The several drafts of an earlier version of this article — AARGGGHHHH WHAT HE’S RESIGNED ARE YOU KIDDING ME — looked like one of those houses you used to see around the inner- or mid-city back in the great sharehouse days. You know the type. They’d started out as a California bungalow in the ’20s, with rubble piles for pillars. Then someone thought Roman columns would look good. At some stage the verandah was enclosed with post-war yellow brick to create an extra room. Then the thing had been faux-aluminium cladded. The living room was authentic ’20s; the kitchen was ’70s lemon yellow and sky blue. And so on. Then one day they were gone, knocked over, vacant lots waiting for the home of someone’s dreams. Or slab-tilt shoeboxes.
Why did a piece on the Andrews government’s new housing policy, now become his final flourish, turn into such a folly — a bit on audacious ambition here, an extension on neoliberalism there — before I decided to demolish the whole thing and start over? It’s because I couldn’t really accept what the plan represented. It’s the simultaneous enactment of ambition by a government that is really willing to make something happen.
And by that very process, it is a new and comprehensive assault on what remained of civic life and social democracy in what was once a place that had achieved both. With its removal of local planning powers on larger developments, it deals a killing blow to the idea that communities might shape where they live, while the vast sell-off of public land on which 44 housing towers sit removes any basis for new forms of land tenure in the inner city. Rainbow bulldozer? It’s a little more than that — some sort of P-flag six-storey solid rock tunnel boring machine.
With the promise — the promise — of 800,000 new dwellings in a decade, the plan looks audacious and ambitious. But it’s more like the sky-blue California bungalow, something arrived at by improvisation and patches on patches. The “planning” of Melbourne, Sydney and other capitals to a lesser degree over past decades hasn’t been anything you could realistically use that word for. In these two biggest cities, we’ve been caught in the federalism trap: our immigration policy and numbers have been set at a Commonwealth and federal level, with a bipartisan commitment to keeping the numbers hugely high. Dealing with these new arrivals, and their overwhelming preference for the biggest cities, has been left at the state level.
Thus our urban planning has been determined by the fiscal crisis/disjuncture of the state or states. What we really needed to do, decades ago, was match planning and urban development to demographics. That would have meant the development of long-term bipartisan plans — plans with 50-, 75-, 100-year arcs, taking in climate change and other factors as well as growth — with real investment in second, third and fourth CBD foci within our urban sprawl to create densification and public transport hubs. Instead, since the collapse of social democracy and the legitimacy of planning in the 1970s, we have put one extension on after another.
There’s no point getting into a lament about this. Even partial social democracy has been gone for half a century now, at least in urban planning matters. There was a lot wrong with it, and it discredited itself, as those 44 hulking towers on the horizon — simultaneously magnificent and ghastly — demonstrate. But in the last phase of genuine development planning, we had begun to incorporate processes of reflexivity and public involvement into the process of developing cities. It would be silly to uncritically praise the big planning era. What was proposed for Melbourne in the 1960s was hundreds of the towers we now have, with the inner suburbs eviscerated, and connected by dozens of freeways that were never built. The plan was hybrid: the freeways were in the service of capital, the tower proposals were part of a whole series of rather daunting, mildly utopian development proposals.
They were stopped by a massive social movement, a class alliance of inner-city working-class and proto-knowledge class that has ensured that Melbourne did not go the way of hundreds of American and British cities. But what was never developed was the “next plan”, one which would reflexively deal with the challenges of growth while incorporating the new thinking about cities — which was the old “unthinking”, that they should be on the ground, various, irregular, local, textured and layered. Instead, as states everywhere suffered mini-fiscal collapses in the late 1980s, urban development was handed over to the private sector, and genuine planning ceased.
That is the situation we have today, and in which the Andrews plan has been enacted. In a continued “public” era, we would have built whole new centres, real ones, at Werribee, Clayton etc, and with public involvement in the planning. Instead, we have allowed for a new sprawl that learnt nothing from the post-war one. Dan, with his usual chuzpah, muttered something a couple of months ago about how maybe building endless low-density estates on the ever-expanding urban edge wasn’t the best way to go. Oh, ya think?
Like everything, this was staged and less than honest. Labor has ruled Victoria for a generation. In that time it has permitted the worst sort of low-density carve-up going west and east — treeless, cul-de-sac private estates of detached homes, lacking centrality, topography, shops, civic offices, the lot.
The centre of these new placelessnesses is often as not a Woolies or the Dan Murphy’s car park. They’ve been allowed to develop this way for the simple reason that, before the recent change in political funding laws, Labor had to keep the developers sweet at all cost, lest they mount a campaign against them through the Liberals. It’s in the context of that absence, that failure, that this plan has taken shape. It’s not an audacious leap into the future. It’s a series of improvisations made to look as such.
Indeed, much of it is a plan led by PR, and the need to find an enemy for the housing crisis. This has come down to local councils, which is grimly hilarious. The flurry of stories in the press about the shiny new YIMBY movement was part of that push, recycling the same half-dozen stories of planning snarl-ups. Anyone want to hear about the great Nightingale height-limit refusal in Merri-bek (the Brunswick Soviet) again? Surely six times isn’t enough. The truth, as I and others noted, is that councils approve 90% plus of planning applications, that VCAT waves through 70% of the 5% or so that are disputed, and that the notion that six-month delays to a minority of applications is what’s creating a housing crisis is ludicrous.
In Victoria, it’s also an alibi. As a series of later YIMBY-critical stories in The Age and Guardian Australia made clear — there are clearly pro- and anti-factions slugging it out inside both publications — there are approved permits for more than 100,000 units floating around. There are also masses of land banking, with some rezoned areas lying undeveloped for a quarter of a century now. Why hasn’t the demand for new homes prompted a building explosion in which every permit and lot is used? It’s a funny thing to have to teach neoliberals about capitalism, but the point is that in a rocketing market the land and the permit is the main asset. You don’t need to build anything to make money. Indeed, there are disincentives to do so. All that expenditure, risk, project management? Why not let the blank lot simply appreciate? All the more so when there is a global shortage and price inflation of building supplies. And a grievous shortage of skilled tradespeople.
The tradies shortage! That’s where the Andrews government has really screwed up, and is trying to cover its tracks with council blaming. Long before COVID hit, Labor was walking the edge somewhat, running high deficits for big projects, to keep the state economy ticking over. COVID hit, and in the aftermath of lockdowns a redoubled effort was required. Keynes famously suggested that you get yourself out of a depression by digging a hole, burying money and tendering out the recovery of it as a way of keeping demand going. Victoria simply dug the holes and threw the money down it — West Gate Tunnel, Metro, North East Link, all with vast payments going to private contractors who passed on the vast wage bills resulting from cosy contractor-union arrangements.
Good luck to everyone working on these sites, and getting great wages, but the misallocation of human resources has been vast. From the level-crossing removal program on, this has been real Latin American banana-republic stuff, in which necessary programs have been wildly overextended as a sort of concrete propaganda. The Metro tunnel was largely a value-capture project, including handing Lendlease, as part of the Cross Yarra Partnership, the central city commercial block for which it has been angling for half a century, since it tried to demolish Flinders Street Station. The Suburban Rail Loop is the crowning glory — genuinely post-modern planning: an entity that will never exist as a rail loop, that was acknowledged as such from the start, but whose purpose is to create 16 “activity zones” exempt from any planning laws.
Now this mix of hapless and engineered crises have been yoked together to create a pretext for the double whammy: a comprehensive removal of local councils from key planning decisions, and a huge sell-off of inner-city public land under the pretext of removing the 44 towers. Whether all or only some of the towers need to go, in physical terms, is a matter for debate. But that’s beside the point. The real purpose is to get the proceeds from the land sales to help pay down the spiralling deficit. It’s not even an asset recycling program. It is fiscal shock doctrine treatment, administered by Labor itself.
Should this go ahead, it will be the final killing of public housing in Victoria, a “socialist left” government shooting well beyond many American and British cities in its neoliberalisation of the city. The “social and affordable” housing mandated in return for the public sell-off will be provisional, and, over time, dependent on the kindness of developers. Labor will say that they do this, because otherwise “the Tories” would do it anyway, and with less social trade-off. But what it really does is remove the major line of resistance against such moves from the right. Labor’s logic on this was the same during the great privatisations of the early 1990s. That’s what gave us the Qantas we have now. The “social and affordable” housing will be returned to the private market. We will end up, down the line, with Los Angeles-style homelessness, i.e. mass rough sleeping. The final exclusion of the low-income and the newly arrived will occur. Quite aside from the injustice to them, in terms of denied access to centrality, it will eventually make the inner city a dull, bland and monotonous middle-high-income place.
With a less sweeping, less compromised plan for urban transformation, of which more later, this could be the moment when a Labor government stages its Battle of Salamis against the final drive to the comprehensive privatisation of everything. We wouldn’t do public housing again, the way we did it last time ’round, but land is land, for God’s sake. Two-thirds of it is slated to be privatised. So it will all go eventually. There are myriad ways to keep it, and still let developers make out like bandits. Without it, that’s the end of “the social”. Using the need for council reform (which is genuine) as an excuse for disempowering any form of local community shaping is a demolition of democracy.
Hence, the efforts writing and rewriting an earlier version of this piece, one turned into a carve-up by an unwillingness to accept the clear evidence of what was being done to this city, this state, by a Labor government, its leader departing on it, and summoning the spirit of Labor as his justification. T’would have been better to stick with the sky-blue bungalow, and steadily remodel. Instead we’re promised the dream house and await the great vacancy.
This is an excellent article, and the counterbalance to certain other musings under this masthead that I was rather hoping for.
Something has gone on here, and though The Age has been probing at the margins, somehow I think they’re missing the bigger story. Originally when this was mooted, it was “everything’s on the table”, and they specifically said it was going to prompt a re-write of Plan Melbourne.
That led me to believe that there was likely a realisation at some level that the new zoning categories and the way they were applied were absurdly, generically restrictive and had been applied at a massive geographic scale across the entire metropolis.
For all the YIMBY banging on about heritage completely misses this infinitely bigger picture. Heritage laws don’t regulate the scale at a site can be redeveloped at. They only regulate how you need to treat what is required to be retained in any redevelopment. Whereas 70+ of the entirety of Metropolitan Melbourne is resticted under zoning laws to 2 or 3 storeys, but you barely hear zoning even mentioned.
A re-drafting of the zoning provisions and their coverage must SURELY have been somewhere near the top of the list, especially if you were putting a revised version of Plan Melbourne front and centre. All of the property industry lobby groups have had this front and centre in their policy sights for the best part of a decade.
So who pulled this off the table? Was there a barney at cabinet? Was there earlier pushback from local MPs? Were the public servants told not to touch it? If the strategy is to specifically address the concerns of milennial voters, does the “overdevelopment” bugbear still too universally spook too many horses that it was deemed not politically prudent to touch zoning? In the midst of the risy of “YIMBYism”, is everyone ACTUALLY a NIMBY at heart. As soon as one acquires a backyard, one can and will deny access … ?
One great historical benefits central Melbourne has is that it was built surrounded on 2 and occasionally 3 sides by floodplains – these places were initially treated as wastelands and eventually some low rise factories or docks or railway infrastructure was built there. There are literally dozens of acres of land in Fishermans bend, Arden-Macaulay, e-Gate, the Dynon Railyards, the remainder of the spencer street railyards, and the mother of the all – the rest of the docks area – which should have been devolved a full decade ago to Bay West and Hastings. No other city this size on earth is still shipping containers into and out the most valuable land in the city right next to its CBD.
But developers would take DECADES to do all that. So why not PUBLIC HOUSING on a scale not seen since the 1960s all over the joint. And the bits you sell to the private sector are forfeited if they haven’t commenced construction within a decade. Why not use all that greenfields land to do intergrated urban renewal on a scale rarely seen anywhere on earth? Well, I guess partly because acting strategically in planning is too often interpreted as evil REGULATION. And it’s one way in which you marvel at the extent to which the modern ALP seems so deeply beholden to the property or moreso as the article points out the construction industry, because it constantly speaks that employers-body type language.
And these are the ways in which supposedly dead neoliberalism lives as a zombie amongst us. “being pro planning regulations=nimbyism” is the unvarnished YIMBY discourse, and you hear this nonsense so often that you get to the point where you feel like the next generation don’t deserve to have people advocating for their housing interests.
The property lobby seem to have magicked a position from the government that it’s flatly never going to introduce any sort of mandatory inclusionary zoning in any dimension. Even though the policy has major currency in planning policy circles. Even though they’d already agreed to do this with City of Melbourne at Arden-Macaulay up until the final plans were gaztted. So the property lobby can shut that down in a trice, but they couldn’t get ANY movement on the toemic issue of zoning reform. So whatever pushed back was a large and immovable object. A real political heffalump.
As the article notes, taking councils out of the process for some approvals isn’t actually going to appreciably speed up the development pipeline, and it isn’t going to bring a single new development into that pipeline. My hope though is that it will actually see the people in DELWP actually develop some proper in-house capabilities for assessing development standards. At the moment Council policy is piecemeal and its quality is highly variable from borough to borough. If DELWP take the HIGHEST common denominator policy as a benchmark, there’s actually an opportunity to improve planning outcomes, but one that will no doubt actually not be seized because of course it hasn’t even been mooted.
And y’know … that’s evil REGULATION … government is not the solution to our problems, etc …
Enjoyed your read!
Ditto. And the article. Thks.
Zoning. Heritage. Development. Going by the (often) opaque goings on at my council, I am starting to think that there is easy money to be made by the controllers of planning procedure. And makes sense that it’s cheaaper to “influence” council than state government.
The government is certainly not the solution when it loads up the investment market at ground zero with insane fiscal policy distortions. The reason housing capitalism is not fit-for-purpose is because its DNA is not fit-for-purpose. The housing market has been poisoned over generations by cynical politics blunderinmg about with increasingly desperate transactional fixes that are anything but. In isolation the suite of bolted-on tax breaks, rebates, concessions, skewing incentives, cash injections and construction sector contrivances each have some merit, but the net impact has been fatal. The combination of CGT rebate, unlimited negative gearing, SMSF investment options and first home entry mechanisms has been throughly deconstructed, but all this is now being exacerbated at the investment macro level in an idiotic State attempt to do the f**king impossible: force scale capital investment to flow to places where it can’t make the biggest available buck.
Again and again and again it needs to be said that the private sector, and only the private sector, builds houses. The end. It doesn’t matter how governments frame it, every single scale social and affordable housing project is going to be competing for investment, labour and materials in the one housing market. You can scream at governments all you like to ‘build social housing’ but the housing investment market doesn’t care. It now operates to a set of artifically-high margin demands that has become so systemically internalised that it’s not just regarded as an operational default by ‘a*sehole developers’…it is effectively one. The policy-skewed supply-and-demand metrics are now deeply priced into the entire edifice: no-one in the housing supply chain can afford to ‘build social and affordable housing’. Not the property developers, not the banks, not the building project insurance sector, not the superannuation schemes that park your retirement money in property, not the suppliers, not the contractors, not the labour hire firms or the real estate satellite industries. Our housing construction sector is paralysed by the accumulation of nearly three decades of truly destructive government policy incompetence and short-term political opportunism.
A few days ago I was sitting in a cafe in King’s Cross with a care client. At the table next to us, a property developer was pitching his tale of woe to another bloke, clearly a government go-between, maybe a lobbyist. The property developer’s predicament went like this: he’s sitting on a – rare, these days – decent sized inner city property which is ideal for medium to high density apartments. He’s had approval from Randwick Council to build them for a few years; the project was planned and designed (using his own staked capital investment, probably $3-$5mil say, I dunno) and he’d even provisionally lined up scale capital investment. His ‘problem’ is that the project is for under 50 dwellings. That means it misses out on the new(ish) NSW government Build-To-Rent 50% land tax and foreign investment review exemptions that a Harry Tribuboff or a Lang Walker can access for their massive projects out in the sprawling, unserviced greenfields. Too bad so sad, you say? Sure, he’s an entitled wan*er so hah-hah-hah, comrade, your unearned profit will only be half of X squillion, rather than the full neo-feudal return. Except that it means that when he is competing in the construction sector marketplace for investment money, for building contractors, for skilled labour, for supply chain priority…he – that is, his project, the one that was going to supply the inner city market with relatively affordable little flats that aged carers like me might be able to live in, a bit closer to our clients so we can provide them with better care (and live a life) – gets shunted down the capitalist viability chain that little bit more. Because being a capitalist chain, it’s all about relative bankability, at all parts of the supply chain, all the way down to the eventual buyer/renter. So the fiscal risk to him, the very first part of that ‘build affordable houses now!’ supply chain – and remember he is ‘out’ $3-5 million already – got that little bit more daunting. The thing that was supposed to incentivise what his project is seeking to do has made it less viable. (Profit is a relative incentive metric, OK?) So…he’s pulled the pin on the project, and is waiting to see what the new government does with that particular policy. He is sitting on that highly bankable land (and development approval!), hoping ‘the government’ might…yes, ya, ‘regulate’ some more. Bolt yet another policy onto the marketplace to have capitalism chase its own viability tail a bit more uselessly. He wants the same BTR exemptions that the big builds get, say. Well, Harry and Lang have their projects in the pipeline too, and you can bet they’ll have something to say about that, too. And so it goes: ‘governments’ trying to ‘regulate’ the un-regulatable: the flow of capital into and within an already ruinously distorted supply-and-demand marketplace that is stricken with a multitude of contradictory and competing – paralysing – political un-fixes.
The issue isn’t greed, as such. It’s relative sustainable viability (greed is operationally intrinsic to all capitalism; that’s the turf you’re competing on). There’s a reason so many mid-market building sector players are going bust, right? There’s a reason land owners are banking it rather than developing it. There’s a reason the supply chain isn’t building housing stock that people want and need to buy and rent in places where it’s most wanted and needed. That reason is because…well, yes. An accumulation of ‘evil’ regulations – which include truly evil fiscal policy – from governments that, yes, are not and have never been the solution to making housing capitalism work ‘better’. Starting with, and the dismal consequences of which remain primarily the responsiblity of, that of John Winston Howard. A lying cynic who history will record destroyed Australia’s domestic economy in order to seek revenge on a Liberal Party and a socially conservative political philosophy that had recognised him from day one of his political career as a nasty little impostor.
Worth considering and re-reading, much more than the article which, however, does make one wonder…
How do you define ‘commenced construction’ ?. How do you demand anything meaningful ?.
Conservatives enable backsliding because they are ‘contributors’.
It’s unbelievable. A total getting out of Public Housing in the state with the least amount. Social Housing is not Public Housing.
The laughable thing about the Council planning functions is that they are a result of the State Government’s Planning Act and Victorian Planning Provisions that Councils are obliged to administer on the States behalf. The Minister for Planning has to approve any rezoning, hence the reason the big developers are such enthusiastic political donors, heaven forbid the community should have any agency.
With Andrews departing, and Scummo refusing to piss off from the back bench, I thought GR might have taken the time to compare and contrast the two.
Things like: both totally rejecting transparency and accountability;rejecting the norms of cabinet government and centralising power in their own offices; refusal to answer questions and being aggressively belligerent to the media; using the public purse as a pork barrel to retain power; not following announcements with actions; contempt for inquiries; use of inquiries as an excuse to not answer questions because it would be “inappropriate to do so while the inquiry is being conducted”; sheer ruthlessness; and the concept of good governance coming second to the maintenance of power.
But thanks to GR for pointing out the reason we have a housing crisis is because “our immigration policy and numbers have been set at a Commonwealth and federal level, with a bipartisan commitment to keeping the numbers hugely high. Dealing with these new arrivals, and their overwhelming preference for the biggest cities, has been left at the state level.” It is refreshing to hear an opinion writer actually state the bleeding obvious.
“our immigration policy and numbers have been set at a Commonwealth and federal level, with a bipartisan commitment to keeping the numbers hugely high. Dealing with these new arrivals, and their overwhelming preference for the biggest cities, has been left at the state level.” It is refreshing to hear an opinion writer actually state the bleeding obvious.
And it has long been obvious that the States and Feds should have been sitting down to discuss what would be feasible immigration numbers based on capacity to receive and accommodate new arrivals.
No, our ‘immigration’ now in public narratives has includes temporary residents of 12/16+ months (since 2006), sweeping up international students, who are not eligible for public or social housing, especially since the overwhelming majority depart…. ‘churn over’ not permanent migration.
One would suggest that most Australians, especially middle aged and older are ‘bread heads’ who keep an eye on their house prices, do not like decline in value, hence, implicit in being less than supportive of more state investment in public &/or social housing; stark in regions on zoning that precludes shared or small blocks for affordable housing.
You are remarkably dishonest.
While it is true on an individual basis, that international students (usually) leave eventually, they are replaced by more. The total number of international students in Australia has been steadily rising from ~250,000 in 2003, to ~600,000 today.
And the fact they are not eligible for public or social housing is laughably irrelevant.
You sail remarkably close to defamation, bit like MB, easier to shoot messengers than offer analysis?
Very easy to shoot down anything when nothing is offered, playing the devil’s advocate and ignoring future trends i.e. permanent population ageing and decline.
One presumes you have maths science literacy if a medico? Question, why are our old age dependency ratio trends (permanent population), according to the OECD, ever increasing? Because of increasing longevity amongst oldies and the two decade Baby Boomer ‘bomb’ is transitioning to retirement…. (while the ABS doesn’t even seem to offer the same essential metric or analysis?)
What happens when people retire then become aged? They need support of budgets via PAYE etc. tax, when working age is in decline (yet inflated by NOM churn), the outcome or solution? Increase taxes for working age, tighten means & assets with super rebates too, or decrease services and delivery?
Very easy to shoot down or denigrate anything when nothing is offered, playing the devil’s advocate and ignoring future trends i.e. permanent population ageing and decline.
One presumes you have maths science literacy if a medico? Question, why are our old age dependency ratio trends (permanent population), according to the OECD, ever increasing? Because of increasing longevity amongst oldies and the two decade Baby Boomer ‘bomb’ is transitioning to retirement…. (while the ABS doesn’t even seem to offer the same essential metric or analysis?)
What happens when people retire then become aged? They need support of budgets via PAYE etc. tax, when working age is in decline (yet inflated by NOM churn), the outcome or solution? Increase taxes for working age, tighten means & assets with super rebates too, or decrease services and delivery?
LOL. You are predictable as you are shameless. When one disingenuous misdirection is pointed out, shift to another.
Maximum firepower, well aimed. For once I agree with you on housing. Worth the rewrites. The misdirected wages and tender gouging on the big public works projects has been breathtaking.