Please note: This is an extract from Hansard only. Hansard extracts are reproduced with permission from the Parliament of Western Australia.
METROPOLITAN REDEVELOPMENT AUTHORITY BILL 2011
Second Reading
MR J.H.D. DAY (Kalamunda — Minister for Planning)
[12.30 pm ]: I move —That the bill be now read a second time.
The purpose of this bill is to establish a new Metropolitan Redevelopment Authority, known as the MRA, to
undertake redevelopment projects in suitable areas within the Perth metropolitan area. Traditionally
redevelopment authorities have been created by statute to coordinate and facilitate the redevelopment of areas
where complex planning considerations apply and where there is significant state land ownership. Currently
there are four redevelopment authorities operating in Western Australia with powers and functions applying to
Armadale, East Perth, Subiaco and Midland. Each authority operates under its own act and has both planning
and development powers, although each act provides a slightly different statutory framework. Two
redevelopment acts that do not constitute redevelopment authorities are also in force, applying to Hope Valley–
Wattleup and Perry Lakes.
By rationalising and restructuring the multiple statutory frameworks, the proposed bill will create greater
efficiency and consistency for state government priority projects, and certainty for investors who are considering
new ventures in important economic infrastructure, industrial development and urban land and housing.
Reduction of the duplication of functions may not only create an opportunity for cost saving and maximising
returns to government on behalf of the community, it will facilitate achieving other benefits in line with the
Liberal–National government’s commitment to ensuring that economic growth and activity in Western Australia
are not unduly hindered by duplicative or inefficient regulation.
The key elements of the bill include repealing the acts that constitute the Armadale, East Perth, Midland and
Subiaco Redevelopment Authorities; facilitating the transfer of assets, rights and liabilities of each of the
existing authorities to the MRA; and streamlining the legislative requirements applicable to redevelopment areas.
Upon commencement of operations, the MRA will take over each of the existing authority’s ongoing
redevelopment projects. The MRA will also be responsible for the delivery of the Perth Waterfront project.
The establishment of the MRA will retain the benefit to the state of the facilitative, flexible redevelopment
authority model, which has a strong track record of attracting investment and providing a high level of investor
certainty to support private development. This will allow the continued creation of successful and sustainable
communities incorporating new residential and commercial opportunities, public open space, and supporting
infrastructure, which will result in benefits to local communities and to Western Australia as a whole.
The bill is organised into 11 parts. I will now take members through the key parts.
Part 2, “Metropolitan Redevelopment Authority”, establishes the MRA as a body corporate that is an agent of the
Crown, and sets out its functions. The primary function of the MRA is to plan, undertake, promote and
coordinate the development of land in redevelopment areas in the metropolitan region, and it is empowered to do
the things it needs to carry out that function, including powers over land. It will also be able to exercise certain
limited functions outside a redevelopment area, restricted by the approval of the Governor and the terms of any
delegation from the Western Australian Planning Commission. The MRA will be required to exercise its
functions in accordance with business and operational plans, which will be approved by the minister and the
Treasurer.
Part 3, “Land Redevelopment Committees”, establishes land redevelopment committees for each redevelopment
area. One LRC may be established for one, or more than one, redevelopment area. The land redevelopment
committee model will enable community and local government involvement in the development and delivery of
redevelopment projects. As committees of the MRA, LRCs will be allocated resources to individual
redevelopment projects as circumstances require. LRCs will be able to focus their attention and expertise on
exercising their delegated functions, rather than on administrative concerns, which will be undertaken by the
central MRA. The decision as to allocation of responsibilities and resources to LRCs remains with the MRA
board at all times.
Part 4, “Redevelopment areas”, deals with redevelopment areas which will be established and varied by way of
regulation, subject to robust consultation and transparency requirements. Regulations establishing or varying
redevelopment areas will be able to be made only after consultation with the WAPC and affected local
governments. As is always the case, regulations are disallowable instruments that are required to be tabled in
Parliament. In addition to these consultation and transparency requirements, the minister is also required to table
a statement in Parliament setting out the reasons for declaring an area. If the minister’s decision in relation to
redevelopment area regulations is significantly different from a recommendation of the WAPC, further tabling
and publication requirements apply.
Part 5, “Redevelopment schemes”, sets out provisions regarding the MRA’s capacity to establish redevelopment
schemes containing planning controls for redevelopment areas. Redevelopment schemes will have to be
consistent with the objectives of the area, and can only be made following consultation with the WAPC, affected
local governments, relevant stakeholders, and the public. The Environmental Protection Authority will also
assess draft schemes and may require further environmental review in light of any identified issues. Again, if the
minister’s decision in relation to a redevelopment scheme is significantly different from a recommendation of the
WAPC, further tabling and publication requirements will apply. Once a redevelopment scheme is approved by
the minister and published, it will override the underlying local and regional planning schemes. When a
redevelopment scheme is repealed, those underlying schemes will come back into operation.
Part 6 deals with development control in redevelopment areas. Once a redevelopment scheme is in place, the
MRA will determine applications for development within the area. If the MRA is the development proponent, or
has a financial interest in an application, the minister is the determining authority. Decisions on a development
application will be made with regard to the applicable redevelopment scheme, the objectives of the
redevelopment area, and any public submissions that have been received on the application. A refusal of a
development application or the imposition of unacceptable conditions will give the applicant a right of review by
the State Administrative Tribunal.
Part 7, “General administration of authority and LRCs”, provides that the governing body of the MRA is a
seven-member board. Those members are to be appointed by the minister. One is to be a WAPC member
nominated by the WAPC, and one is to be a person with a local government background. The other five are to be
persons with relevant qualifications, which include knowledge of and experience in planning, business
management, property development, financial management, engineering, transport, housing or community
affairs. Land redevelopment committees will have five members, also appointed by the minister. At least one,
but not more than two, members are to be members of the MRA board. There is to be at least one member with a
local government background. The others are to have relevant qualifications, which are the same as relevant
qualifications for board members. This part also contains standard provisions dealing with the constitution and
procedures of the board and LRCs, and provisions requiring certain interests to be declared.
Part 8, “Accountability and financial provisions”, contains reporting and accountability provisions to ensure the
MRA’s operations are financially robust and subject to an appropriate level of general government scrutiny. The
MRA will be required to prepare and submit to the minister business and operational plans. When these plans are
approved by the minister, with the concurrence of the Treasurer, they will form a blueprint for the operational
decisions to be made, and directions to be taken, by the MRA.
Part 9 contains the miscellaneous provisions associated with the MRA’s operations. It deals with the tabling of
matters in Parliament, the execution of documents by the MRA, the application of certain laws, and other
matters. A review of the act will be required under part 9 as soon as practicable five years after the act
commences.
Part 10, “Repeals, consequential amendments and validations”, repeals the existing redevelopment authority
legislation and contains other consequential amendments.
Finally, Part 11, “Transitional provisions”, relates to the abolished redevelopment authorities, and has the effect
that all of the assets, rights and liabilities of an existing redevelopment authority are transferred to the MRA on
the commencement of the act. It provides for a seamless transition by stating that any reference to an existing
authority in a contract, agreement or other instrument is taken to be a reference to the MRA after
commencement. This part also deals with the transfer of employees and contractors to the MRA on the same
terms and conditions as their existing employment. Differences between the existing four acts mean that there is
now divergence between the employment conditions of staff of each authority. The bill provides for continuation
of service on existing terms and conditions for these staff. In some instances, employment contracts will be
extended for an extra six months to ensure that staff now working under contract are not disadvantaged relative
to other redevelopment authority staff because of the timing of the commencement of the new act.
In conclusion, this bill builds on the strengths of the existing redevelopment authority model by building in
flexibility, enabling resources to be deployed to projects as required, and removing duplication of functions. It
will enable the redevelopment of strategic sites in inner Perth and the outer growth sectors through a coordinated
program that will build Perth’s capacity and increase intensity and activity in the metropolitan area. Ultimately,
it will increase the potential of the redevelopment authority model to address our urban growth needs and
challenges within a robust governance and accountability framework. It supports the key aim of Directions 2031
of ensuring that our metropolitan areas are able to respond in a sustainable way to longer term growth pressures.
I commend this bill to the house.
Debate adjourned, on motion by
Ms R. Saffioti.