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Department of Planning Annual Report 2005 – 2006

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Department of Planning Annual Report 2005 – 2006

Bridge Street Office23-33 Bridge Street GPO Box 39 Sydney NSW 2001 Tel: 02 9228 6111 Fax: 02 9228 6455

Information Centre Tel: 02 9228 6333 Fax: 02 9228 6555 Email: [email protected]

Heritage Office

3 Marist Place Parramatta NSW 2150 Locked Bag 5020 Parramatta NSW 2124 Tel: 02 9873 8500 Fax: 02 9873 8599 Email: [email protected]

Parramatta Office10 Valentine Avenue Parramatta PO Box 3720 Parramatta NSW 2124 Tel: 02 9895 6211

Redfern Office1 Lawson Square Redfern NSW 2016 Locked Bag No 8 Redfern NSW 2016 Tel: 02 9206 8600

Regional Offices Sydney East RegionLevel 6 Tower 2 1 Lawson Square Redfern NSW 2016 Locked Bag No 8 Redfern 2016 Tel: 02 8374 5939 Fax: 02 8374 5991

Sydney North West RegionLevel 6 Tower 2 1 Lawson Square Redfern NSW 2016 Locked Bag No 8 Redfern NSW 2016 Tel: 02 8374 5930 Fax: 02 8374 5991

Sydney South West Region10 Valentine Avenue PO Box 3720 Parramatta NSW 2124 Tel: 02 9895 7633 Fax: 02 9895 6270

ContactsAlpine Resorts assessmentsShop 5A, Snowy River Avenue PO Box 36 Jindabyne NSW 2627 Tel: 02 6456 1733 Fax: 02 6456 1736

Central Coast Level 3, 107 Mann Street PO Box 1148 Gosford NSW 2250 Tel: 02 4323 7000 Fax: 02 4323 6573

HunterPrice Waterhouse Coopers Centre Level 2, 26 Honeysuckle Drive PO Box 1226 Newcastle NSW 2300 Tel: 02 4904 2700 Fax: 02 4904 2701

Murray/MurrumbidgeeSuite U107, 1st Floor Riverside Plaza, 131-139 Monaro Street PO Box 189 Queanbeyan NSW 2620 Tel: 02 6128 3300 Fax: 02 6297 9505

North Coast76 Victoria Street Locked Bag 10 Grafton NSW 2460 Tel: 02 6641 6600 Fax: 02 6641 6601 Email: [email protected]

SouthernLevel 2, 84 Crown Street PO Box 5475 Wollongong NSW 2520 Tel: 02 4224 9450 Fax: 02 4224 9470 Email: [email protected]

Western209 Cobra Street PO Box 717 Dubbo NSW 2830 Tel: 02 6884 2560 Fax: 02 6884 8483

Level 3, Noel Park House, 155-157 Marius Street PO Box 550 Tamworth NSW 2340 Tel: 02 6764 6831 Fax: 02 6764

200 copies printed

200 CD-Roms produced

Total external costs $21,236

Report available on the internet at www.planning.nsw.gov.au

Printed on 130gsm Zanders (50% recycled)

Publication number DoP 06_040

ISBN 0 7347 5831 6

© Department of Planning

Photo Credits

Page 5 Lidcombe hospital Claudine Loffi

Page 34 Braidwood Nathanael Hughes

Page 35 Errowanbang woolshed Pamela Hubert

Page 97 Sydney Opera House Ilona Bridges

Aboriginal Employment 42Aquaculture 36Audit Committee 40Audit of Assessment Approvals 28Building Professionals Board 32Building Sustainability Index (BASIX) 35Building Systems 32Capacity Building Strategy 40Cities and Centres 12Cities Taskforce 20City of Cities – A Plan for Sydney’s Future 14Coastal and Environmental Planning 35Coastal Assessment 24Corporate and Business Planning 39Corporate Governance and Support Services 13Corporate Shared Services 40Critical Infrastructure and Special Projects 26Disability Action Plan 42Distribution of LEPs 29Employment Lands Taskforce 17Equal Employment Opportunity 41Existing Use Rights 38Growth Centres 19Heritage Conservation 33Heritage management 33Heritage Office 13Independent Planning Panels 32Industrial Development 23Industrial Relations Policies and Practices 42Integration of Natural Resources and Planning Outcomes 35Land Supply Taskforce 18LEP Review Panel 31Local Environmental Plans (LEPs) 29Local Planning Reform Initiatives 37Major Infrastructure Assessment 26Major Project Assessment 21Major Project Assessments 12Major Transport Projects 36Management Reviews and Responses 40Metropolitan CEOs Group 16Metropolitan Development Program 18Metropolitan Planning 12Metropolitan Strategy 14

IndexMetropolitan Subregional Planning 16Motorway Review 37NSW Government Action Plan for Women 42Owner Initiated Acquisition 38Pipelines 37Planning Assessment Panels and Administrators 38Planning for Rural and Agricultural Lands 35Planning Professional’s Working Group 40Planning Reform (Major Development Assessment) 36Regional Economic Development 21Regional Environmental Plans (REPs) 20Regional Strategies 16Rural and Regional Planning 12Sepp 4 – Development without Consent 37Standard Instrument (Local Environmental Plans) 38State significant sites 27The Demand Management and Planning Project 39Transport Strategic Planning 18Urban Development Assessment 25Water & Sewage Services 37Young Planning Professionals Group 41Table 1 2005-06 determinations by Minister

and by delegate 22Table 2 Breakdown of determinations

by project class and location 23Table 3 Breakdown of coastal determinations 24Table 4 Breakdown of residential/commercial

determinations 25Table 5 Total LEPs gazetted 1999-2000 to 2005-06 29Table 6 LEPs gazetted 1 July 2005 – 30 June 2006 30Table 7 Total LEPs gazetted 1999-2000 to 2005-06,

showing percentage of LEPs where councils exercised s69 delegation 30

Table 8 Breakdown of LEP types considered by the Review Panel 31

Figure 1 Per capita number of trips made on average weekday by subregion, 2004 19

Figure 2 Percentage breakdown of project classes 23Figure 3 Percentage breakdown of determinations

by location 23Figure 4 Percentage of LEPs gazetted by region 30Figure 5 Percentage breakdown of LEP types

considered by the Review Panel 31

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Office of the Director General

The Hon Frank Sartor MP Minister for Planning

Level �4 Governor Macquarie Tower 1 Farrer Place Sydney NSW 2000

14 November 2006

Dear Mr Sartor

I have pleasure in presenting the Department of Planning’s Annual Report for the year ended �0 June 2006.

The report has been prepared in accordance with the Annual Reports (Departments) Act 1985 and the Public Finance and Audit Act 1983, for presentation to Parliament.

An extension of two weeks to the period for submitting this report was approved by the Treasurer under section 16 of the Annual Reports (Departments) Act 1985.

The role and responsibilities of the Department of Planning are outlined in the report, as are the achievements against key outcome areas identified in the department’s Corporate Plan.

I commend the report to you.

Yours sincerely

Sam Haddad Director General

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On � August 2005, the Governor appointed the Hon. Frank Sartor MP as Minister for Planning and vested administration of the relevant Acts of Parliament with the Minister.

On 29 August 2005, the government established the Department of Planning, as well as the Department of Natural Resources, and abolished the then Department of Infrastructure, Planning and Natural Resources as a department of the Public Service. The NSW Heritage Office was incorporated into the Department of Planning on � March 2006.

This 2005-06 annual report of the Department of Planning provides comprehensive information on the department’s activities and performance for the period from 29 August 2005 to �0 June 2006. It also includes information related to the NSW Heritage Office for the full financial year from 1 July 2005 to �0 June 2006.

Foreword

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Table of ContentsDirector General’s Highlights 6

The Department at a Glance 8

Corporate Governance 9

Key Achievements 12

The Department’s Performance 14

1. Clear strategic direction for urban and regional NSW 14

2. Efficient planning and development assessment system and timely decisions 21

�. Conserving heritage and natural resources for future generations ��

4. Co-ordinated NSW agency actions to service sustainable growth �6

5. Investment in our people, systems and partners to build capacity and leadership �9

Financial Statements 43

Department of Planning 4�

Corporation Sole “Minister Administering the EP&A Act 1979” 7�

Corporation Sole “Minister Administering the Heritage Act 1977” 97

Appendices 117

Index 151

Contacts 152

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Director General’s Highlights

During the past year, the department has been working to produce outcomes and results which benefit NSW, including demonstrating the benefits of our planning reform work.

In particular, the department’s priorities have been delivering strategies for the Sydney metropolitan and coastal regions; ensuring efficient and timely approvals for major development and infrastructure projects; assessing sites of strategic state significance; and delivering regulatory and operational reforms to cut red tape and secure an outcome based and competitive planning system.

The release of “City of Cities – a Plan for Sydney’s Future” in December 2005 was a key achievement. The strategy provides a framework for managing growth over the next 25 years, including 1.1 million new people, 640,000 new dwellings and 500,000 new jobs. The strategy promotes and reinforces the role of Parramatta, Liverpool and Penrith as regional cities, promoting job opportunities close to where people live and setting a balanced approach between new release areas and the use of existing facilities.

The department is implementing the strategy through a Chief Executive Officers’ group (thus ensuring a whole-of-government approach) and progressing subregional plans and setting targets for housing and job opportunities in liaison with local councils. An Employment Lands Taskforce will develop a footprint for employment lands and associated initiatives.

The department is mindful of development pressures on our fragile coastal areas. Attention has been focussed on regional strategies to provide for a sustainable development and conservation framework. Regional strategies for the Lower Hunter, Far North Coast, South Coast and Illawarra have been published and substantial work is progressing for the remaining areas of the Mid-North Coast and Sydney-Canberra Corridor.

As part of the government’s economic and financial statement, the Premier announced the Government would develop six regional city centre Plans for Penrith, Parramatta, Gosford, Wollongong, Liverpool and Newcastle. These strategies will provide important economic development opportunities that will revitalise the role of each centre. Significant work has progressed aiming at delivering outcomes for all centres.

A major achievement during the year was the completion of a comprehensive review into greenfield land supply in the greater Sydney region. As a result, a more aggressive implementation program is being adopted with stronger support to local government and a strengthened coordination at the state level to improve delivery.

Part �A of the Environmental Planning and Assessment Act commenced in August 2005 and provides an integrated, outcomes-focussed assessment and approvals regime for major development and infrastructure projects of significance to the state’s economy, employment and environment. The Minister for Planning is the determining authority for such projects. During the 2005-06 the Minister determined �50 projects with �16 approved and �4 refused. A further 18 applications were withdrawn by the proponent on departmental advice.

Development approved during the year by the state had a capital value of $5.8 billion and provided for 16,000 direct jobs. Relevant information is contained in the separately published NSW Major Development Monitor.

Significant operational and regulatory reforms to the local environmental plan (LEP) process were also implemented. In particular, the department established an expert LEP panel to advise councils and proponents at the earliest possible stage

The “City of Cities – A Plan for Sydney’s Future” Metropolitan Strategy was launched in December 2005 to manage sustainable growth and development over the next 25 years.

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about rezoning proposals. Almost 250 LEPs were gazetted during the year. A standard LEP instrument was gazetted in March 2006. For the first time, local plans across NSW will use the same planning language to make it easier for communities to understand planning controls for their localities.

Also in March 2006, a regime for planning assessment panels was introduced to reduce delays and costs in development applications at the local level. Local councils were also issued with a new standard performance reporting system to inform their performance. Significant other operational and legislative reforms were delivered across the board.

The department’s corporate planning reflects new challenges to our priorities. The department will continue to focus on delivering outcomes and solutions and to work in partnership with local government and other state agencies.

I would like to place on record valued recognition and appreciation to the Minister for Planning, the Hon Frank Sartor, for his inspirational guidance, vision and energetic drive.

My Executive team is of the highest calibre and dedication, working as a team to drive efficient planning outcomes. I would particularly like to express my appreciation to all departmental staff in achieving many key outcomes, for their hard work, dedication and support.

Sam Haddad Director General

Director General’s Highlights

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“The department will continue to focus on delivering outcomes and solutions and to work in partnership with local government and other state agencies.”

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VisionThe Department of Planning’s vision is sustainable growth for NSW.

Outcomes-focused, the department’s key priority is to cut red tape by introducing streamlined systems without compromising outcomes. The department achieves this by working in close partnerships with other government agencies, and with local government.

A highly motivated executive team leads a multi-disciplinary staff committed to:

• act with credibility, probity and commitment to service;

• strive to be consistent in decisions and advice; and

• build trust with community and industry through effective communication and engagement.

Role The department’s role is to lead strategies and decisions to support orderly growth and employment, generating activities that are environmentally and economically sustainable.

The department is the principal government agency vested with statutory, policy and administrative responsibility for strategic land use planning, environmental impact assessment and development approvals. The Environmental Planning and Assessment Act 1979 (EP&A Act) provides the basis for the department’s role in administering the framework for government activities and decisions in these areas.

The Department at a GlanceFunctionsThe major functions of the department are to:

• oversee and implement government policy in relation to land use planning and development, including supporting local government functions;

• lead and coordinate state-wide planning strategies to guide growth and development in NSW and inform infrastructure planning, staging and delivery; and

• as the lead agency, advise the Minister and government on the approval of major development and infrastructure projects of significance to the state’s economy and employment.

PartnershipsStrategic partnerships, effective communication and community engagement are integral to the department’s success. The department works in partnership with the community, industry, NSW government agencies and local government to plan for and manage the state’s future growth.

The department works closely with other NSW government agencies to:

• implement a strategic framework that ensures the appropriate development of land, facilitating the orderly provision of key infrastructure priorities such as roads, public transport, schools and hospitals; and

• deliver integrated development assessment and approvals, and promote community consultation.

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The department’s role is to lead strategies and decisions to support orderly growth and employment, generating activities that are environmentally and economically sustainable.

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Corporate GovernanceAs the NSW government’s lead planning agency, the department is structured into seven divisions to facilitate the delivery of planning outcomes for the state and its regions.

• Metropolitan Planning;

• Rural and Regional Planning;

• Major Project Assessments;

• Strategic Sites and Urban Renewals;

• Cities and Centres;

• Heritage Office;

• Corporate Governance and Support Services.

The Department of Planning is led by an Executive that works as a motivated team, leading the divisions, collectively making departmental policy, liaising with stakeholders and engaging the community.

The Department’s officesThe department’s head office is based in Sydney’s Central Business District. The Heritage Office, the Building Professionals Board, the Land Management Branch and the Sydney South West Region team are all based at the Parramatta office. The Infrastructure and Transport Planning team, the Transport and Population Data Centre and the Sydney East Region and Sydney North West Region teams are based in the Redfern office.

The department has eight regional offices in Dubbo, Gosford, Grafton, Jindabyne, Newcastle, Queanbeyan, Tamworth and Wollongong.

The following chart represents the department’s structure, showing regions and branches attached to each division.

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Sam Haddad, Director General

The Director General has overall leadership of the Department of Planning in delivering outcomes. He provides strategic support and advice to the Minister.

The Executive Team as of November 2006;

Kim Cull, Executive Director, Corporate Governance and Support Services

The Corporate Governance and Support Services Division is responsible for the smooth functioning of the department, ensuring it is properly organised to meet the government’s priorities as reflected in the Corporate Plan. It supports the work of the other divisions and provides the platform for the department’s core policies and planning systems. It has specific responsibilities for legal services and building systems, planning reform and sustainability, finance and corporate services and government and executive services.

Reece McDougall, Executive Director, Heritage Office

The Heritage Office manages conservation, education and promotion of heritage as well as the state heritage register and the online database of heritage items in NSW. It works with the Metropolitan and Rural and Regional Planning Divisions to ensure heritage conservation is effectively integrated into the planning framework for the state. The work of the Heritage Office is guided by the Heritage Council of NSW.

Chris Johnson, Executive Director, Cities and Centres Strategy

The Cities and Centres Division is responsible for preparing detailed strategies and plans for key city centres, in consultation with the Metropolitan and Rural and Regional Planning Divisions. It brings together architects, urban designers and planners to work at a more detailed, project-oriented level on priority centres and urban corridors.

Jason Perica, Executive Director, Strategic Sites and Urban Renewals

The Strategic Sites and Urban Renewals Division is responsible for developing planning regimes and assessing proposals for sites and precincts deemed to be of regional or state significance. These can include universities, hospitals, employment zones or major residential developments. The division also oversees urban renewal planning and urban development assessments.

Chris Wilson, Executive Director, Major Project Assessments

The Major Project Assessments Division undertakes integrated environmental assessments and approvals for major infrastructure and development projects of significance to the state’s economy, employment and environment. The division oversees policy and practice to ensure world’s best practice in assessment and approvals.

Richard Pearson, Executive Director, Rural and Regional Planning

The Rural and Regional Planning Division manages the production and delivery of regional strategies, major LEPs and other land-use and coastal planning work throughout rural and regional NSW. It coordinates the activities of five Regions and six regional offices in Grafton, Tamworth, Dubbo, Queanbeyan, Wollongong and Newcastle.

Gail Connolly, Executive Director, Metropolitan Planning

The Metropolitan Planning Division provides the strategic direction for Sydney and the Central Coast regions, making crucial decisions on land use. The division is responsible for developing and implementing key strategic planning projects, in particular, the Metropolitan Strategy. The division also incorporates the Land Management Branch, which has responsibility for buying land for key public projects and protecting the natural environment.

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The Department’s Structure

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Director General Sam Haddad

Department of Planning

DG Unit

Heritage Office

Business Development

Policy and Heritage

Management

Corporate Governance and Support

Services

Legal Services

Planning and Building

Systems

Sustainability Unit

Building Professionals

Board

Government and Executive Coordination

Strategic Business

Development

Communications

Finance

Sector Strategies

and System Innovation

Major Project Assessments

Major Development Assessment

Major Infrastructure Assessment

Coastal Assessments

(included in Urban

Assessment)

Major Hazards

Critical Infrastructure and Special

Projects

Strategic Sites and Urban Renewals

Strategic Assessment

Urban Assessment

Government Land

Urban Renewal Planning

Rural and Regional Planning

Regional Co-ordination Unit

Coastal Branch

North Coast

Hunter

Southern

Western

Murray/Murrumbidgee

Cities and Centres

Strategic Planning

Statutory Planning

Urban Design

Metropolitan Planning

Sydney North West

Sydney East

Sydney South West

Central Coast

Metropolitan Strategy

Development

Land Management

Infrastructure and Transport

Planning

Transport and Population

Data Centre

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Metropolitan Planning• publication of “City of Cities – A Plan for

Sydney’s Future”;

• announcement of the Western Sydney Employment Hub – M4/M7;

• rezoning of more than 17,000 new lots for residential development in greenfield areas including Edmondson Park (7,780) and Balmoral Road (6,�15);

• Growth Centres SEPP and structure plans announced setting the foundation for an additional 181,000 new dwellings in the North West and South West sectors of the Greater Metropolitan Region;

• Employment Lands Taskforce established;

• CBD Rail Corridor reserved.

Rural and Regional Planning• draft regional strategies for Lower Hunter,

South Coast & Far North Coast released;

• substantial progress made in preparing regional strategies for Illawarra, Mid North Coast & Sydney-Canberra Corridor;

• $1.4m funding for coastal cycleway projects allocated;

• two sites acquired under Coastal Lands Protection Scheme at Port Macquarie & Vincentia at a combined cost of more than $�m;

• Lord Howe Island regional environmental plan gazetted, allowing limited development while protecting the World Heritage Listed island;

• Drinking Water Catchment regional environmental plan gazetted, providing controls that protect the drinking water of Sydney and other regional centres such as Goulburn.

Key AchievementsMajor Project Assessments • Major Projects legislation (Part �A) introduced

to improve and streamline the assessment of proposals and clearly define what development is of regional or state significance;

• average time taken to assess and determine projects under Part �A was 70 days;

• �50 applications were determined during 2005-06, (�16 were approved and �4 refused) with a total capital investment value of $5.84 billion and facilitating 16,�12 jobs. The average capital investment value of Part �A projects was $88 million;

• 4 state significant sites were approved by the Minister: Royal Rehabilitation Centre Sydney - Ryde, Channel 7- Epping, Redfern Waterloo Sites and Luna Park;

• enforcement actions were initiated in 14 cases, ranging from minor matters in coastal residential developments to mining proposals; 24 compliance audits and inspections were undertaken including in relation to 5 mines and M5 East Motorway;

• successful outcomes in nine of 11 appeals to the Land Environment Court;

• additional policy initiatives relating to existing use rights, mining, petroleum and extractive industries, aquaculture, and infrastructure and public lands.

Cities and Centres• taskforce established to drive new plans for six

regional cities (Parramatta, Penrith, Liverpool, Gosford, Newcastle, Wollongong).

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Heritage Office• 15 items were added to the state Heritage

Register in 2005-06 (making 1,506);

• directed and managed the nomination of the Sydney Opera House for inscription on the World Heritage List, in collaboration with the Australian Department of the Environment and Heritage;

• $5,12�,557 of funding under the Heritage Incentives Program was approved for 287 projects over the next two years, which is expected to generate heritage projects valuing $15,087,216;

• number of councils with heritage advisors increased, with 82 of the 105 rural councils (78%) now providing access for the community to professional heritage advice through the Heritage Advisor Program;

• 664 applications were assessed for changes to state significant items or for archaeological excavations in NSW;

• the total value of the works proposed in the 154 building applications was over $69�M, reflecting an important investment in the stock of heritage buildings and a significant contribution to the state’s economy;

• 185 general exemptions were granted to free up the resources needed to address the increasing number of applications to the Heritage Council;

• 89% of NSW government agencies have either completed a heritage asset management strategy or have made significant progress on meeting their special obligations under section 170 of the Heritage Act.

Corporate Governance and Support Services• standard instrument for local environmental

plans gazetted;

• introduced performance management and planning assessment panels for councils;

• the Building Sustainability Index (BASIX) became mandatory for all new single homes and multi-units across NSW, achieving energy and water savings;

• introduced a new scheme for the accreditation of building processes, components and design;

• established the new Building Professionals Board, to oversee accredited certifiers;

• mandatory smoke alarms required in all homes across NSW;

• other reforms in the areas of: Development Contributions, Infrastructure and Other Planning Reform, Existing Uses, Reserved Lands Acquisition, Sydney Opera House Management Plan and Development Control Plans;

• updated and consolidated Ministerial directions under section 117 of the EP&A Act.

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1. Clear Strategic Direction for Urban and Regional NSW A cornerstone of the government’s planning reforms is a stronger emphasis on strategic planning. The department has prioritised resources to focus on longer-term strategic planning and the following key policy directions:

• giving priority to the implementation of the Metropolitan Strategy and the development of regional strategies for the state’s growth areas;

• requiring councils to develop new, standardised local environmental plans (LEPs);

• supporting councils with strategic advice and financial assistance from the Planning Reform Fund;

• leading the planning and urban design for re-developing the centres of six regional cities.

The Metropolitan Strategy

The Government has a vision for the shape of Sydney in 20�1. The release of the Metropolitan Strategy’s “City of Cities – a Plan for Sydney’s Future” demonstrates our leadership in the following areas:

• stronger cities and centres – improving access to services and jobs;

• a strong global economic corridor – to protect and increase our strengths;

• more jobs in western Sydney – closer to where more people live;

• containment of Sydney’s urban footprint – to manage our growth and resources responsibly;

• better connections - among centres and beyond the region.

There are innovations in the strategy that lead the field nationally and internationally. The Department is proud of its initiatives to:

• support a five cities (‘city of cities’) structure to accommodate growth and improve accessibility and the quality of living;

• provide a quantitative tool for the distribution of dwelling and employment capacity growth;

The Department’s Performance• develop a shared understanding of the network

of different types of centres across Sydney – reinforcing a partnership with local government;

• enable state agencies to apply this information to better anticipate and plan for services and infrastructure;

• apply planning reforms to ensure council land use plans align with the long term strategy.

The strategy will make a difference – it will improve the quality of living in Sydney whilst guaranteeing a secure future for our environment; it will also play a significant role in strengthening the economic competitiveness of Sydney. The strategy predicts there will be an additional 1.1 million residents in Sydney by 20�1, and plans for the distribution of 640,000 new homes and an additional 500,000 jobs via planning schemes that achieve the city vision.

This will provide longer term certainty for development decisions and infrastructure investment. It builds in means to adjust to changing circumstances, such as the ageing population, changes in the ways families are living and the type of work people will be doing in the future.

By 20�1, Sydney will be a city of cities with five regional cities. Parramatta has already developed as the second centre for Sydney through the relocation of government offices and recent major infrastructure projects including the Justice Precinct, new transport interchange and the recently announced Civic Place project.

The Metropolitan Strategy nominates Liverpool and Penrith as the next two regional cities in the Sydney area. These city centres will be the focus for jobs, services, cultural facilities and lifestyle opportunities over the next 25 years. The successful transition of these centres into regional cities will help make Sydney a more sustainable, fair and competitive city, providing new opportunities, particularly for people living in Western Sydney.

The strategy gives Sydney the competitive edge in Australia, and secures its place in the global economy by promoting and managing sustainable growth.

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The Metropolitan Strategy incorporates specific actions and initiatives that have been released over 2005-06 including:

• the establishment of the Metropolitan CEOs Group to guide the implementation of the Metropolitan Strategy;

• the announcement of the Growth Centres SEPP and structure plans in June 06, setting the foundation for an additional 181,000 new dwellings in the North West and South West sectors of the Greater Metropolitan Region;

• rezoning of more than 17,000 new lots for residential development in Greenfield areas

including Edmondson Park release (7,780) and Balmoral Road (6,�15);

• establishment of the Employment Lands Taskforce in May 2006;

• implementation of the Western Sydney Employment Hub on M4/M7, announced December 05;

• CBD Rail Corridor reserved in February 06;

• 2005 Population projections released;

• 2004 Household Travel Survey released;

• TravelSmart Schools Travel Planning project working with 15 schools.

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Metropolitan Subregional Planning

Subregional planning is progressing for ten groups of councils that face similar planning and management issues. A forum enabled councils to agree on the distribution of housing and employment capacity targets which were set by the Metropolitan Strategy for each of the subregions. Subregional planning commenced the day after the Strategy’s release, with the first of four series of workshops with local councils to discuss how the Metropolitan Strategy applies at a more local level.

Councils worked together in their subregional groups to agree on the existing structure of the city – identifying centres that are strategically important to the functioning of the city, as well as villages and neighbourhood centres which are important to local residents.

The workshops discussed how Sydney can grow and change to become a better place for its residents, workers and visitors over the next 25 years.

The workshops will lead to the release of draft subregional strategies for exhibition. Subregional strategies will:

• set the vision for the future role of the subregion;

• define the roles of the centres;

• inform staging and prioritisation of renewal for centres;

• set the framework for coordinated planning/delivery among councils;

• provide a basis for efficient use of infrastructure by identifying existing capacity;

• set the framework for prioritisation of state infrastructure over the long term.

Metropolitan CEOs Group and state agency involvement

The Metropolitan CEOs Group, chaired by the Director General of the Department of Planning was convened to identify which agencies will lead and coordinate specific Strategy actions and how they will contribute to subregional planning. The CEOs Group comprises the heads of 26 state agencies and will continue to meet throughout 2006-07.

Agencies have been asked to assist in making decisions on the location of activity and investment across Sydney and to focus on cities, major centres and corridors of state strategic interest. Agencies have also been briefed on how they can use the subregional planning process to inform service and asset planning and how the Strategy will be used to inform state infrastructure investment priorities over the long term.

Regional strategies

Draft regional strategies for the Lower Hunter; South Coast and Far North Coast were released and exhibited for public comment. Draft regional strategies for the Illawarra and the Mid North Coast were commenced, as well as some initial work on a draft Regional Strategy for the Sydney – Canberra Corridor.

The development of regional strategies will deliver significant planning, economic and environmental benefits. These include:

• increasing certainty for the development industry and investors in the regions;

• promoting efficient use of existing regional infrastructure;

• better use of existing state government resources leading to enhanced outcomes by reducing ad-hoc, isolated development proposals in favour of a clear planning framework providing consistent policy direction across the Regions;

• reduced delays in preparing local environmental plans (LEPs) and development assessments and approvals.

Collectively the regional strategies will provide a framework for the sustainable management and growth of the state’s coastal areas and the strategically important corridor between Sydney and Canberra. Under the growth management strategies, up to �20,000 new homes and 220,000 new jobs will be accommodated in existing centres and nominated areas. By focusing development in existing centres and nominated areas, the strategies will ensure that the environmental values of conservation lands are protected.

Lower Hunter Regional Strategy

The Lower Hunter is the sixth largest urban area in Australia and this draft strategy provides a 25

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year plan for the region that provides for 115,000 new homes, catering for a projected population growth of 160,000 people. An adequate supply of employment land will provide for 66,000 new jobs whilst allowing for vital green corridors of land with high environmental value.

The strategy will guide local planning in Newcastle, Lake Macquarie, Port Stephens, Maitland and Cessnock, and inform decisions on service and infrastructure delivery. It will be reviewed every five years.

Draft Far North Coast Regional Strategy

The Far North Coast Regional Strategy, released in March 2006, was based on a projected growth in the region of an additional 60,400 people, which will require 51,000 new dwellings and �2,500 new jobs. Under the draft regional strategy, it is proposed that growth in the coastal area is constrained within nominated town and village growth boundaries, while environmentally sensitive areas will be managed under a regional conservation plan to be prepared by the Department of Environment and Conservation.

The strategy has a strong focus on strengthening inland centres while ensuring the coastal area is protected from urban sprawl.

Draft Central Coast Regional Strategy

The department prepared an initial draft of the Central Coast Regional Strategy (CCRS) in mid-2006. The CCRS will implement the Sydney Metropolitan Strategy as it relates to the Central Coast and provide a strong framework for strategic planning for the Central Coast Region.

Preparation of the draft CCRS has involved detailed research and consultation with Gosford and Wyong councils and other government agencies. Before the draft CCRS progresses to public exhibition the current population and employment capacity targets will be reviewed in the light of the region’s ongoing water shortages.

Draft South Coast Regional Strategy

By 20�1, this region’s population is expected to increase by �6%, (a total of 226,000 people). This strategy will protect sensitive coastal areas, agricultural land and natural resources including water resources and threatened flora and fauna.

The strategy will also allow for 45,600 new homes, appropriate for the ageing population and promote the growth of existing centres, allowing the creation of 19,000 extra jobs.

Once finalised, the strategy will guide local planning in the three local government areas of Shoalhaven, Eurobodalla and Bega Valley and will ensure that the significant natural and scenic assets that underpin the regional economy are not compromised by growth. The strategy will be reviewed every five years.

Employment Lands Taskforce

The “City of Cities - A Plan for Sydney’s Future” identified a need for an Employment Lands Taskforce, to allow industry and the government to collectively inform decisions about employment lands. These are defined as land zoned to accommodate traditional industrial activities, business and technology parks for higher order employment and areas containing a mix of industrial activity such as manufacturing, warehousing, management and administration. The Taskforce was also identified in the Premier’s Economic and Financial Statement of February 2006.

The Employment Lands Taskforce is co-chaired by the Director Generals of the Department of Planning and the Department of State and Regional Development, and managed by the Department of Planning. The Taskforce will advise the NSW government on:

• the existing supply of employment lands in metropolitan Sydney and its subregions and whether supply is adequate to meet the demand of different industrial sectors;

• methods to protect employment lands and to regenerate existing underutilised ‘‘brownfield’’ employment lands;

• how to protect and encourage provision of employment lands in strategic areas, for example around ports, airports and universities;

• the competitiveness of Sydney’s employment lands compared to other global cities;

• developments in physical and social infrastructure financing, in relation to planning and delivery of new employment lands;

• development trends in employment lands including growth of business parks, sizing, zonings, industrial land prices, amenities and services, and management.

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Metropolitan Development Program

The Metropolitan Development Program (MDP) coordinates the planning, funding, servicing and development of all new major residential projects in Sydney and the Central Coast and is the state government’s key program for managing housing supply and assisting in coordinating infrastructure provision.

The government coordinates greenfield releases to ensure new suburbs have proper facilities (water, open space and electricity) as well as key infrastructure such as public transport, roads, schools and hospitals. Over the next 25 years, up to 40 per cent of dwellings will be constructed in greenfield areas, assisting in housing affordability and choice.

In 2005, the MDP undertook a survey of 4� Sydney councils, with results showing that the MDP was highly valuable and useful to councils. The MDP has also developed a major sites database which tracks sites with the potential of more than 50 dwellings through the planning process to construction and completion. Currently, the database contains sites with the potential for more than 128,000 additional dwellings.

Land Supply Taskforce

In April 2006, the Minister for Planning established a Land Supply Taskforce to investigate the current status of greenfield land supply in the greater Sydney region. The Taskforce will also ensure the

sustainable release of land linked to appropriate infrastructure.

Currently, the state government has rezoned and serviced enough land to accommodate more than 26,000 zoned and serviced dwellings in Sydney per year. These greenfield areas are currently available to the property industry for development and sale.

The Taskforce has already made some significant decisions including:

• adopting benchmarks to monitor land stock levels at key stages;

• creating a Land Supply Chief Executive Officers’ group to help co–ordinate the delivery of land;

• investigating the use of Part �A of the Environmental Planning and Assessment Act to resolve any land supply bottlenecks;

• developing proposals to accelerate action from state agencies in response to both proposed and approved new release areas; and

• considering the introduction of ‘flying squads’ to provide assistance to councils to achieve timely processing of draft rezonings and subdivision applications.

Transport Strategic Planning

In December 2005, the Transport Strategy component of the Metropolitan Strategy was released as part of “City of Cities - A Plan for Th

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Sydney’s Future”, and work started on the development of the government’s $8 billion Metropolitan Rail Expansion Program (MREP). The MREP will provide high quality public transport to service the new growth centres of North West and South West Sydney, and improve access between Macquarie Park, Chatswood, St Leonards/North Sydney, the Central Business District and Sydney airport.

The department also secured protection of the City of Sydney section of the MREP corridors through an amendment to State Environmental Planning Policy (SEPP) 6� - Major Transport Projects. This ensures that future development within the CBD does not impede the construction of the planned CBD underground rail extension. Funds were also secured to acquire the corridor for the North West and South West Rail Links: $26 million was allocated in the 2005-06 budget and a further $129 million was committed for 2006-07.

Other transport outcomes include:

• implementing the TravelSmart voluntary travel behaviour change program including finalising evaluation of the TravelSmart Households Pilot project;

• contributing to the Freight Infrastructure Advisory Board report “Railing Port Botany’s Containers - Proposals to Ease Pressure on Sydney’s Roads”, released in October 2005;

• involvement in the development of AusLink Corridor Strategies, the COAG Review of Congestion, and the update of the National Guidelines for Transport System Management.

The department’s Transport and Population Data Centre (TPDC) collects and analyses information on the NSW population and its travel patterns to support government decision-making. The TPDC uses the Strategic Travel Model (STM) to forecast travel patterns, and this was used extensively in 2005-06 to test the impact future transport projects, including the North West Rail Link and Strategic Bus Routes.

In 2005-06, the TPDC published the results of its 2004-05 Household Travel Survey. The Survey found that recent growth in travel by residents of Sydney, Newcastle and Wollongong had stabilised, and that growth in vehicle use per person declined. Household Travel Survey data was used extensively by the Department of Planning to underpin the strategies and policies discussed in the Metropolitan Strategy.

Managing Sydney’s Growth

During 2005-06 the department twice exhibited draft Plans for the Growth Centres. The first exhibition concluded in October 2005 and the second in March 2006. Approximately 4,000 submissions were received during the exhibition period.

The second exhibition included a draft State Environmental Planning Policy (Sydney Region Growth Centres) 2006 and draft proposal for Environmental Planning and Assessment Amendment (Growth Centres) Regulation 2006. These draft instruments outline the government’s plans to provide for the comprehensive, strategic

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Figure 1: Per capita number of trips made on average weekday by subregion 2004

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planning of land releases within the Growth Centres and to coordinate this with the provision of infrastructure.

During the year the department also began several major projects to assist with the planning for the Growth Centres:

• the Aboriginal Cultural Heritage (ACH) project is designed to develop a consistent approach to Aboriginal cultural heritage identification, and to inform precinct planning outcomes.

• the Development Code will provide the basis for the planning and design of precincts and neighbourhoods, and will also set out the approach to inform precinct planning in the Growth Centres;

• the Conservation Plan will outline how the SEPP and associated measures will maintain or improve biodiversity values within the growth centres.

In February 2006 the Growth Centres Commission took over responsibility for the ACH project and the Development Code.

Cities Taskforce

In February 2006, the Premier announced, as part of his Economic and Financial Statement, the establishment of a taskforce to prepare new City Centre plans for Wollongong, Gosford, Parramatta, Liverpool, Penrith and Newcastle.

The Taskforce’s brief is to establish a planning framework for each city that encourages development of commercial, retail and residential space within a streamlined suite of planning instruments.

Wollongong was chosen as the first centre, and a reference panel comprising city and state representatives was established to steer the development of new plans for the city’s central business district.

The plans for each city centre will comprise four documents, including a vision that reinforces the regional character of each city while lifting its importance within the broader Sydney metropolitan area, a local environmental plan (LEP), development control plan (DCP), and civic improvement plan (CIP).

Regional Environmental Plans (REPs)

The Lord Howe Island REP was gazetted in October 2005. The new plan provides a planning framework to guide future development of the Island, while taking into account the importance of Lord Howe’s significant natural assets. The drafting of the plan follows a detailed strategic planning assessment, a survey of community views, and several workshops with the Lord Howe Island (LHI) Board and relevant agencies. This decision protects Lord Howe Island’s World Heritage values and demonstrates the government’s commitment to ensuring a sustainable future for its community.

The Drinking Water Catchment Regional Environmental Plan No 1 was gazetted in June 2006 and is a regional plan that provides direction for the future of the Sydney drinking water catchments. The Regional Environmental Plan will be supported by strategic water quality assessments to be prepared by Sydney

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Catchment Authority, which will in turn inform local environmental plans. This will ensure that the right land uses are in the right location, so that water controls are proactive rather than reactive to new developments. The related Sustaining the Catchments plan provides a framework for remedial action. The key partner in the development of this REP was the Sydney Catchment Authority. Councils in inland areas within the REP area were supported through training workshops and fact sheets.

Regional Economic Development

The department has worked closely with key regional partners in the preparation of a number of economic development initiatives including the Illawarra and South Coast Employment Lands Principles, the Port Kembla Land Use Strategy and the Alpine Resorts Economic Study.

The department’s key partners in Illawarra and South Coast Employment Lands Principles are the Department of State and Regional Development, Wollongong City Council and Shoalhaven Council. In the case of the Port Kembla Land Use Strategy the department is collaborating with the Premiers Department, Wollongong City Council and Port Kembla Corporation. The Alpine Resorts Economic Study is a partnership with the Victorian government, and the ski resort operators.

The department, in conjunction with the Victorian Department of Sustainability & Environment, is undertaking a planning review of the Murray region. The initial stage involved a series of workshops undertaken in May 2006 known as ‘Reflecting on the Murray’. These workshops brought together a diverse range of stakeholders to discuss and identify issues, trends and drivers of change that might influence the future direction of the region. The project aims to provide a long term coordinated approach to planning issues common to both sides of the Murray River.

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2. Efficient Planning and Development Assessment System and Timely DecisionsThe Department of Planning is responsible for developing regional strategies, preparing State Environmental Planning Policies or Regional Environmental Plans regarding matters of state or regional planning significance, providing for the protection of matters of state heritage significance, assessing major development proposals on behalf of the government, reviewing draft local environmental plans prepared by local government and maintaining building systems and standards.

In general, the Minister for Planning is the approval authority for development and infrastructure proposals that are of state or regional planning significance under the recently enacted Part �A of the Environmental Planning and Assessment Act (EP&A Act) 1979. The types of matters that are assessed by the department and determined by the Minister are described in the Major Projects State Environmental Planning Policy (SEPP) (2005) and in gazetted orders. The Minister may declare certain essential infrastructure projects to be critical by listing them in the Major Projects SEPP or by order.

The Major Projects SEPP also enables the Minister to declare that certain sites are of state significance to provide a new tailored planning regime for the efficient development or redevelopment of these large or complex sites. In addition, major project proposals can be dealt with concurrently when developing the planning regime for state significant sites.

Major Project Assessments

The department assesses major development and infrastructure projects and key sites that have state and regional planning significance. These proposals have implications for the broader community and are often highly complex, requiring specialist assessment skills and resources.

Examples of projects determined by the Minister in 2005-06 include the Wilpinjong open cut coal mine, the Tugun by-pass and the sand and kaolin mine at Newnes near Lithgow.

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Part �A of the EP&A Act provides a single process for all major projects, which integrates the consideration of a broad range of technical and legislative matters into the one assessment and determination, making the assessment process more efficient. With the introduction of the major projects legislation, there has been a reduction in the time taken to assess and determine projects. In 2005-06, the average assessment time for a major project to be determined was 70 days.

The department has established teams skilled in particular development areas, such as mining, manufacturing, waste, major infrastructure and coastal and urban development.

As part of the government’s planning reforms, provisions have been made for the use of independent review panels to strengthen the assessment process. Public hearings may also be undertaken to provide input to the panel’s assessment and recommendations. In 2005-06, the Minister initiated independent hearing and assessment panels for the following projects:

Table 1: 2005-06 determinations by Minister and by delegate

By Minister No. of determinations

Jobs Capital investment

Development applications (under Parts 4&5) 78 10,842 $�.�B

Project applications (under Part �A) 25 4,419 $2.�B

Modifications �4 1�9 $�6.2M

Sub total 1�7 15,400 $5.64B

By delegate

Development applications 88 698 $187.7M

Project applications - - -

Modifications 125 214 $11.5M

Sub total 213 912 $199.2M

Total 350 16,312 $5.84B

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The table shows a breakdown of these determinations along with the associated job creation figures and the total capital investment.

• Vineyard to Rouse Hill Electricity Upgrade;

• Wilpinjong Coal Project;

• Enfield Intermodal Logistics Terminal;

• Desalination Plant, Kurnell.

Development Summary

289 proposals were lodged with the department under the Major Projects legislation. Of these, 250 were “non-discretionary” matters: they came to the department automatically under the criteria set out in the Major Projects SEPP.

The Minister called in �9 proposals during the year, of which 20 were major projects, 18 were state significant sites and one was a critical infrastructure project.

A total of �50 applications were determined during 2005-06, with 1�7 of these determined by the Minister and 21� determined by the department under delegation. Of these �50 determinations, �16 were approved and �4 refused. A further 18 projects were withdrawn by the proponent before determination.

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The following table shows the number of projects determined under four separate classes of major projects: infrastructure; industry; residential / commercial; and coastal.

Table 2: Breakdown of determinations by project class and location

Project class Metro Regional Total $ Jobs

Infrastructure 24 17 41 $2.44B 7150

Industry �6 6� 99 $1.47B 4904

Residential, Commercial 58 25 8� $1.65B 2999

Coastal 0 127 127 $284M 1259

TOTAL 118 232 350 $5.84B 16,312

Figure 2. Percentage breakdown of project classesFigure 3. Percentage breakdown

of determinations by location

Coastal 36% Infrastructure 12%

Industry 28%

Regional 66%

Metro 34%

Residential,Commercial 24%

Figure 2. Percentage breakdown of project classesFigure 3. Percentage breakdown

of determinations by location

Coastal 36% Infrastructure 12%

Industry 28%

Regional 66%

Metro 34%

Residential,Commercial 24%

Industrial Development

The Major Development Assessment branch assesses major mining, manufacturing and rural industry developments across the state. Other types of development considered by the branch include quarries, warehouses, aquaculture, marinas, intermodal facilities, waste and remediation projects.

In February 2006, the Minister approved the Wilpinjong Coal Project, the first coal mine approved under Part �A. This large open cut coal mine, located about 40 kilometres northeast of Mudgee, involves a capital investment of $116 million, and is expected to create 200 construction jobs, 100 operational jobs, and 400 indirect jobs.

The project will generate up to $1.65 billion in total export earnings and up to $�60 million each year in business turnover in the region. The department’s assessment of the project was assisted by the first Independent Hearing and Assessment Panel. The Panel was required to assess the key

environmental issues of concern to the community, and provided valuable input into the development of appropriate conditions of approval to ensure that the environment and the interests of local landowners were adequately protected. The department considers the project approval now represents a new benchmark for the regulation of mining projects in NSW.

The Bombala Timber Mill was approved by the Minister in March 2006. The NSW government has had a long-standing policy of encouraging the development of new softwood processing industries in the region, which has over 42,000 hectares of softwood plantations.

Timbermans Group proposes to develop the new mill about 5 kilometres south of Bombala. It will process up to �00,000m� of timber a year and will create 20 jobs during construction and 40 during operation. The new mill will improve the efficiency and competitiveness of the forestry industry in the region and will attract $�0 million worth of investment.

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Coastal Assessment

The 1500-kilometre long coastline of New South Wales is under strong population pressure but also contains land of highly significant environmental value. The Minister for Planning is the approval authority for significant coastal proposals, including major subdivisions, tourist facilities and tall buildings. This ministerial control means the objectives of the NSW Coastal Policy can be more easily implemented. With the introduction of the Major Projects SEPP, significant coastal projects are considered under Part �A taking into consideration the policy objectives of SEPP 71 (Coastal Protection).

In November 2005, the Minister for Natural Resources gazetted an extension to the Coastal Zone to include the Sydney Metropolitan Region, meaning the entire NSW coastline is now under greater protection from inappropriate development.

Table 3: Breakdown of coastal determinations

North Coast

South Coast

Total $ Jobs

Tourism – refusals

22 6

� 2

25 8

�9M 94

Subdivisions – refusals

55 11

26 4

81 15

59M 256

Apartment/retails/commercial – refusals

14 2

� 2

17 4

186M 906

Telco infrastructure 1 � 4 0.5M �

Total 92 35 127 284M 1259

Total number of refusals 19 8 27

In February, the Minister approved a $55 million development proposal at Casuarina Beach on the state’s far north coast. During the assessment process, the proposal was modified in response to representations from the local community. As a result, the approval included a number of public benefits, including improving public access to the beach, and reducing the number of foreshore dwellings.

Other major coastal approvals during the year included a $20 million subdivision at Barlings Beach and a $�.5 million subdivision at Merimbula.

In April 2006, the Minister adopted a Master-plan proposal at Eden Cove in Bega Valley Shire. The Master-plan proposes �00-�50 residential allotments, pedestrian, cycle and public transport links. The proposal also includes areas of public open space and ecological corridors. It will provide for a mix of housing types and building forms that

The following table gives a breakdown of the coastal developments determined during the year.

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integrate with the existing context and help ensure high quality residential development as well as create public open space systems.

The proposal uses water sensitive urban design principles to minimise stormwater runoff and increase water quality from the site. The project approval features an agreement between council and the land owners to rehabilitate and protect the riparian green corridors that act as habitat conduits

As Table � demonstrates, the Minister refused almost one in three tourism applications on the coast. Nearly one in five coastal subdivisions was also refused.

The department found during 2005-06 that a substantial number of coastal proposals were poorly conceived, with many having unacceptable environmental impacts. The high rate of coastal project refusals and withdrawals reinforces the need for the NSW government to continue to strengthen the strategic planning along the coast and to protect the coast from inappropriate development.

Urban Development Assessment

Under Part �A, the Minister is the approval authority for major urban subdivisions and redevelopment projects, which are assessed by the department on the Minister’s behalf. The

Table 4: Breakdown of residential/commercial determinations

Residential/Commercial Metro Regional Total $ Jobs

Honeysuckle – refusals

21 1

21 1

8.2M 127

Rhodes – refusals

18 18 1

461M 545

Ku-ring-gai – refusals

6 1

6 1

Tourism/Recreational – refusals

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4 6 1

87M �42

Breakfast Point 6 6 525M 1000

Sydney Olympic Park 12 12 410M 520

Sydney Harbour 5 5 2.8M �

Ryde 4 4

Redfern Waterloo 2 2 4.5M 50

Fox Studios 2 2 5.2M 50

Chatswood Station 1 1 151M 1262

Total 58 25 83 1.65B 2999

Total number of refusals 3 1 4

Major Projects SEPP also identifies a number of specific sites that have been, or are likely to be, redeveloped for residential and/or commercial purposes.

On 17 November 2005, the Minister approved the construction of a $9� million, �07-unit residential housing development on the Rhodes Peninsula in Sydney’s inner west. Development of the site will create ��0 construction jobs and a further 20 operational positions. The development will incorporate six interconnected residential buildings constructed over a common basement car park.

The residential buildings meet the standard set by State Environmental Planning Policy (SEPP) 65, which raises the design quality of residential flat development across NSW through the application of a set of design principles. One of the buildings will include a childcare centre accommodating up to 40 children, and part of the site has been reserved for the construction of a public cycleway.

In February 2006, the Minister approved construction of a harbour-side public park on the 2.6 ha former Caltex refinery site at Leichhardt. The proposal is the largest green addition to land around Sydney Harbour in 100 years. The park’s public open space is a valuable addition to the collection of existing green headlands that surround Sydney Harbour.

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Critical Infrastructure and Special Projects

Part �A of the EP&A Act also allows the Minister to declare certain projects as “critical infrastructure”. There are strict criteria that limit these declarations to projects that are critical to the state’s economic, social or environmental wellbeing. Once a project is declared as critical infrastructure it is subject to a streamlined approval process with limited appeal rights.

In September 2005, the Minister declared the Kurnell desalination plant to be critical infrastructure. This project is considered to be essential for securing Sydney’s water supply should the dam water levels fall to a critical level.

In response to the Energy Directions Green Paper (NSW government, 2004) which states that while there is currently sufficient electricity generation capacity to meet the state’s demands, continued growth in demand of approximately 4% per annum will result in supply shortfalls by 2009.

This situation has lead to a marked increase in the number of applications for electricity generating projects, and amendments to existing approvals, through the 2005-06 financial year including:

• assessment and approval of the $400 million Munmorah gas-fired power station (600 megawatts) on the Central Coast and concept approval for associated gas supply infrastructure;

• approval of a major water treatment upgrade at the Bayswater power station in the Hunter Valley, with capital investment of approximately $50 million, to ensure the on-going viability and efficiency of the plant;

• public exhibition and assessment of an application for a new 600 megawatt gas-fired power station at Bamarang, near Nowra, with a capital investment of $400 million;

• lodgement of new applications for gas-fired power stations at Bega (120 megawatts), Cobar (115 megawatts), Marulan (600 megawatts) and Leafs Gully near Campbelltown (600 megawatts) with a total capital investment in the order of $1.1 billion.

In October 2005, the Minister approved the first stage of the $600 million expansion of Port Botany, the state’s largest port, following an

exhaustive assessment process, including a public Commission of Inquiry. More than 100 conditions were placed on the approval, to protect the bay’s environmental health and the amenity of local residents. These conditions cover traffic, noise, estuary management, safety, air and soil quality, waste management and heritage issues.

The proponent must demonstrate that the terminal design will achieve predicted water quality outcomes in Penrhyn Estuary. A Penrhyn Estuary Habitat Management Plan must also be prepared.

During early 2006 two independent experts assessed the environmental, social and economic factors associated with the three options for the Stage 2 of the expansion.

Major Infrastructure Assessment

The department is responsible for managing the assessment of major infrastructure projects. These include proposals for roads, railways and other transport facilities, energy and water supply, sewerage and waste management.

Major infrastructure projects involve substantial investment by the private and public sectors, and provide significant economic and employment benefits. These projects strengthen the state’s economic development but require extensive consultation to identify and resolve issues of community concern. In assessing these proposals, the department must address conflicting expectations, carefully undertake community consultation and develop recommendations that will produce a balanced and sustainable outcome.

Examples of major infrastructure projects assessed by the department and by the Minister during the year include:

• the Sandgate Rail Flyover incorporating two new coal lines passing under a new flyover adjacent to existing main lines to connect Kooragang Island;

• the Tugun Bypass, a 7 km long, 4 lane restricted access motorway between Kennedy Drive, Tweed Heads (NSW) to Stewart Road interchange (Qld) crossing through Commonwealth land (Gold Coast Airport). Two sections are located within NSW (total approximately 2.5 km) which are subject to the Minister for Planning’s approval;

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• the Brooklyn Dangar Island Sewerage Scheme, part of the NSW Government Priority Sewerage Program (PSP);

• construction of a breakwater/training wall at the entrance to Lake Illawarra;

• Woodlawn Windfarm - a 50 MW (25 X 2 MW turbine) wind farm with the capability to provide 140 000 MWh of electricity per year near Tarago.

In December 2005, the Minister approved the Tugun Bypass, the first infrastructure project to be approved under Part �A of the Act. The Bypass is a $�60M road infrastructure project approximately 7 km long, between Kennedy Drive Tweed Heads in the far northern NSW to Stewart Road interchange in Queensland. The four-lane motorway will allow traffic to bypass the Gold Coast/Pacific Highway corridor between Currumbin and Tweed Heads, alleviating current and future traffic congestion. The project includes a 400 metre tunnel at the southern end of the Gold Coast Airport runway to comply with airport safety. It will also separate local traffic from tourist and heavy vehicle traffic, resulting in improved accessibility for local residents and a reduction in air pollution, and result in the transfer of more than 80 hectares of high-conservation NSW land to the NSW Department of Environment.

The Minister’s approval was challenged in the NSW Land and Environment Court on eight procedural grounds. The court found in favour of the Minister and dismissed the application. This was the Court’s first decision on the operation of Part �A.

State significant sites

State significant sites are those sites which may have a wider significance for the region or the state, for example, the development or redevelopment of major universities or hospital sites, or a site which has redevelopment significance that is important to implementing state planning objectives.

Following a decision to consider a state significant site, the Minister may place a new planning regime, including possible zoning changes and other relevant provisions within the Major Project SEPP. A concept plan or project application can be considered at the same time as a request to create a new State significant site.

In March 2006, the Minister approved a concept plan for a new $45 million rehabilitation and research facility at Ryde in Sydney. The site was also listed as a state significant site in Schedule � of the Major Projects SEPP to establish a new planning regime for the site. These new controls will support the delivery of a regionally and state significant health care facility, achievement of Metropolitan Strategy housing targets, appropriate density and height outcomes, and provision of open space.

The concept plan and state significant site provisions will facilitate construction of a purpose built state-of-the-art facility providing specialist rehabilitation services for patients with spinal cord and brain injuries, stroke victims and aged care in place of the existing outdated facility.

To help fund the upgrade and the long-term viability of the service, the concept plan approval also provides for redevelopment of remaining portions of the site for the purposes of:

• 795 residential dwellings;

• more than five hectares of public open space;

• shared recreation facilities;

• new roads; and

• major infrastructure improvements.

Both the concept plan approval and the new planning controls seek to maximise the site’s opportunities because of its proximity to existing social and physical infrastructure whilst mitigating any potential environmental impacts of the proposal on the surrounding community.

Within the space of 12 months the Minister approved both the concept plan and a new planning regime for the site. The new Part �A and state significant site listing process has enabled an effective and efficient planning resolution to be achieved and has secured the facility’s ongoing future in the rehabilitation of amongst the community’s most disadvantaged people.

In April this year, the Minister approved the Breakfast Point Concept Plan for the proposed $566 million development of the 51.8-hectare site at Breakfast Point, in Sydney’s inner west. The Minister agreed to assess the proposal under Part �A of the Act in August 2005 following concerns that it was subject to a number of contradictory and confusing planning documents. This

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represents one of Sydney’s most important urban renewal projects,

The proposed development, amongst other things provides:

• a maximum of 1,189 dwellings;

• landscaped public and private open space; and

• associated services and infrastructure.

As part of the approval, a 15 metre-wide foreshore corridor is to be dedicated for public use and owned by either Canada Bay City Council or the department. The approval also provides for part of the heritage building to be dedicated for public purposes such as a museum or community hall.

Developer contributions collected from the development will be used in part to fund a community enhancement plan for the provision of local infrastructure and amenities within the surrounding suburbs of Concord, Cabarita, Mortlake and Breakfast Point.

The concept plan approval provides long-term planning certainty for the major urban renewal site.

Audit of Assessment Approvals

After projects are approved, the department maintains an audit and compliance role to ensure that proponents are carrying out developments in a way that is consistent with the approval conditions.

Enforcement actions were initiated in 14 cases, ranging from minor matters in coastal residential developments to more serious matters requiring the issuing of Orders under section 121B of the EP&A Act.

In 2005-06 compliance audits were conducted on three coal mines (Ulan, Dendrobium and Ashton) to evaluate compliance against their conditions of approval, and inspections were conducted on two more (Cullen Valley, Werris Creek) to check areas of their operations. Due to the proximity of local villages to both the Dendrobium and Ashton mines and a greater than usual number of adverse findings, it is intended to re-audit these mines in the next 12 months, to check progress against the audit action plans.

A major compliance audit of the M5 East Motorway, particularly focussing on air quality issues, was finalised and publicly released in February 2006. The reliability of stack emission monitoring has been improved along with other initiatives in response to the audit’s other major finding to improve outcomes.

Inspections were also conducted on several other approved projects including marina and quarry projects as well as a number of ongoing inspections on projects in the Sydney region. The Department of Planning is following up all adverse findings from inspections with the respective proponents.

Major Project Tracking System

The department’s responsibilities in relation to the determination of major development projects demand the ability to:

• track the progress of project applications quickly and accurately;

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• provide timely reports to the Minister, ombudsman and Parliament on service delivery commitments and statistics related to major development assessments; and

• provide proponents and the public with appropriate internet access to information regarding development applications (including the facility to lodge applications) and assessments.

Local Environmental Plans (LEPs)

LEPs are statutory instruments that include planning rules such as permitted land uses, zoning, floor space, heights, lot sizes and how an area is to develop.

In 2005-06, 248 LEPs were published, �8 more than the previous year, although the trend in recent years is a consistent decline. This is in line with the department’s desire to see a reduction in one-off rezoning proposals, with a move towards a broader strategic approach to regional planning.

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Table 5: Total LEPs gazetted 1999-2000 to 2005-06

1999-2000

2000-2001

2001-2002

2002-2003

2003-2004

2004-2005

2005-2006

Number of LEPs Gazetted

55�

46�

�5�

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�19

210

248

Distribution of LEPs

In 2005-06, 115 LEPs were gazetted for the 4� Sydney and Central Coast councils and 1�� for rural and regional councils.

The 41 Sydney Metropolitan councils produced a total of 10� LEPs (an average of 2.5 per council). The 21 coastal councils (excluding Sydney and the Central Coast) were responsible for 75 gazetted LEPs, an average �.6 per council. This geographical distribution of plans made in 2005-06 largely reflects population growth and economic activity.

On 15 June 2006, the department issued a circular outlining its position on spot rezonings. Spot rezonings usually involve a change of zoning for a single site, or additional permitted uses and/or development controls that relate to the development of that site. The department seeks to reduce the number of spot rezonings to encourage a planning approach that is fair and transparent, deals with all like cases consistently and provides for planning decisions with a clear strategic basis.

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Table 6: LEPs gazetted 1 July 2005 – 30 June 2006

Region Total Number Of LEPS

No of Councils in

Region

Average LEPS Per Council

Sydney East 22 16 1.�

Sydney North/West 4� 10 4.�

Sydney South West �8 15 2.5

Central coast 12 2 6

Hunter 27 12 2.25

North coast 47 12 �.9

Southern region 25 10 2.5

Central west & Far west 1� 26 0.5

Barwon � 1� 0.2

Murray/Murrumbidgee 18 �6 0.5

TOTAL LEPs 248 152 0.6

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Under section 69 of the EP&A Act, the Director General advises the Minister on draft LEPs. The Director General delegates this function to councils for certain types of LEPs, generally where the draft plan is clearly consistent with state and regional policy, and especially for minor plans.

The percentage of draft plans reported to the Minister by councils was 65% in 2005-06. Sydney and Central Coast councils used delegations for 85% of their LEPS in the past year, while rural and regional councils used delegations for 47% of their LEPs.

Table 7: Total LEPs gazetted 1999-2000 to 2005-06, showing percentage of LEPs where councils exercised s69 delegation.

1999-2000

% 2000-2001

% 2001-2002

% 2002-2003

% 2003-2004

% 2004-2005

% 2005-2006

%

Gazetted 55� 46� �5� 288 �19 210 248Department 225 41 148 �2 8� 24 67 2� 87 27 81 �9 87 �5Council �28 59 �15 68 270 76 221 77 2�2 7� 129 61 161 65

1%

5% 5%

11%

7%

19%

Figure 4. Percentage of LEPs gazetted by region

10%9%

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LEP Review Panel

In February 2006, the Minister announced the introduction of a new Panel to streamline local planning process. The Panel is made up of planning experts from the department and local government.

The LEP Review Panel provides a more thorough upfront assessment of LEP proposals, allowing early advice to be given to local government and the community. The Panel also provides a consistent framework across councils and the Department for evaluating the context and justification for plans, strengthening their strategic and policy consideration.

Table 8: Breakdown of LEP types considered by the Review Panel

Type of LEP Panel recommendation to proceed with LEP

Not proceed TOTAL

Comprehensive 12 1 1�

Policy 21 10 �1

Precinct 16 1 17

Reclassification 10 11 21

Section 7�A 5 1 6

Spot Rezoning 49 �8 87

Surplus Govt Land � - �

TOTAL 116 62 178

By providing guidance and early advice, the Panel aims to reduce the number of draft LEPs in the system and reduce resources wasted through poor drafting. This provides certainty for investors at an early stage in the process.

Of the 178 proposals considered by the Panel to the end of June 2006, 101 were from rural and regional councils and 77 from metropolitan Sydney or Central Coast councils. Of these, 116 were recommended to proceed and 62 not to proceed.

The operation of the LEP Panel offers a number of benefits. These include a more thorough initial assessment of LEP proposals, early identification of plans that do not need to be prepared,

Figure 5. Percentage breakdown of LEP types considered by the Review Panel

Spot Rezoning 49%

Surplus GovtLand 2% Comprehensive 7%

Policy 17%

Precinct 10%

Reclassification 12%

Section 73A 3%

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and identification of plans using inappropriate mechanisms. The Panel has been able to ensure that plans are consistent with current state and regional planning policy and to achieve early resolution of outstanding state agency objections. Another benefit is the reduction of the number of potential LEPs in the planning system.

With its overview of the state, the Panel is able to resolve policy issues before draft plans are sent to Parliamentary Counsel.

Independent Planning Panels

The Minister or the Director General is able to set up an independent panel to review particular planning matters and provide recommendations. During the last financial year, the Minister initiated three independent panels which reviewed the following issues:

• planning matters in Cowra Shire;

• Queanbeyan land releases;

• sensitive urban lands on the South Coast.

Building Systems

The department is responsible for NSW’s contribution to the ongoing development and reform of the Building Code of Australia (BCA), including its associated building control legislation. In May 2006, the latest amendments to the BCA (BCA 2006) were implemented in NSW. These included:

• new and updated Australian Standards;

• incorporation of energy efficiency provisions for commercial buildings;

• enhanced energy efficiency provisions for residential premises and aligned those provisions in NSW with BASIX;

• a new national testing regime for building in cyclonic areas;

• completion of transition period regarding use of alternative test methods for fire hazard properties of specified materials;

• clarification of emergency lighting requirements for patient care areas in hospitals.

The department provides an information service on the BCA, and advice on the interpretation and application of the Code. An information centre receives around 100 calls per month and

is available to government agencies, councils, building practitioners and the general public.

The department also publishes Building Regulation Advisory Notes (BRANs) to provide information on various issues related to the BCA and associated matters. These notes are distributed to councils, accreditation bodies, and various government agencies and industry groups.

The Environmental Planning and Assessment Amendment (Smoke Alarms) Regulation 2006, commenced on 1 May 2006. It mandates the installation of smoke alarms in existing homes and other buildings where people sleep.

Building Professionals Board

The Building Professionals Branch within the department administers the Building Surveyors and Allied Professions (BSAP) accreditation scheme, accrediting 4� new certifiers and reaccrediting 164 existing certifiers during the year. It also determined 118 complaints against accredited certifiers under the BSAP scheme, substantially reducing the number of undetermined complaints against accredited certifiers during the year. A number of successful prosecutions of certifiers for unsatisfactory conduct were also undertaken in the Administrative Decisions Tribunal.

The Building Professionals Act was passed in December 2005.

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�. Conserving heritage and natural resources for future generationsThe department is committed to providing strategic planning and development control systems that conserve biodiversity, water quality, prime agricultural land, and the heritage values of buildings and landscapes.

The department promotes sustainability through a number of mechanisms:

• working collaboratively with local government, state agencies and community groups to conserve natural and built features, through conservation, restoration or sympathetic re-use;

• developing regional strategies and other strategic plans designed to promote development patterns that maximise the conservation of natural resources values;

• implementing the Coastal Policy to ensure that development in coastal regions takes proper account of coastal processes and protects scenic and other values;

• expanding the Building Sustainability Index (BASIX) to ensure water conservation and energy efficiency in all new residential buildings.

Heritage management

The department (through the Heritage Office) is responsible for heritage management throughout NSW. It is staffed by heritage professionals with expertise in a range of specialised fields. The department:

• provides advice to state agencies, local councils and community organisations on how to recognise, value and care for the state’s heritage;

• supports heritage management through funding and advice;

• maintains the state Heritage Register, which lists heritage items of particular importance to the people of NSW;

• assesses development applications for changes to heritage places; and

• promotes and celebrates the value of heritage to the community.

The Heritage Council of NSW is appointed by the Minister for Planning as the NSW government’s expert body on heritage matters to reflect a cross-section of community, government and conservation expertise. The Heritage Council’s and Heritage Office’s primary planning tool, the Strategic Plan 2005-10, was endorsed in September 2005 following consultation with stakeholders.

In September 2005, the Heritage Regulation 2005 was gazetted, introducing the principle of cost and recovery to the setting of fees for statutory processes, including development assessment and confirmation of heritage listing status. This was a recommendation of the Council on the Cost and Quality of Government review of the Heritage Office in 200�. The new regulation provides for equitable and adequate funding for heritage protection through cost recovery for statutory processing: 100% of the costs for development assessment are now recovered.

The regulation also re-stated the minimum standards for maintenance and repair of items on the state Heritage Register set in the previous regulation. These cover weather and fire protection, security, essential maintenance and repair and an inspection of the site. 100% of costs for confirmation of listing status and 20% of costs for development assessment are now recovered in fees following the gazettal of the Heritage Regulation 2005 in September.

Heritage Conservation

The department coordinated the NSW government’s comments on NSW nominations to the Australian government’s National Heritage List. Three Sydney sites were inscribed on the National Heritage List this year: the First Government House Site; the Sydney Opera House; and North Head. NSW government agencies own or manage half of the items listed on the state Heritage Register. 89% of agencies have either completed a heritage asset management strategy or have made significant progress on meeting their special obligations under section 170 of the Heritage Act.

There are currently 1,506 items on the state Heritage Register. During the year 15 items were added to the state Heritage Register in 2005-06, including:

• Malabar headland, one of the last intact tracts of native bushland on the Sydney coast;

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• two major asylums from the Federation and Victorian periods - Bloomfield Hospital at Orange and Lidcombe Hospital Precinct – and the late-nineteenth century Berry Courthouse;

• two convict-era burial grounds of the 1820s in Port Macquarie, rare surviving evidence of the early European settlement of the Colony;

• two highly significant burial sites in the Central West, the graves of Yuranigh, a respected Aboriginal guide to the early explorer Major Mitchell, and Windradyne, a revered warrior and leader of the Wiradjuri people of the 1820s;

• the only known example of an architect-designed sheep shearing complex from the 1880s, Old Errowanbang Woolshed near Blayney;

• Bethanga Bridge, a 19�0 Pratt truss bridge that spans the Hume Dam between Victoria and New South Wales, the first item to be jointly listed on both states’ registers;

• the Roxy Community Theatre at Leeton and St Anne’s Catholic Church at Bondi;

• Rathmines Park at Lake Macquarie, site of the largest World War 2 flying boat base in the southern hemisphere.

During the year, the Heritage Office introduced a package of local planning reforms including an order that provides objectives for the conservation of local heritage sites by local councils in their LEPs. In 2005-06 one interim heritage order was made under Section 22 of the Heritage Act. This was to protect a property at 1�4-140 Marsden Street, Parramatta, for its rare and intact colonial archaeology.

The Heritage Incentives Program provides funding to individuals, community groups, local government and religious groups who own or manage heritage items of state significance. The Heritage Office funding contribution of $5 million for 287 projects is expected to generate heritage projects valuing $15 million. A full list of the projects is published in the Heritage Council of NSW Annual Report 2005-06. On 16 May 2006, the Minister for Planning announced $2.7� million in grants and loans for 92 heritage projects, under the 2006-08 Heritage Incentives Program.

The Heritage Council assessed a total of 664 applications for changes to state significant items, including 218 (27%) for archaeological excavations and 154 (19%) for changes to places listed on the state Heritage Register. The total value of the works proposed in the 154 applications was over $69� million, reflecting an important investment in the stock of heritage buildings and a significant contribution to the state’s economy. Some Heritage Council powers for approval are delegated to councils and state agencies, and exemptions from approval are available for minor changes that do not impact heritage significance. Thirty-five applications were managed under delegation to other agencies in 2005-06, an increase of 40% on 2004-05.

In March this year, the town of Braidwood became the first town on the east coast of Australia to be listed on the state Heritage Register. Situated half-way between Canberra and the south coast, Braidwood still retains much of its Georgian town plan. With its fine collection of nineteenth century buildings and streetscapes, as well as original views of the surrounding pastoral landscape,

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Braidwood is a living record of a colonial town. The listing guarantees that the unique character of Braidwood will be retained. At the same time, significant development can also be undertaken where it is demonstrated that it does not affect the town’s special heritage values. This balance will allow heritage to underpin Braidwood’s prosperity.

Coastal and Environmental Planning

Master-plans for Narooma and Snug Cove (Eden) were developed in conjunction with local government. Both plans were awarded Planning Institute of Australia national awards.

The department used a range of policy approaches to address the ongoing pressure for residential and tourism development in sensitive coastal locations. These areas are generally characterised by high population growth and an ageing population. The department monitors new developments in coastal areas and ensures that the requirements of SEPP 71 – Coastal Protection are adopted by councils. At the same time the department is working on a more strategic approach to coastal planning through the preparation of regional strategies and the finalisation of the Comprehensive Coastal Assessment program. Protection of high value coastal landscapes is also being addressed by the acquisition of lands under the Coastal Lands Protection Scheme.

Planning for Rural and Agricultural Lands

In recognition of the economic and cultural value that rural land plays, the department has been working with councils and the Department of Primary Industries to protect our most productive rural land from fragmentation. This work has included action to minimise land use conflicts by planning the location of hobby farms and rural residential developments.

Integration of Natural Resources and Planning Outcomes

Improved integration of natural resource and planning outcomes at the strategic level by local government was achieved by working cooperatively with the Catchment Management Authority (CMA) Chairs. The department continues

to develop procedures for interlinking Natural Resource Management and Land Use Planning. The department also facilitated the development of a Memorandum of Understanding (MOU) that aimed to establish stronger relationships for better local government and CMAs cooperation through a series of measures including regular capacity building sessions.

Building Sustainability Index (BASIX)

BASIX, the Building Sustainability Index, ensures homes are designed to use less potable (drinking-quality) water and be responsible for fewer greenhouse gas emissions by setting energy and water reduction targets for all new residential dwellings. BASIX is one of the most robust sustainable planning measures in Australia, delivering equitable and effective water and greenhouse gas reductions across NSW.

On 1 July 2005, BASIX was expanded to include all new single homes across NSW. On 1 October 2005, the scheme was expanded to include all new multi-unit residential dwellings across the state.

Ongoing stakeholder consultation has provided industry and local government with the capacity to engage with BASIX right from the start. Briefings and training sessions for council staff, the development industry, design professionals and other stakeholders both in Sydney and across NSW continue to be successfully implemented and well attended.

BASIX is expected to save 28.7 billion litres of water across NSW and cut greenhouse gas emissions by 800,000 tonnes each year.

BASIX is the first online planning system in Australia, and simplifies the design, assessment and certification of residential development.

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4. Co-ordinated NSW agency actions to service sustainable growthAs the lead agency for land-use planning and development assessment, the department is committed to working with communities, industry, other state agencies and local government to ensure sustainable growth for NSW.

Outcomes include achieving the right balance between job capacity and the environment through the assessment of major economic developments and infrastructure projects, providing appropriately zoned land for industry, commerce and services and revitalising key strategic areas such as the Greater Homebush precinct, South Sydney and the Newcastle waterfront.

The department clearly demonstrates a whole-of-government approach in the development and implementation of the Metropolitan and Regional Strategies, which are dependant on a coordinated agency approach for their successful implementation. This ensures the planning system stays responsive and relevant, with future plans providing for the integrated delivery of infrastructure and public services.

The reporting year saw the commencement of legislation that made important changes to the way that the Minister for Planning assesses and determines major development proposals on behalf of the government. The new Part �A of the Environment Planning and Assessment Act (EP&A Act) and the Major Projects SEPP, which became fully operational in August 2005, clearly define the development matters for which the Minister is the consent authority. A key feature of these reforms is the integration of a series of separate approval processes into one, streamlined process.

During the year the legislation was also amended to require all local government councils to prepare new principal local environmental plans, based on a standard template within the next five years. Other reforms will simplify planning controls, ensure development control plans are consistent with LEPs, improve development assessment, and allow flexibility in the use of developer levies for local facilities and services.

Planning Reform (Major Development Assessment)

The Major Projects State Environmental Planning Policy (SEPP) commenced on 1 August 2005 at the same time as Part �A. The SEPP identifies the classes of developments that are major projects under Part �A and are determined by the Minister for Planning. The SEPP also includes provisions for the Minister to declare areas as state significant sites and to introduce planning controls. The policy replaces provisions in 87 other planning instruments, declarations and directions. The SEPP was the first planning instrument to contain maps, allowing greater transparency and easier access to the planning provisions.

Since its commencement, the SEPP has been amended to include additional state significant sites including the Sydney Opera House, Luna Park, Ryde Royal Rehabilitation Centre, Redfern Waterloo sites and the former Channel 7 site at Epping.

The department has prepared draft guidelines for Community Consultative Committees to strengthen the ongoing consultation with mining companies and the community following the approval of a mine. This initiative will play an important role in improving outcomes for communities and ensuring open and ongoing communication between the company and the surrounding landowners and councils.

Major Transport Projects

SEPP 6� - Major Transport Projects establishes a uniform assessment and approval process for major transport projects in the Sydney Region. During the year the SEPP was amended provided for the protect the underground City of Sydney section of the Metropolitan Rail Expansion program (MREP) corridor, between Redfern and Sydney Harbour.

Aquaculture

SEPP 62 - Sustainable Aquaculture was amended in 2005 to extend the scope of the SEPP to include pond and tank aquaculture in the Hunter and Central Coast. The SEPP has previously applied only to the North Coast. The department worked

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with the Department of Primary Industries and other agencies on the development of an Oyster Industry Sustainable Aquaculture Strategy to improve industry sustainability. It is anticipated that SEPP 62 will be amended in 2006-7 to implement the Strategy and to protect priority locations for oyster leases.

Pipelines

The department worked with Department of Energy, Utilities and Sustainability to update the Pipelines Act 1967 to update to make it more consistent with the amended EP&A Act. Amendments to the Major Projects SEPP provide for large pipeline developments to be assessed under Part �A of the EP&A Act. These changes simplify the approvals process and provide for a more integrated assessment and approvals regime for pipeline developments.

Water & Sewage Services

Amendments to the SEPP (Sydney Metropolitan Water Supply) were gazetted in 2005 to provide for the desalination plant at Kurnell. Amendments were also made to SEPP 58 – Protecting Sydney’s Water Supply, to enable Sydney Water to undertake sewerage system works without development consent.

Motorway Review

The department assisted with the implementation of the recommendations of the Infrastructure Implementation Group’s Motorway Review to improve the delivery of major motorway projects including the interface between the Treasury approvals process and the planning/environmental approvals process under the EP&A Act.

SePP 4 – Development without Consent

SEPP 4 – Development without consent was amended to exempt water tanks at schools, wind farm monitoring towers and C7 dishes from the need for consent.

Local Planning Reform Initiatives

The reporting year saw significant legislative change to implement the balance of the major planning reform program that was announced by the government in 2004. The planning system reform was designed to focus resources on

strategic planning for growth areas, simplify planning controls, improve development assessment processes and allow flexibility in the use of developer levies for local facilities and services.

On 8 July 2005, the Environmental Planning and Assessment Amendment (Development Contributions) Act 2005 and Regulation took effect. This extended the way in which local development contributions could be collected and used to include voluntary planning agreements and fixed development consent levies. It also allows for the pooling of contribution funds under certain circumstances and the levying of cross-boundary contributions. A series of supporting practice notes was issued to councils and other interest groups.

On �0 September 2005, the remaining parts of the Environmental Planning and Assessment Amendment (Infrastructure and Other Planning Reform) Act 2005 commenced. This legislation is designed to modernise local environmental plans (LEPs) across NSW by introducing a ‘standard instrument’ (or template) and requiring councils to prepare a whole-of-LGA plan on the new model. The new-style, strategic LEPs will replace many smaller instruments and will considerably reduce the total number of LEPs. This reform is designed to focus councils’ planning efforts on pro-active planning on a larger scale and reduce the resources consumed by small-scale, ad hoc planning epitomised by “spot rezonings”.

The new legislation also:

• allows certain types of minor amendments to be made to LEPs through a streamlined process;

• strengthens the role of Ministerial directions under s.117 of the EP&A Act with respect to the preparation of LEPs;

• clarifies the status of development control plans (DCPs) and promote the reduction in the number of these plans;

• facilitates electronic access to key planning information such as planning instruments, maps, DCPs and contributions plans; and

• allows for the use of DCPs and staged development applications to achieve master-planning objectives.

On �0 September 2005, updated and consolidated Ministerial directions under section 117 of the

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EP&A Act were issued. These reduced the number of directions by 25 and further enhanced the Minister’s power to ensure that LEPs embody sound planning principles.

Planning Assessment Panels and Administrators

In March 2006, the Environmental Planning and Assessment Amendment Act 2006 was passed by the NSW Parliament. Its key provisions (which commenced on �0 June 2006) are designed to reduce delays and costs in the assessment of development applications, coordinate local and state planning controls and help provide infrastructure and other amenities in new land releases and other sites identified for strategic growth. The panels will provide early advice to local councils, the community and investors on whether proposals are sound and can proceed further.

The Minister has emphasised that most councils do a good job in preparing LEPs and assessing DAs, and that Planning Administrators and Panels will only be appointed in exceptional circumstances where a council has a systemic problem.

The EP&A Amendment Act 2006 also:

• provides for special infrastructure contributions to fund the capital or recurrent costs of public amenities or services, affordable housing, transport or other infrastructure costs;

• allows the Minister to ensure that DCPs are consistent with state and regional planning policies or the council’s LEP;

• empowers the Minister to ensure that development contributions plans are coordinated and that the overall level of contributions payable for new development is appropriate.

Existing Use Rights

In March 2006, the Environmental Planning and Assessment Amendment (Existing Uses) Regulation 2006 was gazetted. The purpose of this reform is to prevent an excessively wide interpretation of existing use rights from undermining LEP planning.

The amendment provides that an existing use can no longer be changed to another prohibited use, unless the zoning is also changed to permit that

use. It does allow an existing use to be changed to a use that is permissible.

Standard Instrument (Local Environmental Plans)

On �1 March 2006, the NSW government gazetted the Standard Instrument (Local Environmental Plans) Order 2006. The standard instrument provides a ‘template’ that councils will use as the basis for preparing a new whole-of LGA LEP, using standard zones, definitions, clauses and a standard format. All councils are required to prepare such a plan within the next five years.

For the first time, local plans across NSW will use the same planning language, making it easier for communities to understand the plans for their localities. The standard approach will save both developers and the government time and money. The template is flexible and Councils can add provisions to address local issues and are able to control the scale of development within each planning zone.

A draft version of the template was exhibited in late 2005, and more than 600 submissions were reviewed by the department. As a result, several changes were made before its gazettal. Technical briefing sessions on the draft and final versions of the standard instruments were held in locations across NSW during October 2005, and in May and June 2006.

By �1 March 2011, all councils in NSW will have a new principal LEP based on the template, replacing over 5000 current LEPs. In the process, many councils will replace inadequate and outdated planning instruments, some of which date back to the 1950s. The reform process has been supported by grants from the Planning Reform Fund.

Owner Initiated Acquisition

In April the EP&A Act was amended to provide for consistent procedures for owner-initiated acquisition of land reserved in an environmental planning instrument (such as an LEP) and acquisition by the state under the Land Acquisition (Just Terms Compensation) Act 1991.

Under the reformed legislation a public authority will not be required to acquire land unless it considers that the owner will suffer hardship if there is a delay

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in the acquisition of the land. The reform does not remove the obligation of the state to acquire the land, but rather provides a mechanism to defer the acquisition until the land is required. It also allows the state to initiate the rezoning process in cases where the land is no longer required for public purposes.

The Demand Management and Planning Project

The Demand Management and Planning Project (DMPP) was established by the government in March 2002, to ensure demand management measures are taken into account in planning matters.

The DMPP is funded by Transgrid and Energy Australia and focuses on developing cost-effective ways to defer or avoid major new electrical infrastructure works in NSW, by providing accurate and reliable information on available electrical demand reduction opportunities.

The Project is in the process of investigating 1,000 major facilities in the inner metropolitan region of Sydney, and initiating demonstration projects to validate these findings. It is on time and within budget to achieve all outcomes by 2008.

5. Investment in our people, systems and partners to build capacity and leadership

Corporate and Business Planning

The department’s commitment to leading sustainable policy development for NSW is supported by a comprehensive corporate and business planning process.

This process, which is outcomes-focused, incorporates a Corporate Plan, which directs business planning within the department by defining the department’s priorities and setting key outcomes and actions. Divisional and branch plans are then developed, translating the Corporate Plan’s strategy into projects, tasks and services. Each Plan will also provide a set of actions and targets on which senior managers can report and be held accountable.

Once these Plans are developed, each individual staff member will develop an Individual Work Plan. This will ensure that every staff member is clear about how their work contributes to organisational goals and about the work for which they are accountable.

The annual Results and Services Plan (RSP), agreed between the Minister and Treasurer, sets out the department’s planned results and services to be delivered for its annual budget allocation.

Vital to the success of these plans is the department’s work in engaging with all stakeholders in a timely and appropriate way, working with all sectors of the community to achieve the vision of sustainable growth.

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a range of clients including the Department of Planning, Honeysuckle Development Corporation, the Growth Centres Commission and thirteen Catchment Management Authorities. This reflected the government’s desire to see economies achieved wherever possible in corporate services and avoiding any duplication of services.

DNR CSS manages the department’s financial transaction processing; fleet, building & property management; employee services; human resources and industrial relations; and information and communications technology.

A Service Level Agreement is being negotiated currently that sets the core suite of corporate services, provided without fee under agreed arrangements, and allows for additional services to be provided on a commercial basis.

Planning Professional’s Working Group

The Planning Professionals Working Group was established to examine further the issues and suggestions raised at a Planning Profession Forum convened by the Minister on 27 March 2006.

The Working Group canvassed how to address the current and anticipated future shortage of planners, and in particular the shortage of planners to undertake statutory assessment. The three priority areas identified are:

• education needs, and workforce issues affecting retention of employees;

• the profile of planners/planning as a barrier to supply;

• structural issues deriving from the nature of planning and the planning system.

The role of planning is increasingly broad, multi-disciplinary and focussed on strategy and the Working Group supports drawing on the potential for a wide range of professionals to contribute to strategic planning and assessment, and for para-professionals to assist with less complex planning tasks, in addition to professionals with traditional planning.

Capacity Building Strategy

The department’s human resources policies and practices are designed to develop staff to have the commitment, capacity and responsiveness

Management Reviews and Responses

In May 2006, the Audit Office’s report about the Cross City Tunnel project made recommendations in relation to improving the consultation processes about major projects and reviewing the use of open-ended conditions of approval of projects. The new processes under Part �A of the EP&A Act provide an opportunity for the Minister to approve concept plans for projects. This process is intended to enable greater community and stakeholder input at an early stage of a proposal’s development than is currently the case.

In relation to open-ended conditions of approval, the requirements for an environmental assessment set by the department for a major project includes a written statement of commitments from the proponent outlining how the project’s likely environmental impacts will be minimised or managed. If the project is approved, the proponent is required to honour these commitments as part of the conditions of approval.

Audit Committee

The new department has established an Audit Committee to provide independent review and advice of the department’s risk management and internal control framework.

Ms Carol Holley has been appointed as the independent chair to strengthen the independence and probity of the department’s Audit Committee. Other members of the Audit Committee are the Director-General, and The Executive Director Corporate Governance and Support Services.

Internal Audit Bureau (IAB) will assist the department with the internal control framework. IAB will undertake a risk assessment; prepare a risk management plan and an internal audit plan for the department. The Audit Committee will meet on a regular basis to review the effectiveness of the risk management plan and internal audit plan in achieving risk mitigation.

Corporate Shared Services

With the division of the Department of Infrastructure, Planning & Natural Resources into separate agencies, the Department of Natural Resources Corporate Services (DNR CSS) became the provider of corporate shared servicing to

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necessary to deliver the outcomes required by the organisation and to continually improve personal, professional and organisational performance.

To give effect to the report by the Planning Professionals Forum, the department is fashioning a Capacity Building Strategy as a centrepiece of its approach to personnel policy and practice, linking capacity building to personalised learning plans as an element of the Individual Workplans referred to above.

The department’s Executive is strongly committed to staff development and capacity building. This Capacity Building Strategy has been developed to implement and coordinate a suite of activities to provide staff with:

• a wide range of development and training opportunities;

• policies and processes to facilitate effective communication, team work and management;

• programs to achieve equity and diversity;

• systems to ensure safe and healthy work environments.

This Strategy identifies six high priority areas:

• develop staff and promote a learning culture, particularly through focussed mentoring and rotation/secondment programs;

• plan for our future workforce, particularly through promotion of tailored tertiary courses to address planner shortages;

• develop our leadership and management capability, through in-house and external training and sector/industry programs;

• build a high performance culture, especially centred upon introduction of the Individual Workplans;

• act with integrity, through active promotion of the department’s Code of Conduct; and

• provide an equitable, safe and healthy work environment, including drawing upon the Occupational Health and Safety committee experience of staff and management delegates across NSW.

These activities will contribute to the continued development of the department as an “employer of choice”, highly regarded within the planning community, with stakeholders and by the public, enabling the department to attract and retain planning professionals and support staff.

In addition, in 2005-06 the department obtained centrally funded scholarships for the Australian and New Zealand School of Government (ANZSOG) and a University of Sydney Graduate School of Government.

Equal Employment Opportunity

The department continues to approach Equal Employment Opportunity (EEO) by integrating equity principles into all departmental activities. Consultation ensures that the diversity of the department, its staff and the communities they work in are represented and incorporated into business activities. The department continued to support the Spokeswomen’s Program and has recently endorsed the establishment of a Young Planning Professionals Group. These groups participate in business activities such as Corporate Planning, policy development and the development of special human resource strategies. EEO statistics are shown in the Appendix.

The department also recognises the contribution that Managers at all levels make to EEO in their areas of responsibility and demonstrates this by including specific requirements for equitable, ethical and healthy activities and performance targets in SES Performance Plans and Performance Review documentation.

Young Planning Professionals Group

The Young Planning Professionals Group (YPPG) is a group within the department representing planning professionals aged �5 years and younger. It consists of cross-divisional representatives and seeks to support and promote excellence in performance.

In helping to shape the direction and culture of the department YPPG is involved in the development of policies and strategies, in particular addressing the specific needs of young staff. The primary focus is on personal and professional training and development.

YPPG assisted in coordinating the Forum, which was well attended by over 60 young professionals, including numerous regional representatives. It provided an opportunity for young staff gain a better understanding of the department including its vision, objectives and structure. Delegates were

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able to network with senior Executives and other young professionals as well as participate in a lively panel discussion on the future of planning in the 21st century.

The YPPG Committee is currently finalising a work plan for the next year, focussed on key areas for future development of young staff.

NSW Government Action Plan for Women

The NSW Government Action Plan for Women provides a tool for coordinating strategies which remove barriers to women participating fully in society across all NSW government agencies. It covers initiatives such as ensuring fair access to work and good work practices for women and facilitating their participation in decision making and leadership.

Of the 212 women employed by the department, �2 were from racial, ethnic and ethno-religious minority groups and one was in an executive position.

The department continued to support the Spokeswomen’s Program throughout 2005-06 which operated jointly with the Department of Natural Resources. 17 elected spokeswomen plan and undertake activities to identify and address equity issues including: information needs; career, training and development needs; flexible work arrangements; and anti-discrimination issues in the workplace. The program has been recognised a model of best practice because of its success in operating at a strategic level within the organisation and adopting a whole-of staff approach to gender equity. During 2005-06 the following activities were undertaken:

• regional and divisional information days;

• sponsored staff to undertake the Public Sector Management Course; and

• organised and managed one in-house Springboard Development Program with 20 women participants and one Navigator Program with 20 male participants.

Disability Action Plan

The department’s Disability Action Plan is currently being reviewed with a focus on developing technology and consultation strategies to address access issues for people with a disability.

A consultation group is being established to providing staff with an opportunity to participate in and influence a range of activities including policy development, corporate planning and business planning activities and the development of EEO strategies including the new Disability Action Plan.

Aboriginal Employment

The department has an Aboriginal and Torres Strait Islander Employment and Development Strategy 2005-08 which aims at increasing employment and providing stronger support mechanisms for Aboriginal staff.

Departmental staff have access to a well-established Aboriginal Support Network which includes staff from the Departments of Natural Resources, Primary Industries, Lands and State Water.

The department is continuing to pursue strategies under the Aboriginal and Torres Strait Islander Employment and Development Strategy 2005-08 and is also reviewing this Strategy in light of implementing a revised organisational structure.

Industrial Relations Policies and Practices

The department, its staff and the Public Service Association of NSW have maintained a strong commitment to joint consultation. A Joint Consultative Committee was constituted upon the agency’s creation to ensure that workplace issues and organisational changes were discussed and resolved quickly and productively.

During the year, four meetings were held which discussed the development and implementation of organisational structures and the introduction of a standard flexitime system geared for departmental advantage and the best possible work/family balance for employees.