that zones fulfil a particular purpose.
Reforms to IDAS and the introduction of deemed approvals for certain types of code assessable development applications.
This will see a greater emphasis on the performance of planning schemes and provide transparency on individual council performance relative to other councils.
Infrastructure planning through PIPs.
Through PIPs, local councils can better coordinate infrastructure delivery to encourage urban growth in areas where adequate infrastructure exists or can be provided efficiently.
Strategic requirements of the QPP.
Strategic framework will assist in reducing assessment periods for DA though the provision of clear strategic outcomes.
Best practice principles for planning schemes Based on the discussion of the Productivity Commission’s benchmarking report on Planning, Zoning and Development Assessments, the QPP and KPMG’s experience with planning frameworks, best practice principles for the design of planning schemes have been developed. 15 © 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. _ KPMG and the KPMG logo are registered trademarks of KPMG International.
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These principles are outlined in Table 2 below. The table also provides an indication of where each principle sits with respect to the generic model of planning frameworks and the key areas of best practice identified by the Productivity Commission. Table 2 Best practice principles for planning schemes
Area of planning frameworks
Principle
Alignment with area of best practice
Strategic plan
1. There should be a strategic plan in place which outlines a vision for development activity over the medium to longer term.
Area 1: Early resolution of land use and coordination issues Area 2: Engaging the community early and in proportion to likely impacts
Land supply – Zoning & Structure Planning
2. Rezoning activity in areas designated for future development should be subject to statutory timeframes, and zones should not be overly prescriptive.
Area 1: Early resolution of land use and coordination issues Area 3: Broad and simplified development control instruments Area 7: Transparency and accountability
3. Structure planning in areas designated for future development should be subject to statutory timeframes, and completed before any development activity commences. 4. In order to support coordination and avoid unnecessary delays, zoning and structure planning activities should be managed by a designated authority where appropriate. 5. The number of reports required to support zoning and structure planning activities should be limited — decision criteria should be clear and consistent. Infrastructure delivery
6. There should be a designated body responsible for the coordination of infrastructure in new development areas (this could be the same body which undertakes structure planning). 7. The delivery of infrastructure should be coordinated with zoning approval.
Area 4: Rational and transparent allocation rules for infrastructure costs Area 7: Transparency and accountability
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Area of planning frameworks
Principle
Alignment with area of best practice
8. There should be a designated body with the power to direct or otherwise bind infrastructure providers to the delivery of infrastructure requirements (as identified in the structure plan, or associated ‘precinct’ infrastructure plan). Infrastructure charges
9. A framework of infrastructure charges should be in place to support infrastructure provision, with provision for any works in kind undertaken by private sector developers.
Area 4: Rational and transparent allocation rules for infrastructure costs
Development assessment
10. Frameworks for development assessment should include provision for different types of development activity, and there should be target timeframes and standard conditions associated with assessments for each type of development activity.
Area 5: Improving development assessment and rezoning criteria and processes Area 6: Disciplines on timeframes Area 7: Transparency and accountability
11. Guidance for different types of development assessment processes should be made available, outlining information requirements and other matters relevant to the assessment of development applications. 12. There should be code-based frameworks for the assessment of low risk, compliant development, potentially implemented through electronic systems. 13. Specific frameworks should exist for the assessment of complex and/or major projects. 14. There should be clear guidelines in relation to any referral of development applications Performance monitoring
15. All DA activity should be subject to detailed and consistent monitoring to support the comparative assessments and the identification of reforms to improve performance.
Area 7: Transparency accountability
and
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4
The TRPS’s detailed framework for further assessment This section provides a brief overview of the TRPS and an assessment of its alignment against the best practice principles as outlined in Section 3.
4.1
Overview of the TRPS The TRPS has been developed over the last three years in close consultation with the local community and the development sector. As depicted in Figure 6 below, the TRPS is one of several mechanisms developed as part of the recent reform of the TRC’s broader planning framework. In addition to the TRPS the TRC has also developed: •
A Strategic Directions framework which outlines the future direction for planning policy within the TRC local government area — including the overall vision and key themes — following the recent changes to Queensland planning requirements.
•
A Community Plan which sets out the vision for the community of the TRC local government area over the next 10 years.
•
A Corporate Plan which identifies the priorities for TRC over the period to 2014.
Figure 3 Indicative planning process relationships for TRC
The TRPS, as depicted, sits beneath and alongside these other documents and in practice will be the primary means to which they are given effect. Guiding principles for the TRPS include:
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•
Clear strategic intent.
•
Holistic focus on the TRC area.
•
Sustainability focus.
•
Reduced complexity.
Table 3 summarises the key aspects of the TRPS, in particular those features that are new and those which have been retained from the Toowoomba City Council Scheme. Table 3 Key aspects of the Planning Scheme
New aspects of the TRPS
Features retained from the previous Scheme
•
A standard structure and standard suites of zones, overlays and definitions.
•
Prevent conflict between incompatible land uses.
•
A Priority Infrastructure Plan, which identifies priorities for infrastructure investment to support dwelling targets outlined in the TRPS.
•
Preserve existing urban character and rural landscapes.
• •
• •
Protect the environment.
A new framework for infrastructure charges.
• •
•
New approach to minimum lot sizes.
Identify areas suitable for higher density development (i.e. units).
•
Greater emphasis on housing diversity and walkable neighbourhoods.
• •
Expansion of urban zones areas.
Provisions which will apply consistently across all of TRC.
Use overlays activity.
to
guide
development
Lower levels of assessment for complying development.
Provision for implementation of the City Centre Master Plan.
It is noted that the TRC is one of the first councils in Queensland to adopt a Scheme exemplifying the Queensland Planning Provisions. As such, the Plan aspires to incorporate best practice approaches to planning and reduce the compliance burden imposed on developers and other applicants more generally.
4.2
Assessment against best practice principles Table 4 outlines KPMG’s assessment of the TRPS against the best practice principles outlined in section 3.3. The TRPS has also been assessed for its alignment with Queensland’s Planning provisions relating to planning frameworks (discussed in section 3.2.2) although this is not a specific principle as such.
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Table 4 Assessment of the TRPS against best practice principles
Principle
Land supply – Zoning & Structure Planning
Assessment
(refer discussion in section 3.2.2)
The TRPS is considered to be consistent with the Queensland Planning provisions (QPP).
1. There should be a strategic plan in place which outlines a vision for development activity over the medium to longer term.
TRC has developed a Strategic Directions plan which outlines a vision for development activity over the medium to longer term, and has engaged with the Community in relation to this. The TRPS — through its strategic intent — provides clear guidance on the desired outcomes associated within its framework, breaking each strategic element into specific outcome areas such as the network of communities, urban form and centres of activity. As these outcome areas align with land use strategies, the potential for land use conflict is minimised. The TRPS also incorporates a PIP that outlines infrastructure networks to support dwelling targets.
2. Rezoning activity in areas designated for future development should be subject to statutory timeframes, and zones should not be overly prescriptive.
Structure planning is not that applicable to the TRC local government area (given its established urban form), however a series of local area plans for areas with high projected growth are currently being completed. The TRPS does, however, include a number of simplifying reforms to zoning provisions in the TRC local government area. The urban zones designation has been expanded and the level of prescription associated with different zones — enforced through impact and code assessments — has been reduced. Land use has been calibrated to assessment levels in the strategic framework — where a change of use is proposed but the strategic intent is unchanged, the need for an impact assessment has been removed. Ancillary structures (for example sheds), extensions and dual occupancies are now exempt from DA process. The TRC will coordinate with state agencies as necessary for major projects.
Strategic plan
Alignment with the QPP
Area of planning frameworks
3. Structure planning in areas designated for future development should be subject to statutory timeframes, and completed before any development activity commences. 4. In order to support coordination and avoid unnecessary delays, zoning and structure planning activities should be managed by a designated authority where appropriate. 5. The number of reports required to support zoning and structure planning activities should be limited — decision criteria should be clear and consistent.
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Development assessment
Infrastructure charges
Infrastructure delivery
6. There should be a designated body responsible for the coordination of infrastructure in new development areas (this could be the same body which undertakes structure planning). 7. The delivery of infrastructure should be coordinated with zoning approval. 8. There should be a designated body with the power to direct or otherwise bind infrastructure providers to the delivery of infrastructure requirements (as identified in the structure plan, or associated ‘precinct’ infrastructure plan).
The TRC is the authority responsible for the coordination of infrastructure in the TRC local government area, and this will be achieved via the PIP which has been integrated with the TRC’s 10 year Capital Works plan. The PIP has created an effective link between land release (and related dwelling targets) and the infrastructure networks required to support the development intent. The charge schedule will act as the link back to TRC’s broader financial planning strategies. It is expected that the amalgamation of TRC schemes will support better forward planning and coordination between zonings, approvals and the need for infrastructure.
9. A framework of infrastructure charges should be in place to support infrastructure provision, with provision for any works in kind undertaken by the private sector.
The PIP states the basis for the calculation of infrastructure charges applicable to a development, and provision is made for (trunk) infrastructure which is (or will) be supplied or contributed towards.
10. Frameworks for development assessment should include provision for different types of development activity, and there should be target timeframes and standard conditions associated with assessments for each type of development activity.
In relation to the area of development assessment, it is noted that:
•
The TRC has developed standard terms and conditions for different types of development activity.
•
11. Guidance for the different types of development assessment processes should be made available, outlining information requirements and other matters relevant to the assessment of development applications.
Guidance will be provided on the different types of development assessment processes and their associated requirements.
•
12. There should be code based frameworks for the assessment of low risk, compliant development, potentially implemented through electronic systems.
Code-based frameworks have been adopted, and an electronic development assessment mechanism is being pursued in parallel with implementing the TRPS.
•
In relation to major / complex projects, the TRPS will be robust enough to support these and designated staff will also be available to support the processing of these applications.
•
Referral requirements for state interests are consistent with Queensland’s legislative requirements.
13. Specific frameworks should exist for the assessment of complex and/or major projects. 14. There should be clear guidelines in relation to any referral of development applications
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Performance monitoring
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4.3
15. All DA activity should be subject to detailed and consistent monitoring to support comparative assessment and identification of reforms to improve performance.
Performance monitoring will occur through participation in the DAMPP monitoring process.
Benefits of the TRPS There are several distinct benefits that are expected from implementation of the TRPS. Whilst some of these can be readily quantified, others are difficult to quantify due to lack of data or are more qualitative in nature. The broad themes of benefit attributable to the TRPS are discussed below: •
Greater simplicity — relative to the existing scheme, the proposed TRPS will be considerably simpler for the proponents of development activity. This benefit arises from the reduced levels of assessment that will apply to numerous types of development applications. In particular, under the proposed TRPS dual occupancy developments will be self-assessable and there are no minimum lot sizes prescribed in the Residential Choice zone.
•
Direct and indirect efficiency benefits — efficiency benefits are expected to accrue from various initiatives adopted in the TRPS including simplification of zoning provisions, simplification of development application requirements, issuance of guidance materials, improved resource deployment (within TRC) and greater certainty for developers. While some efficiency benefits will have a quantitative dimension (i.e. savings in development approval timeframes) others will be more qualitative (i.e. internal TRC functioning).
•
Clear alignment between sequencing and development intent - the PIP incorporates plans for trunk infrastructure that align with the sequencing of development across residential and non-residential land uses across the three time horizons between 2010 and mid-2026. The articulation of infrastructure and land use intent provides a robust platform for the effective financial management of development inputs.
•
Increased certainty around infrastructure charges — the setting of infrastructure charges to accompany the PIP will provide developers with certainty for the planning of their development activities and will also assist TRC in strategic asset management practices that should enhance financial risk management.
•
Cultural considerations — the TRPS will help enhance the interaction between TRC officers and project proponents as it provides clarity and transparency around the overarching development framework and intent. For example, the alignment of the PIP and the capital works plan will give the community and developers greater certainty about the future staging of infrastructure development. Another example is the simplified framework for development assessments, as this will enable clearer engagement between TRC administrators and the development community. The wide ranging consultation undertaken by the TRC in the course of developing the TRPS will also assist with establishing and maintaining a constructive relationship between all sectors of the community, including those with development interests. 22 © 2011 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. _ KPMG and the KPMG logo are registered trademarks of KPMG International.
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5
Qualitative Assessment This section outlines the various qualitative benefits that are associated with the TRPS. These benefits have not been quantified as they are either beyond the current scope of works or are difficult to quantify due to lack of relevant data. Nevertheless, these are tangible benefits that will generate positive economic impacts and as such are worth highlighting. The main qualitative benefits that will accrue to the TRC are as follows: •
Cultural considerations — the TRPS will be a robust statutory instrument that will support better communication, and better relationships, between TRC administrators, the community and development sector. This in turn is expected to improve the overall culture within the TRC by enabling more effective utilisation of TRC’s technical resources to meet the day to day challenges and requirements associated with the planning system. Cultural improvements can contribute to improved staff satisfaction, less absenteeism and attraction and retention of scarce technical resources in regional locations. Overall, these considerations can have a significant impact on the TRC’s overall productivity.
•
Internal efficiency dividend — as a result of having one common scheme, the TRC will benefit in terms of improved resource deployment and the internal recalibration of TRC resources around a simplified and clearer planning framework. Changes to the assessment model for development applications and related business process re-engineering will be key drivers of the internal efficiency dividend.
•
Fewer information requests — the provision of guidance on some of the more strategic elements of the TRPS is expected to result in fewer information requests being submitted to TRC, which will in turn support improved internal efficiency.
•
Savings in inter-agency coordination and liaison— the reforms to infrastructure charging arrangements will eliminate the need for TRC to fund complex and costly assessments by the Queensland Competition Authority (QCA) on its infrastructure charges, and will also improve engagement with state referral agencies on individual development applications.
•
Eligibility for Federal funding — the alignment of TRC’s planning frameworks at a regional level through the integration of the Strategic Directions framework with the Community Plan, Corporate Plan and TRPS is consistent with best practice and will assist TRC in positioning future funding requests for key infrastructure needs with State and Federal Governments.
•
Improved coordination — the PIP will support better coordination between planning intent and infrastructure provision, particularly where plans for trunk infrastructure are linked with the TRC’s longer term capital works and financing plans. One specific benefit of this approach is that it should assist in avoiding historical situations in the TRC local government area where lots were approved without certainty as to when critical infrastructure would be provided, resulting in tracts of land deemed suitable for development being unable to be activated into the supply pipeline.
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6
Conclusion KPMG has determined that the TRPS is consistent with the Productivity Commission’s best practice principles and Queensland Government policy requirements. This consistency is important in terms of supporting future development activity in the TRC local government area — especially through the provision of certainty for developers and a reduction in compliance costs relative to the previous Scheme — and ensuring TRC is eligible for future infrastructure funding allocations from the Federal Government. While the analysis in this report does not include quantification of benefits. This will be focus of subsequent reports. In terms of qualitative benefits, those identified include cultural considerations relating to the way the TRC and development sector interact with each other, internal efficiency benefits, a reduction in the number of information requests, savings in inter-agency coordination and liaison and eligibility for future Federal infrastructure funding. While these qualitative benefits are difficult to quantify, they are important and will generate significant positive economic impacts over time. In summary the TRPS is consistent with best practice principles for planning schemes, has a range of identifiable qualitative benefits, and will position the TRC to meet the pressures which are expected to arise in future years as a result of ongoing population growth and strong economic conditions.
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