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MELBOURNE,
LET’S TALK ABOUT THE FUTURE
This Discussion Paper has been prepared by the Ministerial Advisory Committee for the
Metropolitan Planning Strategy for Melbourne.
October 2012
© COPYRIGHT DEPARTMENT OF PLANNING AND COMMUNITY DEVELOPMENT, 2012.
1 SPRING STREET, MELBOURNE VIC 3000. First printed October 2012.
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CONTENTS
CONTENTS ................................................................................................................................ I
MINISTER’S MESSAGE.............................................................................................................. III
FOREWORD FROM THE CHAIR OF THE MINISTERIAL ADVISORY COMMITTEE ............................IV
EXECUTIVE SUMMARY ............................................................................................................V
Introduction
v
Principles guiding the discussion paper ..................................................................................... v
Opportunities and challenges .................................................................................................. iii
What do we want to achieve ................................................................................................... iv
What needs to change .............................................................................................................. v
Making it happen ................................................................................................................. viii
1.
INTRODUCTION................................................................................................................. 1
2.
WHY DO WE NEED A METROPOLITAN PLANNING STRATEGY? ............................................ 3
3.
WHAT WE WANT TO ACHIEVE ........................................................................................... 7
Principle 1:
A distinctive Melbourne ................................................................................ 8
Urban structure and place .......................................................................................................... 8
Revitalisation and renewal.......................................................................................................... 9
Valuing good design and innovation......................................................................................... 10
Roads as features of the public realm ...................................................................................... 10
Tourism innovations ................................................................................................................. 10
A creative and active population .............................................................................................. 11
Planning for parks and waterways ............................................................................................ 11
Embracing Port Phillip ............................................................................................................... 11
Principle 2:
A globally connected and competitive city ................................................... 12
Growing a knowledge economy ............................................................................................... 13
Changing patterns of employment and travel .......................................................................... 13
A metropolitan framework based on jobs ................................................................................ 13
Industrial and freight areas ....................................................................................................... 14
A need to increase Port capacity .............................................................................................. 14
Competitive airports ................................................................................................................. 14
Embracing innovation in the private sector.............................................................................. 15
Principle 3:
Social and economic participation................................................................ 16
The prospect of ‘two Melbournes’ ........................................................................................... 16
Growth on the fringe ................................................................................................................ 16
Building connections ................................................................................................................. 17
Our changing demography ....................................................................................................... 17
Flexible employment opportunities and risks .......................................................................... 18
Getting to work ......................................................................................................................... 18
Access to education .................................................................................................................. 18
Principle 4:
Strong communities .................................................................................... 19
Fostering strong communities .................................................................................................. 20
Diverse communities ................................................................................................................ 20
Finding appropriate housing ..................................................................................................... 20
Page i
Affordable housing.................................................................................................................... 21
Affordable living ........................................................................................................................ 22
Social housing ........................................................................................................................... 22
Principle 5:
Environmental resilience ............................................................................. 24
The urban heat island effect ..................................................................................................... 24
Energy efficient urban design ................................................................................................... 24
Lower impact transport ............................................................................................................ 25
Local electricity generation ....................................................................................................... 25
Capturing, recycling and reusing water .................................................................................... 25
Conserving areas we value ....................................................................................................... 26
Creating a green edge to the city.............................................................................................. 26
Food production ....................................................................................................................... 26
Waste and resource use ........................................................................................................... 27
4.
WHAT NEEDS TO CHANGE ............................................................................................. 28
Principle 6:
Idea 1:
Idea 2:
Idea 3:
Idea 4:
Idea 5:
Idea 6:
Idea 7:
A polycentric city linked to regional cities .................................................... 29
Growing the Central City as the anchor of a world city ....................................... 31
Building national employment and innovation clusters ...................................... 32
Unlocking capacity in established suburbs........................................................... 33
Providing a transport system for Melbourne’s future ......................................... 34
Strengthening the green edge to Melbourne ...................................................... 35
Building a state of cities ....................................................................................... 36
Extending Melbourne’s boulevards – a civic legacy ............................................. 36
Principle 7:
Idea 8:
Idea 9:
Living locally – A ‘20 minute’ city ................................................................. 38
Delivering jobs and services to outer area residents ........................................... 40
Providing diverse housing in the right locations at a reasonable
price ...................................................................................................................... 41
Improving the environmental performance of suburbs ...................................... 41
Idea 10:
5.
MAKING IT HAPPEN ....................................................................................................... 43
Principle 8:
Idea 11:
Idea 12:
Idea 13:
Infrastructure investment that supports city growth ..................................... 44
Using investment to transform places ................................................................. 48
Moving to a place-based focus for programs....................................................... 48
Identifying a long-term framework for metropolitan infrastructure ................... 49
Principle 9:
Idea 14:
Idea 15:
Leadership and partnership ......................................................................... 52
Developing partnerships and agreements ........................................................... 54
Developing good governance structures and processes to deliver
the Strategy .......................................................................................................... 55
Setting targets, measuring progress and publishing indicators ........................... 55
Idea 16:
6.
HAVE YOUR SAY ............................................................................................................. 57
APPENDIX A WHO WE HAVE SPOKEN TO................................................................................. 60
Page ii
MINISTER’S MESSAGE
As a city, Melbourne is facing one of the most exciting and challenging periods in our 177-year
history.
Over the next 40 years, Melbourne will continue to grow, both geographically and in population.
How we plan for that growth is the key to ensuring our city remains one of the most diverse,
distinctive and liveable cities in the world. All Victorians need to begin to talk about creating a
long-term vision and implementation strategy for the overall development of our capital city.
That is what this Discussion Paper is designed to do.
Over the previous decades many planning milestones have been reached that continue to
contribute to Melbourne life, and will do so for many generations to come. Today’s Melbourne
is testimony to our forebears who laid the foundations to determine our city’s prosperity,
liveability and sustainability.
However, we can no longer afford to adopt a ‘business as usual’ approach. We must
acknowledge how our city is changing, why it is changing and what we can do to ensure that the
Melbourne of our children is better than the Melbourne of today.
The Victorian Coalition Government’s Ministerial Advisory Committee has developed this
Discussion Paper based on nine strategic principles and feedback to date to prompt discussion
around the challenges and ideas for the future. The Committee raises many interesting ideas
and I wholeheartedly encourage you to consider them while envisaging the Melbourne you
want to see evolve up until 2050.
Many metropolitan planning strategies are simply land use and integrated transport documents;
however this plan is designed to go further by focusing on the economic, social, environmental
and built form character of our city. We want the strategy to plan for Melbourne to be the most
liveable and affordable place to live and do business in Australia.
Your contribution to this conversation is critical to determining how we as a community and
Government plan to respond to population growth, economic challenges and profound
demographic changes.
All Victorians are invited to join the conversations through online forums, local councils,
community and industry events, answering a survey or by making a submission. Funding and
content assistance will be available to facilitate these conversations occurring.
We want your comments and assistance. I look forward to hearing your voice to help shape the
final Metropolitan Planning Strategy that will map out our city’s evolution for the next 40 years.
Matthew Guy MLC
Minister for Planning
Page iii
FOREWORD FROM THE CHAIR OF THE
MINISTERIAL ADVISORY COMMITTEE
Planning for the growth and development of metropolitan Melbourne over the next 30 to 40
years will affect every one of us. It will influence our ability to access jobs, services and facilities,
and our ability to live close to friends and family in a dwelling that meets our needs and matches
our budget.
Decisions we make today will affect how connected we feel to our local community and how
empowered we are to contribute to Melbourne’s productivity and prosperity. The Ministerial
Advisory Committee believes that every child born in our city over the next few decades
deserves to live better than we do today.
Planning for our future is not about the abstract – it is about people’s quality of life. It is also
about finding new ways to share the benefits of growth and investment, and the responsibilities
of delivering these benefits.
Wherever we are in our lives – a young child, a teenager, a parent or a retiree – it is important
that the Metropolitan Planning Strategy delivers the outcomes we need throughout our lives to
be housed, educated, employed, cared for and to feel part of a great world city. This relies on
investment – especially ‘city shaping’ investment such as improved transport services, an
expanded freight and logistics network, new employment clusters, and the provision of high
quality health and educational facilities. More social and recreational facilities will also be
needed, not only in urban growth areas but also in established suburbs to accommodate
additional housing and jobs.
Our city will need to be more globally competitive. We will need to determine how best to
unlock the capacity of existing infrastructure and augment it to maximise benefits for all
Melburnians. Now is the time to talk about how to fund this much-needed infrastructure.
Regardless of where we live we all need access to good services and facilities. Having choices
about where we live and work, how we travel to and from work and what we do in our leisure
time – these are all influenced by how we plan and manage the growth of our city. The
Committee believes all Melburnians should have access to the services and facilities they need
within a 20 minute journey from home.
If we make the right decisions now Melbourne will be able to deliver a suburban lifestyle to
those who want it or a downtown lifestyle to those who want that.
In preparing this Discussion Paper the Committee has thought deeply and consulted widely
about the legacy this generation needs to leave the next. In this paper we outline some ideas
and aspirations for Melbourne by 2050. At the end of this paper we ask you to share your own
ideas for the future of our great city.
Professor Roz Hansen
Chair, Ministerial Advisory Committee
Metropolitan Planning Strategy
Page iv
EXECUTIVE SUMMARY
INTRODUCTION
Great cities don’t just happen. For more than 150 years Melbourne has benefitted from sound
strategic planning and investment in transport, water storages, parks and social services.
Melbourne has a history of designing and developing quality spaces and buildings. In 2012, the
city now faces new challenges if it is to remain a great place to live, work, visit and do business. In
order to meet these challenges, the Victorian Coalition Government is preparing a new
Metropolitan Planning Strategy for Melbourne. The Strategy will set a vision for Melbourne to the
year 2050 and, together with eight Regional Growth Plans that will cover the balance of Victoria, a
statewide blueprint for managing growth and development.
This Discussion Paper has been prepared to generate debate and discussion among Melburnians
about the future of our city. As a community we need to talk together about the future.
People and cities are constantly changing. Looking out to the next 40 years Melbourne and
Victoria face new challenges. Melbourne’s population is growing and this will change the
demands on the economy, housing, education, transport, open space, health and community
facilities. At the same time, Melburnians are also changing. The types of jobs we do, how we
travel, shop, socialise and the types of homes we live in are changing. We need a strategy to
manage these changes and build on Melbourne’s strengths and opportunities.
The Strategy’s 40-year timeframe will provide opportunities to create a more productive,
prosperous and liveable Melbourne. There is great scope to build attractive and vibrant areas
across all of Melbourne while preserving the areas that we value. Moving away from a ‘one-size
fits all’ approach to local solutions will enable communities to have greater choice in where they
live and work, and unlock local potential.
PRINCIPLES GUIDING THE DISCUSSION PAPER
Growth is often seen in a negative light but well-managed growth provides the opportunity for
Melbourne to address the challenges it faces, and for communities and individuals to achieve
their aspirations. The Strategy will need to work with the market to foster private development
that supports implementation of the Strategy.
Cities can provide choices to people and help people develop the capacities to exercise those
choices. This includes choice and capability to access jobs and services, find suitable housing in
your local community and enjoy the many recreational opportunities the city offers.
Within the broad concept of ‘net community benefit’ – which underpins planning in Victoria –
the Committee has identified nine principles to inform the Metropolitan Planning Strategy. The
principles cover:
What we want to
achieve
Principle 1: A distinctive Melbourne
Principle 2: A globally connected and competitive city
Principle 3: Social and economic participation
Principle 4: Strong communities
Principle 5: Environmental resilience.
Page v
What needs to
change
Principle 6: A polycentric city linked to regional cities
Principle 7: Living locally – a ‘20 minute’ city.
Making it happen
Principle 8: Infrastructure investment that supports city growth
Principle 9: Leadership and partnership.
Page ii
OPPORTUNITIES AND CHALLENGES
Melbourne, as Victoria’s capital city, is the gateway between regional cities and rural Victoria,
Australia and the world. Victoria’s competitiveness and success depends on Melbourne’s
success.
Melbourne’s attractiveness and liveability contribute to the wellbeing of residents and the
enjoyment of visitors. Improvements will help draw talented and skilled workers to the city to
support its role as an education and knowledge centre.
Asia is becoming more affluent and more important, and global economic patterns are
changing. Melbourne’s economic structure is changing and we are seeing a change in traditional
employment patterns.
Globalisation will bring challenges and opportunities for Victoria’s competitive strengths in
freight and logistics, education, science and research, health and aged services, tourism,
manufacturing, high-end business services, creative industries and agriculture. New policies will
need to drive productivity and competitiveness.
By 2050, Melbourne’s population is likely to reach between 5.6 and 6.4 million. Being a larger
city also brings challenges – a city of over 5 million people functions differently to a city of 4
million people.
The demographic changes that Melbourne will face in the years ahead are profound: the
percentage of the population over 65 years of age will increase from 14 per cent today to 22 per
cent by 2050, and there will be a greater proportion of lone-person and couple only households.
Melbourne is becoming geographically larger. Over the life of the Strategy we expect to see a
significant shift in growth from the south-east of Melbourne to the north and west of the city.
This growth provides an opportunity to consider development in the north and west in a new
light.
With a growing population will come the need to boost employment and build new facilities,
shops, schools and housing. The demand for new housing will grow faster than the population
as the population ages and household sizes get smaller.
Jobs will shift in location as old industrial uses continue to leave inner Melbourne and
employment locations change.
Transport systems in Melbourne have benefitted from far-sighted past plans that have set aside
reserves for new connections. The Metropolitan Planning Strategy will include a vision for
Melbourne’s transport system.
Commuting times and distances are in danger of blowing out due to disconnection between
housing and jobs and there is growing congestion on roads and public transport. Strategies are
needed to make sure residents of new housing areas have access to jobs and, where possible,
more people can live where job densities are increasing.
Development and urban renewal in an expanded Central City will be at a scale not previously
contemplated. This cannot succeed without careful attention to good design and an integrated
approach to land use and transport. New solutions need to be developed – focused on trains,
trams, walking, cycling, buses and optimising road space.
Affordable living will become a critical factor, requiring better integration of jobs and housing.
A number of financial challenges will have an impact on resources available for infrastructure
and services to support growing and changing communities, attract more investment and
reinforce our city’s globally competitive status.
Page iii
WHAT DO WE WANT TO ACHIEVE
The Discussion Paper addresses the key issues under the nine principles. The first five principles
set out what most people value about Melbourne.
Principle 1: A distinctive Melbourne
Throughout its history Melbourne has responded to new challenges and opportunities by
building on the best of its past, looking to the future and developing its own unique identity. It is
recognised by residents and visitors as a city with a unique character.
The Central City and inner Melbourne have a legacy of memorable spaces and distinctive main
streets. People are justifiably proud of their areas but parts of middle and outer Melbourne have
not been designed or managed to reach their full potential. Melbourne can build on its tradition
of good design and reinforce local distinctiveness to create many more attractive places to meet
community expectations.
Principle 2: A globally connected and competitive city
Melbourne is inextricably linked to the global economy through trade, people and the flow of
information and ideas.
Like so many other international cities, Melbourne will need to attract more investment and
quality employment opportunities. To remain competitive in the decades ahead, Melbourne
needs to improve its ‘productivity’ – the economic value produced for an hour of work or a
dollar of investment.
Principle 3: Social and economic participation
As a city we can no longer view social issues as separate from economic issues. Social issues
affect a person’s capacity to contribute to the economy and community. If not addressed, they
will put a handbrake on productivity or impose direct costs on society such as increased health
and welfare services.
The modern economy presents new opportunities and people need to be able to realise these
opportunities. Melbourne should continue to provide opportunities and capacity for residents to
build a good life.
Principle 4: Strong communities
Connection to family, friends and neighbours across generations is important in building strong
communities and promoting wellbeing. The building blocks of successful cities are strong and
cohesive local communities.
We must reinforce the elements that create strong and caring local communities. Local areas
should provide housing choices to meet the needs of local residents. Planning local areas to
cater for the needs of people across all life stages will help foster healthy and strong
communities.
Principle 5: Environmental resilience
Melbourne needs to be environmentally resilient. We need to be able to respond to changing
environmental and climate conditions and ensure development does not undermine natural
values. We will need to use resources more efficiently and produce less waste.
Page iv
WHAT NEEDS TO CHANGE
Principles six and seven begin to define how Melbourne should be managed within a spatial
context at a metropolitan scale and local scale.
Principle 6: A polycentric city linked to regional cities
Activity centre policy, which has underpinned Melbourne’s metropolitan strategies for several
decades, takes the location of retail premises as its starting point. This approach has helped
support vibrant local activity centres that meet local and regional needs. Activity centres are
important for local communities but in terms of planning Melbourne’s overall form the Strategy
should now focus on jobs as the starting point.
Initial urban form modelling suggests that a ‘polycentric’ city can perform best in terms of
increased public transport use and reduced traffic congestion. A polycentric model for
Melbourne would include:

the Central City

inner Melbourne as a distinct pattern of activity

national employment and innovation clusters

a limited number of high level suburban service centres.
Better integration of Melbourne with regional cities will provide more opportunities for all
Victorians.
Ideas and aspirations for a polycentric city linked to regional cities are:
Idea 1:
Growing the Central City as the anchor of a world city
The Central City is the core location of the ‘knowledge economy’. Building an expanded Central
City can attract new jobs to Melbourne and reinforce Melbourne as a world city and tourism
hub.
Idea 2:
Building national employment and innovation clusters
A number of suburban job clusters are nationally significant places of economic activity and
innovation. Reinforcing the role of these clusters can boost productivity, support economic
growth, make the most of infrastructure, and promote urban renewal.
Idea 3:
Unlocking capacity in established suburbs
As Melbourne grows the role of its middle suburbs is expected to change. With an increasing
population in outer suburbs and growth areas, parts of Melbourne’s established suburbs are
well-placed to play a greater economic and housing role.
Idea 4:
Providing a transport system for Melbourne’s future
There is a clear desire for a comprehensive vision for a sustainable transport system in
Melbourne that moves beyond specific projects.
Idea 5:
Strengthening the green edge to Melbourne
Melbourne should consider strengthening its ‘green wedge’ planning approach with a ‘green
belt’. It should be obvious where Melbourne stops and rural areas begin.
Idea 6:
Building a state of cities
Victoria has the opportunity to better integrate Melbourne with a network of regional cities.
Increasing economic and social links between these regional cities could better integrate labour
forces, create choice for fast-growing sectors such as remote and mobile workers, and result in
Page v
better use of existing infrastructure. This will not only include the major regional cities such as
Geelong, Ballarat and Bendigo, but may include towns closer to Melbourne such as Warragul.
Idea 7:
Extending Melbourne’s boulevards – a civic legacy
It is time to extend Melbourne’s urban design skills to ‘suburban design’ – to translate the
lessons learned in creating vibrant, attractive inner urban areas into improving the legibility,
connectivity and grandeur of the suburbs.
Principle 7: Living locally – A ‘20 minute’ city
Accessible, safe and attractive local areas where people can meet most of their needs will help
make Melbourne a healthier, more inclusive city. Having a range of services close to home and
work frees people up to do more of the things they enjoy. A geographically larger Melbourne
poses new challenges for ensuring social and economic participation for everyone.
Neighbourhoods should cater for people’s housing needs over their lifetime, bearing in mind
that adults move six or seven times on average. Without action the cost of buying or renting a
house in Melbourne is likely to rise in the years ahead, certainly in established suburbs. The cost
of a dwelling in the middle suburbs of Melbourne needs to be reduced if we are to provide more
choice for families to buy new homes in established areas.
At present about half of all new housing in Melbourne is constructed in established areas.
Continuing current trends is unlikely to provide sufficient stock to meet people’s needs or widen
people’s housing choices in the areas they want to live. A different split between established
and new areas might better achieve the outcomes identified in Principles 1 to 5. Quality design
is critical to creating attractive local areas that support local living.
While individuals can act to address the sustainability of their own houses, encouraging a
neighbourhood approach to sustainability has the potential to make the process easier and
more effective. A host of small-scale interventions can help avoid the need for large
infrastructure investment.
Page vi
Ideas and aspirations for living locally – a ‘20 minute’ city are:
Idea 8:
Delivering jobs and services to outer area residents
Services need to be provided in a more timely manner to urban growth areas and established
outer areas of Melbourne.
Idea 9:
Providing diverse housing in the right location at a reasonable price
The debate about infill housing in Melbourne must move beyond the impact of villa units on
suburban streets and address how we can deliver diverse housing, in the right locations, at a
reasonable price.
Idea 10: Improving the environmental performance of suburbs
Melbourne is a suburban city and that will not change. The environmental performance of its
suburbs can be dramatically improved.
Page vii
MAKING IT HAPPEN
The Metropolitan Planning Strategy must move away from regulation as the primary means of
achieving planning outcomes. Instead, we need to invest in vital infrastructure to support city
growth and social cohesion, and foster stronger partnerships between government, the private
sector and the community.
The Metropolitan Planning Strategy should address the needs of local councils, business and
communities. Melburnians will need to share the responsibility of implementing the strategy as
well as share the benefits from such a strategy at the metropolitan and local levels.
Planning strategies cannot anticipate each and every opportunity that may arise over a 40 year
timeframe. For example, strategies developed 20 years ago could not have imagined the impact
of the internet and social media on connecting people. Private interests should be able to
initiate innovative projects even if these projects are not contemplated by current planning
controls. Private development can often recognise opportunities Government has not
considered and systems should be established to better respond to these initiatives.
In a budget-constrained environment Melbourne needs to get the most value from its existing
services and infrastructure and new funding frameworks will need to be developed to deliver
needed infrastructure.
Melbourne is a key freight and logistics centre for Australia, but capacity at the Port of
Melbourne is constrained. Melbourne Airport is curfew free and is on track to handle more than
40 million passengers. There is adequate capacity to increase the number of aircraft flying into
Melbourne Airport for some time but more limited capacity to provide land-based access to the
airport. Avalon Airport has plans to become an international airport and a further airport in the
south-east should be investigated.
Principle 8: Infrastructure investment that supports city growth
A single integrated land use, transport and social infrastructure strategy means ensuring that
infrastructure investment supports sustainable land use patterns and drives productivity.
A long-term infrastructure vision should address Melbourne’s competitive strengths. This plan
needs to achieve improved access to jobs and services across Melbourne and support our
competitive strengths. And there are some ‘big ticket’ items that we will need to deal with.
Ideas and aspirations for infrastructure investment that supports city growth are:
Idea 11:
Using investment to transform places
Major infrastructure investment results in transformative land use changes. In Melbourne,
planning for major infrastructure investment needs to ensure that the best public outcomes –
new jobs, housing choices, new open space and facilities – result from such projects.
Idea 12:
Moving to a place-based focus for programs
In the past, many State Government programs have focused on meeting a specialised need or
delivering one type of service. This has been the case for a range of projects, from transport to
social services. We need to move to integrated place-based programs that focus on the needs of
a particular area or community, instead of just one issue in an area that has multiple needs.
Page viii
Idea 13: Identifying a long-term framework for metropolitan infrastructure
We need a long-term framework for delivering city shaping and community shaping
infrastructure that includes transport, social, health, education, recreation and open space, and
utilities.
Principle 9: Leadership and partnership
Good governance, strong leadership and collaborative partnerships are essential to the success
or failure of a metropolitan strategy. Partnerships between Commonwealth and State
Governments, State Government and local councils, public and private sectors, councils and
their communities, are fundamental ingredients to achieve a positive future for Melbourne.
Melburnians have a history of embracing change and being innovative in doing so. Through
these responses we can provide new employment, housing, education, social and recreational
opportunities.
Melburnians will need to share the responsibility of implementing the strategy as well as share
the benefits from such a strategy at the metropolitan and local level.
To achieve this partnership approach we will need to talk and identify how best to carry out the
necessary tasks of city and community building. The Melbourne of the future will need the
assistance of the Commonwealth Government, the State Government, councils, the investment
sector, the community sector and citizens. How we deliver infrastructure and services and how
we create new places might differ to what we have done in the past. As a community we must
be open to innovation and new ways of doing things while identifying public benefits as a
prerequisite.
Page ix
Ideas and aspirations for leadership and partnership are:
Idea 14:
Developing partnerships and agreements
State Government and local councils share responsibility for the planning of Melbourne. The
Commonwealth Government also plays a role with infrastructure investment and setting
strategies. Cooperation can be improved – this can only be achieved by a partnership approach
between councils and the State Government.
Idea 15:
Developing good governance structures and processes to deliver the Strategy
There is a need to develop good governance structures and processes to deliver the Strategy.
The roles and responsibilities of the Commonwealth Government and its agencies, State
Government agencies, local councils and private parties need to be clear in the implementation
of the Strategy.
Idea 16:
Setting targets, measuring progress and publishing indicators
For too long many aspects of Melbourne’s urban system have gone unmeasured or unreported.
Setting targets and aspirations will be central to the Metropolitan Planning Strategy
Page x
1. INTRODUCTION
The Victorian Coalition Government is preparing a new Metropolitan Planning Strategy for
Melbourne. The Strategy will set a vision for Melbourne and Victoria, together with eight
Regional Growth Plans that will plan for the future of the balance of Victoria.
The Strategy is intended for the city and its people – not for any particular level of
government. Delivering the Strategy will require partnerships between all levels of
government, together with industry and the community. The Strategy will consider the trends
that are likely to affect Melbourne in the years ahead, clearly articulating the type of city we
want metropolitan Melbourne to be by the year 2050. It will focus on the decisions needed to
shape Melbourne over the next 40 years.
The Strategy will be a planning, development and transport strategy. While planning and
transport decisions affect almost all aspects of our lives, the Strategy is not directed at specific
areas of the economy, the environment or community health.
The purpose of this Discussion Paper
This Discussion Paper has been prepared by the Ministerial Advisory Committee for the
Metropolitan Planning Strategy to help generate debate and discussion about the future of
our city.
The Committee was appointed in May 2012 by the Minister for Planning to:

provide advice on the development of the Metropolitan Planning Strategy

convene and lead forums and meetings as part of a wider engagement program

review and provide input into the Strategy during its development.
The Committee members are:

Professor Roz Hansen (Chair)

Professor John Stanley

Chris Gallagher

Brian Haratsis

Bernard McNamara

Tony Nicholson.
What people told us
Since May 2012 the Committee has met with members of the public, representatives of social
and business groups, government and non-government agencies, local councils and
community organisations to seek their advice about what priorities, key principles and
directions should guide us in the advice and input we provide to the State Government.
This consultation will broaden as our work progresses. Feedback from the online forum on the
‘Plan Melbourne’ website was also considered. A list of people and organisations consulted to
date is included as Appendix A.
Page 1
Many issues and opportunities were raised during the consultation process and a number of
recurring themes emerged about what should be addressed. These included:

the legacy of strong civic assets and design quality in Melbourne

more widespread employment opportunities and economic growth

equity of access to the opportunities our city offers

affordable living with choice and innovation in the housing market, matched to
emerging demographic trends

environmental sustainability

a cohesive, overall vision for metropolitan Melbourne that is understood and embraced
by the community

greater certainty and clarity for planning decision-making

future infrastructure provision, in particular the transport network

a credible implementation pathway, including funding models and assignment of clear
roles and responsibilities.
Many stakeholders see a broad bipartisan approach as critical to the success of the
Metropolitan Planning Strategy, with the Strategy extending beyond the term of any one
government.
Page 2
2. WHY DO WE NEED A METROPOLITAN
PLANNING STRATEGY?
Keeping Melbourne liveable and globally competitive
Melbourne is recognised as a great place to live, work, visit and do business, and in 2012 was
again ranked by the Economist Intelligence Unit as the world’s most liveable city. Melbourne
provides opportunities and capacity for most residents to build a good life.
Melbourne is located near the geographic centre of Victoria and is the powerhouse of the
Victorian economy. Victoria is home to about 25 per cent of the Australian population yet
accounts for only 3 per cent of its land area. About 89 per cent of the Victorian population lives
within 150 kilometres of Melbourne’s Central City.
This settlement pattern means the future of Victoria’s regions and Melbourne are as
intertwined as more obvious ‘city states’ such as Singapore. For this reason, a metropolitan
strategy must be part of a wider vision for Victoria.
Melbourne’s distinctive liveability has been created and sustained by the vision, skills,
governance structures and hard work of successive generations who have lived and worked in
the city. To ensure Melbourne continues to be a great city as we head towards 2050, a new
vision is required, along with new implementation structures, hard work and commitment. The
city’s benefits and attractions must be available to the whole community, no matter where
they live and work, and people must have choices and the capacity to exercise those choices.
Map 1 Melbourne in its Victorian context
Map 2 Melbourne today
No longer ‘business as usual’
Well-managed growth provides the opportunity for Melbourne to meet the aspirations of its
citizens as a community and as individuals. Melbourne has become more attractive, vibrant
and successful as it has grown. The Strategy’s 40-year timeframe will provide a wealth of
opportunities to create a more successful and liveable Melbourne. And many decisions will
have an even longer legacy for the city.
Over its history Melbourne has adapted to changing circumstances to maintain its prosperity
and liveability. Melbourne is again facing changing circumstances. We have an ageing
population, those heading towards retirement have reduced wealth, and housing stress is a
chronic problem for about 10 per cent of households. Almost all of the city’s most affordable
housing is in the outer suburbs with the inner suburbs out of reach to many renters and all but
the wealthiest first home buyers. Many areas of Melbourne suffer from unmet infrastructure
needs and this has a negative impact on liveability and productivity. The increasing value of the
Australian dollar and the global economic slowdown put pressure on Melbourne’s key export
sectors including education, tourism, business services and manufacturing.
In the decades ahead Melbourne’s population will continue to grow. Cities are engines of
productivity and places of opportunity. We need to think about the trends that will affect
Melbourne in the years ahead as we plan for what many commentators call the Asian century.
Page 3
We face many challenges and choices if Melburnians are to continue to share the benefits of
growth and development.
Some of the changes Melbourne will face in the years ahead are profound. For example, a
much greater proportion of the population will be over 65 years of age by 2050. Melbourne
will need to pay careful attention to its liveability as population growth takes us beyond 5
million people.
If managed well, growth in Melbourne provides opportunities for communities and individuals
to achieve their aspirations and create a better city for all citizens. City growth should be about
expanding people’s choices and giving them the capabilities to exercise choices for a better
life, while respecting the natural environment – on which we, future generations, and our
native species depend.
Meeting our future needs
Growth in Melbourne and Victoria has fluctuated over time, depending on international and
local events. By 2050, Melbourne’s population is likely to reach between 5.6 and 6.4 million.
Population growth in Melbourne is caused by natural increases and migration – currently
about 38 per cent from natural increases and 62 per cent from migration. Setting long-term
frameworks requires an understanding of the scale of the planning task.
With a growing population will come the need to boost employment, and build new facilities,
shops, schools and housing. The demand for new housing will grow faster than the population,
as the population ages and household sizes get smaller. Projections of future housing demand,
like population projections, involve uncertainty. However, if current trends persist for the next
20 years, the market will need to deliver an additional 555,000 dwellings within metropolitan
Melbourne. That is about 30,000 new dwellings each year.
The Strategy must set out a process for getting more diverse housing types in the right
locations. Melbourne is currently accommodating about half of its population growth in
established areas, with the Central City growing at about the same rate as growth areas on the
metropolitan fringe. There is now sufficient land currently identified for future urban
development to cater for about 30 years of suburban growth, with much of this in the north
and west of Melbourne. However, meeting our future housing needs is not just about the
amount of urban land we have but the type of housing we construct and its proximity to jobs
and services.
Figure 1 Historic and projected growth of Melbourne
Figure 2 Unpredicted annual change in population
An urban development and transport vision
Melbourne is becoming geographically larger. Over the life of the Strategy we expect to see
a significant shift in growth from the south-east of Melbourne to the north and west of the
city. The Metropolitan Planning Strategy will include a vision for Melbourne’s transport
system which will integrate with land use and settlement patterns.
Growth to the north and west of Melbourne will bring changes to the inner and middle
suburbs of these areas, with increased demand for employment, services and higher density
housing.
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As cities grow beyond 3 or 4 million, people move around them in different ways. We all
experience the frustrations of traffic congestion and crowded public transport, especially
during peak times, and we must address this issue. As traffic congestion increases, the share of
trips by public transport and walking usually increases. This highlights the need to improve
public transport, pedestrian amenity and the shared public realm – streets and open spaces.
Large-scale transport projects shape the way cities grow. The acceleration of new
development close to EastLink and the Western Ring Road is evidence of land use changes
triggered by major transport infrastructure. Melbourne faces a number of transport challenges
that require a change in the way we manage and build transport systems. These projects will
have an impact on the future pattern of development in Melbourne.
The central core of Melbourne’s metropolitan rail network is close to capacity, preventing new
services from being added unless we plan for and implement major infrastructure
improvements.
In the decades ahead, development and urban renewal in inner Melbourne will be at a scale
not previously contemplated. This cannot succeed without an integrated approach to land use
and transport. New solutions need to be developed focused on trains, tram/light rail, walking
and cycling, buses and improving the road network.
Ongoing management of the road network will be needed, together with new and integrated
solutions, to enable job and housing growth to continue and to exploit the spare capacity and
potential of buses.
Melbourne is over-dependent on the West Gate–M1 corridor with the most recent investment
providing only a temporary period of congestion relief. Alternative corridors need to be found
to deal with east-west transport demand for freight and through traffic.
Melbourne's historic outward, low density suburban expansion also highlights the need for
strategies to make sure new housing areas have access to jobs and, where appropriate, more
people can live where job densities are increasing. If jobs are not increased in the suburbs the
growing disconnection from employment may lead to an increase in commuting times.
The Port of Melbourne, Australia's largest container and general cargo port, is critical to the
state and national economies. At current rates of growth, the Port will be at capacity in 10 to
15 years’ time. In comparison, Melbourne Airport has ample capacity for more flights but is
reaching capacity in terms of road access. We must address these freight and logistics
challenges if Melbourne is to continue to be a globally competitive investment and business
destination.
Map 3 The expanding footprint of Melbourne
Photograph: Our expanding suburbs
Question As the population grows, should a large proportion of growth be outside of
Melbourne? Is this a more efficient and sustainable outcome?
A framework for innovation
All strategies are about making choices. Any metropolitan strategy needs to provide clear
guidance about the type of city we want Melbourne to be by the year 2050. This includes the
location of new housing, investment for employment, where services should be located and
what extensions or improvements to the transport system are needed.
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The new Metropolitan Planning Strategy will need to provide clear frameworks for long-term
decision-making about Melbourne while also providing enough guidance to achieve those
frameworks with short and medium-term projects. These frameworks will need to leave room
for innovation and creativity, while limiting change in areas that should be preserved. Planning
will need to allow for future opportunities by preserving transport options, reserving land for
major new facilities and services, and by acknowledging that places take time to develop.
Preserving Melbourne’s distinctiveness will require an approach to city management that
considers issues from the ‘bottom up’, based on the experience of its citizens, the
distinctiveness of its ‘villages’ and suburbs, and the actual operation of its economy,
infrastructure and ecological systems. This will be a change from the ‘top down’ view that has
been a feature of some past strategies.
Delivery of the Strategy will require a partnership of all levels of government, together with
industry and the community.
Achieving our potential and unlocking capacity
Within the broad concept of ‘net community benefit’ – which underpins planning in Victoria
– the Committee has identified nine principles to inform the Metropolitan Planning Strategy.
Five of these principles identify outcomes the Strategy needs to address, while the remaining
four principles outline how these outcomes can be achieved.
The first five principles set out what the Committee believes most people value about
Melbourne. The principles identify social and economic participation and Melbourne’s
distinctiveness to complement principles on economic, social and environmental concerns to
create a comprehensive view of the outcomes the Strategy needs to achieve:

Principle 1: A distinctive Melbourne

Principle 2: A globally connected and competitive city

Principle 3: Social and economic participation

Principle 4: Strong communities

Principle 5: Environmental resilience.
These five principles should inform the Strategy and future detailed planning work.
Principles six and seven make a start on defining how Melbourne should be managed at a
metropolitan scale and local scale, based on economic considerations and employment
locations. They are informed by concepts such as ‘living locally’ and ‘treading lightly’:

Principle 6: A polycentric city linked to regional cities

Principle 7: Living locally – a ‘20 minute’ city.
The final two principles describe how the Strategy could be implemented:

Principle 8: Infrastructure investment that supports city growth

Principle 9: Leadership and partnership.
Photograph: Public transport use has increased
Did you know: Public transport use in Melbourne has grown by 50 per cent in the past decade
(train use by more than 80 per cent).
Page 6
3. WHAT WE WANT TO ACHIEVE
This chapter explores in more detail the first five principles that should inform development of
the Metropolitan Planning Strategy. For each principle we:

explain why the principle is important and the current ‘state of play’ in Melbourne

present key issues from research and consultation

explore how these issues might be addressed in the Strategy, recognising that not all
issues raised can be addressed by planning, transport and infrastructure investment.
Principles 1 to 5 are:

Principle 1: A distinctive Melbourne

Principle 2: A globally connected and competitive city

Principle 3: Social and economic participation

Principle 4: Strong communities

Principle 5: Environmental resilience.
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PRINCIPLE 1:
A DISTINCTIVE MELBOURNE
Throughout its history Melbourne has responded to new challenges and opportunities by
building on the best of its past, looking to the future and developing its own unique identity.
It is recognised by residents and visitors as a city with a unique character.
Maintaining and improving Melbourne’s attractiveness and liveability will contribute to the
wellbeing of residents and the enjoyment of visitors. It will help draw talented and skilled
workers to the city to support its role as an education and knowledge centre.
Set between Port Phillip and the Dandenong Ranges – and bisected by the Yarra and
Maribyrnong rivers – Melbourne’s distinctiveness is enhanced by its strong Aboriginal heritage
and its easy access to the south-west and south-east coasts of Victoria, the western plains, the
Goulburn and Yarra valleys, the Dandenong Ranges and historic goldfield towns.
Melbourne is one of the world’s great Victorian cities. It has a legacy of:

an elegant public realm and ornate buildings

the notable ‘Hoddle Grid’

distinctive boulevards and high streets

expansive inner city parks, gardens and recreational facilities

a vibrant street life extending into a myriad of lanes and hidden locations.
Trams are an iconic part of Melbourne’s identity, with the city boasting one of the longest tram
networks in the world. Electrified from 1924 onwards, the tram network enabled the
development of the first phase of Melbourne’s valued leafy suburbs and long strip shopping
centres.
Dating back to the gold rush in the early 1850s, Melbourne has a strong community and
charitable sector, excellent health and education institutions and a vibrant multicultural
community. Melbourne’s world-class sporting and cultural attractions, active night-time
economy and strong creative identity give it a leading edge in innovation and design.
Melbourne is a city that values private initiative and community debate. We have a robust
legislative framework and representative environment for community input into planning and
heritage decisions that help shape our city.
Map 4 Map of Melbourne circa 1837
Photograph: Early Melbourne
Key issues and possible opportunities
Urban structure and place
The Central City and inner Melbourne have a legacy of strong urban structure with
memorable spaces and distinctive main streets. Planning approaches since the mid-1980s
have documented and reinforced this legacy. However, parts of middle and outer Melbourne
have not been designed or managed to reach this potential.
Page 8
A number of people told the Committee that successful planning approaches taken in the
Central City and inner Melbourne could be extended to other parts of metropolitan Melbourne
to help ‘uplift’ these areas – retaining valued local character but introducing new elements to
improve urban quality. For example, in Clayton, key institutions such as Monash University, the
Synchrotron and Monash Medical Centre anchor an area with over 60,000 jobs yet this
employment precinct – second only to the number of jobs in the Central City – does not have a
coherent sense of place.
One of Melbourne’s highly-valued characteristics is its leafy green suburbs. Many suburban
areas are noted for their beautiful tree-lined streets and attractive open spaces. Directing
development into more targeted areas – with a clearer definition of the scale of change
intended – will allow these qualities to be better protected and enhanced.
Photograph: Dandenong Business district
Photograph: Barry Street Carlton – An existing building adapted for residential use
Question: How can State Government and councils balance preservation and revitalisation in
suburban areas? How should revitalisation areas be selected?
Revitalisation and renewal
Urban renewal can have many positive effects. It can replenish housing stock and improve
quality; it can increase density and reduce sprawl; it can deliver economic benefits and
improve the global economic competitiveness of a city's centre. It may also improve social
opportunities and improve safety through passive surveillance.
Urban renewal and regeneration in areas such as Fishermans Bend, North Melbourne,
Docklands and former industrial areas close to the Central City have the capacity to increase
the city centre’s attractiveness as a whole and enhance Melbourne’s competitive position in
the global economy.
Urban renewal through a mix of renovation, cultural and artistic regeneration, commercial
development and land use incentives is one of the best ways to revitalize urban
neighbourhoods.
Melbourne’s growing population and increased tourist numbers will require more diverse
facilities, shopping spaces, business ventures and learning hubs. We need to provide
opportunities for this type of development and we need to manage road and transport access
so these areas can retain their distinctiveness. Encouraging public transport, walking or cycling
will expand access to these destinations.
The Victorian Coalition Government has created Places Victoria to facilitate large-scale urban
renewal for residential and mixed use purposes within established areas of Melbourne and
strategic locations in regional Victoria. Several local councils and private developers are
progressing renewal projects by leveraging their own holdings to create more productive and
liveable places. There is scope to expand these initiatives into other suburbs.
Page 9
Did you know: The Victorian Coalition Government is supporting the Victorian design industry
with the Victorian Design Initiatives 2012–15: a $10 million commitment to support best
practice design, increase awareness about design, build business capability and foster
excellence in design skills.
Valuing good design and innovation
Melbourne can build on its tradition of good design and innovation when building and
developing the city. We need to ensure Melbourne’s distinctiveness continues to add to its
international reputation, competitive advantage and social and cultural richness.
With the city absorbing more development, it is timely to consider what types and mix of
building forms we need into the future to make the best use of infrastructure and build strong
communities. We also need to consider how we can provide clarity of outcomes while allowing
for innovation and creativity. The intention of the planning strategy for every local area should
be unambiguous.
Roads as features of the public realm
While inner Melbourne has a number of attractive, heritage boulevards, this type of urban
design has not been carried into the suburbs. It was suggested by many people we consulted
that a number of existing roads could be reconceived as boulevards with a different mix of
uses and a higher quality public realm. A network of boulevards throughout metropolitan
Melbourne could play a vital role in greening the city.
Reconfiguration of existing roads could also be achieved at a local level by extending kerbs and
improving the public realm as well as making roads safer and more attractive for cyclists and
pedestrians.
Meeting metropolitan-wide transport needs can adversely affect local areas. Innovative
approaches are needed to improve local areas while making better use of existing
infrastructure and protecting the capacity of transport links.
Recent upgrades to Melbourne’s freeway network have provided opportunities to transform
some of the city’s quieter arterial roads into more attractive, multifunctional spaces. Where
traffic has been diverted around regional Victorian towns, significant improvements to urban
amenity have been achieved – far greater than what has been achieved in Melbourne
following new freeway construction. Arterial roads need to be managed to serve a broad range
of functions, not just through traffic.
Tourism innovations
Melbourne’s distinctiveness makes it an attractive place to visit. Australians rate Melbourne
as the leading destination for:

major international sporting, cultural events the performing arts

interesting cafes, bars and nightlife

quality food experiences and world-class restaurants

shopping

regional experiences 1.5 hours from the city.
Strategies to attract tourists to Melbourne have been remarkably successful in recent years,
which has meant other states have copied them. Continuing to refresh and renew our tourism
offering will be important into the future. It is vital to ensure that tourism initiatives are
Page 10
supported through the planning system, both in Melbourne and in its immediate region. As
recommended by the recent Victorian Competition and Efficiency Commission’s report
Unlocking Victorian Tourism, proposed planning zone reforms may provide further
opportunities for tourism uses.
Question: What should we do to refresh and renew Melbourne’s tourism offerings?
A creative and active population
Melbourne is a city of passions. Some of these include creative design, leading edge research,
sport and cultural events, live music, performing arts, street art, food and coffee. Melbourne’s
sporting, educational, artistic and cultural institutions add to its distinctiveness and continue to
offer residents an enriched life.
Melburnians are keenly interested in the future of their city and many of us are deeply
involved in discussions about its future.
Planning for parks and waterways
Melbourne has an enduring legacy of identifying and protecting waterways and acquiring
open space as part of past metropolitan strategies. The 1971 plan for Melbourne, for
example, included a proposal for the Dandenong Valley Parklands – a series of regionally
significant parks extending 10 kilometres along the Dandenong Creek from Vermont South to
Wheelers Hill. Other significant achievements have included the creation of the metropolitan
trail network and the development of waterways as important open space corridors.
The Victorian Coalition Government has recently introduced specific planning policies for the
protection of the Yarra and Maribyrnong river corridors – an important step toward protecting
these environmental assets for the future. It may be worth considering expansion of these
protections to other metropolitan waterways.
Embracing Port Phillip
Port Phillip is one of Victoria's most popular tourist destinations and an ecological treasure.
Mostly flat topography around the Bay and moderate waves make it ideal for recreational
swimming, sailing and a host of other water sports. It is also known as a temperate water
scuba diving destination with a wide variety of experiences. An extensive bicycle path network
connects with the Bay.
Melbourne has not always embraced Port Phillip and in places arterial roads act as a barrier
between popular beaches and surrounding communities. Facilities for boating are limited in
places. There are opportunities to better connect Melbourne to the Bay and reinforce its role
as a distinctive recreational and environmental asset.
Photograph: Mornington
Did you know: Port Phillip is home to 36 yacht clubs, dozens of public piers and breakwaters, a
network of well-maintained foreshore walking and cycling trails, and many clean, familyfriendly beaches.
Page 11
PRINCIPLE 2: A GLOBALLY
CONNECTED AND COMPETITIVE CITY
Megacities such as New York, Beijing, London and Tokyo increasingly drive global economic
growth and decision-making. Melbourne is inextricably linked to the global economy
through trade, people and the flow of information and ideas, and competes to attract
investment and quality employment opportunities. To remain competitive in the decades
ahead, Melbourne needs to improve its ‘productivity’ – the economic value produced for an
hour of work or a dollar of investment.
Melbourne’s competitive advantages in high-end business services, knowledge industries and
tourism are underpinned by its vibrant Central City. Several suburban employment and
innovation clusters complement the Central City with health, education, science and
manufacturing intensive locations. Freight and logistics also play a key role in Melbourne’s
competitiveness. Global connections are an important part of Melbourne’s economy and social
life. Tourism is worth $15.9 billion or 5 per cent of the Victorian economy and is expected to
continue growing. Catering for this growth will require more facilities and more hotels.
About 4 billion people live in Asia and the intensity of connections between Asian countries is
increasing. There is a growing middle class in the Asia-Pacific region – up from 28 per cent in
2009 and projected to reach 54 per cent in 2020. This means considerably more people in Asia
will be looking for quality food, healthcare and education in an English-speaking country as
well as international tourism destinations.
Good urban and transport planning could create a number of competitive advantages for
Melbourne, including:

a vibrant Central City

cost competitive office rents, broad acre industrial land, and housing opportunities

convenient and efficient transport networks

vibrant suburban job locations

curfew free airports

efficient ports

competitive freight and logistics precincts

recognition as a liveable city.
Victoria has competitive strengths in freight and logistics, education, science and research,
health and aged services, tourism, manufacturing, high-end business services, creative
industries and agriculture. New policies will need to drive productivity and competitiveness.
Map 5 Australia’s proximity to Asia
Figure 3 The size of the middle class in Asia is growing
Page 12
Key issues and possible opportunities
Growing a knowledge economy
Melbourne has an educated, flexible and multicultural workforce as well as a number of
world ranked universities and leading educational and research institutions. These strengths
can be built on. With the transformation to a global economy and growth in knowledge-based
industries, the skills of Melbourne’s workforce will be increasingly important. There will be
growing competition from emerging cities for knowledge industries, skilled workers and
university students.
Changing patterns of employment and travel
Job locations have changed dramatically in Melbourne over the past 20 years. More people
are working in service industries that cluster in particular locations. As Melbourne grows, the
demand for services in outer suburbs and regional areas grows – bringing with it jobs in
schools, health services, tertiary institutions and professional services. These jobs can provide
a catalyst for a broader range of jobs.
Manufacturing is becoming more capital intensive, more automated and more reliant on
imported goods, which changes the demand for premises and frees up land in established
areas for new businesses.
Changing industry structures and a growing service sector are also resulting in a changing
distribution of jobs and travel patterns. Many people are working from home – permanently or
a day or two a fortnight – and others are mobile workers who do not present to a fixed
workplace each day.
A metropolitan framework based on jobs
Previous metropolitan strategies have nominated ’principal’ and ‘major’ activity centres in
the suburbs as the basis of metropolitan planning. We need to base our framework more on
a wider range of activities and jobs. At a metropolitan scale, a number of areas of the city
have an important role to play in Melbourne’s employment future and global competitiveness:

a strong, attractive Central City with competitive office rents to help attract global
headquarters

existing nationally significant employment and innovation clusters such as Monash–
Clayton and Parkville, together with new centres

major facilities and employment generators such as Melbourne Airport

freight and logistics routes, networked with freight terminals.
Two key elements of Melbourne’s competitiveness will be:

a continued supply of broad hectare industrial and employment land

a new approach to employment and industrial areas to facilitate the growth of
innovative and creative small to medium enterprises and microbusinesses.
Figure 4 Changing employment by industry
Figure 5 Jobs in the City of Melbourne, 1961–2009
Page 13
Question: How can the Metropolitan Planning Strategy stimulate job creation?
Industrial and freight areas
Melbourne is a key freight and logistics centre for Victoria and other parts of Australia.
Freight and logistics is a competitive strength for the city and freight hubs and logistics centres
are important clusters of activity. The performance of Melbourne’s freight and logistics
infrastructure has a major effect on productivity.
A clear long-term plan is needed for Melbourne’s freight sector and this is being developed.
The establishment of the Western Intermodal Freight Terminal – a new interstate rail terminal
in Melbourne's west – will allow relocation of domestic intermodal freight handling from South
Dynon. Over the longer term the west is well suited to boost its freight and logistics role, with
the Outer Metropolitan Ring transport corridor, Avalon Airport and potential port
development reinforcing one another to deliver significant benefits.
In recent decades there has been a shift in industrial employment away from established parts
of Melbourne, which have lost around 470 hectares of industrially zoned land. This has been
offset by the release of significant new employment precincts in Melbourne’s growth areas,
particularly at Derrimut and Truganina in the west, Somerton and Mickleham in the north, and
Officer South in the south-east. Infrastructure investment in some strategically important
employment areas could stimulate further job creation.
A need to increase Port capacity
Capacity at the Port of Melbourne is constrained while its use is growing. The Victorian
Coalition Government has commenced work to expand the capacity of the Port of Melbourne’s
Webb Dock for containers and automotive trade and to expand the Port of Hastings to relieve
pressure on Melbourne in the medium term. In the longer term, development of new port
facilities in the west of Port Phillip may be desirable to complement or replace the Port of
Melbourne depending, in part, on the feasibility of shipping access.
Photograph: Port of Melbourne
Competitive airports
There is capacity to increase the number of aircraft flying into Melbourne Airport for some
time but more limited capacity to provide land-based access to the airport. Melbourne
Airport has recently commenced work on a new Master Plan that will be submitted to the
Commonwealth Government by the end of 2013. This plan will provide a 20-year strategic
vision for the airport. Melbourne Airport is curfew free, with planning protections in place to
limit development near the airport.
Avalon Airport provides an alternative airport to the west of Melbourne. Avalon has major
advantages, including direct access to the Princes Freeway, proximity to rail infrastructure and
the planned Outer Metropolitan Ring transport corridor, as well as the Port of Geelong. Any
future plans to expand it as Melbourne’s second international airport will increase options for
Melbourne residents and businesses, and also the Geelong region and south-west Victoria.
Future airport needs in the east and south-east of Melbourne should also be investigated.
Page 14
Future airport needs in Melbourne’s south-east
Melbourne’s south-eastern region has a population larger than Adelaide but does not have a
commercial airport. Access to Melbourne Airport from the east and south-east is becoming
increasingly difficult due to congestion on the M1 corridor, and a lack of alternative routes.
An airport to the south-east of Melbourne would serve one third of Victoria’s population,
including the 300,000 residents of Gippsland. Major international and domestic tourist
attractions such as Phillip Island and the Mornington Peninsula are nearby.
A south-east airport would have the benefit of good road connections, and the potential of rail
access, serving a population catchment larger than South Australia.
With continuing major population growth, Gippsland and Melbourne’s south-east would
benefit from the improved international tourism and trade connections that would come from
the development of a new airport. The employment benefit to the region might also be
significant.
Questions to consider:

Would residents of Melbourne’s south-east, east and Gippsland use a commercial
airport in the region?

What would be the time benefit for residents using a south-east airport instead of
Melbourne Airport? To what extent might it reduce pressure on cross-city congestion?

Would the private sector be interested in funding such an airport development?
What is the best location for an airport to the south-east of Melbourne’s boundary and how
could existing land transport connections be maximised?
Embracing innovation in the private sector
Planning strategies cannot anticipate each and every opportunity that may arise over a 40
year timeframe. Private interests should be able to initiate innovative projects even if these
projects are not contemplated by current planning controls. A new process needs to be
established so that innovative proposals consistent with the Strategy can be considered for
approval.
Clear policy frameworks and principles will be required to address innovative projects not
anticipated in the Strategy but which offer benefits and opportunities to Victoria. The
regulatory framework needs to be adaptive and respond more quickly and flexibly to emerging
business opportunities or new and creative concepts.
Question: How can the planning system be more responsive to innovative projects from the
private sector?
Page 15
PRINCIPLE 3:
SOCIAL AND ECONOMIC PARTICIPATION
As a city we can no longer view social issues as separate from economic issues. Social issues
affect a person’s capacity to contribute to the economy and, if not addressed, put a
handbrake on productivity or impose direct costs on society such as increased health and
welfare services. Melbourne should continue to provide opportunities and capacity for
residents to build a good life.
Having a job when you want one, and not feeling isolated and alone, are the foundations of
quality of life and community success. Employment brings dignity, the ability to meet material
needs and social contact.
Social participation improves health and wellbeing. Supporting the capacity of older people to
contribute to the economy will be important in an ageing society where working longer will
help maintain our prosperity. For those who are no longer in the workforce, making sure
services and facilities are affordable will help maintain social participation that is fundamental
to wellbeing.
Disadvantage has a ‘knock on’ effect to the rest of society. There is sound international
evidence that societies with less disadvantage perform better across a wide range of social and
economic measures including a better life for all people in that society.
Not all areas of Melbourne present equal opportunities for economic and social participation.
Newer communities on the fringe of the city sometimes have reduced access to jobs, and
social and community services. In early stages of development, some areas have significant
unmet demand for social support services. Communities that are not well-connected to jobs or
services limit the ability of residents to balance family and caring commitments with work and
community life.
Map 6 Access to public transport services varies across Melbourne
Key issues and possible opportunities
The prospect of ‘two Melbournes’
Concern was expressed about the potential emergence of ‘two Melbournes’ – a successful
and ‘choice rich’ inner core and a fringe with fewer choices – and the growing distance
between where people could afford to live and where jobs were located.
Question: How can the new Metropolitan Planning Strategy address the disparity between
choice-rich and choice-poor areas?
Growth on the fringe
A geographically larger Melbourne poses several new challenges for ensuring social and
economic participation for everyone. In the 1970s many of the houses in inner Melbourne
were relatively affordable to buy or rent. This is becoming increasingly more difficult to
achieve.
Page 16
A dramatic reduction in housing affordability over the last decade means that home buyers
today have less choice about where they can buy a home on a given budget. People with less
money to spend (who are at greater risk of mortgage stress) can only buy in Melbourne’s outer
suburban fringe if they want to own a detached house. While the cost of the house itself is
often lower, transport costs in some areas may negate some of these savings. Over the past 20
years the number of people fully owning a dwelling has dropped from 40 to 30 per cent and
the number of people paying off a mortgage has risen from 30 to 35 per cent – more people
are at risk from mortgage stress.
High petrol prices, together with rising utility bills, can place significant pressure on household
finances. Over the next decade vehicle operating costs are anticipated to increase at a rate
higher than inflation, which may increase cost of living pressures for those who are dependent
on cars for most of their transport.
Building connections
Social connections are an important pathway into the world of work, and these connections
are reduced for many unemployed young people in Melbourne’s outer suburbs. The way in
which a city develops can help or hinder social networks by creating or removing pockets of
disadvantage.
People are most at risk from social disengagement during major life transitions. Areas with
poor amenity can limit people’s social and economic participation. Concerns about personal
safety increase social problems. Conversely, areas with high amenity can encourage older
people to get ‘out and about’, supporting positive ageing.
Our changing demography
Recent research points to significant changes in the demographic make-up of Melbourne and
these changes, together with social and economic trends, will have a profound effect on how
we manage community life into the future.
The number of people in all age groups will increase – hence a demand for new schools and
university places – but the number of older people will increase in absolute terms and as a
percentage of the population. This means the percentage of the population of workforce age
will fall, raising challenges such as:

a need to increase labour force participation to find enough workers from a smaller
proportion of society of working age

with fewer workers available, a need to rethink how we care for the young, the less
abled and the aged

balancing work and family

enabling older people to live independently and remain active for longer – disabled
access to public transport will enable older people to move around independently,
provided service levels increase to meet demand.
The Strategy can address some of these issues by reducing the geographic and transport
barriers to workforce participation.
Figure 6 Proportion of the population in the workforce
Page 17
Flexible employment opportunities and risks
The modern economy presents new opportunities for a variety of work types including
greater casual and part-time work. Although this type of employment provides employers and
workers with greater flexibility, it can present challenges. People without skills and who lack
social support, child minding services and transport options are left struggling to get a foothold
in the world of work.
The way we build our cities – such as improving access to education, employment and social
networks – could help increase employment opportunities and provide people with the
capability to take up these opportunities.
Question: How can the planning system support caring for the young and aged? What do we
need to do differently?
Getting to work
In an internationally competitive market employers require greater flexibility from their
workers and workers need better support to respond. Getting jobs closer to where people
live, improving transport connections to jobs, and providing easy access to childcare and
schools is an ongoing challenge. Job growth needs to align with population growth and there
needs to be good access from areas of population growth to areas of employment growth.
Greater attention will be needed in Melbourne for higher density housing close to, or within,
significant employment clusters.
New industries present opportunities for new local employment. Health and education will be
the biggest growth sectors in metropolitan Melbourne and these services should be located
close to where people live, with good public transport connections. As well as being an
important source of local jobs, these services help to promote social connection and provide
community amenity.
Access to education
Education enables economic participation. Boosting economic participation requires lifetime
learning, with local opportunities for those learning new skills or updating skills to enter or
re-enter the workforce. This is especially important to help women get back to work after
starting a family and for retraining workers with new skills.
Broad accessibility to the highest level of education should be available across Melbourne.
Economic changes will place a premium on education and skills. While most young
Melburnians complete secondary school, about 15 per cent do not complete year 12. In some
outer areas of Melbourne, this non-completion rate is as high as 27 per cent. Jobs available to
these young people are limited.
Map 7 School completion rates vary across Melbourne
Question: How important is it to ensure access to education facilities is spread evenly
throughout metropolitan Melbourne?
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PRINCIPLE 4:
STRONG COMMUNITIES
Connection to family, friends and neighbours across generations is important to building
strong communities and promoting wellbeing. The building blocks of successful cities are
strong and cohesive local communities.
A number of elements underpin strong communities:

personal:
· shared values
· influence over the future and what matters to them
· better health and wellbeing
· education and skills

community:
· respect for others
· equality of opportunity and capability
· participation and volunteering
· sharing common interests
· care for all members of the community
· diversity of age groups, ethnic backgrounds and social mix
· good access to friends, services and other activities
· local qualities that people value
· variety in the price and type of housing

economic:
· resources to foster community strengthening
· good access to jobs

place:
· provision of social, community, recreational and cultural facilities and services
· local physical qualities that people value and take pride in.
Melbourne’s suburbs are physically and culturally diverse. Building strong communities must
reflect these differences and the values that communities place on their local area. Councils
and community and charitable organisations play important roles in supporting local
communities with programs and facilities.
Over the past two decades Melbourne’s diversity has increased. Once, the majority of
Melburnians aspired to a house on a quarter acre block and a car or two. Today many
Melburnians want a different lifestyle – inner city apartment living and semi-detached housing.
How people move around is also changing – walking, cycling and public transport use is
growing. Melbourne needs to cater for this increasing diversity of preferences.
Map 8 Housing density varies across Melbourne
Figure 7 Types of homes being built, 2004–2008
Figure 8 Population by age and sex
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Photograph: Different types of housing
Question: How can the planning system provide more opportunities for local housing choice?
Key issues and possible opportunities
Fostering strong communities
We must reinforce the elements that create strong and caring local communities. In newer
urban areas community and charitable services play a critical role in strengthening
communities.
Councils are well attuned to gauging community needs – especially for community facilities
that are important for building strong communities in newly developing areas. Although
councils are primarily responsible for the amenity of local areas, better support strategies are
needed to assist councils in providing facilities in line with growth patterns and to improve the
amenity and connectivity of existing neighbourhoods.
Activity centres – the current ‘central’, ‘principal’ and ‘major’ activity centres – are important
for providing services. However, only a small number are important at a metropolitan scale.
Diverse communities
Planning local areas to cater for the needs of people across all life stages will help foster
strong communities. Allowing for people to grow old in their own home or suburb – to ‘age in
place’ – requires a variety of housing options within the one area.
Newly-arrived migrants often desire accommodation in close proximity to ethnic support
networks. These networks are a positive community feature but care must be taken to connect
people into broader employment, social and recreational networks.
Finding appropriate housing
Neighbourhoods should be able to cater for people’s housing needs over their lifetime,
bearing in mind that adults move six or seven times on average.
Different households require different housing types:

Singles and students usually require one and two bedroom accommodation in close
proximity to transport, education and entertainment choices.

First home owners, depending on their stage of life, require a range of housing densities
from multi-storey apartments to more conventional family homes at affordable prices.

Retirees need a range of smaller-scale housing options, dispersed within their current
communities, as well as more formalised retirement facilities close to aged care,
community and health facilities. Reducing the cost of moving and providing local
housing options would allow people to use the funds tied up in their existing homes and
make better use of housing capacity in the community.
Housing diversity enables people to downsize or upsize their housing requirements within
their local area. It means people do not have to stay in a house that is too large for their needs
or too costly to maintain. They can stay in their local area – while maintaining social and
support networks – but in accommodation that meets their needs and budget.
Rather than viewing medium and higher density residential development as a ‘problem’, it
needs be seen as an opportunity to bring more people closer to existing services and jobs.
Page 20
There are different ways of increasing housing density without undermining the valued
characteristics of local areas. Investment in high quality design, attractive public spaces and
other public benefits are central to delivering acceptable urban change. New dwelling
construction also supports local economies as well as providing housing choice.
Affordable housing
Without action the cost of buying or renting a house in Melbourne is likely to rise in the
years ahead, particularly in established suburbs. The cost of a dwelling in the middle suburbs
of Melbourne needs to be reduced if we are to have any prospect of providing an
opportunity to a wider range of the population to live in these areas, and greater socioeconomic diversity in existing neighbourhoods.
The Strategy could outline ways to lower pressure on prices and increase the supply of housing
in appropriate areas. Reducing development delays and examining innovative development
forms could reduce the costs of construction. More opportunities for development could
reduce the land component of new housing, which can be higher than the construction cost.
The Victorian Coalition Government has acted to provide greater flexibility in the construction
of small lot housing in growth areas to provide for more innovative design in these areas. In
recent decades the housing industry has started to develop apartments for the Melbourne
market, a form of housing that was once less common in the city. These higher density, taller
housing forms are well suited to some areas of Melbourne while in other areas lower scale,
medium density housing may be more appropriate. Lower scale apartment developments
could play a significant role in meeting Melbourne’s future housing needs. Clearer controls or
guidelines may be needed to determine what is appropriate in each location.
The Committee was told the costs of commercial construction in Melbourne are higher than
other cities and this limits the ability to build medium density apartments in suitable suburban
locations.
Delivering affordable housing in existing urban areas is a significant challenge. There has been
a dramatic drop in home ownership among younger Victorians. Some choose to rent in a
location that is close to work, public transport, services, cafes or entertainment rather than
buy a low-cost detached house away from these facilities. We are likely to see more people
stay in rented accommodation, perhaps for their entire lives.
Over the past decade rental affordability in inner Melbourne has declined, and the greatest
level of housing stress can be found in certain sectors of the private rental market. It is
possible we may see landlords offering different terms for rental accommodation, with the
option for renters to renew every three to five years. This could foster a greater willingness
from renters to undertake internal improvements to a dwelling because of security of tenure
and certainty in annual rental costs.
In recent years there has been a growth in ‘non private’ forms of ownership (where there is
not a traditional home owner or tenant relationship), both with formal housing associations
and retirement accommodation.
The lack of affordable housing available for low-paid to moderately-paid workers becomes an
economic problem when firms find it difficult to secure workers because of local labour
shortages.
Figure 9 Changing rental affordability, three bedroom house, 2002–2012
Page 21
Map 9 Housing affordability for families with children across Melbourne, 2010
Did you know: Low income single person households face the most difficulties renting
affordable housing. Across Melbourne, just 0.3 per cent of one bedroom dwellings let in the
March 2012 quarter were affordable (ie. no more than 30 per cent of gross income spent on
rent) to a single person solely reliant on Centrelink payments.
Photograph: Triptych, an inner Melbourne apartment development
Did you know: It was estimated in 2008 that owning one less car meant a household could
spend an extra $110,000 on a new home and repay a $300,000 housing loan in 12 years
instead of 25 years, thereby saving $245,000 in interest payments or accumulating in excess of
$1 million in superannuation over a working life.
Question: Should affordable housing have preferential treatment in the planning system?
Affordable living
Some people argue there is affordable housing available in Melbourne’s urban growth areas,
but housing affordability – whether buying or renting – needs to be seen in a broader
context of ‘affordable living’, taking into account the costs of travel and utility bills.
Affordable living could be addressed by:

increasing housing supply

reducing the cost of building

reducing barriers to affordable housing development

preserving or offsetting the loss of existing low-cost housing

encouraging new affordable housing with planning scheme controls or incentives

securing dedicated social housing – housing rented at below market cost

increasing the number of jobs in suburban areas, to reduce commuting distances and
times for suburban residents

reducing the need to own a second car and even any car per household by improving
cycling, walking and public transport options

other incentives to integrate affordable housing into new developments.
Social housing
The percentage of social housing stock – not-for-profit rental housing – in Melbourne is
currently 3.5 per cent. This compares to an Australian average of 5 per cent. Much of the
city’s public housing stock – social housing owned by the Government – is old, needs
maintenance and is not well matched to the needs of eligible households.
In some areas public housing estates have been rebuilt, funded in part by new private housing
as part of the redevelopment.
Victorian legislation provides for the registration of not-for-profit agencies as either housing
associations or housing providers. These agencies expand social housing options through
construction, purchase or acquisition, and management of housing portfolios. These
Page 22
properties are owned by them or leased from other parties such as the Director of Housing.
The role of housing associations has traditionally been viewed as the provision of social
housing for those households unable to afford their own housing on the open market.
However, they increasingly provide a diversity of rental housing at a range of ‘below market’
rates. Housing associations also play a wider role in providing support services to their tenants.
The need for leadership on social housing was raised with the Committee. Councils and the
State Government need to develop a broader suite of tools including incentives, ‘fast tracked’
decisions on some projects, early purchase of land in growth areas, and powers for housing
associations to initiate rezoning.
It was suggested social housing should somehow be privileged in the urban planning process
by reducing development barriers or providing incentives for its inclusion in other projects.
Some jurisdictions place limits on the scale of development permitted on a site, and allow
these limits to be increased if social housing is included.
Page 23
PRINCIPLE 5:
ENVIRONMENTAL RESILIENCE
Melbourne needs to be environmentally resilient. We need to be able to respond to
changing environmental and climate conditions, ensure development does not undermine
natural values, use resources more efficiently and produce less waste.
Our city will face growing pressure to reduce carbon emissions. As well as reducing its carbon
footprint, Melbourne will need to adapt to a changing climate, potential sea level rises, and
the potential for extreme weather events.
From the Mountain Ash forests of the Yarra Ranges to the wetlands on its coastline,
Melbourne is home to diverse and valuable natural features. The rural area around Melbourne
is rich in biodiversity and conservation values. Much of suburban Melbourne was almost
entirely cleared for agriculture before development. However, the city’s longstanding ‘green
wedges’ policy has protected some areas beyond the fringe of the metropolitan area from
intensive urbanisation since the 1970s. It is expected that this will continue.
Thanks to this protection, Melbourne still boasts a diversity of natural vegetation. Koalas,
wallabies, kangaroos, sugar gliders, echidnas, lizards, frogs and insects all find a home in these
areas, and platypus can even be found in some waterways.
Rural areas around Melbourne host a range of natural systems that support city life. Ecosystem
services such as water supply will play a significant role in Melbourne’s future as we respond
to growth challenges.
Map 10 Natural values around Melbourne
Question: Would a hard green edge to the city strengthen a sense of arrival and departure
from Melbourne and protect our ability to produce food?
Key issues and possible opportunities
The urban heat island effect
Dense urban areas can be up to four degrees warmer than surrounding rural areas. Called
the ‘urban heat island effect’, this means greater cooling costs and an adverse effect on
some people’s health. Increased tree canopy coverage throughout Melbourne would reduce
the urban heat island effect and improve thermal comfort at street level for pedestrians. Many
of the large trees in inner Melbourne are reaching the end of their useful life and will need to
be replaced.
Energy efficient urban design
Melbourne could respond to the need to reduce its carbon footprint by building more energy
efficient buildings and using more efficient lights and appliances. The City of Melbourne, for
example, has an innovative ‘1200 buildings’ retrofitting program. Almost half the greenhouse
gas emissions from within the City of Melbourne come from the commercial building sector
and this program aims to retrofit two-thirds of the municipality’s commercial building stock.
Page 24
Innovative design of urban infrastructure is needed to reduce the cost, and increase the
sustainability, of urban living and working.
Lower impact transport
The incentive to reduce carbon emissions is expected to promote greater use of more
efficient vehicles, electric vehicles and public transport, walking and cycling.
Transport emits about 16 per cent of Victoria’s greenhouse gases, with private cars producing
about half of the emissions from road-based transport. Transport modelling shows growth
areas have higher carbon intensive transport than other parts of Melbourne, although aspects
of higher density development also consume significant energy in other ways. There has been
a modest decline in emissions from private cars since 2004. About 40 per cent of this decline is
due to a decline in vehicle kilometres.
Local electricity generation
The carbon footprint caused by electricity use can be reduced by generating electricity
locally. The use of sophisticated ‘networked’ control systems is now possible, creating the
potential for a step change in the way energy is generated and distributed. The take-up of
renewable energy and more energy efficient lights and appliances will be part of Melbourne’s
energy future. This may also include adopting breakthrough technologies such as electricity
generation from fuel cells.
Local energy production through solar panels on roofs or trigeneration schemes in urban
renewal areas could reduce Melbourne’s environmental impact.
Photograph: Installing solar power
Did you know: In Dandenong, Places Victoria has built a trigeneration facility – a facility that
produces electricity, heat and cooling – the first precinct level facility of its kind in Australia.
Capturing, recycling and reusing water
Melbourne is a recognised world leader in the application of water sensitive urban design – a
planning approach to reduce drinking water demand and put stormwater to good use in the
urban landscape. This can include rain gardens, roof gardens and rainwater tanks, bioretention swales, mini wetlands, and broadscale schemes such as collection and re-use of
stormwater run-off from a whole suburb.
Increased water sensitive urban design will also play an important role in managing flood
inundation and providing essential soil moisture for healthy vegetation growth.
The Victorian Coalition Government has established the Office of Living Victoria to drive water
reform by coordinating urban and water planning to achieve an integrated, resilient water
system planned and managed to:

support liveable and sustainable communities

protect the environmental health of urban waterways and bays

provide secure water supplies efficiently

protect public health

deliver affordable essential water services.
Page 25
In 2010, water consumption in the Melbourne Region was 412 gigalitres. During the same
year, 463 gigalitres of run-off and 315 gigalitres of wastewater was generated.
Conserving areas we value
Conservation of green spaces and native vegetation was raised with the Committee by many
people and organisations. The Committee believes that managing Melbourne’s green wedges
must be an integral part of any urban open space strategy.
Planning controls where ‘net gain’ has been introduced – the requirement that if native
vegetation is removed an equivalent or larger area of vegetation must be preserved elsewhere
– have assisted biodiversity conservation.
The Victorian Coalition Government is currently reviewing native vegetation approaches.
Melbourne’s green wedges contain much of the native vegetation still present in the
Melbourne region. There are opportunities for net gain offsets to be better integrated with
open space planning.
Protecting biodiversity requires strategies to: protect areas from development; maintain and
extend ecological connectivity across the city on public and private land; implement local
biodiversity action programs; and integrate greening programs at suburban and municipal
levels.
Photograph: Conservation of green spaces
Question: How can we provide more space for trees in new suburbs, particularly on private
properties?
Creating a green edge to the city
While Melbourne has a ‘hard edge’ planning boundary between urban and rural areas – the
Urban Growth Boundary (UGB) – this boundary is not always reflected in the character of
non-urban areas. A more holistic approach to managing the ‘green edge’ around Melbourne
could strengthen its natural and landscape character and help manage these areas – which
extend beyond the green wedge – as a cohesive unit.
Not all rural areas around Melbourne are identified for landscape values and these areas serve
important roles such as supplying stone, managing waste, hosting infrastructure and producing
food. Some of these areas are ‘brown wedges’, which are home to a range of uses such as
boarding kennels, sporting clubs, quarries and waste management and recycling operations.
Food production
Some areas around Melbourne contain highly productive agricultural land. The Port Phillip
and Western Port regions are the second highest producers of agricultural products in Victoria,
with agricultural output per hectare approximately four times the state average.
Agriculture around Melbourne is a declining proportion of local economic activity and
employment, however the quantity of agricultural production remains significant.
Many types of agriculture occurring in peri-urban areas (such as aquaculture, poultry and egg
farming and some types of horticulture) can be undertaken in areas without high quality soils.
Photograph: Food production around Melbourne
Page 26
Waste and resource use
While Victorians have made great progress in recycling and reducing waste, more can be
done. Landfills take up large areas of land and can pose significant environmental risks. We
need to maximise the economic opportunities offered by increasing the recovery of our
resources. This will help to lessen our reliance on landfill and reduce the negative impacts of
existing landfills. Planning needs to accommodate:

recovery facilities close to either the origin of waste or to markets for end products to
help make recovery commercially viable

the potential impact on transport links

landfills in locations where residents are protected and environmental impacts can be
minimised.
Recycling or reusing our resources not only minimises waste but reduces the environmental
impact. A key part of this approach is ‘whole-of-life-cycle thinking’ whereby dismantling or
recycling of components is part of manufacturing or construction.
Did you know: On average, each Victorian accounts for about two tonnes of waste each year –
the weight of an average elephant.
Page 27
4. WHAT NEEDS TO CHANGE
All private development takes place in the context of market, spatial and regulatory factors.
Government influences the spatial context with investments in transport and other
infrastructure. It also determines the regulatory context, including planning requirements
and zoning.
Different patterns of urban development have different infrastructure and service cost
implications.
For metropolitan Melbourne we know that different urban forms – such as one dominant
Central City, many activity centres or fewer large centres – can affect how well the city
functions in terms of road congestion and access to jobs, services and public transport.
Initiatives from past strategies for Melbourne that have shaped the city include:

1954: introducing a planning system and reserving land for the freeway network

1969: planning for the City Loop

1971: preserving the ‘green wedges’

1984: revitalising the Central City and identifying Southbank for renewal

1994: identifying Docklands for development.
Activity centre policy, which has underpinned Melbourne’s metropolitan strategies for
several decades, takes the location of retail premises as its starting point. The Committee
believes the Metropolitan Planning Strategy should be refocused on jobs as the starting
point for urban form. Urban modelling suggests that employment spread across a large
number of centres can lead to higher traffic congestion. Concentrating employment in a
smaller number of larger centres could lead to greater efficiencies and extend the
opportunities of the Central City to other regions of the metropolitan area.
At a local level, developing higher density housing closer to public transport, employment
clusters and services will make a difference to travel times and will help bring jobs and services
within 20 minutes of most Melburnians.
Regional Growth Plans are also being prepared for all eight regions within Victoria. The
Strategy and these plans will need to complement one another.
The following two principles make a start on defining how Melbourne should be managed at a
metropolitan and local scale.
Principle 6 and 7 are:

Principle 6: A polycentric city linked to regional cities

Principle 7: Living locally – a ‘20 minute’ city.
Page 28
PRINCIPLE 6: A POLYCENTRIC
CITY LINKED TO REGIONAL CITIES
Initial urban form modelling suggests that a metropolitan structure based around a small
number of clusters and service centres – known as a ‘polycentric’ city – can perform best in
terms of increased public transport use and reduced traffic congestion.
For most of the post-war period a strong focus on the Central City worked well for Melbourne
with jobs and services being easy to access. Decades of investment in road capacity supported
access across the city for business, freight, jobs and social interaction. Manufacturing (and
population-serving jobs) provided a solid base for employment in growing outer urban areas.
However, Melbourne’s economic geography is changing. Growth in the knowledge economy,
booming growth areas with an ongoing need for transport infrastructure, and challenges to
the manufacturing industry are key drivers of this change. Being a larger city also brings
changes – a city of 5 million people functions differently to a city of 4 million people.
Much of the growth Melbourne will see over the coming years will be to the north and west of
the city, a change from the predominant pattern of growth to the south-east. The growth of
Melbourne needs to be placed in the wider context of regional cities, supported by smaller
towns, offering opportunities for growth and development of Victoria – in line with a ‘state of
cities’ concept.
Map 11 Location of employment concentrations in Melbourne
Did you know: Currently the economic cost of congestion in Melbourne is estimated at $3
billion per year.
Key issues raised in research and consultation
The efficiency of a polycentric city
Land use policies require an assessment of the infrastructure necessary to make them work.
Policy choices should be assessed, among other things, on their infrastructure cost and funding
implications. This comparison needs to take a broad view of ‘infrastructure’ including
operational and maintenance costs, related place-making initiatives and wider economic
benefits.
In a polycentric city public transport tends to reinforce identified land use patterns. Under this
model of development, government services and jobs are located in areas that can be readily
serviced (e.g. tertiary education near a major train station) rather than being situated on
cheaper land that requires specialised, higher cost transport services.
Peak direction train capacity could be maximised by additional development around
intermediate stations, or improved access to intermediate locations, by improving the quality
of public transport interchanges. For example, a worker or student who boards a train at
Pakenham and alights at Dandenong or Clayton makes room for passengers bound for the
Central City. Trains, trams and buses travelling against peak flows have substantial underused
capacity. Land use policies need to examine whether there are effective ways to make better
use of this capacity by encouraging jobs growth in middle and outer suburbs.
Page 29
Even though a greater proportion of people are expected to walk, cycle and use public
transport in the future, car trips will still increase in many parts of Melbourne.
Urban form policy based on job location
There is a need to change current policy settings to recognise Melbourne’s existing and future
employment and innovation clusters. This will also involve re-emphasising a smaller number of
higher level activity centres as a focus for public investment in education, health, transport and
cultural facilities. The Strategy needs to recognise the preferences of high value ‘footloose’
firms and work with the market to attract these firms to locate and stay in Melbourne.
A polycentric model for Melbourne that addresses the globally competitive elements of
Melbourne would include:

the Central City

inner Melbourne as a distinct pattern of activity supported by a dense public transport
network – an expanded Central City will create demand for more housing and activity
across inner Melbourne

nationally significant employment and innovation clusters

a limited number of high level suburban service centres.
Urban modelling can help identify the preferred location of these globally competitive
elements. Obvious existing clusters outside the Central City include Melbourne Airport and
Monash-Clayton precincts. As yet there is no nationally significant economic and innovation
cluster in Melbourne’s west but with significant population growth anticipated in this part of
Melbourne a cluster will be needed. Ongoing tracking of urban development, coupled with
predictive modelling, provides a more sophisticated way of steering land use patterns and
transport provision than past practices.
Planning frameworks are most successful when they work with market influences and
recognise the benefits certain firms derive from locating near one another. Planning policies
alone cannot create a city and Melbourne should look to using city shaping infrastructure,
private investment and the location of government jobs and services, as mechanisms to
influence growth patterns.
There is a need to better define Melbourne’s interface with regional Victoria and explicitly
support the growth of regional cities to complement the growth of Melbourne. This could be
more efficient than investing solely in Melbourne’s growth areas and could accelerate the
delivery of higher order services and facilities in these regional cities, resulting from higher
rates of population growth.
Central City
Melbourne and Victoria are anchored by a vibrant Central City – continuing this as part of a
polycentric city is essential. Plans are already being put in place for further growth and urban
renewal of the Central City.
One of Melbourne’s competitive advantages is the amount of land available for
redevelopment in strategic Central City locations, with the potential to create well-located,
attractive mixed use neighbourhoods. We must ensure this high amenity is realised to attract
businesses in the knowledge and research sectors.
Photograph: Docklands
Page 30
Nationally significant employment and innovation clusters
About 30 per cent of jobs are spread evenly throughout Melbourne’s suburbs and a further 50
per cent are concentrated in suburban clusters. Some of these clusters are of national
significance. Current policy and investment programs do not recognise these concentrations of
jobs. The Strategy could reinforce existing and potential nationally significant clusters of
employment – somewhere between three and six – and broaden them into more mixed use
and denser clusters.
It can be costly to provide infrastructure to support new Central City jobs. Focussing only on
Central City growth is likely to require too great a share of the infrastructure budget,
compared to an approach that also invests in other locations. A polycentric city is fundamental
to sharing the benefits of growth more equitably across metropolitan Melbourne.
Building up a small number of high level service centres
Co-locating higher order metropolitan services (with broad regional catchments) in highly
accessible, mixed activity areas is seen as desirable, as opposed to having these services in less
accessible, dispersed locations that are only accessible by car. Central Activities Areas
concentrate higher order services within easy access of a larger population by walking, cycling,
public transport as well as car.
Certain jobs should be encouraged to locate at identified centres, particularly jobs that cluster
around key public assets such as health facilities and education. However, firms providing high
value ‘footloose’ jobs will have their own location preferences that need to be recognised.
As Melbourne grows to the north and west there may be a need to identify new Central
Activities Areas in these regions, particularly in the Wyndham, Melton and northern growth
corridors.
Connections to regional cities
Metropolitan Melbourne is part of a much bigger and more complex picture of growth and
development, and the links to and between regional cities need to be recognised.
Regional cities can play stronger roles in the fields of agri-business, manufacturing, education
and tourism, and can be cost-competitive, highly attractive places to live. Melbourne has
multi-lane freeways to most key regional cities and has invested heavily in better rail services.
There may be cost advantages involved in upgrading these connections further and developing
regional cities.
Ideas and aspirations for change
The Committee has identified seven initial ideas for strategic priorities to manage the overall
urban form of Melbourne and its connections to regional cities.
Idea 1:
Growing the Central City as the anchor of a world city
The Central City is the core location of the ‘knowledge economy’. Building an expanded
Central City can attract new jobs to Melbourne and reinforce Melbourne as a world city and
tourism hub.
An expanded Central City is not simply about a geographically larger area. It is about expanding
the opportunities the Central City presents and the experiences it hosts. An expanded Central
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City that provides a ‘downtown’ mix of uses with Melbourne’s characteristic liveability and
distinctiveness could attract more skilled workers to Victoria.
The Central City has improved greatly since the mid-1980s as a result of some clear-sighted
planning and urban design initiatives carried out by the State Government in partnership with
the City of Melbourne. This approach needs to be carried forward to produce a world-class
Central City experience over an expanded area.
It is important to continue to build a quality public realm and civic spaces. Over the past 20
years Melbourne has turned towards the Yarra River and embraced it as a high quality
environment. There is potential to build over the Jolimont Railyards and bring Central City
activities even closer to the north bank of the Yarra River.
The possibility of building over the railyards east of Federation Square should be investigated
as a matter of priority, including investigating opportunities for private sector funding.
Federation Square East could bridge the gap between Flinders Street and the parkland at
Birrarung Marr, providing better access to the Yarra River.
Urban renewal is currently underway in Southbank and Docklands, and is proposed for City
North, Arden-Macaulay, E-Gate and Fishermans Bend. There is potential for urban renewal at
Dynon Road and other transitioning industrial areas close to the Central City, and scope to plan
for an arc of renewal from Fishermans Bend to Footscray.
Urban renewal and revitalisation can deliver new urban places and spaces, and a diversity of
employment, services and housing. Over time urban renewal could also better connect the
heart of Melbourne to Port Phillip. Development in the 240 hectare Fishermans Bend urban
renewal area will begin this link.
Rail access will need to be increased and traffic bypasses created, mirroring successful past
projects such as the City Loop Rail and CityLink traffic bypass.
Melbourne must continue to invest in its tourist places and events to maintain its strength in
tourism as the rest of the world catches up to its quality public places and major events
strategy. This will require new thinking that aims to improve the ‘visitor domain’ – those areas
that tourists visit. It will also involve identifying new opportunities for hotel accommodation
and tourist experiences.
Map 12 Renewal opportunities in the expanded Central City
Photograph: Webb Bridge
Idea 2:
Building national employment and innovation clusters
A number of suburban job clusters are nationally significant places of economic activity and
innovation. Reinforcing the role of these clusters can boost productivity, support economic
growth, make the most of infrastructure and promote urban renewal.
The Monash-Clayton and Melbourne Airport precincts, along with the biosciences precinct in
Parkville (part of the Central City), are examples of nationally significant employment clusters.
These clusters cover a broader geographic area than any designated activity centre. Clusters
can be focused on education and research, health and ageing, tourism, advanced
manufacturing or freight and logistics.
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Clusters have distinctive roles, infrastructure and economic development potential. In
economic terms, they could support higher labour force participation and a wide range of
private investment.
The Strategy must identify and facilitate new clusters in the north and west of Melbourne to
serve these growing areas. Reinforcing the role of clusters could mean incorporating key
destinations such as educational precincts, health precincts (possibly a new major hospital and
university campus in the west), services, shopping centres and business parks. Areas in and
around clusters offer the potential for new business locations, higher density housing and
other more intensive uses. Areas in the Wyndham, Melton and Wallan growth corridors should
be considered for new major employment hubs and activities areas.
Public transport services to employment and innovation clusters should be improved to help
increase the catchment for labour and customers. While train services may achieve this, the
speed and frequency of bus and tram services could be improved to serve a larger region, and
more direct services could be provided. There is also a need to invest in local transport
infrastructure. For the Monash-Clayton cluster this could involve the grade-separation of
railway crossings to improve the road and rail network, including freight transport.
Photograph: Melbourne’s synchrotron
Photograph: Melbourne airport
Idea 3:
Unlocking capacity in established suburbs
As Melbourne grows the role of its middle suburbs is expected to change. With an increasing
population in outer suburbs and growth areas, parts of Melbourne’s established suburbs are
well-placed to play a greater economic and housing role. For example, Ringwood activity
centre is now seeing forms of housing once confined to inner Melbourne.
Boosting accessibility across middle and outer suburbs to unlock their potential will require
changes in thinking. It will involve identifying which areas need to change and providing
incentives, infrastructure and investment to support this. Most of the existing employment
and innovation clusters identified in Idea 2 are in established middle suburbs.
The nature of employment in some established areas can be changed. Lower intensity
industrial areas can give way to a mix of uses and new forms of employment. Small-scale
offices can be encouraged across a variety of locations.
About half of all new housing in Melbourne is being constructed in established areas. Work by
the Grattan Institute shows there are ‘shortages’ of semi-detached dwellings and apartments
in Melbourne’s middle and outer suburbs. Continuing current trends is unlikely to provide
sufficient stock to meet people’s needs or widen people’s housing choices in the areas they
want to live. New housing types should incorporate a more flexible approach to transport
choices. In an increasing number of developments purchasing a car space is optional and
bicycle parking and car sharing schemes are included.
The starting point for this work would be comprehensive documentation of the landscape and
urban qualities of metropolitan Melbourne, in the same way ‘Grids and Greenery’ documented
these qualities in the Central City in 1987, laying the foundation for a number of projects that
reinforced valued city characteristics. This work has already commenced with the Yarra and
Maribyrnong river corridors and may continue with the natural elements in Melbourne’s wider
setting – the bays, the ranges and the Mornington Peninsula.
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Figure 10 Growth in patronage on SmartBus routes
Did you know: The roll-out of new bus services such as SmartBuses, high frequency DART and
university shuttle buses (401 and 601 services), and rapid SkyBus services to Melbourne
Airport has resulted in a 16 per cent growth in bus patronage in the 12 months to June 2012.
Idea 4:
Providing a transport system for Melbourne’s future
There is a clear desire from those people we consulted to identify a comprehensive vision for
a sustainable transport system in Melbourne that moves beyond specific projects. This would
be similar to the way road plans in the 1960s identified a long-term vision to secure
reservations and begin a gradual process of implementation.
Integrating transport and land use requires planning to drive land use and transport decisions
and government interventions.
In transport terms this involves a fundamental change in focus from moving people or goods
(or just moving vehicles) to a concern about providing access to jobs, goods and services.
A new transport system vision could be developed within the context of principles 1 to 5 set
out in Chapter 3. For example:

it might emphasise elements such as trams, boulevards and main streets which
contribute to Melbourne’s distinctiveness and consider using Port Phillip and the Yarra
River for water-based transport solutions

it should facilitate global competitiveness through efficient freight and logistics and
access for skilled labour to support knowledge industries

it should be about accessibility to jobs and services which enable social and economic
participation

it should contribute to affordable living and a sense of place which helps to build strong
communities

it should contribute to environmental resilience through respect for the natural and
built environment.
There are two key transport implications from the growth of the Central City: the need for
improved rail services to carry high volumes of workers to and from the Central City and
suburban locations; and the need for a high level of mobility across the Central City for
business-to-business and social interactions.
The next round of Central City improvements could include:

the East West Link – an 18 kilometre inner urban road connection extending across
Melbourne from the Eastern Freeway to the Western Ring Road, with connections to
CityLink and the Port of Melbourne

the Melbourne Metro Rail Tunnel project – a new underground railway line from South
Kensington to South Yarra with new stations at Parkville and Domain, and links to
Melbourne Central and Flinders Street stations, North Melbourne and South Yarra

rerouting and extending trams to better serve an expanded Central City.
Better trunk bus services such as SmartBuses, particularly in middle and outer areas, coupled
with improved local services could dramatically improve access to service centres,
employment clusters and regional centres.
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Cycling and walking should be supported across metropolitan Melbourne. There is a need to
make it easier and safer for people to move around their local areas on foot, bicycle or by
public transport, and to make it easier to access local services.
This could involve building footpaths where there are none, creating new pedestrian links and
paths in areas where access is limited, and changing the way we design and construct streets
to make it easier and safer to move around on foot.
Extending on- and off-road cycle paths would encourage cycling. On-road paths should be
separated from traffic for maximum safety and attractiveness to cyclists. Part of achieving this
is rethinking how we allocate road space. VicRoads’ SmartRoads program manages competing
interests for limited road space by integrating some routes with public transport, cyclists and
pedestrians while maintaining others for primary use by cars and trucks.
Figure 11 Mode of travel for trips under 1 kilometre by residential location, 2009
Photograph: Copenhagen-style bike path
Idea 5:
Strengthening the green edge to Melbourne
Melbourne should consider strengthening its ‘green wedge’ planning approach with a ‘green
belt’. It should be obvious where Melbourne stops and rural areas begin.
What we now call green wedges were introduced into planning schemes in the early 1970s. In
some places the current Urban Growth Boundary follows the limits identified at that time but
in other places it has been extended. In many places, the Urban Growth Boundary follows
natural boundaries or physical barriers such as the Outer Metropolitan Ring transport corridor
in the south-west. These boundaries or barriers could be appropriate locations to ‘lock in’ the
Urban Growth Boundary.
Areas outside the current Urban Growth Boundary need to be planned in the context of the
wider regions of which they are a part. These areas extend beyond Melbourne into regional
Victoria. Rural areas around Melbourne need to be planned to reinforce their agricultural role
and conservation values.
Current planning controls in rural areas around Melbourne unduly limit opportunities for
tourism and other developments that would sit well in the rural landscapes and broaden the
range of choices these areas offer.
There is a need to move beyond a ‘protective’ or ‘defensive’ approach to managing natural
resources and seek opportunities to increase their value for the city and enhance their natural
role.
We know that landscapes will face changes and challenges over time. It is important to
maintain the capacity of landscapes to adapt to these changes by linking habitat, providing
buffers and working to improve the robustness of natural areas where possible.
Planning and landscape design treatments on Melbourne’s boundary can strengthen the
environmental, aesthetic, agricultural and resource values of regional areas around
Melbourne.
Photograph: The Urban Growth Boundary in Whittlesea
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Idea 6:
Building a state of cities
Victoria has the opportunity to better integrate Melbourne with a network of regional cities
as part of a ‘state of cities’ concept. Increasing economic and social links between these
regional cities could better integrate labour forces, create choice for fast-growing sectors
such as remote and mobile workers, and result in better use of existing infrastructure. A
select number of small towns could support additional growth and enhance the roles of
regional cities.
Better integration of Melbourne with regional cities will provide more opportunities for
Victorians. From the Committee’s conversations with regional cities, it is clear regional city
leaders are ready to make a ‘step change’ and act to achieve above trend growth.
The major regional centres of Geelong, Ballarat and Bendigo are already growing strongly, and
are offering a wide range of services and opportunities for new residents. The Latrobe Valley
urban areas of Moe, Morwell and Traralgon have a similar opportunity to grow into a major
regional city.
Closer to metropolitan Melbourne, there are major opportunities for regional towns to grow.
With the right support and long-term planning, towns closer to Melbourne in each of those
regional corridors can also provide attractive regional living options within easy access of
Melbourne’s fringe. Bacchus Marsh, Kilmore, Warragul and Wonthaggi would provide
additional opportunities for those seeking a non-metropolitan lifestyle with good access to the
urban area.
Achieving above trend growth will require intervention and investment. Unless councils or the
State Government act to make regional cities more attractive to Melburnians, there is no
reason to suppose they will grow faster than they have done so in the past.
Planning for regional city growth is vital. The Regional Growth Fund provides opportunities to
invest in key projects. Actions could involve investment in the CBDs of the regional cities as the
catalyst for attracting public and private sector investment, and more people. Providing more
frequent rail services to regional centres could also improve access and create a wider
customer base located in Melbourne. It will be important to identify opportunities in regional
growth plans that have implications for the Strategy (and vice versa).
Photograph: Geelong waterfront
Idea 7:
Extending Melbourne’s boulevards – a civic legacy
It is time to extend Melbourne’s urban design skills to ‘suburban design’ – to translate the
lessons learned in creating vibrant, attractive inner urban areas into improving the
attractiveness, connectivity and grandeur of the suburbs.
Melburnians value the boulevards of inner Melbourne but haven’t really created any more of
them. They also value the main streets of the middle suburbs but many of these are now
dominated by through traffic.
Melbourne could create the next generation of great boulevards – with attractive proportions,
avenues of trees, major thoroughfares, medium and higher density housing and local
employment. For example, Old Geelong Road at Hoppers Crossing could host a broader mix of
uses and higher density development. It could be a place that people enjoy being in, like St
Kilda Road and Royal Parade, not just a place for passing through.
Drawing: Artist impression of new boulevard
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Question: What are your ideas for managing the overall form of Melbourne?
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PRINCIPLE 7: LIVING LOCALLY –
A ‘20 MINUTE’ CITY
Accessible, safe and attractive local areas where people can meet most of their needs will
help make Melbourne a healthier, more inclusive city. Having a range of services close to
home and work frees people up to do more of the things they enjoy.
By ‘locally’ the Committee means travel distances of 20 minutes as rule of thumb. Living locally
can be achieved by adding services (and the population to support those services) to existing
areas and improving transport connections (especially walking, cycling and local buses) to
existing services and jobs.
It is at the local level that the Strategy can deliver choice and opportunity to people. The first
five principles identified a number of implications for how local areas could be managed:

provide places and shared public environments to foster social contact including
transforming roads that no longer carry as much traffic into more attractive urban
places

support local services, local clubs, organisations and networks

provide settings for artistic, cultural and sporting endeavours

address affordable living

promote innovation in design and construction

support a variety of housing needs at a local level

establish Melbourne and Victoria as leaders in building environmental resilience into
urban areas

promote the retrofitting and re-engineering of Melbourne’s existing suburbs – reducing
energy use, water use and waste production.
As our population ages, and household structures change, our social, educational, recreational
and health needs also change. If services are to be delivered to areas where they are most
needed in the future – rather than where they were most needed in the past – the
infrastructure required to deliver these services must also change.
Figure 12 Current average time to jobs and services
Map 13 Where people who work in Monash-Clayton live
Key issues raised in research and consultation
Can living locally be achieved?
A number of people the Committee spoke to thought that a ‘20 minute city’ might be an
aspirational goal that could not be achieved in reality. The range of services available within a
20 minute walk is much less than a 20 minute drive. We recognise that in some areas achieving
this principle will require more change than in other areas, but we think this principle can be
achieved by locating new housing close to services and jobs, improving the delivery of services,
and improving local accessibility. Whether the 20 minute travel distance is by walking, cycling,
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bus or car will depend on the area and the habits of its residents. Better services and cheaper
travel alternatives will provide more choices for residents.
Different people have different needs
Creating a 20 minute city will mean different things at different life stages: the needs of young
families will be different to the needs of the elderly. The 20 minute city means distributing
services, facilities, jobs, education and entertainment across Melbourne’s suburbs so they are
accessible. It does not mean creating an artificial hierarchy of local centres. Uses may be
clustered in certain places but the 20 minutes should be measured from the front door to a
number of locations (and these locations could differ from neighbour to neighbour), rather
than from one central node outwards. This is a departure from the way planning has occurred
in the past but is achievable.
Some areas have obvious potential
Much of inner Melbourne most likely already delivers a ‘20 minute city’. The real challenge we
see is how the middle and outer suburbs of Melbourne can be adapted to provide more
services closer to people, and better access to those services that are already there.
A number of councils have plans to bring more jobs and better services to their residents.
These councils observe that the ‘choice rich’ areas of the middle and inner eastern suburbs
serve as a good model for a pattern of development that provides a range of facilities in a
diverse range of locations, with good access for residents.
Housing supply and local areas
The Strategy must develop some ideas about how to get more diverse housing in more
locations at a reasonable price in established areas of Melbourne. The Central City is growing
about as fast as the growth areas on the fringe. Within established areas, some suburbs are
suitable for redevelopment and some are not, and only a relatively small proportion of land
area would be required to accommodate a significant proportion of Melbourne’s growth.
It costs an average of $131,400 more to build an ‘infill’ dwelling compared with a new
subdivision in a growth area. Achieving more development in established areas would require
a reduction in this price difference.
The Australian Housing and Urban Research Institute (AHURI) recently published report
‘Delivering diverse and affordable housing on infill development sites’ identified barriers to
infill development as well as suggestions to enable more diverse and affordable housing on
infill development sites. Several of the AHURI’s ideas warrant consideration in the context of
the new Strategy.
Photograph: St Kilda Road apartments
Did you know: In the past six years, one in 20 new dwellings in established areas of Melbourne
have been constructed within 600 metres of the Route 8 tram, which travels from Moreland to
Toorak.
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Question: Are we providing enough land for sub-regional employment hubs?
Infrastructure in established areas
A number of people expressed concerns about the capacity of infrastructure in established
areas of Melbourne. A review of Melbourne’s utility infrastructure was undertaken to better
understand current and future capacity. This work covered water supply, sewerage,
stormwater drainage, electricity, gas and telecommunications. It was found that utility
companies are generally satisfied that their infrastructure meets current capacity
requirements, and while metropolitan Melbourne’s infrastructure may experience localised
constraints as development progresses, in general, utility companies are well-placed to
complete planning and mitigation measures as required.
Ideas and aspirations for change
The Committee has identified three initial ideas for strategic priorities that might help make
Melbourne a ’20 minute city’.
Idea 8:
Delivering jobs and services to outer area residents
Services need to be provided in a more timely manner to urban growth areas and
established outer areas of Melbourne. The problems of few jobs and a lack of services in
these areas are complex, and solutions will require new ways of thinking to maximise growth
opportunities and economic participation by residents in outer urban areas.
Melbourne has developed an efficient development industry for delivering housing and shops
to growth areas but we have not delivered enough local jobs to support this housing. In some
places this is because land has not been set aside for employment – no land was identified for
industrial uses or activity centres did not provide land for local offices and employment.
Employment uses might not be viable on ‘day one’ but recent and past experience shows that
as the community matures the demand for local office and employment spaces rises,
especially in the service sector.
While there is debate about what the future demand for employment in outer areas will be,
there is concern that poor planning stifles the early growth of jobs rather than it being a
fundamental lack of demand. Planning for new areas needs to be seen as more than urban
design and traditional land use planning and needs to involve stronger partnership between
government and developers to support the growth of viable local communities. This approach
could consider active programs for attracting jobs.
Not all jobs for growth area residents will be provided in growth areas themselves. Some
employment might be better encouraged towards existing middle and outer areas of
Melbourne that are convenient to growth areas. An overall vision for the economic
development of middle and outer areas needs to be developed. For example, in Melbourne’s
west a new university campus and regional hospital could anchor new jobs although these may
require government investment. The Outer Metropolitan Ring transport corridor and the
Regional Rail Link project provide opportunities for jobs growth in highly accessible locations
around stations and interchanges. Employment areas should be considered for locations
around key interchanges along the Outer Metropolitan Ring corridor.
Local planning policies and zoning reforms could encourage new neighbourhood centres and
small supermarkets to ‘fill the gaps’ in existing networks, and help bring services closer to
people. Bringing local services closer to people requires more flexibility and creativity at a local
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planning level. Small urban renewal sites, such as transitioning industrial sites in inner and
middle suburbs, may present opportunities to provide more local services.
Photograph: New employment opportunities in a growth area
Photograph: Caroline Springs Civic Centre Library
Idea 9:
Providing diverse housing in the right locations at a reasonable price
The debate about infill housing in Melbourne must move beyond the impact of villa units on
suburban streets and address how we can deliver different types of housing, in the right
locations, at a reasonable price. Neighbourhood character is certainly important and areas
identified as having valued characteristics should be protected. However, neighbourhoods that
are in need of, and will benefit from, urban regeneration, as well as former industrial areas
suitable for renewal should also be identified. The real issue in housing is this: how does
Melbourne ensure its citizens have access to appropriate housing at an affordable price that
supports affordable living?
A key aspiration could be to create, over the next 10 years, a housing model that can deliver a
three bedroom townhouse or apartment in the middle suburbs that is affordable to a median
income household. The Committee was told this would mean reducing the price of such a
dwelling by at least $100,000.
Local area planning could support a mix of uses in new developments – for example, a ‘vertical
village’ where a number of land uses are delivered in the one building (even three or four
storey buildings) and not just apartments. There is a need to better target areas for more
diverse housing development, to identify the type of dwellings needed to cater for local
housing needs, and to develop clear criteria for selecting locations for medium or higher
density housing. There is also a need to devise appropriate planning tools to deliver more
affordable and diverse housing choices.
Even if housing affordability is dramatically improved, there will still be a need for more effort
to deliver social housing, and below market price housing, across a range of locations. This will
be needed to avoid concentrations of disadvantage, and in some more expensive areas to
ensure that ‘key workers’ – such as police officers, nurses, teachers – can afford to live locally.
A cooperative approach is required to plan for higher density development. Simply put,
councils as a regional group, need to work with their communities to identify enough
opportunities to cater for more diversity of housing types in established areas. Developing a
process that can properly balance the aspirations of different local communities with State
Government concerns about housing supply and infrastructure investment will require
partnership and leadership.
Idea 10: Improving the environmental performance of suburbs
Melbourne is a suburban city and that will not change. The environmental performance of its
suburbs can be dramatically improved.
With a likely increase in distributed energy systems, and the need to address environmental
issues across metropolitan Melbourne, local areas can be the focus for efforts on making
Melbourne more environmentally resilient.
While individuals can act to address the sustainability of their own houses, encouraging a
neighbourhood approach to sustainability has the potential to make the process easier and
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more effective. A host of small-scale interventions can help avoid the need for large
infrastructure investment. For example, rainwater tanks can help reduce the need for new
water mains.
Improving the energy efficiency of existing houses will require retrofitting and renovation. This
process will be improved by shared knowledge in the community about how this is best
achieved and a local building industry that is familiar with the challenges this presents in their
local area.
Initiatives such as local energy generation need to be planned as part of renewal or
redevelopment processes. Waste recycling programs and area-wide tree planting need to be
tackled on a neighbourhood basis. Better use of stormwater and stormwater treatment
requires an area-wide approach as does the introduction of a ‘third pipe’ for recycled water
supply.
Trees are highly valued in Melbourne’s suburbs. The tree canopy of the city could be increased
with significant environmental and aesthetic benefits. Melbourne could increase tree cover in
parkland and along waterways and by planting more street trees, including fruit bearing trees,
throughout its neighbourhoods.
A program of ‘green neighbourhoods’ could help address all aspects of sustainability. Much of
this effort could be community-based, with activities to bring people of diverse ages,
ethnicities, abilities and life stages together. Already the greatest take-up of solar panels is in
the middle suburbs. This positive trend could be extended beyond individual houses to the
development of community programs.
Figure 13 The benefits of trees
Did you know: Instead of a costly upgrade to the Ringwood Main Sewer to reduce spills into
Brushy Creek after heavy rains, a series of smaller interventions across the catchment will
achieve a better environmental outcome at a lower cost.
Question: What are your ideas for creating the 20 minute city?
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5. MAKING IT HAPPEN
The Metropolitan Planning Strategy must move away from regulation as the primary means
of achieving planning outcomes. Instead, we need to invest more heavily in vital
infrastructure to support city growth and social cohesion, and foster stronger partnerships
between government, the private sector and the community. It is important that the
community endorses the Strategy and expects successive state governments and councils to
work toward its delivery.
Private development can often recognise opportunities government has not considered and
systems should be established to better respond to these initiatives. The planning system
needs to be flexible and responsive to changing ideas, business practices, and living
preferences.
The final two principles outline how the Strategy could be implemented:

Principle 8: Infrastructure investment that supports city growth

Principle 9: Leadership and partnership.
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PRINCIPLE 8: INFRASTRUCTURE
INVESTMENT THAT SUPPORTS CITY
GROWTH
A single integrated land use, transport and social infrastructure strategy means ensuring that
infrastructure investment supports sustainable land use patterns and drives productivity.
The type, quality and capacity of urban infrastructure influences how well a city performs
economically and the opportunities and capabilities of its citizens. Infrastructure is not simply
roads and railway lines, ports, airports, pipes and cables. It also includes social and community
infrastructure such as schools, health and welfare facilities, sports facilities and learning hubs.
Infrastructure needs to be provided to Melbourne’s growing suburbs in a timely manner. The
cost of servicing needs to be considered when identifying areas for development. Leveraging
urban renewal and development off existing infrastructure and transport investment makes
infrastructure provision more effective, efficient and affordable.
The nature and location of Melbourne’s infrastructure requirements will change over time.
The amount of infrastructure we need depends on how we behave. For example, the demand
for water is less now due to changes in people’s attitudes and behaviour. Comprehensive
planning and evaluation processes are required to prioritise competing demands. We must
optimise the use of existing infrastructure to take full advantage of its value.
Figure 14 Investment in transport infrastructure declined 1970–2001
Figure 15: Major city shaping projects identified in Victoria’s 2012 submission to
infrastructure Australia
East West Link
Construction of a freeway-standard link connecting the Eastern Freeway to CityLink, the Port
of Melbourne and to the M80 Ring Road
Melbourne Metro
Construction of a nine-kilometre rail tunnel between South Kensington and South Yarra,
including five new stations at Arden, Parkville, CBD North, CBD South and Domain and
improved services across a broader area
Port of Hastings
Planning for and construction of the Port of Hastings as an international container port,
including planning for transport links such as the Western Port Highway
Dandenong Rail Capacity Program
Staged construction of a series of projects along the Dandenong Rail Corridor, including
priority grade separations, signalling upgrades and platform lengthening to allow the running
of high-capacity trains
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Western Interstate Freight Terminal
Construction of an interstate freight terminal and freight precinct in Melbourne’s west at
Truganina, including a standard gauge rail link to the interstate rail line
M80 Upgrade
Completion of the staged upgrade to the M80 Ring Road between Laverton North and
Greensborough
Key issues raised in research and consultation
Historic under-investment
The provision and maintenance of infrastructure and services, particularly on Melbourne’s
urban fringe, has lagged behind population growth for some years. Reductions in expenditure
have contributed to a substantial transport backlog, increased traffic congestion and peak
crowding on trains and trams. It is expected that we follow the broad Australian trend. Figure
14 shows the reduction in the share of Gross Domestic Product spent on transport
infrastructure over time.
Shaping the city
The lack of an Infrastructure Development Plan is seen as a major shortcoming of ‘Melbourne
2030’ – the strategy for metropolitan Melbourne adopted in 2002. Commonwealth funding
will be needed to help deliver required infrastructure, particularly transport infrastructure. The
key transport projects needed in Melbourne are of national economic significance, justifying
Commonwealth funding.
The Victorian Coalition Government has developed plans for a number of major infrastructure
projects and has made submissions for funding to Infrastructure Australia for possible
Commonwealth funding. Smaller infrastructure projects – such as a program of bus priority
works – may possibly have a better cost-benefit ratio than some larger projects.
Photograph: Southern Cross Station
Working infrastructure harder
In a budget-constrained environment Melbourne needs to get the most value from its existing
services and infrastructure. This applies to all infrastructure, from community and health
facilities to transport.
A critical shift in thinking is to measure the efficiency of roads by the number of people or the
amount of goods they move, rather than the number of vehicles. The SmartRoads Program is
addressing these issues. A more creative approach to managing roads – for example, by
reconfiguring two parallel roads to a pair of one way roads – could free up road space
improvements for public amenity and allow trams to have a dedicated reservation.
Some public transport services are constrained by outdated technology such as signalling
systems, road congestion and service design.
Making better use of existing rail infrastructure by reviewing land use planning around key
railway stations could help to maximise the strong investment that has been made in this
important infrastructure.
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Did you know: Average tram speeds in Melbourne are 16 kilometres per hour. However, they
are as high as 25 kilometres per hour where trams are separated from other traffic. Increasing
the average tram speed across the network to 21 kilometres per hour could eliminate the need
to buy just over 60 trams (and build associated infrastructure), saving about $600 million.
How can we unlock the capacity of our existing urban infrastructure?
Looking to the fringe
One of Melbourne’s challenges is the lag in infrastructure provision on the city fringe that
limits employment, community services and social opportunities for people living in these
areas. Some councils want to slow the rate of development to better align with infrastructure
and service delivery. Others see high growth as a leveraging opportunity for increased
infrastructure and services funding.
There is a need to ensure education opportunities, at all levels, are spread across Melbourne
to conveniently serve citizens and provide social, health, recreational and public transport
services in a timely manner to growth areas.
Many community and charitable organisations cannot provide services in growth areas
because of a lack of local accommodation. Providing service hubs that can house community
and charitable organisations, when an area is being developed, would help address this
problem.
Who should pay for infrastructure?
More infrastructure will be required to meet the needs of a growing Melbourne, and this will
require hard choices and political leadership. All levels of government can assist in the
development and funding of infrastructure programs. Better funding of maintenance and
operation of existing infrastructure is also required.
The State Government’s average expenditure on infrastructure over five years to 2015–16 will
be 1.4 per cent of Gross State Product. This is more than the 1.3 per cent recommended by the
Independent Review of State Finances. But this alone will not address the backlog and growing
needs of Melbourne.
If Melbourne is to deliver much-needed infrastructure at a faster rate, it may need to explore a
range of alternative funding sources. Decisions about how new infrastructure is funded can
affect when that infrastructure is delivered and who has access to it. A number of issues need
to be considered:

the benefits of more timely delivery of much-needed infrastructure

efficient use of infrastructure

efficient use of government funds

equity – is there a fair distribution of benefits and charges on households

community attitudes

the economic and administrative feasibility of collection.
New sources of funds could increase investment, send better price signals to the market,
influence people’s behaviour in beneficial ways, and facilitate public-private partnerships.
Possible funding mechanisms include:

development contribution charges
Page 46

user pays and beneficiary pays

assets sales such as surplus government land or infrastructure assets

value capture including special or differential rates.
Having determined how infrastructure is to be funded there is also a need to determine how it
will be financed.
The Growth Areas Infrastructure Contribution (GAIC) applies to growth area land brought
inside the Melbourne Urban Growth Boundary or within a growth area zoned for urban
development. The GAIC is used to help fund State Government infrastructure and is applied
uniformly to eligible land on a per hectare basis. Recently the Victorian Coalition Government
has moved to provide for a ‘Works in Kind’ model to see the early delivery of State
infrastructure projects. This is one example of how changes to current funding systems can
facilitate infrastructure provision.
Current planning provisions allow councils (and the Government) to introduce Development
Contribution Plans so that developers pay for certain infrastructure. Development
Contribution Plans are widely used in growth areas but could be better designed to apply in
‘infill’ locations. In NSW and other jurisdictions, contributions are required from different types
of development across the whole of the municipality without the need to apply local
provisions.
A review of the Victorian development contribution system is underway. The review will
develop a new ‘off the shelf’ model for local development contributions and set up a range of
standard schedules for different development settings across Victoria.
Most infrastructure has some form of user charge. We all pay for water, telephones and
power. But unless we travel on one of Melbourne’s tolled freeways we do not pay directly for
road use. The mix of tolled and untolled roads in Melbourne does not derive from any explicit
policy about how roads ought to be managed and therefore can create inefficient travel
patterns and inequities as to who pays and who doesn’t pay.
Any recourse to a new revenue stream or increased return from an existing stream will be
easier to implement with community support. Such support is often higher when the revenue
is earmarked for a particular purpose – a process called ‘hypothecation’.
Rezoning or infrastructure investment can raise the value of land. This increase can be
‘captured’ directly by broadening the scope of infrastructure projects to include a land
development component, or indirectly by differential rates on the increase in value that flows
to the property owner.
Finding the money
Governments have a range of options for financing infrastructure if it is not paid for directly
out of the budget:

borrowing

private equity or debt through public-private partnerships

project-specific bonds.
Government bonds are a form of borrowing. However, they can be used to earmark borrowing
for specific projects, providing a degree of transparency as to how the project is financed. The
general desire to see a tight link between funding and delivery is illustrated by much higher
community support for Government bonds compared to more general borrowing to fund
infrastructure.
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Public-Private Partnerships (PPPs) have been used for many years to deliver infrastructure and
will continue to be an important means of delivering new infrastructure. Determining how to
fund increased investment will involve identifying the most appropriate way to fund particular
projects as part of the planning process. Facilitating the use of superannuation funds as a
potential source of infrastructure funding could also be investigated.
Proper consideration should be given to providing greater flexibility for councils to source
suitable funds to enable delivery of much-needed local services and facilities.
Figure 16 Planning scheme reserves from 1968 and built freeways and parks
Photograph: Current aerial of Melbourne looking south
Ideas and aspirations for change
Infrastructure investment is critical to effective delivery of the Strategy. The Committee has
identified three initial ideas to guide delivery.
Idea 11: Using investment to transform places
Major infrastructure investment results in transformative land use changes. In Melbourne,
planning for major infrastructure investment needs to ensure that the best public outcomes
– new jobs, housing choices, new open space and facilities – result from such projects and
embed these in the delivery arrangements.
Some major infrastructure projects will be delivered by public agencies and some by private
firms. Regardless of how they are delivered, maximising positive, city-shaping effects needs to
be a central concern from the outset of the project.
Until recently cost-benefit studies for transport projects focused on travel time savings
whereas some of the wider economic benefits can be more significant. These include giving
people more choices about the places and people they can access, and supporting
redevelopment of under-utilised areas.
Drawing: The Melbourne Metro project could transform the Arden Precinct
Map 14 Victorian Government Submission to Infrastructure Australia
Idea 12: Moving to a place-based focus for programs
In the past, many State Government programs have focused on meeting a specialised need
or delivering one type of service. This has been the case for a range of projects, from
transport to social services. There is a need to increase the focus on integrated place-based
programs that focus on the needs of a particular area or community, instead of narrowlyconceived functional programs. Infrastructure Australia processes should foster this more
integrated approach.
The Committee sees a need to move thinking beyond individual projects, focused on narrow
objectives, to a wider focus on a series of desirable outcomes. This means, for example, a
grade separation project for a rail crossing could also involve an urban development
component that aims to improve the public realm. Such projects require agencies to work
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beyond their usual scope or in partnership with each other and the private sector. Bundling a
number of projects together might make them more attractive for private investment.
Idea 13: Identifying a long-term framework for metropolitan infrastructure
We need a long-term framework for metropolitan infrastructure that includes transport,
community, health, education, recreation and open space, and utilities. This framework
should reinforce achievement of the Strategy and address how infrastructure will respond to
a changing climate. How we manage waste, and whether we continue to view it as waste or
another resource, also needs to be considered.
A works program needs to be developed as part of the metropolitan infrastructure framework.
This would need to be flexible and not act as a handbrake on investment. A three or four-year
funding program would provide much-needed certainty while a 10-year program would
encourage private sector and community initiatives.
There appears to be a broad consensus on the type of transport infrastructure improvements
needed over the life of the Strategy.
An expanded Central City will require an increase in transport capacity for access to and
movement within the city – this can only be achieved by public transport with cycling and
walking playing increasing roles, and would involve:

moving to a metro style train system (where train lines run independently of each other)
to build network capacity; ultimately this could mean not all trains pass through Flinders
Street Station and new inner Melbourne rail tunnels such as Melbourne Metro are
required

building a rail link to Melbourne Airport as a gateway to Melbourne, and as part of the
development of an employment cluster

expanding the tram network and moving towards a light rail system

improved cycling paths and an improved public realm for pedestrians.
In inner Melbourne:

retrofitting cycling and walking opportunities into existing areas

moving towards a light rail system, with traffic delays addressed by dedicated rights-ofway or priority treatments

improving road capacity for traffic bypassing the Central City, including the East West
Link

investigating options for Hoddle Street that acknowledge its important traffic
distribution and public transport roles.
For global competitiveness:

providing an alternative east-west bypass link to the West Gate-M1 corridor for a more
efficient freight and logistics system

supporting the growth of Avalon Airport for air freight in addition to passengers, and
investigating options for a new airport to the south-east of Melbourne

developing new freight precincts and gateways as part of a more decentralised network,
including:
· rail freight increases where possible
· exploring new longer term port development options in the west of Melbourne,
in addition to possible development of the Port of Hastings in the medium term
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·
·
new and more efficient terminals in outer areas close to national and
international trade routes – such as the Western Interstate Freight Terminal
a connected network of freight corridors including the Outer Metropolitan Ring
transport corridor and the East West Link.
To unlock capacity in middle and outer suburbs an integrated program of transport
improvements could include:

using buses as the backbone of new public transport routes, with priority given to:
· improved local services and orbital SmartBus services linked with rail
· better transport interchanges at stations and activity centres
· better service coordination
· progressive delivery of disability access
· removal of bottlenecks

grade separating critical railway crossings to reduce road congestion and support high
frequency train services

extending train and tram lines and services

retrofitting cycling and walking opportunities to existing areas

more targeted management of roads and other assets, using the SmartRoads approach,
to achieve local amenity improvements

investigating water-based transport routes on Port Phillip and the Yarra River, possibly
providing a new public transport service from Melbourne’s west to the Central City

building new connections across physical barriers such as creeks, rivers and railways to
improve local connectivity for walking, cycling, cars and buses.
The south-eastern suburbs of Melbourne have a strong grid of arterial roads, whereas the road
network in the west is less interconnected. Improvements will be required over the life of the
Strategy.
An integrated program of new roads, public transport, cycling and walking improvements will
be required in Melbourne’s growth areas, coordinated with the sequence of land
development. This will include constructing the Outer Metropolitan Ring transport corridor.
Bus Rapid Transit corridors could operate within designated future rail reservations until the
rail network is extended to these areas.
Planning should be undertaken to improve links to regional cities by:

ensuring sufficient road and rail capacity between regional cities and Melbourne, and
between regional cities

reserving land for Very Fast Train services to regional Victoria and interstate.
Photograph: SmartBus in Melbourne
Question: What new opportunities for business, investment, public transport and housing
would the East West Link provide?
The East West Link would provide a new east-west cross city connection north of the Central
City. It would close the gaps between the major metropolitan freeways to the east, west and
north and provide a much needed alternative to the Monash-West Gate freeways, including
the West Gate Bridge.
Page 50
The project would:

provide an east-west alternative: relieving pressure on the West Gate–M1 corridor, and
providing an alternative to the West Gate Bridge

improve freight efficiency: catering for growth at the ports of Melbourne and Hastings
and improving productivity by improving travel time reliability for freight

enhance Victoria’s competitive advantage: improving the output of key industry centres
and supporting the knowledge precinct in Carlton and Parkville

cater for population and economic growth: servicing key growth areas, supporting urban
renewal opportunities and catering for forecast increases in freight movement

alleviate congestion: completing missing links between freeways to alleviate congestion
and ensure travel time reliability for families and freight
improve public transport services and liveability: relieving congestion on inner city streets,
allowing prioritisation for on-road public transport and providing opportunities for sustainable
urban development.
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PRINCIPLE 9:
LEADERSHIP AND PARTNERSHIP
Good governance, strong leadership and collaborative partnerships are essential to the
success or failure of a metropolitan strategy. Partnerships between Commonwealth and
State Governments, State Government and local councils, public and private sectors,
councils and their communities, are fundamental ingredients to achieve a positive future for
Melbourne. Through mutual interest and respect we can share the benefits and
responsibilities of implementation.
The Metropolitan Planning Strategy should address the needs of the market, local councils,
business and communities. It also needs to achieve metropolitan imperatives while being
sensitive to local needs.
Responsibility for planning Melbourne is shared between the Minister for Planning and the 31
municipalities that administer the metropolitan region. Local councils and the Minister can
make changes to planning schemes, and councils or the Minister are, depending on the
circumstances, responsible for issuing planning permits. Councils and a range of State
Government agencies directly shape Melbourne by building infrastructure, carrying out
development or delivering services.
Commonwealth funding is required for the infrastructure needs of a growing Melbourne. A
number of Commonwealth strategies will affect how the Strategy is developed and delivered:

The National Ports Strategy

The National Aviation Strategy

The National Freight Network

The National Urban Policy.
Metropolitan planning: a critical assessment
In 2011, the Council of Australian Governments (COAG) Reform Council considered the
planning of Australian cities was at a ‘watershed point’. It stated ‘the way we undertake our
strategic planning for cities needs to change. Population growth, demographic changes,
increasing energy costs and the shift to a knowledge-based economy have changed the
assumptions that underpinned our planning’.
The COAG Reform Council listed the following necessary ingredients for capital city planning:

integrate:
· across functions (land use, transport, economic infrastructure, health,
education, environmental assessment and urban development)
· across Government agencies

provide a consistent hierarchy of future-oriented plans which are publicly available:
· long-term: this Strategy adopts 40 years
· medium-term: 10 years (prioritised infrastructure and land use plans)
· near-term: prioritised infrastructure projects and detailed project plans

provide for nationally significant economic infrastructure (transport corridors,
international gateways, intermodal connections, major communications and utilities
infrastructure and reservations for future requirements)
Page 52

strengthen the networks between capital cities and the regions

provide for planned, sequenced and evidence-based land release

clearly identify priorities for government investment that will provide an effective
framework for private investment and innovation

encourage world-class urban design and architecture

provide effective implementation arrangements that are clear and coordinated across
all levels of government.
Setting a city-shaping agenda
The level of Commonwealth-State Government understanding of the importance of cities has
waxed and waned over the past 40 years, resulting in city-shaping advances being achieved or
missed. The importance of cities as drivers of social and economic progress needs to be
prominent in inter-governmental relationships.
There is a strong call for the State Government to set out its agenda for metropolitan
Melbourne – to state what its priorities are, what it will do and by when and what it can’t do.
Many projects have long lead times and the planning stages need to be funded to ensure
timely and ‘within budget’ delivery. A recurring theme from the consultation is that State
Government agencies operate with little reference to any overall plan, and are either late or
absent on the delivery of infrastructure and services.
The State Government has a substantial land holding but its development agencies do not
always have the powers or ability to partner with investors or developers in a timely and
effective way.
Partnerships with the private sector
The use of companies or corporate agencies to deliver ‘government’ functions – water, freight,
transport, waste management, electricity generation and supply – has enabled an expansion in
urban infrastructure but has increased the complexity of urban management.
The private sector is vital to the future of Melbourne. More and more communities are relying
on services and facilities funded by the private sector. These include housing, shopping
centres, health facilities, energy and roads. Delivering community benefits with the purchasing
power and innovation of the private sector will be part of how we implement the Strategy.
A new governance structure?
We need a coordinating mechanism across governments for the 21st century. A number of
people suggested ideas for how Melbourne should be managed. One option is to establish a
metropolitan planning authority which, amongst other responsibilities, would coordinate
relevant government agencies in the timely delivery of city-shaping infrastructure and other
projects of metropolitan significance. An opposing view was that such an arrangement could
result in the State Government losing one of the few levers it has to manage city planning and
hence the prosperity of Victoria. It was thought such an authority would not reduce the need
for partnerships and leadership.
Revised planning policy
The State Planning Policy Framework (SPPF) forms part of all planning schemes and contains
the current metropolitan strategy. An amendment to the SPPF needs to be gazetted at the
same time the final Strategy is released.
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Current planning policies for Melbourne are spread throughout the SPPF making it difficult to
get an overall picture of the planning framework for Melbourne. This, coupled with a lacklustre
layout and the absence of framework plans and explanatory text, means the SPPF does not
serve to communicate the State Government’s vision for Melbourne clearly.
There is a need for a clear mechanism to enable the State Government to communicate its
planning objectives for specific areas. At present there is no clear statutory way for the State
Government to express its broad planning agenda for an area (for example, an employment
and innovation cluster) in enough detail to guide planning decisions or the development of
new planning scheme controls. The need for incentives as well as controls was also raised in
consultations.
Ideas and aspirations for change
Effective implementation of the Strategy is fundamental. Where past plans have failed it has
principally been through a lack of effective implementation.
Idea 14: Developing partnerships and agreements
State Government and councils share responsibility for the planning of Melbourne. A
partnership approach between councils and the State Government could ensure the
Metropolitan Planning Strategy is implemented in a coordinated and integrated way,
benefiting all Victorians over the 40-year timeframe of the Strategy.
Partnerships work well when there is a clear focus on the task at hand and formal
intergovernmental agreements can provide for more certain ongoing cooperation. For
example, councils and State Government have developed strong partnerships in identifying the
role and management of roads as part of the SmartRoads process and the Municipal Health
Plan process.
In a partnership approach with particular councils or groups of councils, the State Government
could assist councils in implementing the Strategy at the sub-regional level, with the provision
of committed State level infrastructure tied to the agreed outcomes. This model would require
neighbouring councils to work with their communities and agree on priorities and processes
for delivering outcomes. For example, if the private sector could see State Government and
councils were committed to a five-year regional level facility program, this would lead to
investments being planned in parallel.
Possible candidates for a partnership approach involve:

innovative public tenders for packages of works such as several grade separations or
expressions of interest (as part of renewal projects) for much-needed facilities such as
social housing or desirable development such as hotel beds

public land or air rights where gaining a financially viable outcome might require
exclusive dealing with one party – probity issues would need to be carefully considered

private land, where renewal or substantial change is appropriate, but not recognised in
existing controls – better processes for assessing developments on the basis of ‘net
community benefit’ are required as well as providing clearer approval pathways

innovative options for the provision of social housing and affordable housing.
Page 54
Idea 15: Developing good governance structures and processes to deliver the
Strategy
The roles and responsibilities of State Government agencies, local councils and private
parties need to be clear in the implementation of the Strategy.
A number of people suggested the establishment of a metropolitan planning authority to plan
strategically for Melbourne and deal expeditiously with major development. The ability to
combine an infrastructure role with a planning role was seen as a way of ensuring that
infrastructure investment supported planning outcomes and vice versa.
A number of other governance issues might be addressed to improve implementation
including:

developing shared or alternative governance structures for key development areas that
cross municipal boundaries

better mechanisms for inter-council and inter-agency cooperation

broader powers for State Government development agencies so that they can better
deliver transformative projects

better management of land owned by State Government agencies

better sharing and more timely release of data and research by State Government
agencies.
State Government agency investments should support the Strategy, not ignore or undermine
it. A review mechanism needs to be established within State Government to ensure this
support occurs.
This could involve directing new State Government facilities, such as schools, health facilities
or police stations, to identified service centres. The additional cost of this approach needs to
be seen in the light of the wider economic and social benefits of locating services where they
can be more easily serviced by public transport and can help create a critical mass of activity.
Currently no State Government agency appears to have responsibility for the overall strategic
planning of Melbourne’s open space network. To create a well-planned network, direction is
required on the provision and enhancement of open space as well as on how best to
coordinate its management.
Idea 16: Setting targets, measuring progress and publishing indicators
For too long many aspects of Melbourne’s urban system have gone unmeasured or
unreported. Setting targets and aspirations will be central to the Metropolitan Planning
Strategy.
Effective monitoring and review requires measurement of progress. Public annual reporting on
the implementation of the Strategy at a municipal and metropolitan level will enhance
accountability and transparency. It will also provide opportunities to focus on achievements,
review monitoring mechanisms, and discuss lessons learned.
Melburnians should measure their progress against other cities. Developing a set of key urban
indicators (around a dozen based on social inclusion, housing price, employment, productivity
or similar) and reporting on these at regular intervals will help keep the Strategy on track.
These indicators should measure outcomes, not just whether the actions took place. They
should report on whether these actions improved things on the ground.
Page 55
Page 56
6. HAVE YOUR SAY
Many Melburnians are concerned about how young people today will find meaningful
employment, afford a house, have a family and be able to choose where to live.
There is a need for ‘plain talk’ about what is happening to the economic base of Melbourne –
what we are doing well, what challenges we face, what housing choices we have, and what we
will and will not be able to do in a city of over 6 million people. This conversation must engage
residents of all communities in Melbourne, our rural neighbours, and regional city
communities.
Melburnians are all in this together. We assume that if you are reading this you already have
an interest in the development of Melbourne. The wider challenge is how to engage the
broadest cross-section of Melbourne to think, talk and act to create a better future.
Have your say
What do we want to achieve
The discussion paper refers to five outcome principles:

Principle 1: A distinctive Melbourne

Principle 2: A globally connected and competitive city

Principle 3: Social and economic participation

Principle 4: Strong communities

Principle 5: Environmental resilience
Question 1.
What do you think of these outcome principles?
Things you might like to consider:

To what extent do they reflect your vision for Melbourne's future?

Has anything important been missed?
Question 2.
What do you think is needed to achieve these outcome
principles?
Things you might like to consider:

What does Melbourne already have to help achieve these outcome principles?

What new things need to be put in place?
What needs to change
The Discussion Paper makes references to building an expanded Central City that can attract
new jobs to Melbourne and reinforce Melbourne as a world city and tourism hub. An
expanded Central City is not simply about a geographically larger area, it is about expanding
the opportunities the Central City offers residents, businesses and visitors.
Question 3.
What are the key ingredients for success in achieving the vision
of an expanded Central City?
Things you might like to consider:
Page 57

What are the key features and characteristics that you feel an expanded Central City
should have?

What should be avoided?
A number of suburban job clusters are nationally significant places of economic activity and
innovation. Reinforcing the role of these clusters could boost productivity, support economic
growth, make the most of infrastructure, and promote urban renewal. Clusters have distinctive
roles, infrastructure and economic development potential.
Question 4.
What do you think of the idea of identifying and reinforcing
employment and innovation clusters across Melbourne?
Things you might like to consider:

What are the potential advantages and disadvantages?

How can new clusters be identified?

What is needed to support these clusters?
Question 5.
What is needed to support growth and development in
regional cities?
Things you might like to consider:

What role can governments, businesses and local communities have in supporting
regional cities?
Accessible, safe and attractive local areas where people can meet most of their needs within
20 minutes travel not only by car could help make Melbourne a healthier, more inclusive city.
Question 6.
What do you think of the idea of a ‘20 minute city’?
Things you might like to consider

What are the potential advantages and disadvantages of this idea?

What is needed to achieve a 20 minute city?
Question 7.
How can established suburbs accommodate the needs of
changing populations and maintain what people value about
their area?
Question 8.
How do we ensure a healthy and sustainable environment for
future generations?
Making it happen
Implementation is essential to the success of the Strategy. This Discussion Paper presents a
range of ways infrastructure could be funded and financed.
Question 9.
What do you think about the possible ways of funding
infrastructure?
Things you might like to consider:

What are the pros and cons of different funding models?

To what kind of infrastructure projects should different funding models apply?
Page 58
Question 10. How can all levels of government, business and community
work together to create the city you want?
Any other thoughts
Please provide any other feedback, comments or ideas you may have about the themes in the
Discussion Paper
The process from here
Following the Discussion Paper a draft Strategy will be prepared for comment, and a final
Strategy in Spring 2013.
We would like to hear what you think of the ideas presented in this Discussion Paper and what
other ideas you may have on planning Melbourne’s future. To provide comments visit
www.planmelbourne.vic.gov.au to:
make a submission via an online form and upload any supporting documents
discuss your ideas in the online forums
register to attend the community events, likely to be held in February 2013.
If you would like to provide comments in writing, please email
planmelbourne@dpcd.vic.gov.au to request a printed version of the submission template.
Comments on the Discussion Paper will close on Friday 1 March 2013.
Feedback received will help shape the draft Strategy and we look forward to hearing your
views.
Page 59
APPENDIX A WHO WE HAVE SPOKEN TO
Members of the Ministerial Advisory Committee attended the following events:

Two Ministerial Roundtables with Local Government Mayors and CEOs

Two Ministerial Roundtables with Industry Stakeholders

One Premier’s Roundtable

Three Planning Director’s Workshops

Three Joint Regional Management Forum and Regional Development Australia
Workshops
The Committee met with the following people.
Name
Bill Chandler
Brian Howe
John Lawson
Peter Brain
Rob Adams
Ian Winter
Chris Lowe
Phil Turner
Jane Homewood
Nigel Higgins
Kelvin Walsh
Daniel Vincent – Smith
Kevin Van Boxtel
George Pappas
Gill Callister
Arthur Rogers
Jim Betts
Gillian Miles
Andrew Tongue
Prue Digby
Greg Wilson
Adam Fennessy
Pru Sanderson
Peter Mares
Peter Seamer
Paul Byrne
Adrian Dwyer
Garry McQuillan
David Turnbull
Kerry Thompson
Chris Chesterfield
Organisation
Chandler Consulting Services
Chair, Cities Expert Advisory Panel. COAG
Reform Council
National Economics
City of Melbourne
Australian Housing and Urban Research
Institute
Bus Association Victoria
Central Activities Areas Councils
Committee for Melbourne
Department of Human Services
Department of Transport
Department of Planning and Community
Development
Department of Sustainability and Environment
GHD
Grattan Institute
Growth Areas Authority
Infrastructure Partnerships Australia
Interface Councils
Office of Living Victoria
Page 60
Rob McGuaran
Dr Bob Birrell
Professor Shane Murray
Brian Tee
Steve Dunn
Jennifer Cunich
Sam Sangster
Kathy Mitchell
Ian Dobbs
Cr John Arnold
Gavin Cator
Craig Niemann
Prof Michael Buxton
Dr Marcus Spiller
Phil Storer
Adrian Robb
David Hawkins
John Cicero
Professor Kim Dovey
Assoc. Professor Carolyn Whitzman
Dr Alan March
Professor Kevin O’Connor
Helen Gibson
Mark Dwyer
Gary Liddle
Rob Fremantle
Jeff Hole
Matthew Butlin
Tania Orr
Emma Demaine
Tamara Brezzi
Jon Clements
Alison Cleary
MGS Architects
Monash University
Shadow Minister for Planning
Planning Institute of Australia – VIC Division
Property Council of Australia
Places Victoria
Planning Panels Victoria
Public Transport Victoria
Regional Cities Victoria
RMIT University
SGS Economics & Planning
Southern Metropolitan Mayors Forum
Urban Development Institute of Australia
University of Melbourne
Victorian Civil and Administrative Tribunal
VicRoads
Victorian Competition and Efficiency
Commission
VicTrack
Victorian Planning and Environmental Law
Association
Australian Institute of Architects – Victorian
Chapter
Page 61