The ACT government’s plan to introduce a new department to streamline construction work in Canberra has been met with mixed reactions by industry organisations and the Opposition.

The Property Council of Australia has welcomed the proposal, which would see the alignment of ACT government property services, including the ACT Property Group and the Projects and Facilities Group within chief minister’s department form a single department.

The new department is also anticipated to achieve a closer alignment with the work and resources of the Land Development Agency.

Property Council ACT executive director, Catherine Carter, said the new department should facilitate efficiencies and generate cost savings for both government and industry.

“The Property Council regards the streamlining of ACT Government property related functions as a very positive move,” Carter said.

"Industry always prefers to deal with a one-stop shop," she added, “and we support measures taken by government to get rid of silos, and to streamline processes to achieve greater efficiencies for government and for the property and construction sectors.”

The proposal would combine part of the department of territory and municipal services, the strategic planning area in the chief minister's department and the land development agency.

Former Master Builders Association head, David Dawes, has been named as the possible chief executive of the new department.

Chief Minister, Jon Stanhope, said the concept could save money and speed up housing and business developments.

"The ACT, Canberra, is the pre-eminent planned city of the world I believe," he said.

"I'm not prepared to risk that, but certainly we can ensure that our processes are as efficient as can possibly be and there's as little red tape as possible.?However, ACT opposition leader, Zed Seselja, said the announcement for the new department showed a vote of no confidence in the planning system and the planning minister.

“The fact that Jon Stanhope feels the need to establish a specific department to push development through the system is a clear indication that the planning system isn’t working and hasn’t been for some time,” Seselja said.

“We have long argued that cultural change is necessary in ACTPLA. This was a centrepiece of the policy which we took to the election last year. This latest announcement is an open acknowledgement that these issues exist. However, no one can seriously contend that more bureaucracy will fix the problem.”