The best laid plans …

1. BRIAN HARATSIS

Managing director, MacroPlan.

Private economic and planning consultancy

The problem: We have to find smarter ways for the private sector to build cities, rather than planners and architects dreaming about the cities of our future. We are too prosperous now. The reality hasn’t hit us yet but if you look at the Intergenerational Report, by 2040 we are into deficit.

The deciding blow to our prosperity will come from the 40 per cent of our ageing population that is underfunded for its retirement. On retirement, this group wants to move to the regions where housing is affordable.

Updating public transport to handle higher densities may be self-defeating and expensive. We need to duplicate public transport underground in both cities. Density costs so much. Most people can’t afford to buy in inner-city Sydney or Melbourne today. If we improved public transport, none of us would afford it.

The solution: Start by linking Melbourne to Sydney via Canberra with a fast rail, then build another three or so Canberra-sized cities (500,000) along the rail line. Canberra grows to 1 million and every centre has an airport.

Why it works:

a. It provides cheaper housing in regions for underfunded retirees.

b. It accommodates the Australian preference for detached housing.

c. It builds the whole south-eastern seaboard into an economic hub.

d. It carries freight and passengers, improving logistics for businesses.

e. Technology, including the national broadband network, will make decentralisation succeed when it has failed in the past.

2. ANDREW MCLEOD

Chief executive, Committee for Melbourne, a

non-partisan membership organisation

The problem: Australia is being badly damaged by the negative image projected by our politicians. Melbourne in particular has been hard hit because education is its second-largest export. Nationally, offshore applications for student places fell by 23,000 in 2011. Economists estimate that every two students creates one job: 11,500 jobs lost. Australia is seen as an unwelcoming country.

The solution: Melbourne needs to understand its strengths, promote them and build its “brand”. For example, Melbourne is a hub of private philanthropy. The combined corporate social responsibility spend of Committee for Melbourne members alone is $1.5 billion. The top 100 companies spend $15 billion – the same as the entire UN budget.

Why it works:

a. Melbourne builds an international brand, like Geneva’s brand, as the hub of public philanthropy.

b. Sends a positive message about Australia and Melbourne to the world.

c. Gives Melbourne a slice of the action from every company: even if they have headquarters in Sydney, they can locate their philanthropic divisions in Melbourne.

d. Becomes a more attractive destination for the wives and families of chief executives.

e. Rebuilds knowledge-based export industries such as education.

3. LUCY TURNBULL

Deputy chairman, Committee for Sydney, a non-partisan membership organisation

Chair of COAG Cities Expert Advisory Panel

The problem: Like other cities, managing growth, affordable housing and social inclusion.

The solution: A change of attitude to growth and planning. You can’t shut the door to skilled migration, innovation growth and dynamism. Cities are not just places, they are really important economic and social systems vital to the health of the national economy. Consolidate local government along the lines taken by the government of Jeff Kennett in Victoria in the 1990s to simplify bureaucracy.

Why it works:

a. Changing attitudes at all three levels of government will bring stakeholders to the table and improve planning.

b. Allows Sydney to deliver on its strength as a provider of complex professional services – accounting, consulting, legal and finance – to the developing economies in China and other Asia-Pacific centres.

c. Rebuilds Sydney’s famous beach- and harbour-side lifestyle.

4. IAN WINTER

Executive director Australian Housing and Urban Research Institute

The problem: Cultural and political attitudes to housing are cramping our productivity. Tax concessions force people to prefer home ownership to other investments. That makes them less likely to move to where the jobs are, struggle to buy homes even when they cannot afford them or they have to travel for hours to work, and give up work if they make a motzer in property investment.

The solution: It’s difficult politically to change tax concessions, although they cost taxpayers $45 billion in 2006. Other possibilities include exchanging stamp duties for a land tax and rethinking the types of housing.

Why it works:

a. A land tax will slow the appreciation of the cost of land, improving affordability closer to work.

b. A report by the Grattan Institute shows we are building a 20 per cent-plus oversupply of detached housing in both Sydney and Melbourne and an undersupply of as much as 15 per cent in semi-detached housing. A better match will mean buyers have the choices they prefer, to stay within their budgets and other criteria.

c. Less house price speculation means people have to work to get rich.

5. ANDREW WISDOM

Principal and practice leader, planning, Arup Australasia

The problem: Companies and governments are not taking a holistic view when they make decisions. That means decisions can end up disadvantaging communities, the environment and the economy.

The solution: Involve all stakeholders in planning decisions at all three level of government. Make medium- and long-range plans rather than quick fixes.

Why it works:

a. Puts people and communities at the centre of decision-making

b. Considers the impact of decisions made for one stakeholder, such as businesses, on others, such as cultural organisations, and reduces the chance of adverse impacts.

c. Creates a sense of purpose and vision as communities work towards the goals they have determined.

d. Is a better use of resources. For example, Tonsley Park is a regeneration project at the 61-hectare former Mitsubishi manufacturing plant near Adelaide. Keeping the 11 hectares of roofing that covered part of the plant saves 90,000 tonnes of carbon emissions.

6. MARK STONE

Chief executive, Victorian Employers Chamber of Commerce and Industry

The problem: Undersell our strengths. Congestion on roads and public transport detract from freight efficiency and Melbourne’s most liveable city status. Too few direct international flights hamper strong and continued links to key trading partners, especially in Asia.

The solution: Invest in our current strengths – our strong skills base, especially bio-med and ICT; our container port, strong freight and logistics trade; our sporting culture and major events calendar; our restaurant scene, and network of public and private schools, hospitals, and universities; our big companies in banking, mining, telecommunications and transport.

Work harder to retain our most liveable cities status.

Build the East-West Link and metro tunnels, Avalon rail link to Melbourne and upgrade airport facilities.

Why it works:

a. More companies will come here to establish their corporate headquarters.

b. Links to key trading partners, especially in Asia, will improve.

c. Avalon will meet increased travel demands.

7. SIMON PRYOR

Director policy, infrastructure, Business Council of Australia

The problem: Strategic planning of cities ad hoc in the past but improving. A big infrastructure agenda is being led by Infrastructure Australia, which is excellent, but not enough projects getting to implementation stage. Productivity rates have been falling for a decade.

The solution: It is important for states to do long-term planning for population growth, economy and infrastructure investment, which is happening. Once IA has audited and prioritised projects, which must happen as soon as possible, state and federal governments need to co-fund and implement these projects.

Prioritise projects that will significantly improve productivity, such as freight and ports, after a cost-benefit analysis. Make the projects attractive to private investment so they will be funded and built quickly.

Why it works:

a. Productivity will quickly improve.

b. Cost-benefit analysis will determine most efficient way to spend large sums of money.

c. Construction activity will boost economy locally and nationally.

BRW

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