Landowner policy must be scrapped

Removing dwelling rights is both an outdated and inadequate policy. Why look back, when looking forward offers far better outcomes, asks John Keating.

Well-founded fears: Applying for a planning permit has become a lottery and the process costs can be an expensive gamble.

THE proposal to remove existing rights to building a dwelling in farming zones within 100km of Melbourne on land areas of 40ha or more is bad retrospective policy and should be scrapped.

The genesis of the proposal is the policy change 15 years ago that allowed councils to refuse planning permits for dwellings on land under 40ha in rural areas.

The then minister for planning Robert Hulls used his reserve powers to translate the former rural zones to a new Farm Zone without public consultation, on assurances given to him by local Councils that there would be no unintended consequences.

The Farm Zone was therefore introduced by stealth, by a planning scheme amendment that was not publicly exhibited or its negative effects advised to the community, denying affected landowners natural justice.

Subsequent highlighting of the negative effects of the new Farm Zone were dismissed by the minister as scaremongering. They were not.

Landowners fears were well-founded and have been validated.

Applying for a planning permit has become a lottery and the process costs of $15,000 to $25,000 is a very expensive gamble.

Across the Macedon Ranges Shire most of the beautiful visual tapestry of the whole rural landscape that local residents and day tripper tourists all love and enjoy has been created over the past 50 years.

It is a consequence of the many architecturally stylish residential and farming infrastructure developments and extensive tree plantings and landscaping undertaken by those who have been allowed to build dwellings.

Wherever dwellings have been allowed there is compelling evidence that the farm land has been better managed and there has been more agricultural production from varied farming activities by owners who in the main want to adopt best farming practices.

Besides housing accommodation needs being provided for, local communities have also benefited by having more residents to sustain local shopping centres and schools etc.

Overall the positive contributions to the community have outweighed any minor negative detrimental impacts.

If farming land areas greater than 40ha are not allowed to be built on, land values will be reduced by 50-80 per cent.

For example, in the Macedon Ranges area the value of 45ha that currently has existing rights for the building of a dwelling varies from about $750,000 to $1.5m depending on its location, soil quality, water availability, views and ambience etc.

If the same 45ha is not allowed a dwelling permit, its commercial farming value will be about $3500 to $7000 per hectare depending on how it can be farmed, or $157,500 to $315,000 being about an 80 per cent fall in value.

Under the Planning & Environment Act 1987 the first objective of planning in Victoria is ‘To provide for the fair, orderly, economic and sustainable use and development of land.’

● John Keating has been a real estate agent in the Macedon Ranges for more than 50 years

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