A call to ban developers and real estate agents from serving on council should be expanded to include investors, Georges River Councillors have voted.
Last month, deputy mayor Con Hindi lodged a Notice of Motion calling on the council to write to the NSW Government and the opposition supporting the ban of developers and real estate agents from serving on councils.
He also called for the State Government to "succinctly define" what a developer is and to ensure there is no loophole in the definition.
But Councillor Colleen Symington said any ban needed to be expanded to include the "puppet masters" pulling the strings, the investors or financiers who fund a DA while hiding behind an invisible cloak.
"A distinction appears to have been made between a developer and an investor but in truth an investor may have more to risk in a development project than the developer," Councillor Symington said.
"The influence of developers within local government is a major problem and has had a significant impact on the reputation of all Councillors and it has tainted local government for many years," she said.
"This has been evidenced by the numerous ICAC investigations which sadly are probably just the tip of the iceberg.
"I find it distasteful that a few rotten apples can spoil the reputation of Local Government because it is such an important sector.
"The conflict of interest posed by developers and real estate agents cannot be ignored any longer.
"Calling on the government to ban developers and real estate agents is a great start but the full nature of this systematic corrupt problem needs to be addressed.
"A developer is by the current legal definition, the person who lodges the DA or the Planning proposal. This is not necessarily the person who makes the money out of the development.
"Certain types of investors may have more to risk in a development project than the developer. We should be seeking to ban the platinum frequent flyer investors as well.
"Many who carry on a business mainly concerned with the residential or commercial development of land but do not meet the second part of the definition as they are not involved in the lodgment of planning applications, such as DAs or Planning Proposals.
"What about the investor or financier who provides the funding for the project (cash or land), or a significant shareholder, or the person who creates a $2 company to lodge the application, or the person who speculates on land or seeks to have land "upzoned" by lobbying through the preparation of a Council LEP, or the person who takes options on land or, the person who sells options on the land based on possible upzoning or land valuation changes due to other planning decisions.
"These are just some of the ways a person who in the eyes of the community is most definitely a developer but by the current definition is not a developer.
"There are many that claim they aren't developers, but buildings are erected on their land ,they just know how to circumvent the current definition and make a mozza.
"What about the investor that regularly buys and on-sells parcels of land. Aren't they really a quasi-real estate agent ?
"The real problem is that there are those involved in developments that remain in the shadows, who are the puppet masters pulling the strings. It is all covert. These people need to be brought out into the open and banned from council.
"They masquerade as saints on Council and pretend to be looking out for the community's interest then don their invisible cloaks and go about making their truckloads of cash via insider trading-looking after only their best interest.
"We need to call on all our Parliamentarians to prepare legislation and unite to have this pass through both houses of Parliament because it's the only way to close these gaping loopholes in the definition of developer, as it stands now you can drive a truck through the current definition. The time to act is now and council should seek bipartisan support so real change can happen."
Cr Symington said there was also a role for the major parties to not preselect "developers" for council elections.
"As Matt Kean one of the most progressive voices in the Liberal Party said, 'The public expects the Liberal Party to run candidates who will fight for the community interest and not their own.'
"I think he sums it up perfectly. For both major parties," Cr Symington said.
A Notice of Motion lodged by Cr Symington at the April 27 council meeting called for a genuine ban on developers and real estate agents from serving as councillors.
This proposed the council to write to the Premier of NSW and the Minister for Local Government requesting they call on the NSW government to genuinely ban developers and real estate agents (and their relatives and close associates) from serving as councillors by closing the existing loopholes in legislation which are currently used by local councillors to avoid being defined as a developer and/or real estate agent.
This included amending all relevant legislation to ensure that broader and more inclusive activities are included in the definition of developer and/or real estate agent such as (but not limited to):
- investors who fund the development or developer,
- land owners who contribute property/sites for development applications,
- persons/trusts/companies who hold options on land which they can trade once land values increase due to planning decisions,
- beneficiaries of family trusts which benefit from development or development related decisions'
- relatives and close associates of any of the examples provided, '
- beneficiaries of company trusts or similar corporate arrangements,
- shell companies used by builders, councillors and/or companies that conceal involvement in the development,
- ongoing involvement/benefits that arise from development activities that continue post lodgement/approval/completion of a development such as bonuses for additional floor space or dwellings or trailing commissions and interest on investments; and
- and other similar arrangements which can conceal a person's involvement to avoid meeting the current definition of developer.
The Notice of Motion called for the penalties for any councillor that makes a false declaration on their nomination form about being a developer be increased to include dismissal, life-time bans and repaying the costs associated with any subsequent by-election.
- all planning applications, (Development Applications, Planning Proposals, spot rezonings ,and Voluntary Planning Agreements-) be removed from Councillors.
- the council write to the executive of the NSW Liberal and Labor parties seeking bi-partisan support for these proposals.
This was unanimously supported by councillors.
