The ACT Government has put a stop to joint private-ACT Housing Trust development in the inner city following concerns over land speculation.
The Minister for Urban Services, Terry Connolly, said he was sending a signal to people buying houses next to trust properties in the hope of getting a profitable redevelopment deal.
Specualtion would not work, he said. There would be no more joint private-trust deals until after the Planning, Development and Infrastructure Committee of the Legislative Assembly had come up with some publicly available guidelines.
His move came after a call by Independent MLA Michael Moore for an inquiry into development in Section 22, Braddon. Mr Moore’s call came after suggestions that developers were asking residents to sell, and suggesting that medium-density development would surround them if they did not.
Mr Connolly said that the Minister for Environment, Land and Planning, Bill Wood, and the chairman of the committee, David Lamont, had agreed to the moratorium.
The ACT Housing Trust had at least 12,500 neighbours in the ACT. Mr Connolly conceded that there was a problem of perception as to why the trust would agree to joint development with some neighbours and not others.
Mr Connolly said he was satisfied that the present private-ACT Housing Trust development on Section 22 had gone through all the proper processes.
One of the shareholders in that redevelopment _ of four blocks in Torrens Street _ is the family company of the chairman of ACT Electricity and Water, Peter Phillips.
ACTEW and the trust come under Mr Connolly’s portfolio.
Mr Wood has also said he is satisfied all procedures have been properly gone through with that redevelopment.
Mr Connolly said the trust wanted to see redevelopment in older areas, but private-neighbour deals could be criticised unless there were publicly available guiidelines, so they would be stopped until the guidelines were produced.
The president of the Conservation Council, Jacqueline Rees, welcomed the fact the Government had taken some action and had recognised the need the protect indivudals from rampant development. The idea of guidelines would good for future development.
However, she thought the inquiry sought by Mr Moore into present projects must none the less ahead. Also, Mr Connolly’s announcement did not deal with redevelopment where the Housing Trust was not involved. The law and procedures on this needed change to protect existing neighbourhood amenity. The council had no objection to medium density provided it was done well.
Units in the Torrens Street redevelopment were advertised last week. Half of the 34 units were private and half were for the trust.
Mr Connolly said that Housing Trust projects on vacant land were not affected by yesterday’s decisions.
In another planning issue yesterday, an order was issued against the lessee of a block in Hume to stop unauthorised retailing of liquor and other products.
The lease-purpose clause for the block is for wholesale and light industrial. The proprietor of nearby Hill Station, Paul Smith, applied for the order earlier this month.
Mr Smith complained that he had paid a high price for his lease with a retailing (restaurant) lease-purpose clause. It was unfair that someone who had paid a lower price for a wholesaling lease could set up a business that competed with his.
The order was issued under the Land (Planning and Environment) Act. That Act replaced earlier cumbersome processes for neighbours to stop breaches of lease purposes. Mr Smith wrote to the department, got a reply explaining his rights and shortly thereafter got his order which takes effect on April 30.
Mr Moore said, “”Ordinary Canberrans should now realise how easy it is to seek an order preventing misuse of a lease.”
He congratulated the Government for beginning to take control of the lease system.
“”If the system is to work they must be policed in this manner,” he said.