Victorian Planning System Ministerial Advisory Committee

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1 Attachment 1 Victorian Planning System Ministerial Advisory Committee Submission of behalf of City of Port Phillip September 2011

2 Executive Summary The City of Port Phillip (CoPP) welcomes the review of the Victorian Planning system. Council considers this to be an opportunity for the State Government to modernise the current planning system to reflect the complex challenges that communities, such as Port Phillip, currently face and will continue to face into the future. CoPP encourages the State to consider the big picture and conduct research into both international and national examples of successful planning systems in order to ensure this review results in a world-class planning system for the State of Victoria. It is imperative that the planning system strongly focuses on achieving good planning outcomes rather than processes. This can be achieved by creating a high-level planning vision with measurable outputs, and providing Local Governments with the autonomy to tailor the system to achieve the outputs they require for their communities. As outlined in its Council Plan, CoPP is committed to planning for more liveable, connected and sustainable communities. The scope of planning and enabling legislation must be broadened to enable planning authorities to effectively undertake the integrated approach to planning required to achieve these priority outcomes for urban areas. CoPP covers a highly sought-after inner city area of Melbourne that has experienced significant change over the last 10 years. The area continues to experience significant residential development and growth, including an estimated increase of 18,000 dwellings (28,000 people) over the next 20 years. While Victoria s total population has increased by eight per cent between 2003 and 2008, Port Phillip s population has increased by 11 per cent; indicating above average growth and defying previous population estimates. Predictions for population figures, housing density and the resulting pressure of managing change all continue to increase. Council views its responsibilities in planning very seriously and the area is well resourced with more than 25 planners and allied professionals (urban designers, architects, etc) employed to deliver a range of planning outcomes. CoPP processes approximately 1500 planning permit applications per year and handles more than 150,000 phone and counter enquiries. A range of progressive initiatives have been introduced to ensure Council delivers high quality service and planning outcomes including: A fast-track planning service for minor applications. 95% of planning permit applications dealt with under delegation to officers. A free Heritage Advisory service. Comprehensive pre-application advice. Successfully negotiating sustainable design outcomes via our Sustainable Design Assessment in the Planning Process (SDAPP) program where 70% of eligible applications choose to participate in this process. Well-resourced strategic planning and a comprehensive planning policy framework to maximise certainty for all stakeholders. As outlined in its Council Plan, CoPP is committed to planning for more liveable, connected and sustainable communities. The scope of planning and enabling legislation must be broadened to enable planning authorities to effectively undertake the integrated approach to planning required to achieve these priority outcomes for urban areas. While Victoria s total population has increased by eight per cent between 2003 and 2008, Port Phillip s population has increased by 11 per cent; indicating above average growth and defying previous population estimates. Predictions for population figures, housing density and the resulting pressure of managing change all continue to increase. CoPP s Environment & Planning Division has key responsibility for planning 1

3 and a primary purpose is to respond to the challenges of climate change, through the operations of the organisation and by influencing community behaviour. The Division also seeks to manage change to our natural, built and social environment by developing strategies and policies and ensuring accountable decision making within regulatory frameworks. The Division covers a range of disciplines and works to achieve integrated and collaborative outcomes. The review of Victoria s planning system is an opportunity to clarify and address the complexities of the system, and the gaps and uncertainties that currently exist. Where possible the review should look for opportunities to condense and pare back the planning system, particularly at the State Government level, and provide the autonomy for Local Governments to deliver at a local level. In addition, the planning system needs to be more flexible, agile and adaptable to changing community, industry and technology needs. The current one-sizefits-all approach to planning in Victoria can be restrictive and inefficient. A shift towards a planning system that is more responsive to these challenges may present opportunities to try new approaches. Similarly, the review has the potential to develop a planning system that better reflects communities changing expectations and aspirations, including a greater emphasis on environmental impacts, including planning for climate change impacts, such as rising sea levels and for environmentally sustainable design and water conservation initiatives while protecting heritage. The planning system needs to be more flexible, agile and adaptable to changing community, industry and technology needs. The current one-size-fits-all approach to planning in Victoria can be restrictive and inefficient. Furthermore, the review needs to provide real measures to provide affordable housing opportunities around existing social infrastructure. Local Governments need greater certainty when it comes to planning. The roles of State and Local Governments need to be clarified. CoPP hopes the review will address these issues. An explicit statement must be made that recognises the significant role that Local Government plays in Victoria s planning system. CoPP acknowledges the many improvements made to the planning system over the years, but notes a number of reviews have taken place that have not been completed or implemented. An audit of all outstanding reviews is required and the results should be considered as part of the current Victorian Planning System Review. 2

4 CoPP s submission to the review takes into account the questions posed by the Ministerial Advisory Committee; however, responses are categorised according to the four key themes and associated topic areas that CoPP considers to be of most importance, as follows: 1. State leadership 1.1. Clarity and leadership in the planning system 1.2. Importance of a clear, long-term Metropolitan Strategy 1.3. Improving Government integration Adapting to climate change Ecologically sustainable development Affordable and accessible housing 1.4. Technology in the planning system 1.5. Design Excellence 2. Strengthening the efficiency of the planning system 2.1. Planning & Environment Act 2.2. Planning fees 2.3. Permits 2.4. Planning scheme amendment process 2.5. Enforcement 2.6. Victorian Civil & Administrative Tribunal 2.7. Ministerial interventions 2.8. Secondary consents 2.9. Definitions 3. Delivering State policy via local autonomy 3.1. Clearly defined roles of State and Local Government 4. Contemporary planning tools 4.1. Gaps in the planning system 4.2. Reviews of the planning system 3

5 1. State leadership 1.1 Clarity and leadership in the planning system Planning is about managing change. The planning system at both State and Local Government levels needs to solve contemporary planning issues as they arise, have the agility to try new things and have the adaptability to respond. There is also a pressing need for the State Government to address the tensions that exist between State and Local Governments, to effectively deliver planning outcomes. Currently, there is a lack of clarity and certainty in the Victorian Planning System. This review is an opportunity for the roles of State and Local Governments to be more clearly defined and strengthened. In particular, an explicit statement must be made within legislative frameworks that recognises the significant role that Local Government and local policy plays in the planning system in Victoria. Local Governments are looking to the State Government to show leadership by setting the vision for planning in Victoria and allowing Local Governments to have the autonomy to deliver and implement policy at a local level. An explicit statement must be made that recognises the significant role that Local Government and local policy plays in the planning system in Victoria. CoPP encourages the State Government to promote and support those Councils that use innovative approaches to tackle increasingly complex planning problems. The State Government should be more willing to consider new planning tools, or changes to existing tools, to more effectively implement local planning strategies and policy. CoPP would like to see a well resourced and coordinated Victoria-wide approach towards the key emerging contemporary planning issues of climate change, ecologically sustainable development (ESD) and housing affordability. The State Government must take a leadership and coordination role to allow the planning system to efficiently and effectively respond to a changing environment and to a high level of community expectations in regards to these challenging areas of growing concern to all local communities. The existence of a clear State Government policy position (and appropriate planning mechanisms) to respond to these types of issues is an essential tool to avoiding inconsistent approaches and duplication of resources by Local Government, and allows Councils to concentrate resources on implementation and other issues of local importance. 1.2 Importance of a clear, long-term Metropolitan Strategy The broad principles of Melbourne 2030 are sound. Work on the new Metropolitan Strategy should focus on addressing policy gaps and further refining policy where more definitive strategic directions are required. The new whole of Government Metropolitan Strategy must: establish a long-term bi-partisan vision for Melbourne to inform future urban growth and change and associated planning for housing, employment and infrastructure embed sustainability (economic, environmental and social) as the overarching principle guiding future urban strategies and policies ensure that land use, transport and infrastructure planning are truly integrated The new whole of Government Metropolitan Strategy must: o establish a longterm bi-partisan vision for Melbourne to inform future urban growth and change and associated planning for housing, employment and infrastructure o ensure that land use, transport and infrastructure planning are truly integrated. 4

6 ensure that Melbourne s future growth is considered in an holistic manner and not only focuses on housing growth, but on all components of urban planning that contribute to liveability and sustainability; including community infrastructure, jobs and open spaces articulate more specific outcomes and define a clear strategic approach to implementation. 1.3 Improving Government integration Given the current environmental, infrastructure and population pressures facing Victoria, there is an urgent need for the State to deliver focussed and integrated planning across key State Government departments. A successful planning system is dependent on improved whole of Government commitment and coordination. Most critical is a greater commitment to the delivery of infrastructure to facilitate and support growth, and recognition of the need to link policies that deal with community needs. CoPP particularly sees the natural alignment of policy development and implementation sitting with Government departments, such as the Department of Planning & Community Development, Department of Sustainability & Environment and Department of Transport, where greater collaboration can create more integrated and successful planning outcomes for local communities. Better integration of land use planning and infrastructure planning will lead to improved access to housing, jobs and services through sustainable transport choices. CoPP appreciates that the Transport Integration Act is an attempt to coordinate land use and transport planning. The Victorian Planning System, including enabling legislation, must also support such integration, not only with respect to transport and infrastructure, but also environmental sustainability through better integration of planning and building systems and policies Adapting to climate change The current ad hoc planning approach to coastal development in flood prone areas creates considerable uncertainty for those managing new and existing developments for Councils, developers and residents. Consistent with its submission to the Coastal Climate Change Advisory Committee Issues & Options Paper, CoPP calls on the State Government to lead an assessment of the impacts of rising sea levels, storm surges and intense rainfall events by exploring combined catchment and coastal inundation scenarios. This work will enable in-depth analysis of the economic and social costs and benefits of various responses to climate adaptation scenarios. Where appropriate, the State Government should facilitate and resource Councils to take a regional approach towards this work. This will save time and resources and is more likely to lead to consistent outcomes across the State (for example, in joint planning scheme amendment processes). Release of the Advisory Committee report on Coastal Climate Change is urgently sought. Councils require clear direction from the State Government on this issue in order to implement updated Special Building Overlays (SBOs), new provisions to address coastal inundation and clear planning policy, as part The State Government must lead an assessment of the impacts of rising sea levels, storm surges and intense rainfall events by exploring combined catchment and coastal inundation scenarios. Where appropriate, the State Government should facilitate and resource Councils to take a regional approach towards climate adaptation responses. 5

7 of a longer-term strategic approach to managing this issue. Planning provisions must provide in-built flexibility to respond to updated assessments in the level and nature of flood risk, and any mitigation initiatives. This will enable planning provisions to be introduced without delay, remain relevant and effective, and avoid the need to duplicate resource intensive amendment processes to achieve updates. The State Government should also assist Local Governments to: undertake risk assessments on assets and infrastructure to prioritise actions based on a proactive climate adaptation response undertake resilience monitoring to enable a localised response to a changing climate and help to establish prioritised actions for the short, medium and long term, including appropriate emergency responses to extreme natural events such as flooding, extreme temperatures or other weather-related events actively support Councils to demonstrate leadership on sustainability through the introduction of planning scheme provisions which facilitate a best practise approach; for example, planning overlays on the urban heat island effect, carbon neutrality and water sensitive urban design Ecologically sustainable development Ecologically sustainable development (ESD) is best implemented at the earliest stage of a proposed development. As most sustainable design aspects are best integrated into the building design, the planning scheme offers a significant opportunity to ensure that proposed urban development achieves improved sustainable outcomes. ESD requirements should ultimately be addressed at a state or national level. Currently, the only mandatory requirements for sustainable design in the built environment are energy efficiency requirements enforced by the building code, which only regulate the thermal performance of building envelopes. There are other equally important issues that are not currently regulated, including integrated water cycle management, building materials, indoor environment quality, transport, waste management, urban ecology, ongoing building and site management and other energy efficiency issues, in addition to the thermal performance of building envelopes, including shading and passive solar design. Although the planning scheme does not assess all new development, it is a mechanism for ensuring that land is used or developed in a fair, orderly, economic and sustainable way. Development that is assessed and assisted under the planning scheme can deliver outcomes that exceed standard building practice, at no extra overall cost and provide for the changing needs of the community. In the long run, a more cohesive approach to addressing the environmental performance of buildings is required. City of Port Phillip considers that this is best undertaken by the seamless use of both planning and building controls to achieve this end. The State Government should establish a reference committee with the Building Commission, Council Alliance for a Sustainable Built Environment, Department of Sustainability & Environment and Municipal Association of Victoria to explore a more cohesive approach to addressing the environmental performance of buildings through the use of both planning and building controls. CoPP hopes that the State Government would then formulate a state policy position. In the long run, a more cohesive approach to addressing the environmental performance of buildings is required. City of Port Phillip considers that this is best undertaken by the seamless use of both planning and building controls to achieve this end. The State Government should establish a reference committee with the Building Commission, CASBE, DSE and MAV to explore a more cohesive approach to addressing the environmental performance of buildings through the use of both planning and building controls. 6

8 1.3.3 Affordable and accessible housing It is widely accepted that the planning system has a responsibility to direct residential growth to locations that offer the greatest access to shops, public transport and other services, and promote housing diversity by facilitating the development of affordable, accessible and suitable housing that meets the needs of all current and future residents. This includes the disadvantaged and those who are unable to adequately access the private housing market. Unbalanced attention is currently given to outer fringe development as a solution to housing affordability. Greater attention must be given to established urban areas particularly the inner region where access to employment, public transport and services are available, and therefore contribute to broader affordability outcomes. Specific attention is needed in the inner region to address the rapid decline in housing affordability, not only to ensure disadvantaged communities are located close to established support services, but also to ensure lower income key workers can be housed. The planning system needs to ensure that as significant housing growth occurs within this region over the next years a meaningful proportion is delivered as affordable (social and private) housing. In the context of an aging population, CoPP also considers that new housing must meet minimum standards for accessibility, adaptability and visibility to address changing household lifecycle needs and the needs of persons with a disability. The planning system needs to ensure that as significant housing growth occurs within this region over the next years a meaningful proportion is delivered as affordable (social and private) housing. Design features that can create accessible, adaptable and visitable housing include: a clear pathway to a step-free entry to residential buildings, with easy access to car parking wider doorways and corridors suitable for wheelchairs and mobility aids an accessible toilet and bathroom at the entry level of dwellings reinforced walls in bathrooms, showers and toilets to enable them to be modified for persons with a disability. These features should augment the Commonwealth Government s Access to Premises Standards, which commenced in May To achieve affordable and accessible housing outcomes, enabling planning mechanisms must be part of the Victorian Planning Provisions. For example, this could include a form of inclusionary zoning, which mandates affordable housing as a component of new developments (both social and private market housing) or contributions to support delivery in appropriate locations. This is particularly important where there is a value uplift or betterment created by rezoning or planning mechanisms to allow higher residential development densities. Inclusionary zoning should be tailored to meet the needs of private developers. CoPP s Inner Melbourne Action Plan details modelling of how such a scheme could operate (without appreciable market impact), and can be provided again to the State Government. The planning system and policy should also facilitate partnerships between the public, private and community housing sectors to deliver on affordable housing. This particular outcome requires a State-Local Government partnership approach to identify: - Government sites suitable for affordable housing, including surplus State and Commonwealth Government property, and underutilised Local 7

9 Government land, such as air space development over replacement public car parking - best-practice models for procuring affordable housing based on the experience of the Department of Human Services Office of Housing, Local Government and registered housing associations. 1.4 Technology in the planning system The planning system must increasingly adapt to advances in technology that support improved efficiency, outcomes and communication and the State Government needs to allocate sufficient resources to enable it to do this. As State and Local Governments pilot new technologies to improve their systems and services, the lessons learnt should be adopted across the State. 1.5 Design Excellence CoPP values good design and suggests this review should take the opportunity to acknowledge the importance of applying quality design effectively throughout the planning system. Good design outcomes are crucial to gaining increased community acceptance of the intensification of urban areas. This review should take the opportunity to acknowledge the importance of applying quality design effectively throughout the planning system. The State s Design Guidelines for Higher Density Residential Development 2004 provide relevant high level design principles, however lack clarity and meaningful standards on how design objective should be achieved. A significant priority is the need to prepare clear design guidelines for high-rise development, similar to those used in New South Wales. Outcomes Sought - State Government Leadership: State Government to set the vision for planning in Victoria and allowing Local Governments to have the autonomy to implement planning outcomes at the local level. A new whole of Government Metropolitan Strategy which establish a longterm bi-partisan vision for Melbourne. It must embed liveability and sustainability (economic, environmental and social) as the overarching principles, and ensure integrated planning for land use, transport and (physical and social) infrastructure. The Victorian Planning System, including enabling legislation, must require integration similar to the Transport Integration Act with priorities being; timely delivery of infrastructure within urban areas experiencing growth / intensification and integration of planning and building systems and policies to achieve ESD. The State must lead a well resourced and coordinated Victoria-wide approach towards the key emerging contemporary planning issues of climate change, ecologically sustainable development (ESD) and housing affordability: - The Advisory Committee report on Coastal Climate Change must be urgently released and actioned to confirm a strategic approach and provide planning mechanisms to manage this issue. - ESD requirements must be embedded into the planning system to promote sustainable buildings at the siting / design stage. - Planning mechanisms that achieve affordable and accessible housing must be introduced into the Victorian Planning Provisions. The preparation of clear design guidelines for high-rise development is also a priority. Quality design outcomes are crucial to gaining increased community acceptance of the intensification of urban areas. State Government must allocate sufficient resources for the planning system to take advantage of advances in technology that support improved efficiency, outcomes and communication. 8

10 2.0 Strengthening the efficiency of the planning system 2.1 Planning & Environment Act The objectives of planning have changed. Any review of the planning system and its enabling legislation (the Act) should make specific reference to: climate change ecologically sustainable design (including urban structures and buildings) the need for environmental effects statements integration of transport and land use planning affordable and accessible housing cultural heritage social and economic impacts as mandatory considerations The role of Local Government. The Act must reflect the broader role that urban planning plays a role that extends well beyond the management of development and the use of land. It must prescribe the required integrated approach to achieving urban and regional outcomes that deliver liveable, sustainable and productive urban areas. This could be achieved by setting out specific statements with regards to each of the above matters and expanding the scope of the Act to provide a head of power for these matters to be addressed at the local level by local planning authorities without the validity of decisions on these matters being challenged at appeal. The Planning & Environment Act should also explicitly recognise the role of Local Government and of local planning policy frameworks. 2.2 Planning fees Councils require planning fees (for permits and amendment requests) to reflect costs and enable adequate resourcing to minimise delays. Planning fees are the lowest of all development fees and do not account for all costs involved in providing a planning service. Any opportunity to recoup the real cost of the planning service should be investigated and implemented. Fees should be commensurate with the real cost of processing an application, including applications to the Victorian Civil & Administrative Tribunal (VCAT). This would result in a more efficient system with increased staffing and a user pays approach. The State Government should finalise and implement the recommendations in the outstanding fees review. The State Government should finalise and implement the recommendations in the outstanding fees review. 2.3 Permits The prescribed processes of the existing Act are basically sound. Some minor amendments to the permit process will make a difference in the functionality of the permit system. CoPP does not support any changes that would dilute the ability for the community to participate in the process. CoPP does not support any changes that would dilute the ability for the community to participate in the process. 9

11 The State Government should: explore options for more exemptions where the planning system does not add value review applications where a permit is only required due to referral authority consent, for example building in a Special Building Overlay, creating or altering access onto a Road Zone Category 1 explore standardisation of conditions across municipalities and VCAT clarify notice requirements to provide specific provisions about the mandatory extent of advertising; for example, liquor licence applications (minimum 50m radius from centre of property) consider the Notice of Decision being issued, but not issuing a planning permit until drawings are supplied that is, the permit cannot be issued except as a package (including endorsed plans). 2.4 Planning scheme amendment process CoPP supports the current planning scheme amendment process, which provides Councils (as the local planning authorities) with autonomy to govern the content of their own planning schemes and provides a transparent process for consulting with affected communities on changes to controls. Improvements to streamline the planning scheme amendment process to improve the efficiency and effectiveness of the planning system are sought; however, changes that reduce CoPP s local autonomy and ability to make decisions affecting its community would not be supported. Key opportunities to streamline the amendment process include: clear, consistent and more timely advice from the outset from State Government regarding: State policy compliance to be given early (and once) in the process areas where a consistent or generic approach to policy or provisions is required with leadership also provided from the outset the basis or rationale for any significant changes made at approval and with prior consultation with the relevant Council simplification of the process for minor and corrections amendments greater use of on papers panel hearings maintaining the timely response (one week) to authorisation requests, implemented by the new State Government. Improvements to streamline the planning scheme amendment process to improve the efficiency and effectiveness of the planning system are sought; however, changes that reduce CoPP s local autonomy and ability to make decisions affecting its community would not be supported. The following are not appropriate changes to the amendment process: the authorised persons proposal associated with the earlier review of the Planning & Environment Act, which would encourage a large number of private amendment requests and therefore adversely impact on Council resources and divert attention away from more important strategic work towards amendment requests based on private property advantage application of timeframes to various stages of the amendment process, which would curtail: full and professional consideration of complex amendments or issues discussions or negotiations with submitters aimed at resolving 10

12 issues the ability to report to Councils through Council meeting cycles, which currently ensures transparent and democratic processes for all stakeholders. 2.5 Enforcement Consideration should be given to include a section in the Act that provides for three years statute of limitation to align with the Building Act 1993 No.126 and Local Government Act 1989 No.11. Compliance is often progressed more effectively and efficiently when infringements are issued, as appropriate. For more serious matters prosecution is the preferred course of action. The current one year statute of limitation often results in the only enforcement mechanism available being voluntary compliance, negotiation, retrospective application or a VCAT enforcement order. Consideration should be given to include a section in the Act that provides for three years statute of limitation to align with the Building Act 1993 No.126 and Local Government Act 1989 No.11. Introduction of powers to stop buildings and works through orders issued by authorised officers of the responsible authority should also include a specific offence provision within the Act, similar to the Building Act 1993 No Section 134 should be amended to provide immediate access powers for certain circumstances, such as inspection of licensed premises, without the need for consent or two clear days notice. 2.6 Victorian Civil & Administrative Tribunal Other contributing factors to housing affordability are the costs and timeframes associated with the long delays at the Victorian Civil & Administrative Tribunal (VCAT). The current system allows the State to deal with applications on a one-size-fits-all basis. City of Port Phillip recommends: the State Government implement the VCAT Review recommendations the major case list review to be finalised and an ongoing funding arrangement to be implemented timeframes for a VCAT hearing reduced to a maximum of four months for more complex matters and less for more simple matters; additionally, the time for VCAT decisions should be improved with a high percentage required to be determined within 30 business days (this would require additional resources for VCAT) Councils given the option to deal with matters on the papers with agreement of all parties a change to the VCAT appeal procedures so that applicants can no longer amend an application once a Council decision has been appealed to VCAT, so that VCAT considers the same application and plans that Council has considered amendments made to the appropriate legislation to require VCAT to apply local policy rather than simply being required to consider it strengthening the decision making effect of local planning policy, through allowing policy requirements to be expressed in clear and prescriptive language where strategic justification is demonstrated, to provide greater certainty in the planning system. 11

13 2.7 Ministerial interventions In recent years, ministerial interventions have been driven by economics rather than by outcome and policy. Any process designed specifically for State significant projects should be open and transparent. The process must clarify why a project is deemed to be of State significance and why the local planning authority cannot adequately consider it. It should not be a process that seeks to remove local planning authority involvement in order to facilitate development, thereby seeking to avoid the rules applied to everyone else. In legitimate processes for projects of true State significance the local authority should continue to have a place at the table and a role in the process. The State Government should review the ministerial guidelines for intervention to ensure that decisions are consistent and protocols for interactions with Councils are outlined. 2.8 Secondary consents Secondary consents are a convenient way to make very minor amendments to plans without the need for administratively complex and time consuming reissuing of an entire planning permit, together with needing to endorse an entire set of new replacement plans (which can be numerous in some cases). The State Government should review the ministerial guidelines for intervention to ensure that decisions are consistent and protocols for interactions with Councils are outlined. The power to use secondary consent processes should be retained. But, the current process lacks transparency and there is a need to properly document its use. Any amendment to the Act should prescribe the recording of the exercise of this power for the public record, rather than remove the power. To ensure the consistent processing and application, either legislative framework, a practice note, standard parameters, tests and/or decision guidelines should be formulated for the consideration of secondary consents. 2.9 Definitions There is a pressing need to update and review definitions within the Act, as they are currently inconsistent and well overdue for review. The uses should match the definitions. For example, consistency is required between the planning system definitions and the legislation around liquor licensing and various forms of accommodation and places of assembly. There is a pressing need to update and review definitions within the Act, as they are currently inconsistent and well overdue for review. There is still confusion around various short-term and long-term forms of accommodation. Many terms are out-dated, such as tavern, cabaret and milk depot. Other terms require clarification, such as café and bar. Exactly what a planning permit is and what it includes should also be defined, for example in plans and other endorsed/approved documentation. 12

14 Outcomes Sought - A more efficient planning system: Scope of the Planning and Environment Act to reflect the broader role that urban planning plays and the imperative for integrated planning to deliver liveable, sustainable and productive urban areas. This includes mandatory consideration of social and economic impacts. Finalisation of the outstanding Fees Review, and introduction of planning fees for permit and amendment requests that reflect costs and support adequate resourcing. Implementation of streamlining initiatives including; standardised permit conditions, clarification of notice requirements and additional permit exemptions. Maintenance of the autonomy of local Planning Authorities to amend their own planning schemes. A streamlined process for minor planning scheme amendments, including on-papers panel hearings. Clear, consistent and timely advice from State Government relating to planning scheme amendments, including early and once off confirmation of State policy compliance. Implementation of the VCAT Review recommendations, particularly those which seek to reduce delays. Development of clear ministerial guidelines for intervention, to ensure the practice is consistent and protocols for interaction with Council s are defined. A Practice Note / Guidelines for Secondary Consents. A review of definitions in the Act and Planning Scheme, to ensure these are consistent and up to date. 13

15 3.0 Delivering State policy via local autonomy 3.1 Roles of State and Local Government There is a pressing need for the State Government to provide clarity around the nature of the tensions that exists between State and Local Governments. Furthermore, an explicit statement must be made that recognises the significant role that Local Government plays in the planning system in Victoria. This would reinforce the role of local policy and provide greater weight in planning decisions, particularly in relations to VCAT hearings. A review of the planning system must seek to clarify the relationship between the State and Local Policy Frameworks. The planning system should more strongly focus on outcomes for communities as a starting point. This has been a key theme of earlier reviews (including Making Local Policy Stronger, 2007 and Using and Interpreting Local Policy, 2002); however, it remains largely unresolved. These reviews have identified that: the State Planning Policy Framework (SPPF) creates the potential for tensions with specific local policies and differences in interpretation There is insufficient guidance about how to balance policy in decision making. These reviews have recommended that: the SPPF highlights clear intent and outcomes, particularly in relation to residential development and urban consolidation The approval process ensuring local policies are developed in an integrated manner with State policy, so that their interpretation will result in the overall objectives of the MSS (Municipal Strategic Statement) being the fundamental guide to balancing different policies. A review of the planning system must seek to clarify the relationship between the State and Local Policy Frameworks. The planning system should more strongly focus on outcomes for communities as a starting point. The SPPF must inevitably deal with an extensive range of planning policy matters and cover a diverse geographic area. By necessity, policy directions need to be expressed at a high level and should focus on outcomes to be achieved. Within a clear framework of what is to be delivered (that is, the outcomes), local policy must then be relied upon, and given due weight in decision-making, to define appropriate strategies (that is, the how ) having regard to local conditions, capacities and community aspirations. It is only at the local level that broad and often competing State policy directions can be balanced and appropriately reconciled (for example, the tension between urban consolidation and neighbourhood character objectives). The planning system should reflect the State s role in setting clear strategic objectives or outcomes, but must also provide for the essential role (and decision-making weight) of local policy in defining how these will be delivered at the local level. 14

16 Outcomes Sought - Local Planning Autonomy to deliver State Policy: Clearly defined roles and responsibilities of State and Local Governments in planning, including amending the Planning and Environment Act to recognise the significant role that Local Government plays in the planning system in Victoria. The review of the planning system must specifically clarify the relationship between the State and Local Policy Frameworks. The planning system should reflect the State s role in setting clear strategic objectives or outcomes, but must also provide for the essential role (and decision-making weight) of local policy in defining how these will be delivered at the local level. The State Planning Policy Framework should sit outside local planning schemes to avoid the tensions in interpretation of policy that currently exists. The process for amending schemes requires an assessment against state policy and therefore the approval of local policy / provisions should be regarded as an appropriate implementation of state policy at the local level. Local policy can therefore be relied upon as the primary basis for decision making. 15

17 4.0 Contemporary planning tools Regular audits and reviews of the Victoria Planning Provisions (VPPs) are required to ensure that available planning provisions ( tools ) are relevant, up to date and provide appropriate discretion to deliver the right planning outcomes. The opportunity for Local Government to provide input into State-wide policy development and VPP reviews should be maintained. Processes such as advisory committees have been thorough and well run in the past; however, recommendations need to be publicly released and implemented in a timely manner. 4.1 Gaps in the planning system The planning system, including the mechanisms or tools available to Councils to deliver strategic outcomes, must be capable of managing urban change in the context of emerging and contemporary planning issues. The system needs to be agile and VPPs must undergo regular review as to their scope and effectiveness. The State Government has been unwilling to consider review of the VPPs despite the local, on the ground, experience of councils using them. In the context of current planning issues, such as climate change, declining housing affordability, increased urban renewal and the rapidly changing face of business activities, key gaps include: a mixed use zone that does not preference residential development and has a capacity for vertical zoning areas undergoing urban renewal require a true mix of land uses and the capacity to define a vertical mix of activities if they are to deliver vibrant and sustainable new places a simplified and effective development contributions tool that can be practically applied to renewal sites and areas that are undergoing significant development intensification. In the inner region particularly, urban renewal is placing unsustainable pressure on the existing and aging physical and social infrastructure. Local communities expect development not to negatively impact on existing service levels and thus untenable pressure is put on Councils to fund infrastructure upgrades. A practical mechanism of funding and delivering infrastructure upgrades and public realm improvements in these areas must go hand in hand with accommodating growth. If there is to be continued growth in built up areas, this growth must be offset by a commensurate upgrade of infrastructure which must be funded via a simple development contribution mechanism. reviewing and introducing contemporary industrial zones and definitions. This is long overdue and must reflect the modern needs and operations of industry, which has seen a blurring of the distinction between traditional industrial and office activities (ie with the emergence of high tech and research and development based industries). Planning controls must retain land for modern forms of industrial activity (which often have higher components of office activity but may also require loading and warehousing facilities) and maintain a clear distinction to pure office business activities. planning provisions that mandate affordable and accessible housing planning provisions that respond to key emerging contemporary planning issues including climate change, ESD, coastal inundation overlays, revised SBOs and car parking provisions that encourage use of sustainable transport greater scope to tailor State provisions (through local schedules) to better deliver outcomes suited to specific areas this would provide greater certainly in relation to planning outcomes than is currently offered through the application of local policy alone. 16

18 4.2 Reviews of the planning system CoPP acknowledges the improvements to the planning system over the years, but notes a significant number of reviews have been conducted by the State Government and have not been implemented. Participating in State run system / VPP reviews requires significant resources by local government and is taken very seriously. It is concerning that these efforts have not resulted in outcomes at the State level to improve or advance the planning system. An audit of all outstanding reviews is required, including reviews of car parking, bulky goods, retail policy, fees, heritage, liquor licensing and the Planning & Environment Act. It should be considered how these reviews fit with the broader Victorian Planning System Review. Where appropriate these reviews should be implemented without further delay. Participating in State run system / VPP reviews requires significant resources by local government and is taken very seriously. It is concerning that these efforts have not resulted in outcomes at the State level to improve or advance the planning system. Outcomes Sought Contemporary Planning Tools to Effectively Implement Planning Strategy: Greater willingness of the State Government to consider new planning tools, or changes to existing tools. It must promote and support those Councils that seek innovative approaches to tackle increasingly complex planning problems. Regular audits and reviews of the Victoria Planning Provisions (VPPs) are required to ensure that available planning provisions ( tools ) are relevant, up to date and provide appropriate discretion to deliver the right planning outcomes. Key priorities are: - a simplified development contributions tool - a mixed use zone that does not preference residential development and has a capacity for vertical zoning - mandatory ESD provisions - reviewing and introducing contemporary industrial zones and definitions - provisions for accessible and affordable housing - greater scope to tailor State provisions (through local schedules) to better deliver outcomes suited to specific areas The State must release and implement the numerous reviews and advisory committee reports undertaken over the last 5 years. Local Government contributes significant resources to participating in these reviews and is keen to see results. Many of these have potential to significantly improve the planning system (in particular the VPP s). 17