City of Newcastle Advocacy State Election 2023

Acknowledgment

We recognise and respect the cultural heritage, beliefs and continuing relationship with the land of the Awabakal and Worimi peoples. We acknowledge the proud survivors of more than two hundred years of resistance.

The City of Newcastle reiterates its commitment to address disadvantages and to support Aboriginal and Torres Strait Islander peoples of this community to attain justice.

Acknowledgement of Country

We all sit on Awabakal and Worimi land

‘Niirun Yalawa Awabakal and Worimi burrei’

Enquiries

For information contact

City of Newcastle

PO Box 489, Newcastle NSW 2300 newcastle.nsw.gov.au

City of Newcastle (CN) acknowledges its Local Government Area (LGA) sits within the Country of the Awabakal and Worimi peoples. We acknowledge that Country for Aboriginal peoples is an interconnected set of ancient relationships. We acknowledge the custodianship of the Awabakal and Worimi peoples and the care and stewardship they have performed in this place since time immemorial.

Always was, always will be Aboriginal land

© 2022 City of Newcastle

‘Wunyibu wunyibu warra wunyibu wunyibu gkuuba Aboriginal burrei’

Message from the Lord Mayor

Newcastle is the 7th largest city in Australia, a Gateway City both internationally, through our port and airport, and regionally, through rail and road. Newcastle is the economic hub of the Hunter Region with an international profile and a gateway to the rich resources of the Hunter Valley. Newcastle accounts for 30% of the Hunter's developed industrial space and 80% of its office space.

Newcastle is undergoing a transition from a primarily industrial base to one that boasts a diversity of economic foundations. The manufacturing and engineering expertise across the city provides a strong foundation for growth of technology, digital and advanced manufacturing industries. Newcastle and the wider Hunter Region is home to world-class research institutions and a vibrant innovation ecosystem centred on energy and resources, manufacturing and engineering, health technologies, defence / aerospace, the digital and creative industries and a rapidly growing startup and entrepreneurial sector.

Newcastle is an emerging globally significant city; recognised by agencies such as the OECD as a leader in smart city innovation. Newcastle is well positioned to lead economic recovery from COVID-19; being resilient and dynamic. We welcome the piloting of new programs and approaches; we are small enough to care and big enough to deliver. We can play an important role in providing new job opportunities for the future.

City of Newcastle believes that metropolitan cities succeed and perform best when all tiers of government collaborate and work together with business, industry and community to deliver a shared vision. We warmly welcomed the NSW Government's Greater Newcastle Metropolitan Plan delivered in 2018 and have actively contributed to its implementation.

Our State Election 2023 Advocacy document initially focuses on three key Catalyst Areas, identified in the Metropolitan Plan, that require further Government focus and investment over the coming year(s). Furthermore, we have unpacked significant economic and social problems like Affordable Housing and how Government could work with us to enact change at a local level. Finally, we have identified a suite of local projects that could drive local jobs and provide the enabling infrastructure for the advancement of our city.

This submission has been prepared in partnership with key local stakeholders to ensure that a consistent message is being received by government from the Newcastle community. Our asks utilise the latest local evidence and we are seeking to work with our representatives to deliver for our community –we are part of the solution.

City of Newcastle has a proven track record of working collaboratively with all levels of government to deliver the current and future needs of our community, including infrastructure, social programs, financial and environmental sustainability. Such collaboration ensures our City continues to grow as a global gateway city and provide liveabilty and prosperity for the community.

We welcome you to partner with City of Newcastle. Should you have any questions, please reach out to Melanie Hill, Policy Advisor, on mhill@ncc.nsw.gov.au.

Lord Mayor of Newcastle

Councillor Nuatali Nelmes

City of Newcastle State Election Asks 2023

Hunter Park/Broadmeadow

ASK:

Support for the redevelopment of Hunter Park, including a year-round aquatic facility and other specific asks as identified in the Venues NSW Finalised Business Case. Funding of approximately $500 million will be required to facilitate the redevelopment. Hunter Park is currently identified on the Infrastructure Australia Priority List and Greater Newcastle Metropolitan Plan.

BACKGROUND:

The Hunter Park Final Business Case and Concept Plan was recently released by Venues NSW and includes three new precincts. The regeneration and construction of new community infrastructure and venues that serve the community and attract visitors and new events will catalyse greater investment in the wider precinct and city. Hunter Park is a priority project for Greater Newcastle and Hunter Region due to the wider impact it will have on catalysing urban renewal, creating new and improved public places, open space and attracting investment. Broadmeadow is identified to be a nationally significant sport and entertainment precinct with significant potential for growth to deliver housing and employment development in Newcastle and the Hunter.

Located 5 minutes from the city centre of Newcastle, 24 minutes from Newcastle Airport and 2 hours from Sydney, it contains Hunter Park, Broadmeadow Train Station and substantial tracts of land for urban renewal. The significance of the precinct is recognised in the Hunter Regional Plan 2036 (and Draft Hunter Regional Plan 2041) and as a catalyst area in the Greater Newcastle Metropolitan Plan 2036. Hunter Park (Broadmeadow Precinct) is listed on Infrastructure Australia’s priority list. CN identified the wider Broadmeadow precinct as a planning priority and ‘area of change’ in the Newcastle Local Strategic Planning Statement (LSPS) with research undertaken in 2021 finding that the precinct will create: Up to 10,000 new jobs; Up to 2,700 new dwellings; and Potential population increase of 6,400 by 2041.

This would require a multi-faceted large scale urban renewal project delivered in collaboration between all three levels of government. The precinct provides an opportunity to showcase best practice in place-making, climate change adaptation, active transport, adaptive reuse of heritage sites and large-scale urban renewal. CN is preparing a Place Strategy to support a wholistic and coordinated planning approach focussing on place-based infrastructure provision with NSW state agencies. CN, therefore, advocates for transport considerations and proposals to be considered concurrently with the business case. In particular, CN advocates that the NSW Government upgrade Broadmeadow Train Station into a modern multimodal transport interchange that supports the desired placebased outcome for Broadmeadow. The upgrade to Broadmeadow Train Station is critical to its future functioning as a “nationally significant sport and entertainment precinct” as identified in the Greater Newcastle Metropolitan Plan. In addition to improving

public transport, any upgrade of Broadmeadow Train Station must be modern, accessible and support a vibrant and activated 24-hour mixed-use precinct planned to surround the station. The interchange should be a gateway destination that connects Hunter Park and land to urban renewal, allowing for greater permeability across the rail corridor for visitors and residents.

Active transport links to and through the station must be provided to allow ease of access by pedestrians and cyclists to promote greener trips. The station must be able to support rapid bus in the interim, and light rail and faster rail in the future to ensure the needs of the wider precinct and Hunter Park can be adequately serviced. Certainty about a light rail connection to the precinct is required. It is imperative that planning and identifying a transport corridor for light rail happens at this early stage of planning for growth in Broadmeadow.

Stockton Coastal Erosion Mitigation and Sand Replenishment

ASK:

Enable offshore dredging and funding of $21 million is desperately needed to provide an initial mass sand replenishment of 2.4 million m3 as a long-term solution to Stockton’s ongoing erosion. The NSW Government has approved CN’s Coastal Zone Management Plan and declared Stockton a coastal erosion hotspot. Furthermore, a state/national coastal management strategy is required to mitigate local impacts of climate change, including coastal erosion, recession and sea level rise. City of Newcastle has committed to investing $27.5 million in works to complement mass sand nourishment including buried protection structures, with more than $9.5m of this already spent implementing foreshore protection.

BACKGROUND:

The urgency of addressing erosion at Stockton Beach can not be understated, due to the continuing and increasing threat to public and private property. Erosion at Stockton Beach, which is Crown Land owned by the State Government, is unique and is caused primarily by the State Government’s break wall which ensures the safe operation of the Port of Newcastle.

The State Government certified the Stockton Coastal Management Plan in August 2020, which recommends mass sand nourishment via offshore sand extraction (2.4 million cubic metres of sand) as the long-term solution, with a cost estimate of $21 million for the initial sand nourishment, and $12 million in maintenance each decade following.

CN has already undertaken significant work to understand the cause of erosion and beach recession, and gain community support for an evidence-based solution. More than $9.5 million has been invested since the adoption of the Coastal Management Plan, towards the total CN commitment of $27.5 million made in 2020. This covers CN’s on-shore works which complement mass nourishment such as buried protection structures and emergency works.

CN supports the successful application to the Federal Government’s Coastal and Risk Mitigation Program, which will enable the Commonwealth and Council to co-fund $6.2 million to immediately source 300,000 cubic metres of sand from the entrance of the harbour to provide short-term relief to the current shoreline recession, ahead of mass sand nourishment. The jointly funded project will fund investigations and approvals for sand sources from the north arm of the Hunter River, as well as three

suitable bodies of sand in the Stockton Bight, which were identified in the State Government’s 2021 Stockton Offshore Sand Exploration Project. The State Government also made an application to this Federal fund, which identified that the Hunter Central Coast Development Corporation (HCCDC) would project manage the delivery of the grants.

Mining and offshore sand extraction is not the core business of local government and is outside our expertise. It is unreasonable that Council would now be required to own a mining licence in order to ensure the survival of a State Government asset at risk due to another State Government asset (the break wall) that ensures the safe operation of the Port of Newcastle.

Accordingly it is imperative that the State Government, which currently holds an Exploration Licence at Stockton, uses its expertise to ensure a planning pathway is secured for offshore extraction as per the State Government adopted Stockton CMP. The Mining Licence is just one of the approvals required to extract sand from offshore. Offshore extraction has never before been undertaken in NSW, and there remains uncertainty on the planning pathway.

A mass offshore sand nourishment delivery program must be funded and led by the State Government as this will result in significant efficiencies and economies of scale. All extraction approval and licences should sit with this body as per current practise and the State Government should honour the commitment it made in the Federal Grant application by directing HCCDC to complete the nominated work to secure the mining licence and planning approvals, noting that funding has been secured from the Commonwealth and CN.

Wallsend CBD Flooding

ASK:

Commitment to addressing Wallsend CBD flooding by widening the NSW Government-owned stormwater channel through the Wallsend CBD. This can be achieved through direct funding or a Direction to Hunter Water.

BACKGROUND:

The Wallsend CBD floods during major storm events due to the constraints of the narrow concrete stormwater channel which runs through the Wallsend CBD. The channel, a section of Ironbark Creek, is owned by the State Government’s Hunter Water Corporation.

Flooding in the 2007 Pasha Bulker Storm caused significant damage to property, and tragically loss of life.

Widening the Hunter Water channel and replacing the Tyrrell Street, Nelson Street and Boscawen Street bridges are key elements of the Ironbark Creek Flood Mitigation Plan.

This Plan has recently been peer reviewed by Hunter Water and is supported by the State Government, however this support has not been matched with funding. Hunter Water claims that it does not have a regulatory driver to deliver the work.

CN has committed to investing more than $20 million towards resolving flooding. Investment of $40 million from Hunter Water is required to prevent future flooding.

The NSW Legislative Assembly recently unanimously resolved to call on the Minister for Lands and Water to direct Hunter Water to deliver this flooding solution.

Affordable Housing

ASK:

Increased investment in affordable housing, including measures to prevent housing stress and vulnerability for very low-income earners by supporting measures which increase the supply of affordable housing to meet local demand. Such investment in more social and community housing builds and stock upgrade programs will also deliver post-pandemic economic stimulus in addition to preventing housing stress and vulnerability in both the rental and ownership markets. The commitment must also ensure that all new public, social and affordable housing at a minimum incorporates the new accessibility standards in the National Construction Code. CN continues to support a 25% Affordable Housing Mandate on government-owned land and the introduction of a 15% Affordable Housing Mandate on privately developed land.

BACKGROUND:

The shortage and rising costs of rental properties and affordable home ownership are having significant social and economic impacts in cities and towns across Australia, including rural and regional communities. This is due to a range of factors including changes to recent migration patterns, cheap finance and labour and material shortages in the construction sector. The impacts on local governments and communities includes housing stress for individuals and families, difficulty in attracting and housing key workers and an increase in homelessness. Whilst the provision of affordable housing is not a local government responsibility, councils often facilitate affordable housing within their communities, operating within state/territory planning, financial and other legislation requirements. For councils looking to drive a locally led economic recovery and create new jobs in their communities, an appropriate supply and mix of housing to suit diverse community needs is crucial. CN has been actively responding to Affordable Housing challenges in the Newcastle LGA.

A Memorandum of Understanding (MoU) between the NSW Government – Land and Housing Corporation and CN was signed in late 2021. The objective of the MoU is to deliver improved outcomes in social and affordable housing for the people of Newcastle. An important feature of the MOU will see CN supporting LAHC’s redevelopment program through the provision of an annual payment equivalent to the rates paid by LAHC in the Newcastle LGA for the next three years. The payment, which will be matched by LAHC, will be reinvested into funding new social housing in the

region during the same period. CN calls on both the Federal and State Government’s to lean into the Affordable Housing challenge too. CN continues to hold the view that a 25% Affordable Housing Mandate on government owned land should be supported, with land owned by the government that is fast-tracked for development having a 25% mandate of Affordable Housing. Likewise, CN supports the introduction of a 15% Affordable Housing Mandate on privately developed land. 15% of dwellings designated as Affordable Housing will be available for rental or sale to low to moderate income households.

Additional measures to support prevention of housing stress and an increase in access to and supply of affordable housing is critical to the wellbeing of the population. Prevention: Social security - Establish a minimum income base in the income support system by lifting all income support payments to at least $69 a day and ensure supplementary payments meet specific needs, including lifting Commonwealth Rental Assistance by 50%. Rental Support: Implement a new rental investment incentive scheme to replace the discontinued National Rental Affordability Scheme which reduces concessional tax treatment of ‘negatively geared’ property investments and provides a two-tier investment incentive for construction of new rental housing for people with low or modest incomes. Affordable Housing Supply Support measures which increase the supply of affordable housing such as social and community housing build and stock upgrade programs.

Climate Change Action

ASK:

Support local government’s role in addressing the global climate emergency by committing to assisting councils and their communities reach Net Zero emissions by 2040, achieve best practice energy, water and waste efficiency, sustainable supply chains, implement landfill diversion strategies, increase publicly accessible electric vehicle charging infrastructure powered by renewable energy, increase community uptake of renewable energy options, batteries and electric vehicles and build local low carbon circular economies.

BACKGROUND:

CN have been champions for renewable energy and climate action for over 20 years, commencing before the development of our first plan Greenhouse Action In Newcastle (GAIN) in 2001. Our newest strategic plan, the Newcastle Climate Action Plan (2021-2025), outlines our commitment to reach net zero emissions for our operations by 2030. CN has already delivered significant local outcomes including:

a. Becoming a partner of the Climate Council’s Cities Power Partnership and commit to five key actions to reduce carbon emissions (2017).

b. Formally committing to the principles and targets of the Paris Climate Agreement (2018)

c. Commencing an accelerated upgrade of street lights to LED (2018)

d. Commencing upgrading its car fleet to electric vehicles (2018)

e. Commencing installing electric fleet vehicle fast charges throughout the city (2018) f. Becoming a member of the International Council for Local Environmental Initiatives (ICLEI) and commit to the requirements of the Global Covenant of Mayors for Climate & Energy (2018)

g. Taking the Cities Race to Zero Pledge (2021).

h. Constructing a 5 megawatt solar farm on the close landfill site at Summerhill Waste Management centre (2019).

i. Installing rooftop solar photovoltaic on Council’s Administration Centre, along with EV charging, IoT sensors and smart building controls (2019),

j. Making the switch to 100% of the electricity used across Council’s operations produced from renewable sources (2020).

k. Commencing development of a zero emissions vehicles fleet transition plan (2020) l. Taking delivery of its first fully electric truck (2021)

To achieve CN’s goals, our Climate Action Plan is structured around four key themes for reducing emissions:

1. 100% renewable energy supply

2. Zero emissions transport

3. Best practice energy, water and waste

4. Reduce emissions supply chains

It is critical that communities are prepared for the impacts of climate change and adopt complementary strategies for reducing (mitigation) and managing (adaptation) these impacts. Local governments and their communities are on the frontline when dealing with the risks and impacts of climate change. Councils need to prepare for the unavoidable impacts of climate change (through adaptation) and play a significant role in reducing Australia’s carbon footprint by mitigating the CO2 emissions from their assets and supporting emission reduction efforts by their local communities. They need to work with their communities to transition them to a low carbon future. To achieve our ambitious targets, funding from the State Government is required to assist CN reduce our electricity and liquid fuel consumption as well as fast tracking citywide initiatives to further reduce our carbon emissions.

TAFE New Industries

ASK:

Support the development of a business case of a TAFE New Industry Centre in the Hunter and undertake industry engagement and data-driven workforce planning to identify required technology, facilities, courses and delivery modes.

BACKGROUND:

City of Newcastle supports the Hunter Jobs Alliance Briefing Paper which sets out the need for the creation of a TAFE New Industry Centre, such as those in Ballarat, Brisbane, Beenleigh, Townsville and Gladstone, to support emerging industries in the

Hunter, including renewable energy developments, industrial decarbonisation projects, diversifying mine and power station sites, and new sectors such as battery manufacturing, green hydrogen and offshore wind.

Hunter Valley Authority

ASK:

Commitment to commence planning and consultation for the creation of a ‘Hunter Valley Authority’ which will support the cohesive, considered and evidence-based economic diversification and prosperity of energy and coal-reliant communities across the Greater Hunter Region.

BACKGROUND:

Over many decades, Novocastrian and Hunter Valley workers, families, unions and businesses in traditional heavy industries have brought great prosperity to our City, region, State and Nation.

However, the concerning current and future global economic indicators and energy market security will no doubt impact the local Newcastle and Hunter economy and employment.

There is a clear and present need for a cohesive and evidence-based plan to ensure the future prosperity of the Newcastle and Greater Hunter economies, by maximising opportunities for affected workers, diversifying the local economy, committing to a Just Transition as well as celebrating the Hunter Valley’s history whilst promoting its new and exciting renewable future.

CN has a long-standing commitment to taking significant action on climate change, demonstrated by various actions which enables the management of climate change risks and opportunities, and supporting our local community and businesses to transition towards net zero emissions.

CN notes the strong leadership shown by the Western Australian and Victorian State Governments for the creation of similar models of successful Authorities which now support their communities in the Collie and Latrobe Valley/ Gippsland regions, respectively.

Photo by Lucius Crick via pexels.com

Regionally Significant Catalytic Economic Development Actions

ASK:

Funding and political support for the following catalytic economic development actions, which have the potential to transform economic opportunities in Newcastle:

a. Offshore Wind Projects – CN has a long history of supporting and implementing renewable energy projects. CN requests support and financial incentives, and an appropriate legislative and regulatory framework to enable the development of large offshore wind projects off the coast of Newcastle. Two potential projects off the coast of Newcastle have been identified, which has the potential to unlock billions in new investment and play a significant role in sustaining our state’s future energy needs.

b. University of Newcastle STEMM Regional Transformation Hub – funding to deliver the $200+ million STEMM facility on the University of Newcastle’s Callaghan campus. The STEMM facility has already received development approval as State Significant Development.

c. Arts & Culture Packages – increase funding streams for arts and cultural organisations, including a focus on the night-time economy, particularly in Gateway Cities like Newcastle, which traditionally fall between Metropolitan/Regional definitions (see point 3 supra).

d. Support to rebuild Australia’s Strategic Fleet through the creation of a Maritime Strategic Fleet.

Key Transport Projects

ASK:

Funding and political support for the following transformative transport projects:

a. Expansion of Newcastle Light Rail to deliver a broader network connecting the Greater Newcastle region. The Newcastle Light Rail Extension Strategic Business Case identified a route to John Hunter Health and Innovation Precinct via Broadmeadow/Hunter Park. The extension of the light rail should be considered in partnership with the Hunter Park Business Case.

b. Newcastle interchange ferry terminal.

c. The Lower Hunter Freight Corridor gazettal must include the link all the way to the Port, protecting a dedicated freight rail line between Fassifern and the Port of Newcastle. Separating rail freight from the passenger rail line will reduce network congestion on the rail network across Newcastle and improve travel times and reliability for both rail freight and passenger rail services. The Lower Hunter Freight Corridor would connect to the

Hunter Valley Rail Network (servicing north-west and western regions of NSW) at Tarro, Beresfield and Hexham, thereby supporting interstate and regional freight movement to and from the proposed container terminal in Mayfield.

d. Newcastle to Sydney Fast Rail strategic business case should be prioritised and corridor planning initiated.

e. Minmi Road upgrade. The widening of Minmi Road from Wallsend to Fletcher and Minmi is a crucial piece of city infrastructure aimed at alleviating heavy traffic along the main arterial road in the city’s growing Western Corridor

f. Newcastle Inner City Bypass. Ensure future rapid bus transit and cycling infrastructure is embedded in the final stage of the Inner City Bypass, connecting the John Hunter Hospital to the University of Newcastle.

John Hunter Health and Innovation Precinct

ASK:

Commitment to funding Stage 2 of the John Hunter Health and Innovation Precinct worth approximately $800 million. The John Hunter Health and Innovation Precinct is currently identified on the Infrastructure Australia Priority List and Greater Newcastle Metropolitan Plan.

BACKGROUND:

The John Hunter Health and Innovation Precinct is listed on the Infrastructure Australia Priority List. The precinct was identified as an opportunity to better integrate health, education, research, community services and infrastructure.

The NSW Government committed to Stage 1 funding worth $780 million in the 2019/20 Budget. CN advocates for the NSW Government to commit to the full funding envelope of Stage 2 in the 2022/23 budget worth approximately $800 million. The following vision has been developed for the precinct: “We are building on our history of innovation, tenacity and community strength to create an environmentally sustainable, world class health, research and education precinct in one of the greatest regions in the world. John Hunter Health & Innovation Precinct will be the heart of an ecosystem that brings together partners who share our vision of wellbeing for our

communities and prosperity for our region.” The precinct will enable opportunities to partner to solve challenges and develop solutions in all health relevant domains including therapeutics, med-tech, digital health, built environment & sustainability, operations, logistics and processes. Commitment of the full funding requirement for the John Hunter Health and Innovation Precinct will ensure optimal health outcomes for community in services quality and capacity. It will also ensure realisation of the vision in leveraging opportunity for both industry and parallel health provider co-location and collaboration, in turn driving innovation and regional economic growth. In addition, the development of this precinct will stimulate investment in the surrounding local centres and neighbourhoods, where investment in key worker housing will be required.

Richmond Vale Rail Trail

ASK:

Fund $18 million for the delivery of the Richmond Vale Rail Trail. The Richmond Vale Rail Trail is a regional walking and cycling trail running through Newcastle, Lake Macquarie, and Cessnock LGAs (32km). It will provide valuable recreational and tourism opportunities for the city and the region and is identified in the Grater Newcastle Metropolitan Plan.

BACKGROUND:

The Hunter and Central Coast Regional Planning Panel approved Development Application DA2021/00641 for sections of a 15km walking and cycling trail connecting Shortland to Minmi, Fletcher and Pambalong Nature Reserve. The approval covers approximately 13km of the trail within the Newcastle LGA with approval of a further 2km section within the Hunter Wetlands National Park to be sought in 2022. A socio-economic impact assessment undertaken on a ‘whole of trial’ basis demonstrated a cost benefit ratio of 2.4, highlighting benefits such as safer and improved off-road riding experiences, greater access to natural areas, flora and fauna, growth and diversification opportunities for local business, health, fitness and recreation opportunities, and connection of National Parks and natural areas.

Regional Sports Infrastructure

ASK:

Partner with CN to deliver transformative sports infrastructure for the local community including National Park No 1 Sportsground Redevelopment, local Surf Lifesaving Clubs, increasing funding and ensuring Newcastle receives its fair share from the Sporting Facility Fund. CN is also calling for a new Government funding stream to provide adequate facilities for women, particularly women’s football, rugby league, rugby and AFL, which are all increasing in popularity.

Regional Parks, Playgrounds and Pathways Program

ASK:

Partner with CN to deliver vital local parks, playgrounds and pathways

infrastructure including:

a. Bathers Way

b. City Centre to Merewether Cycleway, Stage 2

c. Newcastle West Bi-directional Cycleway

– West End Stage 2, Phase 1

d. Newcastle East End Streetscapes Upgrades and Cycleway

e. Signalisation of Cycleway Intersections

f. Cycleway connections with Link Road upgrade g. Maitland Road Rail Crossings Cycleway upgrades

g. Active Transport Infrastructure Program

h. National Park Cycleway

i. Gregson Park Masterplan implementation

j. Active Hubs Program

k. Playground Replacement Program

l. Local playground disability inclusion & accessibility

Integrity in Local Government

ASK:

Support to amend the Local Government Act to prohibit property developers, real estate agents and their close associates from running for elected local government office to ensure openness, transparency, positive community participation and probity in local decision making.

BACKGROUND:

Councils in NSW have an important role in land use planning and development approval, assessing local development and the ability to grant approval, grant approval with or without conditions, or refuse an application for development.

Local planning controls regulate densities, height, external design and siting, building materials, open space provisions, and the level of developer contribution required to cover physical and/or community infrastructure costs arising from the proposed development.

In 2020 Environment Minister Matt Kean likened allowing property developers to be elected as local Councillor to “putting Dracula in charge of the bloodbank” due to the planning decisions taken by Councils.

Property developers and their close associates have an innate bias in planning decisions, which may not necessarily be ameliorated by declaring conflicts of interest, and allowing them to serve as local Councillors erodes the ability of Council to make independent decisions on planning matters.

As a result, in April 2019, CN endorsed measures to ensure openness, transparency, community participation and probity in local decision making, including by restricting active property developers and real estate agents from holding civic office, and ensuring a well-resourced Independent Commission Against Corruption, and urges all parties to support these measures by committing to this prohibition.

Accelerated Development Application System

ASK:

Support the state-wide adoption of the CN-established Accelerated DA System to streamline and accelerate determinations of development applications across the local government sector.

BACKGROUND:

City of Newcastle (CN), via the Regulatory, Planning and Assessment (RPA) team, has created and introduced the ADA System to streamline the determination of low-risk decision ready Development Applications (DAs).

The Accelerated DA System presents an innovative approach to facilitating timely development outcomes, with some of the onus on the applicant to provide a quality submission that reduces the double-handling of information and speeds up the process. It still ensures that applicants are able to expect the same standard of professional review for each application.

Only simple, decision ready and low risk DAs are eligible to be assessed under the ADA System. All other DAs are assessed and determined via CN’s existing processes.

The ADA System provides three new lodgement pathways for simple, decision ready and low-risk DAs to be identified and determined, as outlined below:

i) Authorised Consultant Pathway –5-day determination timeframe.

ii) Lodgement Ready Pathway – 10day determination timeframe.

iii) Well-made Pathway – 15-day determination timeframe.

A successful trial of the ADA System occurred between 12 May to 31 August 2022 with 89 low-risk DAs determined with an average processing time of 5.8 days. The ADA System formally launched on 1 October 2022.

In respect to NSW, a 5% increase in total development activity has the potential to lead to:

Total direct annual output in the construction sector increasing by $2.5 billion annually (i.e. 5% of $50 billion).

The $2.5 billion increase to annual development activity, including all direct, supply-chain and consultation effects, has the potential to increase total economic activity by approximately $5.4 billion and create up to 12,000 additional NSW jobs. Increased building development will also open opportunities for further economic growth due to more commercial and industrial sites being operational sooner, and more available residential accommodation for an expanded workforce. The flow-on effects have the potential to increase overall economic activity by billions of dollars per annum.

Cyber Security

ASK:

Commit to supporting local government in its protection of data held online, by providing a relevant permanent funding stream to assist and supplement investment of this protection by councils already, noting the highly sensitive information held by the local government sector.

BACKGROUND:

CN acknowledges the difficulty and cost associated with ensuring the security of not only the personal data of ratepayers, but also the general integrity of CN’s online systems and protection of highly sensitive information including financial and planning related matters.

There is a planned analysis by the NSW Auditor General due to be reported within the next twelve months, but CN draws attention to and acknowledges the submission by LGNSW to the Parliamentary Inquiry into Cyber Security, and that Inquiry’s subsequent report.

Supports that Inquiry’s recommendations, particularly Recommendation 11 which reads as follows:

That the NSW Government:

a) provide further financial support to local councils to enhance their cyber security capabilities

b) develop a plan in consultation with Local Government NSW to ensure local councils meet the cyber security standards identified for NSW Government agencies.

It is important to note that all 128 councils across NSW do not have the same capacity to ensure the highest level of cyber security and any potential weakness may lead to a flow-on effect for the entire sector.

Equity in access to grant programs

ASK:

Commitment to ensuring the Newcastle LGA is provided with equitable opportunities to access State Government grant funding streams. Currently, although located in regional NSW, Newcastle is often explicitly excluded from eligibility for regional grant programs with comparable metro programs reserved for Greater Sydney only. Equitable access could be facilitated through the development of a National Urban Policy Framework that recognises the strategic role Gateway/Second Cities play in driving economic opportunities across Australia. We are seeking a consistent three-part dichotomy of Metropolitan/ Gateway/Regional for all areas of urban policy and funding.

BACKGROUND:

CN would like to express its long-standing frustration with inconsistent classification resulting in the City being ineligible for many grant programs, particularly at a State level. CN is significantly disadvantaged in both its eligibility and access to a large number of NSW Government Grant programs. In 2020, we provided a detailed submission to the Public Accountability Committee’s Inquiry into the integrity, efficacy and value for money of the NSW Government grant programs. As part of the response to this inquiry, CN engaged the Hunter Research Foundation Centre (HRFC) to conduct an independent review of Newcastle’s experience with a range of state and federal government grants.

Overwhelmingly the report points to inconsistencies in the eligibility for NSW government funds for the Newcastle Local Government Area (LGA). The Hunter Research Foundation Centre identified multiple regional funding sources, where Newcastle had been deemed ineligible, but no metropolitan alternative has been provided. These funding sources totalled $5.86 billion and included: NSW Regional Growth Fund, Stronger Communities Fund, Snowy Hydro Fund, Regional Sports Infrastructure Fund, Regional Cultural Fund, Growing Local Economies Fund, Regional Skills Relocation Grant Fund. If Newcastle’s share of these funds was in line with its share of Gross State Product in 2019, Newcastle LGA would have received an additional $170.9 million in NSW Government grants.

For comparison, Lake Macquarie LGA and Central Coast LGA were eligible for all six funding sources.

The report also identified that the Newcastle LGA had received 0.06% of Restart NSW funds allocated to date, well below its share of the state’s population (2.11%) and its share of Gross State Product (2.91%). Since making the initial research report, Newcastle has missed out on opportunities to apply for a share of the $20 million Events Boost program, the $35 million Electric Vehicle Fast Charging grant program and most recently the latest round of the Stronger Country Communities Fund. No equivalent metropolitan grant, which CN could apply for, has been provided. An alternative approach would be to define cities like Newcastle and Wollongong in a category called Gateway Cities. A three-component dichotomy of Metropolitan / Gateway / Regional would provide for a stronger approach to policy development and the promotion and economic development of NSW into the future. In partnership with Wollongong and Geelong, CN have established a Gateway Cities Alliance to advocate and collectively explore economic opportunities.

Financial Sustainability of Local Government

ASK:

Commitment to work collaboratively with the local government sector, and commence a bipartisan, apolitical review, by experts with relevant local government and financial experience, of the financial modelling and funding methodology of councils that seeks recommendations to address the future sustainability of local government for the benefit of the sector and its ability to continue optimal service and infrastructure delivery for local communities.

BACKGROUND:

CN holds strong concerns for the financial sustainability of the local government sector. Whilst acknowledging the causes of those concerns are many and complex, being structural, policy related and political, including but not limited to, rate capping, cost shifting, shifting community expectations and devastating natural disasters, the result of this situation is increased long-term uncertainty for councils due to their reliance on one-off grant funding handouts from other levels of government, creating further impacts on community infrastructure and service delivery.

The range of services delivered by councils is growing and changing. Local government is no longer confined to the essential services of rate collection, road infrastructure and waste disposal. Councils are also now actively engaged in the policy areas of liveable communities, circular economy, smart cities, and pandemic recovery.

This expanding service delivery is against a backdrop of finite resources and increased need to remediate, and sometimes completely rebuild, large-scale community infrastructure due to impacts from extreme weather events and climate change.

As a result, improved dialogue is required between all levels of government to address these issues and provide more optimal outcomes for the communities all governments serve.

Cost Shifting from State to Local Government

ASK:

Commit to ending cost shifting by supporting the following recommendations from LGNSW, including:

a) End cost shifting immediately: Make a commitment that no new, increased or transferred responsibilities will be imposed on local government without a sufficient, corresponding source of revenue or revenue-raising capacity. This could be achieved immediately by amending the NSW Government’s Policy Proposal Evaluation guidelines to include specific requirements for agencies when developing regulation involving local government.

b) Return 100% of income from the waste levy to councils in NSW: Just 18% of the waste levy collected from local government by the NSW Government is returned to councils for community waste minimisation and recycling programs. We call for 100% of the levy to be returned to local government.

c) Sustainable funding for public libraries: Increase total state government public library grants and subsidies to meet the current and future demand for library services. Bookings to use the internet in public libraries alone hit 9.4 million in 2015/16 – an increase of four million bookings in just four years. Demand for library services will continue to increase due to rapid population growth.

BACKGROUND:

Cost-shifting occurs when the responsibility for or merely the cost of, providing a certain service, concession, asset or regulatory function is shifted from one sphere of government to another, without corresponding funding or revenue raising ability required to deliver that new responsibility.

Cost-shifting is the one of the most significant problems faced by councils in NSW. It undermines the financial sustainability of the local government sector by forcing councils to assume responsibility for more infrastructure and services, without sufficient corresponding revenue.

Cost-shifting by the state and federal governments is at an all time high, despite recognition of its adverse impacts. A recent report was completed in 2018 on this issue by Local Government NSW, titled ‘Impact of

d) Reimburse councils for mandatory pensioner rate rebates: The NSW Government funds just 55% of pensioner rate rebates, with councils funding the remaining 45%. All other state and territory governments in Australia fund 100% of pensioner concessions. LGNSW’s position is that, as a welfare measure, pensioner concessions should be managed, funded and financed by other spheres of government with broader taxation bases; i.e. the NSW and/or federal government.

e) Introduce fairer emergency services funding: Introduce a broad-based property levy to replace both the Emergency Services Levy on insurance policies and the 11.7% Emergency Services Levy on local government. Revisit the state government’s (deferred) Fire and Emergency Services Levy legislation as promised, and work with local government and the business community to make it fairer and more transparent.

f) Greater financial independence: Allow councils to raise revenue as they see fit through levies, value capture, voluntary planning agreements, fees and charges.

cost-shifting on local government in NSW 2018’. Using the latest cost-shifting data for NSW Councils, the report found $820 million in cost-shifting onto NSW councils in the 2015/2016 financial year, and more than $6.2 billion since 2008. The report also found a concerning trend, that is, not only does cost-shifting continue to grow but it is growing at an accelerated rate.

Councils already face many difficulties in relation to their long-term financial sustainability and service and infrastructure delivery, particularly following year-on-year multiple natural disasters and a world-wide pandemic. State and Federal Governments need to understand the increased costs such events place on councils, in addition to their continued attempts to shift costs and responsibilities, as was recently seen with RFS Assets.

Waste Levy

ASK:

Support the return of 100% of the section 88 Domestic Waste Management Service Charge (the “waste levy”) funds to be returned to local government for reinvestment in recycling facilities, landfill diversion, community education, technology improvements and circular economy opportunities.

Commit to amend CN’s categorization to regional, rather than metropolitan, for the purposes of the Domestic Waste Management Service Charge.

BACKGROUND:

CN is liable for the metropolitan levy rate of $151.60 per tonne of landfill, compared to the regional levy rate of $87.30 per tonne, a $32 per tonne difference and additional cost to Newcastle ratepayers of $2.1 million in 2022/23.

Analysis undertaken by CN officers shows an addition $18.7 million paid by Newcastle ratepayers over the past decade due its metropolitan categorization by the NSW State Government.

The waste levy consists of approximately 50-65% of the cost of waste disposal by CN, with $37m currently being paid in levy contributions and only $175,000 returned to CN to fund its resource recovery projects, which is the actual intention of the levy.