Tassie losing big works battle

IT is the battleground on which the next state election may well be fought: Is Tasmania open for business?

Whether it is a difficult investment environment, red tape, green tape, NIMBYs or planning delays, the state is dotted with major projects taking years to get off the ground.

Hobart's Myer development, Parliament Square, Pumphouse Point ... the list goes on.

The $2 billion Gunns pulp mill project is testament to the state's sometimes uncanny knack for failing to get a major project from concept to reality.

Liberal Leader Will Hodgman pins the blame for the high number of stalled projects on the Government.

"Only the Liberals have a plan to create a simplified, single statewide planning system, a plan to cut the red and green tape that is holding these projects back," he said.

Premier Lara Giddings said the State Government was committed to maintaining an attractive investment environment.

She said Tasmania enjoyed the lowest land costs, the lowest business licensing costs and the lowest tax burden of any state.

"The vast majority of major projects awaiting construction already have all the necessary planning approvals in place," she said.

"Difficulty obtaining finance is the most significant hurdle that any project faces."

Ms Giddings's office provided a list with $1.4 billion of developments now under way – 72 per cent of which are funded by the government sector.

Tasmanian Industry Group executive director Daniel Leesong said developers needed a great deal of patience to see their projects through.

"There's no doubt the issue around potential for sovereign and government risk – political risk is very apparent within Tasmania," he said.

"You can see that in a number of developments that have been frustrated either through vexatious appeals or through political intervention, which hasn't been particularly helpful.

"Parliament Square is probably the best example.

It's gone through all the necessary approvals.

It's investment-ready, but then gets stalled through what can only be described as people trying to use the system to stop developments that are ready to go."

Property Council of Australia executive director Mary Massina said green and red tape, and duplication between levels of government, were big issues.

"The planning issue is a major one, and if you look at environmental or heritage assessments – that process is quite lengthy," she said.

"The planning malaise is really a large one."

Ms Massina said Tasmania had to work harder to get the results it needed to have a strong and vibrant economy.

"Even if you were to look at it in terms of attracting mainland investors – whether they want to buy a home or a shack, let alone pulling major developments – you have to look at your market and your tax and planning regimes and your infrastructure and at how competitive we are with other jurisdictions," she said.

"Our market is smaller than the likes of Melbourne or Sydney or Brisbane so when we need to attract investment we have to be more flexible and nimble on our feet and go over and above in terms of providing economic development policies."

Tasmanian Chamber of Commerce and Industry chief economist Phil Bayley said planning wasn't entirely to blame.

"Tasmania, in a lot of cases, can be one of the quicker jurisdictions.

One of the problems we've identified is that appeal rights are available to a much wider group of people than in other jurisdictions.

"Confidence in the Tasmanian economy is holding back projects.

"When you overlay challenges like planning, people look at it and think it's too hard."

STATE OF PLAY

MYER REDEVELOPMENT
$100 MILLION
DELAYED

Hobart's Myer department store was destroyed by fire in September 2007.

The proposed redevelopment is not expected to reopen for shoppers until Christmas 2014.

The Mercury this week reported the latest hold-up is due to wrangling over the cost of water and sewerage connection.

PARLIAMENT SQUARE
$100 MILLION
DELAYED

First announced in 2008 the redevelopment has been delayed by a series of planning appeals which aimed to save the state office block at 10 Murray St from demolition.

Construction on the project is tipped to start before Christmas and be completed over four years, providing 400 direct and indirect jobs.

PARANVILLE
$900 MILLION
DELAYED

Construction of a $900 million Eastern Shore housing development is hoped to begin by the end of this year.

About 2000 new residents are expected to eventually settle on the 158ha rural site near Clarendon Vale, slated for the suburb of Paranville.

The development is a key part of the state's push into Asia by attracting hundreds of mainly Korean language students and migrants.

MT WELLINGTON CABLE CAR AND VISITOR CENTRE
$40 MILLION
SLOWED

Investors and manufacturers are lined up, but project is awaiting approval from Wellington Park Trust and State Government.

Proponent Adrian Bold has been pursuing the project for two years.

Mr Bold says the project is ready to proceed as soon as approvals are gained and could be built in just 18 months, but he expects to spend another two or three years in the planning process.

SEVEN MILE BEACH GOLF DEVELOPMENT
$15 MILLION
SLOWED

Professional golfer Matt Goggin is seeking to develop two courses on 300ha of land on the eastern side of Seven Mile Beach.

The plan involves the construction of one or two public golf courses and a clubhouse, estimated to cost between $10 million and $15 million.

The project is bogged down in the planning process and is proceeding slowly.

SPRINGS VISITORS CENTRE
$3.5 MILLION
ON HOLD

Robert Morris-Nunn first came up with the plans for a visitors centre at the Springs response to a Hobart City Council request in 1999.

The project is ready to proceed but stalled awaiting funding for infrastructure works.

NORTHERN SUBURBS LIGHT RAIL
$100 MILLION
STALLED AND UNFUNDED

A high-level task force has been established to chase federal government funding.

Project faces critical deadline in upcoming round of Infrastructure Australia grants.

Coalition has indicated a reluctance to fund urban passenger rail projects.

BROOKE ST PIER REDEVELOPMENT
$10 MILLION
PROGRESSING

Delayed in the planning process, the Hobart development is back on tracks after a funding agreement between government and proponents.

AIRPORT SHOPPING CENTRE
$100 MILLION
ABANDONED

Planned $100 million retail outlet near Hobart Airport that was abandoned due to inability to secure investors.

The Hobart Capital + Home factory outlet and homemaker centre at Mornington would have created 700 jobs.

david.killick@news.com.au

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