RIS – Proposed Western Sydney Parkland Regulation 2013
REGULATORY IMPACT STATEMENT
Draft Western Sydney Parklands Regulation 2013
under the Western Sydney Parklands Act 2006
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RIS – Proposed Western Sydney Parkland Regulation 2013
Contents
Contents .................................................................................................................................................. ii
1
Introduction................................................................................................................................ 1
1.1
1.2
1.3
1.4
2
Regulatory Impact Statements...................................................................................... 1
Regulatory Approach - General Overview..................................................................... 2
Better Regulation Principles .......................................................................................... 2
Report Structure ........................................................................................................... 2
Background ................................................................................................................................ 4
2.1
2.2
2.3
Western Sydney Parklands............................................................................................ 4
Functions of the Trust ................................................................................................... 6
Values of the Western Sydney Parklands ..................................................................... 7
2.3.1
Cultural values and activities .............................................................................. 7
2.3.2
Recreational activities ......................................................................................... 8
2.3.3
Amenity (including safety) .................................................................................. 9
2.3.4
Environment ........................................................................................................ 9
2.3.5
Heritage ............................................................................................................. 10
2.4
Quantifying the Values of the Parklands ..................................................................... 10
2.4.1
Introduction ...................................................................................................... 10
2.4.2
Commercial values associated with the Parklands ........................................... 11
2.4.3
Travel costs– valuing amenity and recreation use ............................................ 12
2.4.4
Environmental values ........................................................................................ 14
2.4.5
Heritage ............................................................................................................. 14
2.4.6
Summary ........................................................................................................... 15
3
Legislative Background ............................................................................................................. 16
3.1
3.2
3.3
4
The Proposed Regulation ......................................................................................................... 18
4.1
4.2
4.3
5
Background ................................................................................................................. 16
Western Sydney Parklands Regulation 2007 .............................................................. 16
Implication of ‘No Regulation’ .................................................................................... 17
Developing the Regulation .......................................................................................... 18
Modifications to the Western Sydney Parklands Regulation 2007 ............................. 18
Stakeholder Issues ...................................................................................................... 20
Options to Achieve Objective ................................................................................................... 21
5.1
5.2
Objective of the Proposed Western Sydney Parklands Regulation 2013 .................... 21
Consideration of Options ............................................................................................ 21
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RIS – Proposed Western Sydney Parkland Regulation 2013
5.2.1
5.2.2
5.2.3
6
Option 1 - No Regulation................................................................................... 21
Option 2 – Remake the Current Regulation ...................................................... 21
Option 3 - Proposed Regulation ........................................................................ 21
Costs and Benefits .................................................................................................................... 22
6.1
The base case – No Regulation ................................................................................... 22
6.1.1
Costs .................................................................................................................. 22
6.1.2
Benefits ............................................................................................................. 23
6.2
Option 2 – Current Regulation .................................................................................... 24
6.2.1
Costs .................................................................................................................. 24
6.2.2
Benefits ............................................................................................................. 24
6.3
Option 3 - Proposed Regulation .................................................................................. 24
6.3.1
Costs .................................................................................................................. 24
6.3.2
Benefits ............................................................................................................. 24
6.3.3
Key assumptions ............................................................................................... 25
6.4
Summary ..................................................................................................................... 26
7
Conclusion ................................................................................................................................ 27
8
Consultation ............................................................................................................................. 27
9
References ................................................................................................................................ 28
10
Glossary .................................................................................................................................... 29
11
Appendix 1 – Comparison with similar regulations.................................................................. 30
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RIS – Proposed Western Sydney Parkland Regulation 2013
Abbreviations and Acronymns
CBA
Cost Benefit Analysis - a comparison of the economic benefits and costs to society of
a policy, program, or project.
NPV Net Present Value - the current value of net benefits (benefits minus costs) that
occur over time. A discount rate is used to transform future benefits and costs to
their present time equivalent.
PV
Present Value – the current value of expected future cash flows
RIS
Regulatory Impact Statement
WSPT Western Sydney Parklands Trust
Prepared For the Western Sydney Parklands Trust by Arche Consulting Pty Ltd.
T + 61 0421 274076
Level 23, Tower 1
520 Oxford Street
Bondi Junction NSW 2022
www.arche.com.au
Disclaimer:
This report was prepared by Arche Consulting Pty Ltd in good faith exercising all due care and
attention, but no representation or warranty, express or implied, is made as to the relevance,
accuracy, completeness or fitness for purpose of this document in respect of any particular user’s
circumstances. Users of this document should satisfy themselves concerning its application to, and
where necessary seek expert advice in respect of, their situation.
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RIS – Proposed Western Sydney Parkland Regulation 2013
1
Introduction
The Western Sydney Parklands is a large multi-use urban parkland for the region of Western Sydney.
The Western Sydney Parklands Act 2006 (the ‘WSP Act’ or ‘the Act’) established the Western Sydney
Parklands and the Western Sydney Parklands Trust (the WSP Trust or ‘the Trust’).
The WSP Act set out the boundaries of the Parklands and establishes a Trust which has various
management functions in relation to the Parklands to achieve the objectives of the Act. The Act
commenced on 1 January 2008.
The WSP Trust is responsible for the strategic planning, development and management of the 27
kilometre long Western Sydney Parklands corridor. The Trust is also responsible for the strategic
planning for the 5,280 hectares of the Western Sydney Parklands.
The Department of Premier & Cabinet intends to make the Western Sydney Parklands Regulation
2013 (the Proposed Regulation) to replace the Western Sydney Parklands Regulation 2007 (the
Current Regulation) which is due to be repealed under the provisions of the Subordinate Legislation
Act 1989 on 1 September 2013.
The Current Regulation essentially regulates the conduct of people on Trust land. Activities such as
camping, lighting fires, driving in specified area, littering and commercial activity can be prohibited
by a public notice erected by the Trust. The Proposed Western Sydney Parklands 2013 is an upgrade
of the Current Regulation to match similar parklands in Sydney metropolitan region.
1.1
Regulatory Impact Statements
Under the Subordinate Legislation Act 1989, new regulations must be subject to a regulatory impact
statement (‘RIS’). Re-made regulations are treated as new regulations with regard to the
requirement to prepare a RIS.
As documented in Schedule 2 of the Subordinate Legislation Act 1989 a RIS must:
 contain a statement of the objectives sought to be achieved and the reasons for the
objectives;
 identify the alternative options by which those objectives can be achieved;
 assess the costs and benefits of the proposed regulation, and each alternative option
including the costs and benefits relating to resource allocation, administration and
compliance;
 assess which of the alternative options involves the greatest net benefit or the least net
cost to the community; and
 state the consultation program to be undertaken.
The impacts of the proposed regulation and the alternative options may be expressed in quantitative
or qualitative terms. The RIS must incorporate an evaluation of the economic and social costs of
each option.
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RIS – Proposed Western Sydney Parkland Regulation 2013
The outcomes from evaluations of the various options considered in the RIS are compared with the
‘do nothing’ option, i.e. the option of not proceeding with any action. The ‘do nothing’ option is
commonly taken to be the minimal action on the part of the State Government, that can be taken to
fulfil the intention of the Parliament (i.e. the Act under which the Regulation is made).
1.2
Regulatory Approach - General Overview
The NSW Government has instituted a number of reforms in relation to the regulatory process. The
aim of these reforms has been to ensure that, whilst recognising that regulatory intervention is
justified in certain circumstances, due consideration is given to the costs imposed on the community
by regulations and agencies are encouraged to adopt best practice in discharging their regulatory
responsibilities.
These reforms are consistent with trends in regulatory frameworks throughout the world.
Increasingly it is recognised that best results are likely to be obtained by focusing on outcomes.
In practice, there is a spectrum of regulation which recognises that there is a trade-off between
assurance of certain outcomes and the flexibility to the WSP Trust and users of the Parklands to suit
the activity being regulated. Where the consequence of an activity is potentially dangerous, a strong
regulatory control approach is warranted, characterised by close prescription and strong monitoring
and enforcement provisions. At the other end of the scale, a partnership approach may be more
cost-effective, involving public or industry education and awareness programs. In between there are
various forms of self-regulation, such as industry-based codes of practice which seek to equate
private costs (commonly financial) and public costs.
1.3
Better Regulation Principles
In accordance with the Better Regulation Office’s Guide to Better Regulation, this RIS also addresses
the seven better regulation principles. These principles are:
 Principle 1: The need for government action should be established;
 Principle 2: The objective of government action should be clear;
 Principle 3: The impact of government action should be properly understood by
considering the costs and benefits of a range of options, including non-regulatory options;
 Principle 4: Government action should be effective and proportional;
 Principle 5: Consultation with business and the community should inform regulatory
development;
 Principle 6: The simplification, repeal, reform or consolidation of existing regulation
should be considered; and
 Principle 7: Regulation should be periodically reviewed and, if necessary, reformed to
ensure its continued efficiency and effectiveness.
1.4
Report Structure
Section 2 of this RIS provides a background to Parklands and associated economic values.
Sections 3 and 4 outline the key changes within the Proposed Regulation for current operations and
the costs and benefits associated with each change.
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RIS – Proposed Western Sydney Parkland Regulation 2013
Section 5 outlines the options available to meet the objectives of the Act, including a base case of No
Regulation. Section 6 assesses the costs and benefits of each Option. Section 7 discusses the
preferred Option.
Section 8 outlines the consultation schedule with business and the community to further inform
regulatory development.
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RIS – Proposed Western Sydney Parkland Regulation 2013
2
Background
2.1
Western Sydney Parklands
Western Sydney Parklands (WSP, the Parklands) is a public facility which is controlled and managed
by the Western Sydney Parklands Trust (WSP Trust or ‘the Trust’) on behalf of the people of New
South Wales. The Western Sydney Parklands is a large multi-use urban parkland for the region of
Western Sydney.
The Parklands retains evidence of an historic landscape which can be meaningfully interpreted by
visitors and is the host for many tourism, education and recreation activities.
The Parklands is well visited, 1.6 million people visit the Parklands per annum in 20101. The rate of
increase in patronage has been approximately 20% per year.
The Parklands, comprising the Eastern Creek, Prospect, Horsley Park and Hoxton Park open and
special space corridors was first identified in the 1968 Sydney Region Outline Plan. At that time
government planners advocated that a major program was needed to acquire enough lands to satisfy
the demand for regional open space in the future2.
The second reading speech of the Act outlines that the Parklands had already provided land for
 Sydney's major electricity and gas supply lines,
 four of the 2000 Olympic Games venues,
 the protection of significant remnants of Sydney's original bushland,
 heavily used parks such as the Western Sydney Regional Park and
 the M7, which has delivered major benefits for Western Sydney.
When acquisition is finalised, the Parklands will be the largest single urban parkland system in
Australia, covering 5,280 hectares. The Parklands spread through the Blacktown, Fairfield and
Liverpool Local Government Areas and is adjacent to two emerging residential growth centres.
There are three sites in the Parklands that are reserved under the National Parks and Wildlife Act
1974. These are Kemps Creek Nature Preserve, Western Sydney Regional Park, and Prospect Nature
Reserve. Sydney Water, the Department of Planning and Infrastructure, Waste Asset Management
Authority, Sydney Catchment Authority and Blacktown Council also manage public land within the
Parklands.
Plans have been submitted to the NSW Government for sites that involve the development of two
major commercial hubs. These are a 21 hectare industrial park at Horsley Drive and a 17 hectare
retail centre at Eastern Creek. It’s estimated that these hubs will attract capital investment of more
than $200 million in Western Sydney and support around 1100 local full time jobs. 3
1
Western Sydney Parklands Plan of Management 2020, Page 34.
http://www.westernsydneyparklands.com.au/page/about-us/history/
3 WSPT (2012) Annual Report 2011/12. pg 2.
2
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RIS – Proposed Western Sydney Parkland Regulation 2013
Figure 1: Map of the Western Sydney Parklands
Source: Western Sydney Parklands Trust.
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RIS – Proposed Western Sydney Parkland Regulation 2013
2.2
Functions of the Trust
The functions of the Western Sydney Parklands Trust, outlined in the Act are:
(1) The principal function of the Trust is to develop the Parklands into a multi-use urban
parkland for the region of Western Sydney and to maintain and improve the Parklands on
an ongoing basis.
(2) The Trust also has the following functions:
(a) to conserve, restore and enhance the natural environment of the Parklands,
including through the protection of remnant bushland and the restoration of
vegetation or revegetation,
(b) to conserve, restore and enhance the cultural and historical heritage of the
Parklands, including its indigenous heritage and its scenic qualities,
(c) to provide or facilitate the provision of a diverse range of recreational,
entertainment and tourist facilities and opportunities in the Parklands, such as major
sporting facilities, private amusement and recreational attractions and
accommodation,
(d) to cater, at a regional level, for a diverse range of community interests,
organisations and groups, including through the provision of facilities such as multiuse community halls,
(e) to facilitate the use of the Parklands to meet community health needs and
provide opportunities for, and encourage, activities that promote health and wellbeing in the community,
(f) to encourage and promote public access to and use and enjoyment of the
Parklands where appropriate,
(g) to facilitate and promote the use of the Parklands for education and research
(such as scientific research), including the provision of facilities for these purposes
(such as camping facilities, learning centres and accommodation),
(h) to ensure that government agencies and State owned corporations continue to
have access to major service infrastructure within the Parklands,
(i) to maintain the rural character of parts of the Parklands by allowing sustainable
agriculture, horticulture or forestry in the Parklands,
(j) to undertake or provide, or facilitate the undertaking or provision of, commercial,
retail and transport activities and facilities in or in relation to the Parklands with the
object of supporting the viability of the management of the Parklands.
Core services provided by the Trust include:
 the provision of venues to the community for recreational and cultural activities;
 natural environment restoration, renewal and protection to maintain the environmental
amenity of the Parklands;
 cultural and historical restoration, renewal and protection - including market gardens,
former military places;
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RIS – Proposed Western Sydney Parkland Regulation 2013




2.3
facilitation of the educational usage of the Parklands;
ensuring Government has access to major service infrastructure opportunities including
reservoirs and corridors for electricity transmissions;
maintaining the rural character of the Parklands through sustainable agriculture,
horticulture and forestry in the Parklands precincts; and
enabling transportation (accessibility), retail and commercial activities.
Values of the Western Sydney Parklands
There are a number of benefits that are provided by the Parklands. Hamilton Smith (2001) identified
a range of benefits that protected open space can provide for urban communities; including the
following:
 enabling public access to “green space” (especially in high-density cities);
 providing opportunities for activities (e.g., organised and informal sport and exercise, and
educational activities);
 providing opportunities for socialising (e.g., picnics, family gatherings, and club outings);
 providing opportunities for spiritual connection with nature and a sense of place;
 developing personal and community identity (e.g., rehabilitation and development of selfesteem and identity after life crises);
 providing opportunities for productive open space (e.g., for school programs, and
demonstration projects in wetland management and sustainable land management); and
 strengthening the community (e.g., increasing contact with other community members,
contributing to local knowledge and pride of place and heritage, and providing
opportunities for contribution to community action through volunteer work in parks on
environmental improvement schemes).
For the purposes of this RIS, the economic values provided by the Parklands are derived from five
categories of good and services, namely:
 cultural values and activities;
 recreational activities;
 enjoyment of amenity;
 environmental services; and
 heritage (including cultural heritage).
2.3.1 Cultural values and activities
Cultural values have been characterised in different ways. Holden (2004) has outlined five aspects of
cultural value, namely:
 historical value: a special relationship with the past; a concept resting on particular
viewpoints of history;
 social value: places or things that tend to make connections between people and to
reinforce a sense of unity and identity;
 symbolic value: repositories of meaning;
 aesthetic value: the nature of beauty, taste, and the appreciation of beauty; and
 spiritual value: addressing aspects of the religious, the sublime.
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The Parklands provides opportunities to experience these types of values. The WSP Trust manages
venue hire and hosts major events which take advantage of some of these aspects and contributes to
the social well-being of the community. The Trust also develops programs for leisure activities and
events, education and community tree plantings.
2.3.2 Recreational activities
Recreation refers to activities that provide a rest and refreshment of one's mind or body after work
through activity that amuses or stimulates.
Recreation provides a range of benefits. Visitors obtain a variety of psychological and physical
benefits from the use of the Parklands for passive and active recreation. Participation in sport and
recreation provides clear benefits in the five Australian national health priorities:
 promoting better mental health;
 cardiovascular disease prevention;
 diabetes prevention and control;
 primary prevention of some cancers; and
 injury prevention4.
Sport and recreation provides a catalyst for community gatherings, from small functions to major
events, where people play, talk and share experiences. Importantly as summarised by the WA
Government, sport and recreation creates social capital which has a positive effect on the
community1.
Recreation events in the Parklands are mainly unstructured. The Parklands provides a range of
passive and active recreation opportunities for visitors. There is the $4.5 million walking and cycling
track which allows public access to the entire 27 kilometre length of the site.
An example of organised events is the hosting of significant community events such as Woof Fest
2013 - A Dog Day Out West and Fresh From the West, a fresh food event .
The Parklands has a number of facilities developed by the Trust and partners. These include:
 Plough and Harrow West - Large group platform/picnic shelters and BBQs;
 Plough and Harrow East - Children's playground and BBQs, high ropes course and a cafe,
restaurant and function centre;
 The Dairy - Picnic shelters and BBQs;
 Lizard Log - Children's nature playground with interactive water feature and double flying
fox;
 Sugarloaf Ridge - Picnic shelters;
 Moonrise Lookout – Parking with scenic views;
 Bungarribee Park – Cycle track, off-leash dog area, walking track, bird hide;
 Shale Hills - Outdoor classroom, boardwalk, walking track, cycle track; and
 Nurragingy Reserve - picnic and BBQ areas (wood supplied), children's playgrounds, bush
walking tracks, formal garden areas, planted as International Gardens, quiet shaded areas
and pavilions, a waterfall, natural bushland ideal for nature studies, wedding garden
areas, the Nurragingy Blacksmith and the Colebee Centre.
4
WA Government (2012).
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It is important to note that not all these facilities will be affected by the Current and the Proposed
Regulations.
Other significant facilities within the Parklands boundary that are operated under lease agreement
should not be affected by the Proposed Regulations.
The economic value of these recreational benefits for visitors can be estimated by using the costs
that visitors are willing to incur in the park, as a proxy for the value of the benefits they obtain.
2.3.3 Amenity (including safety)
The Parklands Trust delivers safe amenities and an enjoyable experience through programmed
maintenance, visitor and enforcement services, cultural and natural asset conservation and park
improvement projects. These efforts contribute to the number of visitors and their willingness to
pay to travel to the Parklands.
There are a number of management issues that threaten the amenity and visitor experience of
visitors to the Parklands. Table 1 provides an overview of the incidents and damage that currently
occur with low levels of Parklands development and visitation.
Table 1 Outline of incidents logged by Trust - 2012/13
Category
Number
Notes
Fire
1
Rural Fire Service, Police, Ambulance attended fire on site, fire
extinguished
Intoxication
-
Lost
1
Child
Medical First Aid
6
Ambulance attendance
Dogs
1
Police contacted
Vehicles
1
Motorbike rider
Vandalism & damage
2
Included damage to amenities and a shelter
2.3.4 Environment
There are significant environmental assets located in the Parklands. The vegetation of the Parklands
includes woodland, riparian, grassland and garden areas. There is a mix of exotic and native species.
The Parklands provides a habitat and also native vegetation which has non-use values for the
community. Currently, 1,056 hectares of Parklands is bushland and this is set to expand by an
additional 6 per cent of the Parklands (330 hectares).
There have been over 200 hectares of bushland restored and enhanced and BioBanking credits sold
as part of an ongoing involvement in the NSW Government’s BioBanking Scheme.
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RIS – Proposed Western Sydney Parkland Regulation 2013
2.3.5 Heritage
Heritage is what we inherit, but more specifically what we retain of this inheritance (the things a
community values and wishes to keep from generation to generation). The heritage value of a place
is also known as its cultural significance which means its aesthetic, historic, scientific, social or
spiritual value for past, present or future generations5.
People place various values on heritage. For example, in a survey of the general community 93% of
respondents strongly agreed with the statement ‘It is important to protect heritage places even
though I may never visit them’ (Allen Consulting 2005).
The Parklands has evidence of Indigenous heritage. The Cumberland Lowlands that cover most of
Western Sydney is one of the most artefact rich landscapes in Australia and is dominated by scatters
of artefacts that are known to be concentrated along the margins of freshwater creeks.
The Parklands includes market gardens, former military places and major infrastructure such as
reservoirs and service infrastructure. Key heritage sites include Prospect Reservoir, Upper Canal, The
Rooty Hill, Bungarribee Farm Homestead complex archaeological site, Eastern Creek and the rural
ridgeline through Fairfield and Liverpool Local Government Areas.
2.4
Quantifying the Values of the Parklands
2.4.1 Introduction
Baseline economic values of Parklands may be associated with goods and services that it provides.
These can be traded in markets (such as hire fees), or are outside the market system (such as
visitation as the WSP Trust does not charge entry fees). Even though these goods and services do
not have an associated price they do contribute satisfaction to individuals in society.
When combined, these market and non-market values that are obtained from the Parklands are
referred to as the total economic value. The mechanisms that link resources to individual and
community well-being are:
 direct use of the resources (for example, commercial and non-commercial recreation);
 indirect use of a resource (i.e. ecosystem function values such as protection of
biodiversity and air quality); and
 non-use (such as the preservation of natural ecosystems, species or special areas) 6.
Direct use values are those that arise from the direct physical use of environmental resources (DEST
et al. 1995) and may be further classed as commercial/market or non-commercial/non-market
activities. For example the hire of park facilities for an event is a service which has a price
established by a market. On the other hand, another direct use is visitation of the Parklands for
walking; the pleasure people received from walking in the Parklands does not have a ‘price’ in any
market such as an entry fee to the Parklands.
5
6
Allen Consulting (2005) Valuing the Priceless: The Value of Heritage Protection in Australia.
James & Gillespie (2002) Guidelines for Economic Effects and Evaluation in EIA.
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RIS – Proposed Western Sydney Parkland Regulation 2013
Indirect use values or ecosystem function values are the value of the ecosystem services and
functions provided by an environmental resource. Ecosystem function values of the Parklands
include habitat, and improvements in air and water quality.
Non-use values comprise option values, quasi-option values, vicarious use values, bequest values and
existence values. The conceptual framework for providing an understanding of consumer and
producer surplus is the supply and demand, or market, model. The economic values of market goods
to the community are measured by consumer and producer surplus.
Consumers’ surplus is the difference between what a person would be willing to pay for a good or
service and what they have to pay (consumer expenditure). Producers’ surplus is the difference
between the costs of the inputs used in the provision of a good or services (economic cost to
producers) and the price received for the recreation goods and services (total benefit to producers).
In practical terms, it is the net revenue that is earned by producers of recreation and tourism goods
and services7.
Producers' surplus values are most relevant to commercial activities and are measured via market
data. Consumers' surplus values are most relevant to non-market activities (e.g. free use of the park,
sightseeing etc) and can potentially be estimated using non-market valuation techniques such as the
travel cost method, hedonic pricing or contingent valuation.
Hedonic pricing refers to the assessment of changes in property values that are located near a park.
Various studies have been carried out that use ‘hedonic pricing’ to value the increase in property
value that are in close proximity to parks. Crompton, in a review of studies in the US, found that it
was reasonable to conclude that a positive impact on the value of properties that front a passive
park area was 20%8. There have been other studies that have used travel costs to estimate the value
of Parks. These involve estimating travel times and assigning and opportunity costs of time taken to
quantify the benefit to consumers.
For this study consideration of the economic value of Parklands includes calculating the producer
surplus of the Parklands; considering the attendance and travel costs of visitors.
2.4.2 Commercial values associated with the Parklands
Commercial values include using the products of obtaining recreational experiences from visitation,
obtaining direct and indirect income from goods and services sold to visitors, and benefiting from the
biophysical services provided by the Parklands. The WSP Trust collects revenue from parking and
cultural events.
Currently the WSP Trust manages and/or has entered into over 30 management arrangements by
way of leases or licences to either public or private entities. These include:
 Agistment Licences.
 Commercial Leases and licences:
o Royal Cricketers Arms Hotel
7
8
James & Gillespie (2002) Guidelines for Economic Effects and Evaluation in EIA.
Nicholls & Crompton (2005) The Impact of Greenways on Property Values: Evidence from Austin, Texas.
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RIS – Proposed Western Sydney Parkland Regulation 2013
o






Australian Racing Drivers Club (formerly Eastern Creek Raceway, now Sydney Motor
Sport Park)
o Western Sydney International Dragway
o NSW Motorcycling Association
o Calmsley Hill City Farm
o Plough & Harrow Cafe
Ecoline High Ropes Course - licence
Commercial billboards – licence.
Market Gardens Licences
Telecommunications Leases and / or Licences:
o Telstra;
o Hutchinson 3G;
o Air Services Australia; and
o NSW Police Force.
Temporary Use Licences (eg storage, mobile food vans).
Leases with other Government Agencies:
o Fire station - Rural Fire Service; and
o Nurragingy Nature Reserve - Blacktown City Council.
A new cafe at Plough and Harrow East opened mid –year 2013. The restaurant and function centre
provides visitors with coffee and light refreshments, as well as more a la carte options..
Table 2 provides an example of the revenue collected for activities in the Parklands direct from
visitors. The income in Table 2 is associated with hire of sites and events that are not under lease.
Table 2 Selected revenue from operations (affected by the Regulation)
Revenue source
2012-13
2016-17
Casual hire and events
85,000
400,000
Parking related income
-
-
Charges
Note: WSP Trust estimates.
It is assumed that these events would not occur in the region without the Parklands. It is understood
that there will be no income from parking in the near future.
2.4.3 Travel costs– valuing amenity and recreation use
The cost of transport to the Parklands can provide an indication of the demand for the Parklands.
The basic premise of the travel cost method is that the time and travel cost expenses that people
incur to visit a site represent the “price” they are willing to pay to access the site. In 2011/12 there
were 960,000 visitors to the Parklands. A further 1.4 million people visited the venues of partners
and lessees. Figure 2 shows the estimated increase in visitors will 2014-15.
A survey of a similar park in Western Sydney (Parramatta Park) found that 70% of park users
travelled by car9. The average time taken to get to Parramatta Park was approximately 17 minutes.
This study can be extrapolated to the Parklands.
9
Taverner Research (2007) Sydney Parks Use Survey Member Report – 2007 Prepared for Parramatta Park Trust, Sydney.
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Table 3 illustrates the average cost per visitor from each category using estimates of the opportunity
costs of travel the Parklands. It is likely that the average travel time to the Parklands is longer than
17 minutes as it is located in a more dispersed area of Sydney.
Figure 2: Visitors to Parklands and Venues
Visitors
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0.96
1.00
1.20
1.44
2011-12
2012-13
2013-14*
2014-15*
0
Lessee Venues
Parklands
* Forecasts provided by WSPT.
An estimate of the travel cost is then based on a 25% of an average hourly wage i.e. $8.34 per hour10.
This estimate represents personal travel at a medium cost, that is, travel during which travellers
experience no discomfort such as driving in congestion11.
The travel cost of walking to the Parklands is assumed to be half of the medium costs figure. This
approach is used to account for enjoyment of walking and cycling. These estimates are conservative
as they do not include direct costs of travel such as fuel, tolls and ticket costs. Annually, there are an
estimated 0.9 million visitors to the Park who are not attending an event. For the 20% of people who
are assumed ride or walk to the Park (i.e. 200,000 people) they are included in the under 15 minute
category for this assessment.
Table 3 Estimated travel times for Parklands visitors
Number
(by car)*
Assumed
average
travel time
Average
opportunity
costs
Percentage of
visitor
Estimated total
visitor
population
Under 15 minutes
39
7.5
$1.04
47%
573,624
15 to 29 minutes
46
21.5
$2.99
36%
286,812
30 to 59 minutes
8
44
$6.11
13%
99,761
1 hour or more
6
60
$8.34
5%
37,410
Note: The average costs include a combination of driving and walking/cycling travel cost.
10
ABS Average hourly total cash earnings for full-time non-managerial adult employees adjusted to 2013 dollar value,
$33.29.
11 Victoria Transport Policy Institute (2009) Transportation Cost and Benefit Analysis Techniques.
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This information allows the development of a demand curve for the Park. If we assume visitation
rates from the different travel categories these can be used to develop a hypothetical demand curve
based on travel costs is used to estimate the consumer surplus, which reflects the value that people
receive from Park visitation given the zero entrance fee. This value is approximately $2.44 million
per year.
2.4.4 Environmental values
The Parklands provide habitat and also are the location for areas of native vegetation which have
non-use values for the community.
There have been over 200 hectares of bushland restored and enhanced and BioBanking credits sold
as part of an ongoing involvement in the NSW Government’s BioBanking Scheme.
There have been a number of studies in Australia aiming to estimate the value of native vegetation
conservation.
The estimates considered the most relevant for valuing the conservation of remnant vegetation and
associated biodiversity in NSW are:
 $3.80 per NSW household per 10,000 hectares of native vegetation conserved (i.e., $1094
per hectare);
 $0.02 per respondent in Sydney and $0.01 per respondent in regional NSW for one square
kilometre of native vegetation in good condition (i.e, $1,746 per hectare).
In this RIS a value of $1,420 per hectare is used as an estimate of the willingness to pay for the
conservation of a hectare of native vegetation. This value is an average of the two estimates.
Alternatively, the cost of damage to vegetation in the Parklands could be estimated by examining
restoration costs. These can be as much as $2,500/hectare depending on the degree of the
rectification required. For example a fire would be catastrophic and costly, whereas localised
damage to a tree could be less costly and replanting costs approximately $500 per incident.
2.4.5 Heritage
Choice modelling involves eliciting people’s stated preference for different options in a hypothetical
setting. Choice modelling has been undertaken to examine general statements about heritage to see
the degree to which the population is willing to financially support the call for a greater commitment
to heritage protection, and which historic heritage conservation outcomes they particularly value.
The general conclusions from the choice modelling include:
 an increase in the number of heritage places protected — average willingness to pay for
the protection of additional places from loss is estimated to be $5.53 per person each
year for every 1000 places protected; and
 an increase in the proportion of places that are in good condition — a 1 per cent increase
in the proportion of places in good condition is valued at $1.35 per person per year.
The most appropriate value for the assessment of a Regulation is that proportion of sites in good
condition.
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RIS – Proposed Western Sydney Parkland Regulation 2013
The value placed on the assets in the Parklands is difficult to determine as the outcome of the
contingent valuation study relate to a large number of places protected. An estimate value for
heritage value is not estimated for this RIS.
2.4.6 Summary
The total economic value of the Parklands relates to the:
 Producer surplus associated with market based activity such as event hosting and parking;
 Consumer surplus associated with each non-market use activity such as recreation;
 Producer surplus and consumer surplus (both market and non-market use values and
non-use values) associated with ecosystem function values;
 Net costs to government; and
 Consumer surplus associated with non-use values of heritage conservation.
Table 4 provides an indicative quantification of these values.
Table 4 Outline of Parklands values
Economic Value
Measure
Estimate
($ million)
Notes
Cultural
Direct PS
$0.35
Based on user charges information
Recreation
Direct CS
$5.01
Half of travel costs derived demand
Amenity
Direct CS
$5.01
Half of travel costs derived demand
Environmental
Direct CS
$1.41
Existing value of native vegetation
Heritage
Direct CS
-
Total
Not quantified
$11.77
Note: PS (Producer Surplus), CS (Consumer Surplus).
Present values using a 7% discount rate over 5 years.
From this simple scoping of benefits and the attempt to quantify some of these values an estimate of
the total economic benefits of the Parklands can be made. Based on the values in Table 4 a very
conservative estimate of value derived from the Park in its current use is in the order of
$11.77 million.
The estimate does not factor in benefits such as the provision of open space within an urban area
and health benefits. It does not include any value from leases and development income in the
Parklands boundary. It is interesting that this analysis highlights the importance of the economic
values associated with the provision of:
 amenity;
 recreational activities; and
 environmental conservation.
This indicative value is not exhaustive. It does provide an indication of the value of protection of the
assets of the Parklands and the value derived from the provision of spaces which can be used for safe
recreational and cultural activities.
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RIS – Proposed Western Sydney Parkland Regulation 2013
3
Legislative Background
3.1
Background
The Western Sydney Parklands Act 2006 was enacted to constitute the WSP Trust and to define its
functions. Section 50(1) of the Act states:
‘The Governor may make regulations, not inconsistent with this Act for or with respect to
any matter that by this Act is required or permitted to be prescribed or that is necessary or
convenient to be prescribed for carrying out or giving effect to this Act’.
Section 50(2) provides that regulations may be made for or with respect to the following:
(a) the fees and charges that may be imposed for the purposes of this Act,
(b) regulating the use by the public of, and the conduct of the public on, the Parklands,
(c) regulating the use of facilities of the Trust and the provision of services by the Trust,
(d) requiring the payment of fares or other charges for the use of any facility operated or
service provided by the Trust,
(e) authorising a person granted a lease, licence or other authority by the Trust to require the
payment of fares or other charges for the use of any facility operated or service provided
under the lease, licence or other authority,
(f) conferring on the Trust any function that may be exercised by a council in relation to a
public place.
The Subordinate Legislation Act 1989 stresses that the objective of a Regulation should not in conflict
with the objectives, principles, spirit and intent of the enabling Act, the Western Sydney Parklands
Act 2006. The elements of both the Current and the Proposed Regulation align with the intent of the
Act.
3.2
Western Sydney Parklands Regulation 2007
The Current Regulation essentially regulates the entry of persons and vehicles to Trust land and their
conduct thereon. The headings of key clauses of the Western Sydney Parklands Regulations 2007
are:
Clause 4
Regulation of conduct on Trust land
Clause 5
Requirement to state name and address
Clause 6
Persons to leave on request
Clause 7
Penalty notice offences and penalties
Clause 8
Lessees and licensees
Clause 9
Regulation not to limit other statutory provisions or functions
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3.3
Implication of ‘No Regulation’
The implication of no regulation is that the objectives of the Act would need to be pursued in some
other way. Requirements that are outlined in the regulation would need to be included in other
policy documents applying to Trust land, potentially, a plan of management. Table 5 summarises the
implications of a no regulation scenario.
Table 5 Key Implications of No regulation
Effect
Change
Key effect
Regulation of conduct on Trust land
A move to imposing controls and
duties that rely on the Act and
underlying common law
A reduction in ability to provide safety
and amenity and conservation
Care, control and management of the
Trust land
Many issues could be outlined in the
Plan of Management for clarity and
operational purposes
Lack of operational flexibility – a risk
to environmental values and use
Penalties
Penalties for minor breeches would
not be prescribed
Reduction in compliance which
effects amenity and enjoyment of the
Park
The management of Western Sydney Parklands is informed and guided by a suite of documents
including a Plan of Management and other policies developed by the Trust.
If the plan of management were to include the elements covered in the Regulation, it would be a
more cumbersome method of management and would not provide appropriate discretion to the
Trust. A plan of management may seek to impose fixed operational requirements in certain areas of
the Park, and would not allow those requirements to be exercised in a discretionary manner by
authorised officers. Such approach would not allow the Trust, the Director or an authorised officer
to make determinations depending on the circumstances. This reduces flexibility in the Trust’s
operations.
For example, under the current Regulation, the Trust can prohibit by erecting a public notice,
including activities such as:
 camping,
 lighting a fire,
 driving or riding a motor vehicle on a bicycle track or other specified area,
 failing to keep a dog on a lead or bring a dog into a specified area,
 entering any area or building closed to the public,
 littering or dumping waste,
 engaging in commercial activity.
With no regulation safety and amenity would be reduced unless there is equivalent compliance
under an alternative approach. It is unlikely that any approach would achieve a similar level of
compliance as a clear regulation with appropriate sanctions applied by dedicated staff. Thus no
regulation will:
 result in additional costs through damage to the Parklands; and
 increase overall compliance costs by involving third parties in compliance, eg the Police.
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RIS – Proposed Western Sydney Parkland Regulation 2013
4
The Proposed Regulation
4.1
Developing the Regulation
The Proposed Regulation is efficient and is not excessive or overly complex. Importantly the
Proposed Regulation and its clauses are consistent with similar regulations that operate in other
Sydney Parks (namely Parramatta Park and Centennial Park). An overview of the clauses in each of
these Regulations is provided in Appendix 1.
4.2
Modifications to the Western Sydney Parklands Regulation 2007
The proposed modifications to the Western Sydney Parklands Regulation 2007 are to include the
following additional clauses that affect outcomes for Parkland visitors and the Trust:
 Clause 4 (Entry) – The Trust may designate points on Trust land as entrances to Trust land
for vehicles by a sign and designate the opening and closing times of Trust land;
 Clause 5 (Parking) – The Trust may regulate the parking of vehicles on any part of Trust
land by a sign displayed on or adjacent to entrances to Trust land;
 Clause 6 (Designation) – Parts of Trust land approved for designated purposes;
 Clause 7 (Fees for Trust land) – The Trust may from time to time determine the fees that
are payable by a person to whom the Trust has given permission to use part of Trust land;
 Clause 8 (Closure) – Parts of Trust land and buildings may be closed to public by use of a
sign;
 Clause 9 (Alcohol-free zones) - Trust may declare any part of Trust land or any building
within Trust land to be an alcohol-free zone
 Clause 10 (Commercial and other activities) – Requires permission for certain commercial
activities such as sell or hire, or attempt to sell or hire, any goods or services;
 Clause 11 (Races) – Races on Trust land
 Clause 12 (Camping) – Camping and erection of tents and structures on Trust land
 Clause 13 (Affixing signs and the like on Trust land) – restricts affixing sign etc to any
trees and facilities
 Clause 14 – Conditions attaching to permission to use Trust land
 Clause 15 – Damage to Trust land
 Clause 16 – Recreational activities on Trust land
 Clause 17 – Activities involving dogs and other animals
 Clause 18 – Vehicles
 Clause 19 – Speed of vehicles
 Clause 21 – Personal conduct
 Clause 22 – Noise on Trust land
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The regulations can be grouped into four categories:
1. Clauses that facilitate the management of Parklands and events;
2. Clauses that promote safety;
3. Clauses that improve visitor amenity and enjoyment, including conflict management;
4. Clauses that protect the Parkland facilitates and environment.
Table 6 Outline of Key Changes under Proposed Regulation
Section or Clause
Summary of Change
Key Impact
Clause 5 (Parking)
Allow WSP Trust to regulate the parking of
vehicles
Protect the Parklands facilities
Improve visitor safety
Clause 6 (Designation)
Parts of Trust land approved for designated
purposes
Promote and facilitate events and
dedicated facilities
Clause 7 (Fees for Trust Land)
The Trust may from time to time determine
the fees
Facilitate event management and
sustainability of the Trust
Clause 10
(Commercial and other activities)
Requires permission for activities such as
sale or hire, or offer for sale or hire, any
goods and services
Facilitate event management and
sustainability of the Trust; allow for
equitable commercial access
Clause 14
(Conditions attaching to permission)
Allows conditions such as adequate
insurance, site preparation and security
and emergency procedures
Facilitate event management,
environmental protection and visitor
safety
Clause 4 (Entry)
Designate points on Trust land as entrances
for vehicles
Promote safety and amenity
especially at night
Clause 8 (Closure)
Parts of Trust land and buildings may be
closed to public
Protect the Parklands facilities and
improve safety if damaged
Clause 18 (Vehicles) &
Clause 19 (Speed of vehicles)
Restricts types of vehicles and learning
activities
Improved safety in areas shared
between vehicles and visitors
Clause 9 (Alcohol-free zones)
Trust may declare any part of Trust land or
any building within Trust land to be an
alcohol-free zone
Improved amenity especially at
events
Clause 12 - Camping and erection of
tents
Restricts camp or residence on Trust land
Improves amenity for other visitors
Clause 16 (Recreational activities)
Restricts dangerous activities in shared
spaces
Safety and amenity for playgrounds
and visitor recreation spaces
Clause 17 (Activities involving dogs
and other animals)
Requires permission before bringing dogs
into an area in which dogs are prohibited
Safety and amenity for playgrounds
and visitor recreation spaces
Clause 21 (Personal conduct)
Prohibits indecent, obscene, insulting or
threatening language and behaviour
Improved amenity especially at
events, picnic areas and playgrounds
Clause 22 (Noise on Trust land)
Restricts operation of certain devices that
emit sound at a volume likely to cause
nuisance to a person.
Improved amenity for visitors to BBQ
areas and bushland; ensures
protection of neighbour amenity
Protects vegetation and facilities from
damage and constrains use of fire
Protects Trust facilities and
environmental and cultural assets
Facilitate event management
Increase safety
Visitor Amenity
Damage to Trust lands
Clause 15 - Damage to Trust land
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RIS – Proposed Western Sydney Parkland Regulation 2013
It is noted that some of these clauses have effects on multiple outcomes. For example control of
vehicles has safety outcomes and protects the environment of the Parklands by restricting vehicles to
roadways.
The draft Western Sydney Parklands Regulation 2013 is attached as annexure ‘A’.
4.3
Stakeholder Issues
Preliminary consultation with key stakeholders including local government and lease holders within
the Parklands has highlighted few critical issues.
The most important issue raised by stakeholders related to Clause 26 Lessees and licensees:
‘An act or omission does not constitute a breach of this Regulation, despite any other provision
of this Regulation, if it is authorised expressly or impliedly by the terms or conditions of any
lease or licence granted by the Trust.’
This clause exists in the Current Regulation (Clause 8). Its intent is to ensure that the leases or
licences granted by the Trust negate the effect of the Regulation.
If a lease or licence does not expressly or by implication exempt a lessee or licensee and/or the
leased or licensed areas from the provisions of proposed Western Sydney Parklands Regulation 2013,
the parties can amend a lease or licence for this purpose by agreement.
For the purposes of the RIS, it is understood from an examination of the clause and existing
agreements that no lease agreements will need to be amended to adequately reflect this position.
It is not the intent of the Trust for the Regulation to apply in existing situations unless the application
of the Regulation or certain clauses of the regulation are beneficial for both the Trust and any
lessor/licensee. Application of the Proposed Regulation under existing lease agreements is not
intended.
The Proposed Regulation will apply to licence agreements except for those clauses that are implied in
any agreement. It is considered that there may be several cases where minor amendments may be
made to current licence agreements to ensure that activities are not adversely affected by the
introduction of the Proposed Regulation.
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RIS – Proposed Western Sydney Parkland Regulation 2013
5
Options to Achieve Objective
5.1
Objective of the Proposed Western Sydney Parklands Regulation 2013
For the purposes of the RIS, the objective of the Western Sydney Parklands Regulation 2013 is
assumed to be consistent with the objective of the 2007 regulation, namely:
to regulate the use by the public of the Trust land in the Western Sydney Parklands by applying
some standard provisions for regulating conduct in public reserves.
This RIS analyses how this objective could be attained in the least costly manner.
5.2
Consideration of Options
In developing the Proposed Regulation, the Trust has considered three options:
 Option 1: Do nothing – let the Current Regulation lapse.
 Option 2: Remake the Current Regulation; and
 Option 3: Make the Proposed Regulation - Western Sydney Parklands Regulation 2013.
5.2.1 Option 1 - No Regulation
As previously outlined, under Option 1, the absence of specific powers conferred on the Trust by the
Regulation would place the Trust in a position of being unable to adequately control and regulate
persons entering Trust’s land.
The Trust would be forced to rely on other processes such as a more operational management plan
and also common law including the law of trespass to control persons entering Trust lands.
This approach is cumbersome and not in the best interests of the Trust or the public.
5.2.2 Option 2 – Remake the Current Regulation
Under this option the Current Regulation would be remade without changes. The Current Regulation
is brief and does not provide adequate clarity to operational staff and the community.
It also does not provide sufficient flexibility for the operations of a multi-use parkland.
Specific threats to safety (vehicles and their speed) and amenity (personal conduct and noise for
example) are not currently identified and regulated under the current Regulation.
5.2.3 Option 3 - Proposed Regulation
Adoption of the Western Sydney Parklands Regulation 2013. This option involves adoption of
additions to the current regulation that clarify some clauses and allow superior control of park
management.
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RIS – Proposed Western Sydney Parkland Regulation 2013
6
Costs and Benefits
The costs and benefits of the ‘Base Case’ scenario (Option 1) and each alternative option are re
assessed in a costs benefit framework. These costs and benefits are discounted to their present
values (PV).
The incremental present value of the costs and benefits compared to Option 1 - ‘Base Case’
consistent with the NSW Guidelines for Economic Appraisal, a discount rate of 7% is applied in the
cost-benefit analysis. Sensitivity testing is to be undertaken by varying the discount rate in the costbenefit analysis to 4% and 10%.
The main output of the cost benefit analysis examined in this RIS is the net present value (NPV). The
NPV is the sum of the discounted benefits less the discounted costs compared to ‘Base Case’ for each
Option. From an economic perspective, the preferred option should have a higher NPV than the
alternative options.
The cost-benefit analysis is conducted over a 5-year period, consistent with the life of the Regulation.
6.1
The base case – No Regulation
6.1.1 Costs
There are four categories of additional costs under a no regulation option:
 Costs of additional management plan development;
 Increased staff costs;
 Reduction in safety and amenity for visitors; and
 Reduction in event and commercial opportunities.
The costs under a base case of no regulation include the increased costs of management plan
preparation and establishing systems internally and with other organisations such as the local
council, police and the RTA on management issues.
This cost is assumed to be $75,000 in preparation and consultation costs and an ongoing operation
costs. This cost assumes the consultancy costs of plan preparation and internal staffing costs 12.
The option of doing nothing would add considerable costs to the Trust in its effective management of
the Parklands. Unlawful behaviour by members of the public may involve the Trust in pursuing
remedies through the Court system tying up valuable Trust resources for little if any wide spread
benefit. The reduction in ability to control the actions of visitors in the park will lead to an increase
in compliance activities including interaction with council and police. It is assumed that an additional
0.5 FTE would be required under a no regulation situation.
No allowance at this stage is made for the extra police time. Studies have examined the costs of
police time. Various call-out costs have been examined for offences such as Wilful Destruction,
Disturbances and Traffic Incidents. An average call out time for all categories was estimated to be
12
Internal staffing costs are assumed to be $333 per day based on an annual wage including on-costs of $80,000.
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RIS – Proposed Western Sydney Parkland Regulation 2013
approximately 48 minutes. This study was conducted in 1997 and numbers would require updating
for inclusion in this study. However, the time per call out is likely to be high given the location of the
Parklands and types of potential crimes.
Rangers appointed by the WSP Trust do not have the same status as a member of the police force for
the purpose of enforcing all provisions of the various Acts. To rely on enforcement uses police would
be ineffective and with current resources it is unlikely that comprehensively patrol all of the 5,000
hectares of Trust land would be possible.
No regulation would likely result in a reduction in safety and amenity outcomes.
Assuming an additional instance of 1 incident per year, it is estimated this would cost approximately
$10,200 per year (based on a personal injury). This is based on costs to the Trust and the costs of a
hospital visit by an injured person.
Damage to Trust lands and associated cost for rectification of shelters and vegetation is assumed to
be approximately $15,000 per year. This is based in a doubling of vandalism events that already
occur in the Parklands if there were not adequate systems of penalties in place.
In addition a lack of flexibility and appropriate provisions to manage events would result in a loss of
annual revenue from the Trust from hosting cultural events. Assuming a 15% reduction in future
annual event revenue, this equates to an average annual loss of $36,000 over 5 years.
Rangers appointed by the WSP Trust may be able to enforce offence provisions under other
legislation. Legislation under which rangers appointed by the WSP Trust can exercise certain
enforcement powers include: the Protection of the Environment Operations Act 1997 (water
pollution and litter); Companion Animals Act 1998 (dog and cat offences); and Impounding Act 1993
(powers to impound an animal, vehicle or any other article left unattended). These cover only part
of the operational issues facing Park Management.
Offence provisions in other Acts may only deal with some of the enforcement issues in the Parklands.
To enable rangers to enforce other legislation would require a mechanism to enable this situation
either by appointment or amendments to other Regulations. This would be a difficult and time
consuming process and require on-going liaison.
In the absence of a regulation the Trust would endeavour to meet the objectives of the Act using
non‐enforceable measures such as public education and voluntary codes of conduct. The success of
these approaches would be limited. In effect a no regulation situation would result in some loss of
efficiency in meeting the objects of the Act. There would also be an increased element of risk to
assets and people visiting the Park.
6.1.2 Benefits
No obvious benefits have been identified from ‘no regulation’.
Under the ‘no regulation’ option, there are no identified cost savings. There would be little positive
impact on the users of the Parklands as the current and proposed regulations are both effective and
proportional against the objectives of the Act.
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RIS – Proposed Western Sydney Parkland Regulation 2013
6.2
Option 2 – Current Regulation
The Current Regulation does provide some operational control to the Trust.
6.2.1 Costs
The additional costs of implementing the current regulation are zero. However, as the use of the
Parklands increase over time the Current Regulation may have to be applied in situations where they
are not clear.
This may result in some increase in legal costs over time.
6.2.2 Benefits
The Current Regulation does have some effect in mitigating potential negative outcomes, that is,
over the base case of no Regulation it achieves:
 an improvement in safety and amenity for visitors; and
 an increase in event and commercial opportunities and associated revenue.
However, the lack of clarity and comprehensiveness will led to increased staff costs and a reduction
in outcomes.
The greatest impacts are likely to be on safety and on commercial activities. It is assumed that the
benefits of the current regulation relate to avoiding damage to Trust land.
The provisions to safeguard personal safety and the management of events are considered
inadequate in the Current Regulation.
6.3
Option 3 - Proposed Regulation
6.3.1 Costs
There are some minor costs in the Proposed Regulation, for example, updating signs and website
information. These can be absorbed into recurrent maintenance costs.
The additional costs arising with compliance with the proposed Western Sydney Park Regulation
2013 are negligible when compared to the current situation.
6.3.2 Benefits
The major benefit in making the proposed Western Sydney Park Regulation 2013 is to enable the
Trust to effectively manage the Parklands.
The benefits of the Proposed Regulation include the avoidance of the costs of the base case of
increased reliance on the management plan and reduced flexibility.
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RIS – Proposed Western Sydney Parkland Regulation 2013
In addition there are various operational cost savings from the modified elements of the Regulation.
6.3.3 Key assumptions
The assumptions for each modification are:
1.
Clauses that facilitate Parklands and event management
Parking is adequate and at major events less parking staff is required.
Conditions attaching to permission:
 Reduction in clean-up time and costs – 5.0 days of staff time avoided fixing building and
removing litter
2.
Clauses that promote safety
Clauses that control vehicles and their speed:
 A reduction in incidents that save injury costs and 2 days of staff time with incident
management.
3.
Clauses that improve visitor amenity and enjoyment, including conflict management
Regulation that allows alcohol-free zones, controls certain recreational activities and activities that
involve dogs and other animals all improve enjoyment. Personal conduct and restrictions on noise
on Trust land combine to:
 Increase Parklands visitation by 10%.
4.
Clauses that protect the Parklands facilities and the environment.
Damage to Trust land is avoided.
 Reduction in rectification costs - avoided fixing building and vegetation.
In aggregate the Proposed Regulation will reduce the operational costs of the Parklands and increase
the amenity and protection of the environment over the base case. This should lead to an increase
in visitors to the Parklands.
While costs of individual instances are relatively small, the proposed changes to the regulation
reduce the risks to the assets the Parklands. The risk of major irreversible damage to assets would
have significantly higher costs than those assumed.
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RIS – Proposed Western Sydney Parkland Regulation 2013
6.4
Summary
Table 7 provides an overview of the costs and benefits under each Option quantified using cost
benefit analysis.
The costs and benefits are considered from September 2013 for a period of 5 years. That is, the
point where the Current Regulation would lapse.
Option 1 would result in significant costs to the Trust through losses in net revenue, impact on visitor
safety and operational costs at staffing resources are taken up with educational approaches to
manage park visitors and activities.
Option 3 (Proposed Regulation 2013) is favoured on economic grounds. It provides greater net
benefits than the next best option (Option 3).
Table 7 Summary of cost and benefits (Present Value)13
Costs
($ million)
Benefits
($ million)
Net Present Value
($ million)
Option 1: No Regulation
0.83
0.00
-0.83
Option 2: Remake Existing
Regulation
0.06
0.28
-0.22
Option 3: Proposed Regulation
2013
0.01
0.88
0.86
When compared directly Option 1 (the base case), Option 3 has a net benefit to society of $1.70
million14. The three largest contributors to this net benefit are:
 An increase in visitors over the base case of 5%;
 The Proposed Regulation allowing efficient staffing and avoiding additional rangers to
manage the Parklands; and
 An increase in revenue for events and hire of 15% due to improved event management
capability.
Option 3 incurs a relatively minor operational costs and it improves the effectiveness and flexibility of
the Current Regulation.
When compared to the overall value of the Parklands and annual operational costs the additional
benefit of the proposed amendments under Option 3 is relatively minor $15,000 over the next 5
years. This cost involves some signage and policy development costs involved with implementing the
Proposed Regulation.
13
Using a discount rate of 7% over 5 years, values in 2013 dollars. The result is not sensitive to changing the discount rate
to 4% and 10%. Using a 4% discount rate results in a NPV of $1.86 million, and a 10% discount rate $1.57 million.
14 The difference between -$0.83 and $0.86 million.
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RIS – Proposed Western Sydney Parkland Regulation 2013
7
Conclusion
Section 6 demonstrates that Option 3 (The Proposed Regulation) will achieve the objectives sought
by this regulatory proposal with the greatest net benefit.
The costs associated with the Proposed Regulation are minor for the Trust and there is little to no
costs imposed on users of the Parklands or other stakeholders such as lessees.
As such small improvements in operational efficiency and the amenity and safety of the Parklands
are sufficient for the Proposed Regulation to be advantageous for the entire community.
8
Consultation
The draft Western Sydney Parklands Regulation 2013 was drafted in consultation with the WSP Trust
and the Office of Environment & Heritage.
Further consultation will take place during the exhibition period of the proposed Western Sydney
Parklands Regulation 2013 and this RIS.
An important element of the Trust’s operations is stakeholder and community consultation. A
communication strategy for the Proposed Regulation has been prepared by the Trust.
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RIS – Proposed Western Sydney Parkland Regulation 2013
9
References
Department of Finance, Resource Assessment Commission - DEST, 1995 Techniques to Value
Environmental Resources, AGPS, Canberra.
Nicholls, S. & Crompton, J.L. (1995) The Impact of Greenways on Property Values: Evidence from
Austin, Texas. Departments of Community, Agriculture, Recreation, & Resource Studies, and
Geography Michigan State University & Department of Recreation, Park and Tourism Sciences Texas
A&M University.
Hamilton-Smith, E. (2001). The Social Benefits of Public Open Space: A Review. Sydney Urban Parks
Education and Research (SUPER) Group, Sydney.
Holden, J., 2004, Capturing Cultural Value, Demos, London.
James, D and Gillespie, R, 2002, Guidelines for Economic Effects and Evaluation in EIA, Prepared for
Planning NSW, Sydney.
The Allen Consulting Group, 2005, Valuing the Priceless: The Value of Heritage Protection in Australia,
Research Report 2, Heritage Chairs and Officials of Australia and New Zealand, Sydney.
Taverner Research, 2007, Sydney Parks Use Survey Member Report – 2007 Prepared for Parramatta
Park Trust, Sydney.
Victoria Transport Policy Institute, 2009, Transportation Cost and Benefit Analysis Techniques,
Estimates and Implications - Second Edition, Melbourne.
Western Sydney Parklands Trust, 2012, Annual Report 2011-2012.
Western Sydney Parklands Trust, 2010, Plan of Management.
Websites accessed
WA Government, 2012 http://www.dsr.wa.gov.au/the-value-of-sport-and-recreation
(accessed 2 March 2012)
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10
Glossary
Consumer Surplus
Consumer surplus is a measure of the welfare that people gain from the consumption of
goods and services, or a measure of the benefits they derive from the exchange of
goods.
Consumer surplus is the difference between the total amount that consumers are willing
and able to pay for a good or service (indicated by the demand curve) and the total
amount that they actually do pay (i.e. the market price for the product).
Use Value – Quantifiable
Value derived from actual use of a good or service. How many visitors will pay an entry
fee, for example.
Use values – NonQuantifiable
Not all use values are captured in markets. For instance access to parks, free entrance to
museums, heritage, and public art all have economic value that is not captured by
exchange.
Non-use values
A further category of economic value, namely non-use value include are:
•
existence value: people value the existence of a cultural facility or heritage item
regardless of whether they wish to take part in it or use it themselves
•
option value: people want to keep open the possibility of using or enjoying
something in the future, even though they don’t use it today
•
bequest value: people value leaving something to future generations.
R
The Discount Rate
Producer Surplus
Producer surplus is a measure of producer welfare.
Producer surplus is the difference between what producers are willing and able to supply
a good for and the price they actually receive
PV
Present Value – the current value of expected future cash flows
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RIS – Proposed Western Sydney Parkland Regulation 2013
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Appendix 1 – Comparison with similar regulations
Regulations for similar Parks in the Sydney region include the Parramatta Park Trust Regulation 2012
and the Centennial Park and Moore Park Trust Regulation 2009. A comparison of the regulations
reveals a high degree of commonality and consistency in regulatory approaches for urban parklands.
Proposed Western
Sydney Parklands
Regulation 2013
Parramatta Park Trust
Regulation 2012
Centennial Park and
Moore Park Trust
Regulation 2009
Use of trust lands
X
X
X
Entry
X
X
X
Parking
X
X
X
Parts of trust lands approved for
designated purposes
X
X
X
Fees for use of trust lands
X
X
X
Parts of trust lands and buildings may
be closed to public
X
X
X
Alcohol-free zones
X
X
X
Commercial and other activities on
trust lands
X
X
X
Races on trust lands
X
X
X
Camping and erection of tents and
structures on trust lands
X
X
X
Affixing signs and the like on trust lands
X
X
Conditions attaching to permission to
use trust lands
X
X
X
Damage to trust lands
X
X
X
X
X
Disposal of waste
Recreational activities on trust lands
X
X
X
Activities involving horses & animals
X
X
X
Equestrian Code of Conduct
Vehicles
X
X
X
Driving offences
X
X
Speed of vehicles
X
X
X
Use of cycles, pedal cars & rollerblades
X
X
X
Personal conduct
X
X
X
Authorisation of use of Trust lands for
certain events attracting large crowds
X
Persons to leave trust lands on request
X
X
X
Noise on trust lands
X
X
X
Lessees and licensees
X
X
X
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