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It would not be an overstatement to say parts of Greater Sydney are experiencing unprecedented growth. Addressing the shortage of housing has been identified as a key priority of the NSW Government. On the latest population projections, the state will need more than 900,000 new homes over the next two decades, including many in regional areas.

But what pressure is this trend placing on communities? Are local councils equipped to deal with development on such a scale? And what are the risks that come with meeting the undeniable need for more housing?

Professor Carol Mills is Director of the Centre for Local Government at the University of Technology, Sydney. She says the current model does not reflect contemporary needs because reform has only happened in patches.

“The fragmentation of responsibilities under the current regulatory system (does not) make it easy,” she says.

‘Dysfunction and maladministration’

Last week, the NSW Government announced a public inquiry into Liverpool City Council, over what is described as “serious concerns about widespread dysfunction and maladministration.”

Mayor Ned Mannoun said he had asked for an inquiry, but he criticised plans to suspend the council, saying it limits the ability of the council and elected officials to respond.

Mills says this is not the first time the government has intervened in this way.

“How many times do you do that before you think, this is actually a systemic issue?” she says.

“What we’ve got is a model that we intervene when there’s been a problem, but we haven’t yet got a model that takes the lessons from those councils and works out, how do we build a more sustainable system and a more realistic system to deal with the expectations…”

“Local government is meant to be central to housing provision but is not well geared to do that in a lot of ways.”

Councils face growing expectations but are financially constrained by rate capping and sometimes struggle to recruit for key roles.

Credit for recent changes

Mills credits the government for a number of recent initiatives, including the Transport Oriented Development (TOD) Program, which will rezone land within 1200 metres of eight transport hubs, for high and mid-rise housing.

There will also be new planning controls in a further 31 locations under the TOD Program, to allow for more mid-rise housing and mixed-use development.

But Mills says there is another fundamental issue at play.

“How much say can and should a local community have over something that has a broad economic and social impact?

“I don’t have an answer to that, because I think local involvement is really important, but we do see blockages caused by people’s concerns about changes to their traditional communities and we have to find a way to find the balance between those concerns and the needs of the wider community.”

Lifting expectations

Mills says a series of scandals involving shoddy building work, means people’s expectations of new development are often low.

But she says a more unified set of arrangements between the NSW Government and councils, could change those perceptions.

“Giving people a picture of more than just a high-rise being developed but actually what a community might look like.”