Page 310 - Week 02 - Tuesday, 1 March 1994
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NORTH WATSON RESIDENTIAL DEVELOPMENT
Report and Ministerial Statement
MR WOOD (Minister for Education and Training, Minister for the Arts and Minister for the Environment, Land and Planning): Madam Speaker, for the information of members, I present an independent economic assessment of residential development in North Watson compared with a greenfields site, which was prepared by Access Economics Pty Ltd. I ask for leave to make a short statement.
Leave granted.
MR WOOD: Madam Speaker, as recommended by the Standing Committee on Planning, Development and Infrastructure in its report on the draft variation for North Watson, an independent economic analysis of the North Watson proposal compared with an equivalent greenfields site has been undertaken. The Government engaged consultants Access Economics to undertake the report and, as recommended by the standing committee and agreed by the Government, the report is now available to be tabled within the disallowance period for the variation to the Territory Plan to allow residential development at North Watson. Access Economics are a highly regarded company, and the Government's decision to engage them has been supported by members of the Standing Committee on Planning, Development and Infrastructure.
Access Economics have concluded that there is a significant saving for the community in developing North Watson, compared with an equivalent greenfields site. The report states:
Adequate capacity in the social infrastructure in adjoining areas produces significant savings in the economic costs of urban infrastructure compared to a greenfields project. The cost savings analysis takes account of the significant differences in both the timing and the level of the capital expenditures in North Watson compared to a greenfields development. This includes the possibility that North Watson will bring forward the City West sewer augmentation and the reality that slower greenfields development will not allow full pro rata deferral of infrastructure spending. The analysis shows that there is a significant saving in net present value terms by now developing North Watson and deferring greenfields developments in the range $6 million and $8.6 million.
Access Economics has also undertaken a cost-benefit analysis that takes a wider view of the project, going beyond direct cost, beyond capital costs and taking into account third party costs. The Access Economics report concludes that the dominant factor in the cost-benefit balance sheet is the large infrastructure cost savings from North Watson versus greenfields. This is a significant benefit to the whole ACT community. In undertaking their analysis, Access Economics has had the opportunity to investigate thoroughly the claims and counterclaims of both the Government and the Watson Community Association. Indeed, not only have they had access to relevant documentation presented to the Planning, Development and Infrastructure Committee; they have also held discussions with representatives of the community association, relevant Government officers, and other consultants engaged to provide advice on the North Watson development proposal.
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