The Forum > Article Comments > Let’s toss the Integrated Planning Act and start from scratch > Comments
Let’s toss the Integrated Planning Act and start from scratch : Comments
By Phil Day, published 16/5/2006Town planning over the past 40 years or so has had a fundamentally flawed approach.
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This is just another way of saying the profits of enterprise will be confiscated by the state.
Increases in value that result from the granting of consent are evidence of the extent of the distortion in the property market caused by the "rationing" of development.
There is a community desire to avoid a purely functioning land market that values all property in line with the economic rent. But the existing IPA system does not conform to proper rationing principles. These are;
1 The burden of scarcity resulting from rationing is distributed fairly and equitably,
2 The supply of rationed products or services are distributed fairly and equitably, and
3 The benefits that result from the scarcity are also distributed fairly and equitably.
The burden of the scarcity falls on our own kids. High land prices go directly on top of their mortgages and we then plan for retirement with the vain hope that the kids marriages will survive.
Development was once seen as everyone's right to improve their circumstances but has been converted into a purely corporate game by the scale and complexity of any entry into the consent process.
And ordinary home owners are now being priced into, and up, the land tax regime by valuation increases. Developers make super profits, existing owners make capital gains (if their marriage survives the debt load), and the kids just surrender to a 100% consumption lifestyle.
The consent process must be embedded in a properly distributed rationing system where "development credits" accrue to all existing lots, based on a projected % growth rate. And a developer who had not accrued sufficient credits on his own lots would need to purchase these in an open market. The assessment can still be guided by community expectations and in the event that approval is denied, the accumulated credits can be transferred to a project that will get consent.