The NSW development industry is defending its role in the “land-bribe” scandal in which planning approvals are being revoked as “illegal”.
The Urban Taskforce said the industry has been arguing for “conventional checks” on development contributions since 2007, but has been ignored by the state government.
This comes in response to the news that two major NSW housing developments backed by Labor donors are facing collapse, after a court judged their planning consents “illegal”.
The Land & Environment Court yesterday quashed planning approvals for Rose Group’s 600-house concept at Catherine Hill Bay, south of Newcastle, along with a project approval for another 187 houses at nearby Gwandalan, both of which were given the go-ahead by former NSW planning minister Frank Sartor.
The ruling by Justice David Lloyd will likely set a precedent that nullifies approvals involving land swaps, in which developers exchange privately owned conservation land for development approvals with the government.
The minister was “enamored with the whole proposal of a land-bribe in exchange for rezoning and associated development”, said Justice David Lloyd in his judgment before declaring the approvals “invalid”.
Rose Group donated $143,500 to the Labor Party in the lead up to the NSW 2007 election.
The state government has said it will not appeal the court’s decision and there will be no retrospective legislation introduced in relation to the proposal.
As a result of yesterday’s judgment, the concept plan and project applications for Catherine Hill Bay and Gwandalan are now “undetermined”.
Keneally has said that for Rose Group to continue with the proposal it will need to be assesses within Environmental Planning and Assessment Act and if the proposal is referred to Keneally she will delegate it to an independent Planning Assessment Commission.
The industry had raised issues repeatedly with both the former planning minister Frank Sartor and senior Department of Planning executives, the Urban Taskforce said.
“Our pleas were documented on six separate occasions — in direct letters to the then planning minister, letters to Treasury, the Department of Planning and a parliamentary inquiry … We’ve been seeking greater transparency because it’s important that the public knows what government requires of property developers,” Urban Taskforce’s CEO, Aaron Gadiel, said.
A deal with Hardie Holdings to building the state’s biggest housing project with 7,200 homes at Huntlee near Branxton, which was approved by current NSW planning minister Kristina Keneally, is expected to meet a similar fate when the Land & Environment Court hears an appeal lodged by local activists in October.
