A MAJOR south-west land developer has cautiously welcomed the state government’s proposed new contributions scheme, warning it could lift rural prices closer to metropolitan levels.
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Graeme Rodger, who has undertaken extensive residential projects in Warrnambool, Koroit, Colac and Queensland, said he had heard unofficial predictions developers could be required to pay about $300,000 a hectare as their share of the cost of providing roads, paths, parks and associated infrastructure.
This would be more than double the average developer contribution in Warrnambool under the current outdated system, he said.
But Planning Minister Richard Wynne who introduced the legislative change to Parliament this week, and South-West Coast MP Denis Napthine, said the new system was designed to be simpler and fairer.
Dr Napthine, who was premier when former planning minister Matthew Guy instigated the proposed reforms, said they were designed to provide fairness and certainty.
He gave credit to Warrnambool City Council chief executive Bruce Anson for making early moves to get a better system than what was an ad hoc method of negotiating contribution prices for each development.
Under the new legislation, contribution amounts will be standardised.
“Householders want to buy a block at a fair price, but with certainty it will have all the necessary infrastructure,” Dr Napthine said.
“The changes were designed to provide a fair and more equitable system with certainty for developers and councils rather than the previous approach.
“I welcome introduction of this bill and we will scrutinise it closely to make sure there are no hidden nasties.
“I’m sending a copy of the bill to every council in my electorate to get feedback and will also make copies available for developers to comment.”
Mr Wynne said the existing contributions system had been in place for 20 years and was a barrier to urban development.
He said industry stakeholders would be consulted before costs were set.
Mr Rodger said there was too much variation in contribution scheme charges under the current arrangement.
The new estate off Wollaston Road, Warrnambool for example entailed an upfront outlay of about $30 million for developers, while other areas were much cheaper.
“Under the new system there will be a more level playing field,” he said.
“However, I’m fearful if the fees are set too high it will push block prices up.”
