REASONS FOR DECISION TO EXERCISE POWER OF INTERVENTION UNDER SECTION 20(4) OF THE PLANNING AND ENVIRONMENT ACT 1987 VICTORIA PLANNING PROVISIONS AND PLANNING SCHEMES IN VICTORIA AMENDMENT VC111 The Planning and Environment Act 1987 (the Act), the Heritage Act 1995 and the Victorian Civil and Administrative Tribunal Act 1998 provide for the intervention of the Minister for Planning in planning and heritage processes. In exercising my powers of intervention, I have agreed to: Make publicly available written reasons for each decision; and Provide a report to Parliament at least every twelve months detailing the nature of each intervention. REQUEST FOR INTERVENTION 1. There has been no request for intervention. WHAT POWER OF INTERVENTION IS BEING USED? 2. I have decided to exercise my powers to exempt myself from all the requirements of sections 17, 18 and 19 of the Act and the regulations in respect to Amendment VC111 to the Victoria Planning Provisions and planning schemes. 3. Section 20(4) of the Act enables the Minister for Planning to exempt an amendment which the Minister prepares from any of the requirements of sections 17, 18 and 19 of the Act or the regulations. 4. In seeking to exercise this power, section 20(4) of the Act requires that the Minister must consider that compliance with any of those requirements is not warranted or that the interests of Victoria or any part of Victoria make such an exemption appropriate. BACKGROUND 5. In accordance with the VPP Practice Note Urban Growth Zone (June 2008), the provisions in “Part A – Provisions for land where no precinct structure plan applies” (being clauses 37.01-1 to 37.07-8) of the Urban Growth Zone operate similarly to the Farming Zone by allowing existing farming and other rural activities to continue, and new farming uses to establish, on land that has been identified for future urban development but where no precinct structure plan applies. 6. Amendment VC103 gave effect to the government’s commitment to amend the existing rural zones to ensure Victoria’s planning zones are relevant and reflect the aspirations of all Victorians. The reformed Farming Zone provides greater flexibility and removes or reduces requirements and conditions for use, development and subdivision. The reformed Farming Zone came into operation on 5 September 2013. Page 1 of 5 7. Given the relationship between the Farming Zone and Urban Growth Zone, Amendment VC111 is required to align Part A of the Urban Growth Zone with the provisions of the reformed Farming Zone. The provisions in “Part B – Provisions for land where a precinct structure plan applies” of the Urban Growth Zone are not being changed by this amendment as those provisions of the zone do not align with the Farming Zone but are instead designed to manage the transition of non-urban land into urban land in accordance with a precinct structure plan. 8. The amendment changes the Victoria Planning Provisions (VPP) and all planning schemes that have applied the Urban Growth Zone, being the Ballarat, Cardinia, Casey, Greater Bendigo, Greater Geelong, Hume, Melton, Mitchell, Whittlesea, Wodonga and Wyndham Planning Schemes, by amending Clause 37.07 – Urban Growth Zone. 9. In particular, Amendment VC111 amends the provisions in Part A of the Urban Growth Zone by: Reducing the restrictions for alterations and extensions to dwellings, out-buildings and farm buildings. Removing the requirement for a mandatory section 173 agreement which restricts future subdivision after an initial subdivision is approved. Removing the prohibition on camping and caravan park, funeral parlour, helicopter landing site, industry (other than rural industry), landscape gardening supplies, market, motor racing track, pleasure boat facility, service station, trade supplies, transport terminal, warehouse (other than rural store) and any use listed in Clause 62.01 if any requirement is not met. Removing conditions restricting group accommodation, place of assembly (other than carnival, circus and place of worship), residential hotel, restaurant and store (other than freezing and cool storage and rural store). Removing permit requirements for primary produce sales, rural industry (other than abattoir and sawmill) and rural store, if the condition opposite the use is met. Increasing the threshold for persons that can be accommodated in a bed and breakfast from six to 10 without a permit. Making amusement parlour and nightclub prohibited. Requiring applications for warehouse and industry uses to be referred in accordance with section 55 of the Act to the Metropolitan Planning Authority (for applications within metropolitan Melbourne) or the Department of Transport, Planning and Local Infrastructure (for applications outside metropolitan Melbourne). 10. Amendment VC111 also changes the Victoria Planning Provisions (VPP) and all planning schemes in Victoria by amending Clause 66 – Referral and Notice Provisions to replace “Growth Areas Authority” with “Metropolitan Planning Authority” to reflect the creation of the new planning authority. BENEFITS OF EXEMPTION 11. The main benefit of the exemption is that it will enable a prompt decision to be made on the adoption and approval of the amendment which will allow the new provisions to be introduced into the VPP and planning schemes immediately, thereby assisting in the orderly application of the reformed Urban Growth Zone across the state and bringing it in line with the reformed Farming Zone. 12. The exemption will enable the amendment to be gazetted promptly, allowing councils to consistently assess planning applications against the amended zoning provisions for land EFFECTS OF EXEMPTION ON THIRD PARTIES 13. The effect of the exemption is that third parties will not receive notice of the amendment and will not have the opportunity to make a submission or be heard by an independent panel in relation to the amendment. However, the analysis and recommendations concerning the Farming Zone as set out in the Rural Zones Report of the Reformed Zones Ministerial Advisory Committee (the advisory committee) have been considered and the amendment addresses the views of the Metropolitan Planning Authority. 14. In July 2012, I announced a reform of planning zones across Victoria and released proposed reformed zones for public consultation. More than 2000 submissions were received including 1223 submissions in relation to the proposed reformed rural zones. These submissions were considered by the advisory committee. 15. While the Urban Growth Zone was not considered by the advisory committee, signing the previsions of the Urban Growth Zone with the reformed Farming Zone is not likely to: identify any issues other than those contemplated by the advisory committee or subsequently raised by the Metropolitan Planning Authority; or give rise to a different outcome than proposed by this amendment given the need to ensure that the provisions in Part A of the Urban Growth Zone remain aligned with the provisions in the Farming Zone. 16. To the extent the new provisions remove permit requirements for certain uses, the amendment introduces conditions restricting the location and scale of the activity. The various conditions are considered reasonable tests to ensure such uses are not too large, poorly sited or have the potential for adverse amenity impacts. Where a condition cannot be met, the use will require a planning permit and relevant third parties will have an opportunity to participate in the planning permit application process. 17. To the extent the new provisions reduce the restrictions for buildings and works, the changes are a reasonable and measured way to reduce permit requirements without impacting on surrounding land. 18. To the extent the new provisions remove the requirement for a mandatory section 173 agreement which restricts future subdivision, these types of restrictions are not considered appropriate for land in an Urban Growth Zone, which has clearly been identified for the transition from non-urban to urban use and development. A permit is still required to subdivide land, so potentially affected parties will be notified of proposed subdivisions, and the effects of a proposed subdivision will be properly considered through the permit application process. 19. To the extent the new provisions remove the prohibition on certain uses or remove conditions restricting certain uses, a planning permit is required and relevant third parties will have an opportunity to participate in the planning permit application process. 20. To the extent the amendment removes the prohibition on some industry and warehouse uses with potential amenity impacts on future residents, the new provisions require applications for industry and warehouse use and development to be referred to the Metropolitan Planning Authority or the Department of Transport, Planning and Local Infrastructure to determine whether the proposed use or development will prejudice the future urban use and development of land. 21. To the extent the new provisions prohibit uses, these uses are inconsistent with the intent of the Urban Growth Zone, and it is not considered that their prohibition will have adverse impacts on landowners or third parties within the Urban Growth Zone. 22. To the extent the new provisions increase the number of guests that can be accommodated at a bed and breakfast without a permit, the larger lot sizes in growth areas will limit the impact of additional guests on surrounding land. The increase in the permitted number of guests is in line with the changes introduced through other reformed zones earlier this year. 23. Given the above, I consider that most of the changes introduced by Amendment VC111 are unlikely to have adverse impacts on landowners or third parties within the Urban Growth Zone. To the extent that adverse impacts may arise from new uses that are facilitated by the changes introduced by Amendment VC111, those uses will be subject to permit requirements including referral requirements, and agencies and third parties will be notified of particular proposals through the permit application process. ASSESSMENT AS TO WHETHER BENEFITS OF EXEMPTIONS OUTWEIGH EFFECTS ON THIRD PARTIES 24. As the provisions in “Part A – Provisions for land where no precinct structure plan applies” of the Urban Growth Zone are intended to operate similarly to the Farming Zone, it is necessary to align Part A of the Urban Growth Zone with the provisions of the reformed Farming Zone. 25. The introduction of the new provisions immediately to planning schemes where the Urban Growth Zone currently applies will avoid inconsistencies between provisions in the Victoria Planning Provisions and planning schemes. 26. The changes introduced by the new provisions will have minimal adverse impacts on landowners and third parties within the Urban Growth Zone. To the extent that any adverse impacts may arise from uses facilitated by the new provisions, those uses will be subject to a permit application process which will allow potentially impacted parties to be notified and have a say in relation to a particular proposal. 27. Accordingly, I consider that the benefits of exempting myself from sections 17, 18 and 19 of the Act outweigh any effects of the exemption on third parties. REASONS FOR INTERVENTION 28. I provide the following reasons for my decision to exercise my power under section 20(4) of the Act. 29. I am satisfied that – 30. Compliance with any of the requirements of section 17, 18 and 19 of the Act is not warranted because: a) Placing the amendment on public exhibition, with a potential panel hearing, is not likely to identify any issues other than those contemplated by the advisory committee or subsequently raised by the Metropolitan Planning Authority or to give rise to a different outcome than proposed by this amendment. b) The new provisions include reasonable tests to ensure uses / developments are not too large, poorly sited or have the potential for adverse amenity impacts. Where a condition cannot be met a use / development will require a planning permit and relevant third parties will have an opportunity to participate in the planning permit application process. DECISION 31. I have decided to exercise my power to exempt myself from all the requirements of sections 17, 18 and 19 of the Act and the regulations in respect of Amendment VC111 to the Victoria Planning Provisions and planning schemes. SIGNED BY THE MINISTER MATTHEW GUY MLC Minister for Planning Date: 17 March 2014