Department for Trade and Investment, $118,542,000

Administered Items for the Department for Trade and Investment, $1,375,000

Minister:

Hon. N.D. Champion, Minister for Trade and Investment, Minister for Housing and Urban Development, Minister for Planning.

Departmental Advisers:

Mr D. Reynolds, Chief Executive, Department for Trade and Investment.

Ms K. Anderson, Chief Executive Officer, West Beach Parks.

Ms K. Bartolo, Valuer-General.

Ms J. Cottnam, Registrar-General.

Ms S. Smith, Executive Director, Planning and Land Use Services, Department for Trade and Investment.

Ms E. Walker, Director, Housing Infrastructure Planning and Development Unit, Department for Trade and Investment.

Mr B. Steiner, Manager, Strategic Planning, Planning and Land Use Services, Department for Trade and Investment.

Ms R. Lang, Manager, Finance, Department for Trade and Investment.

Ms K. Mackay, Government Architect, Office for Design and Architecture South Australia.

The CHAIR: The portfolio is Planning and Land Use Service. The minister appearing is the Minister for Planning. I advise that the proposed payments remain open for examination. I call on the minister to make an opening statement, if he so wishes, and also introduce his advisers.

The Hon. N.D. CHAMPION: I would like to start by introducing my department officers. To my right is David Reynolds, Chief Executive, Department for Trade and Investment; to my left are Sally Smith, Executive Director of Planning and Land Use Services, and Katherine Bartolo, Valuer-General. Behind me are Rebecca Lang, the department's Finance Manager; Kirsteen Mackay, the Government Architect and Director of the Office for Design and Architecture; Elinor Walker, the new head of the Housing Infrastructure Planning and Development Unit; Brett Steiner, Manager of Strategic Planning and PLUS; Jenny Cottnam, Registrar-General; and Kate Anderson, Chief Executive of the West Beach Trust. In the gallery are Pep Piscioneri, Chief Financial Officer of the Adelaide Cemeteries Authority, and other staff members.

I would like to thank the department and particularly Sally Smith for all of her work in planning over the last 12 months. Planning is a really complex and challenging task, and I would like to thank all the employees of PLUS for all of their hard work. It has been an exceptionally busy year for planning, in part dealing with the ordinary everyday pace of the planning system, along with all of the government's agendas in housing and a whole range of other areas—not least the 30-Year Plan, the Expert Panel and a range of other things, and the setting up of the infrastructure unit. With that, I might go straight to questions.

Mr TELFER: Thank you, Chair, I will do the same. In the previous session, the minister started to unpack a little bit about the land supply from a renewal aspect. I will cast your eyes to Budget Paper 1: Budget Overview, pages 6-7, the housing package aspect. Of the land releases in the greater metropolitan area the government has announced—the seven we were talking about before: Concordia, Golden Grove, Dry Creek, Noarlunga Downs, Onkaparinga Heights (as it is now referred to), Aldinga and Sellicks Beach—which ones have been through the development code process?

The Hon. N.D. CHAMPION: I might start with Concordia. I approved initiation of the chief executive-led code amendment for Concordia on 28 April 2023. Project briefings have been undertaken with elected members of both Barossa and Gawler councils in a public forum, along with key landowners. A working group has been established, including representation from HIPDU (which is the infrastructure unit), Infrastructure SA, Department for Infrastructure and Transport, and the Barossa and Gawler councils. The unit is facilitating infrastructure investigations in preparation of the associated responsibility and funding agreements for the Concordia growth area, including preparation of the state's first infrastructure scheme within the new planning system.

For Sellicks Beach, the unit met with key Onkaparinga staff in March 2023 to discuss the project background and to plan steps towards rezoning. The unit then presented to the council's Strategic Directions Committee on 6 June 2023. A proposal to initiate a code amendment has been approved by the chief executive as a designated entity. I have now approved that and it has been lodged on the PlanSA website. We have had initial meetings with landowners and developers, which are commencing. So that is those three.

Mr TELFER: That is those two.

The Hon. N.D. CHAMPION: That is two. Do you want Golden Grove as well?

Mr TELFER: Golden Grove, Dry Creek, Noarlunga Downs and Onkaparinga Heights.

The Hon. N.D. CHAMPION: Dry Creek we covered in Renewal.

Mr TELFER: So that has not happened?

The Hon. N.D. CHAMPION: Renewal is negotiating with the Buckland Dry Creek company for a master plan, essentially.

Mr TELFER: Golden Grove?

The Hon. N.D. CHAMPION: Golden Grove has been initiated by the developer and they are currently going through all of the infrastructure investigations. The unit has not engaged with them yet. That has all been privately—

Mr TELFER: Initiated?

The Hon. N.D. CHAMPION: Initiated and led.

Mr TELFER: Noarlunga Downs?

The Hon. N.D. CHAMPION: Noarlunga Downs is already zoned appropriately.

Mr TELFER: It is already zoned?

The Hon. N.D. CHAMPION: There is no zoning issue.

Mr TELFER: There is no additional code amendment needed?

The Hon. N.D. CHAMPION: No.

Mr TELFER: Onkaparinga Heights—Hackham?

The Hon. N.D. CHAMPION: That has been completed. It has completed the code amendment process.

Mr TELFER: There are no additional code amendment changes?

The Hon. N.D. CHAMPION: No, they are now undertaking their deed settlement and then their land division, essentially.

Mr TELFER: Aldinga?

The Hon. N.D. CHAMPION: Aldinga is already appropriately zoned.

Mr TELFER: No additional changes needed?

The Hon. N.D. CHAMPION: No.

Mr TELFER: Some of those others that you spoke about—Concordia, Sellicks—what is the minimum time for a code amendment for such large allotments?

The Hon. N.D. CHAMPION: Around 12 months, although we would like to go quicker, obviously.

Mr TELFER: Indeed. On page 7, there is a paragraph there, 'Fast tracking first homebuilder approvals':

A fast-tracked approval process will be implemented for eligible first homebuyers to expedite the planning approval process to see them in their new home sooner.

I am interested in the details of this item in the budget. How will this work within the existing planning system? Are there shortcuts that are going to be taken? How is planning approval expedited?

The Hon. N.D. CHAMPION: This was actually originally done by the previous government during COVID-19, so it is accepted development against prescribed conditions. It allows you to speed up the approval by about a week and a half. In this case it will only be done for new homebuyers in greenfield sites.

Mr TELFER: So that existing process but only with that narrow cohort?

The Hon. N.D. CHAMPION: That is right. It basically saves a week and a half, which is a week and a half sooner that people are in their home.

Mr TELFER: Indeed. A week and a half before they can wait for the challenges of new building.

The Hon. N.D. CHAMPION: That is why it is important, of course.

Mr TELFER: I will go to Budget Paper 4, Volume 4, pages 105-136. Obviously, that is, on page 115 in particular, the Planning and Land Use Services aspect. When did the State Planning Commission last update its population projections?

The Hon. N.D. CHAMPION: We are in the process of doing it now. I might add that we are almost certainly going down the path of scenario planning for low, medium—

Mr TELFER: For what, sorry?

The Hon. N.D. CHAMPION: Scenario planning. One of the problems in the past is you would get a projection and you act like it is carved in rock, but the reality is that you need scenario planning for low, medium and high growth because if we retained—and I do not think I am talking out of turn here—

Mr TELFER: I will stop you if you do, minister.

The Hon. N.D. CHAMPION: That is right. For instance, if net interstate migration is stopped, in particular, and all the other variables stay the same, then we would have a normal population growth, which we have not had in the last 30 years. If we had that, that would have rather large consequences for the construction industry and also for our planning system and our housing supply.

Mr TELFER: So that piece of work has started or will shortly?

The Hon. N.D. CHAMPION: What you will find is that that population scenario planning feeds straight into the plan for Greater Adelaide, which we are going to be doing later on in the year. It is a combined piece of work.

Mr TELFER: Do you have any insight into when that combined piece of work will be completed so there is a fulsome dataset that people can take into consideration when making important decisions?

The Hon. N.D. CHAMPION: The population picture will be done shortly. Obviously, the plan for Greater Adelaide will not be completed until next year.

Mr TELFER: 'Shortly' is when?

The Hon. N.D. CHAMPION: It is not long away.

Mr TELFER: Is it a matter of weeks? Is it a matter of months? Can we expect it by the next budget?

The Hon. N.D. CHAMPION: Yes, almost certainly by the next budget, and in the next six months, let's say. Just give me plenty of leeway. Obviously, these scenarios are important to government planning. It is useful for people to understand them.

Mr TELFER: You talk about the scenarios of low, medium and high. Can I get an insight into the parameters of those different aspects, or is it that, because you have not done that work yet, you do not know what those different aspects are going to be—the percentage of a low increase, the percentage of a medium increase and the percentage of a high increase?

The Hon. N.D. CHAMPION: All those scenarios are calculated on whether or not migration levels are maintained and whether or not the birth rate and death rate are the same and, most critically, net interstate migration. Traditionally, what has happened over the last 20 years—this is no secret; we all understand it—is that a great proportion of young people have left for other states. That stopped during COVID.

Mr TELFER: During the last government.

The Hon. N.D. CHAMPION: Circumstances changed. They were pretty dramatic circumstances. It was a good thing, I think, for the state. It has not reversed, and that is a good thing, too. We do not want it to reverse. Obviously, if we can keep more of particularly our young graduates here in South Australia, that is a big advantage.

Mr TELFER: You talked a bit about migration into South Australia. How many migrants does South Australia expect to receive under the Australian government's overseas migration plan?

The Hon. N.D. CHAMPION: I would have to take that on notice, but Mr Reynolds has just informed me that the previous average was 0.7 per cent, and we are now getting a 1.4 per cent population growth.

Mr TELFER: Annual increase?

The Hon. N.D. CHAMPION: Yes. Obviously, if that holds, that will be dramatic over time.

Mr TELFER: You will take on notice the number of migrants you expect under that—

The Hon. N.D. CHAMPION: That is right.

Mr TELFER: The Institute of Public Affairs has predicted a shortfall of 18,000 homes by 2028. Has the migration data been factored into the South Australian government's projections, or is that the body of work that you are expecting to—

The Hon. N.D. CHAMPION: I think we want to be a little careful about some of the rhetoric behind your question. The answer is we have always factored in migration to South Australia as part of our population figures. Housing supply is important with or without migration, but migration is also an enabler of the construction of housing because it is often bringing in key workers. One of the biggest problems for the building industry at the moment is they cannot find labour. They cannot find skilled employees.

I want to answer your question as accurately as I can, but I have seen a bit of rhetoric around from the IPA and others that says, 'You are turning immigration off before you have these houses,' but we need migrants to build the houses, too. There is a skilled labour issue. Nearly every employer I have talked to has a skilled labour issue, so we have to be a bit careful about some of the rhetoric. I understand this is a complex picture, but we need to be a bit cautious about that.

Mr TELFER: What is the underlying demand for housing per annum given new household formation and migration? It is obviously a technical term used by population and housing forecasters. I am interested in that underlying demand.

The Hon. N.D. CHAMPION: Normally, we build 8½ thousand, but there is a demolish and rebuild element of it, so it is about 7½ thousand. During HomeBuilder, I think we were up at 14,000. We are seeing the overhang now of that very boom period. It was a profitless boom for many of our builders. That is what we do on average each year.

Mr TELFER: I refer to Budget Paper 4, Volume 3, page 134. We have heard about the new ED starting—that is welcome. What is the status of recruitment of the other staff members in the unit?

The Hon. N.D. CHAMPION: I might begin by pointing out that we had an acting director for the period preceding Ms Walker being appointed—Paul Bennett undertook that role—so we have already begun that work. Now Ms Walker has started as director and will recruit her team. There have been two people up until now. Obviously, it takes time to fulfil that team and it is infrastructure work, so we want to get the right people in place.

Mr TELFER: How big will that team be?

The Hon. N.D. CHAMPION: It is five.

Mr TELFER: What disciplines are being sought for these roles? What is the skill set you are aiming for?

The Hon. N.D. CHAMPION: Clearly, Ms Walker brings a wealth of experience in planning. She was on the State Planning Commission and she has a long history as a planner, so we feel we have that element covered off. It will be engineers and project managers to bring that technical expertise, which you need.

Mr TELFER: We talked a bit in the Renewal section, but it is pertinent for this as well, about how the unit will be able to manage the slowest agencies in regard to the infrastructure. I am particularly thinking of the likes of SA Water. What is the plan for that? Are there any specific tactics?

The Hon. N.D. CHAMPION: I do not think we should say agency X or infrastructure deliverer Y.

Mr TELFER: It is the one the vast majority of people come to me with concerns about, minister.

The Hon. N.D. CHAMPION: I am sure that might occur too, but NBN provides vital infrastructure, SAPN provides vital infrastructure, so there are a range of infrastructure providers—gas as well in some instances—and all of that has to be analysed. I think it is a problem that often planning ministers are putting in place zonings and the like but are not aware of the infrastructure requirements. There is an invisible network that governs the electricity cables, pipes, sewerage, water and all of that, and the capacity and cost it might take to upgrade capacity. All of that is critically important.

What we are endeavouring to do with the unit, where we are looking at particularly very large rezonings, is working out exactly what that is, reporting to Mr Reynolds, and then Mr Reynolds can talk to other elements of government to be able to better coordinate infrastructure. The Plan for Greater Adelaide is occurring at the same time as an infrastructure plan, and those two things, as far as we can knit them together we will.

Mr TELFER: But there are no specific processes you envision that would try to fast-track some of those bottlenecks, I guess you would call them, apart from Mr Reynolds going to the appropriate agency or department and complaining to them?

The Hon. N.D. CHAMPION: That is Mr Reynolds' job, so once he gets the reports it is for him to go off and talk to other agencies within government and external agencies—SAPN and others—to try to clear out those bottlenecks. Some of that will come. If you have appropriate plans for growth, and people understand there will be growth in an area, that enables infrastructure, just because you have the plans in place.

Mr TELFER: Sure. I will go to Budget Paper 4, Volume 4, page 115, Planning and Land Use Services. Target 1 speaks about the expert panel review into the Planning, Development and Infrastructure Act. Has the government received the expert panel report?

The Hon. N.D. CHAMPION: Yes.

Mr TELFER: When?

The Hon. N.D. CHAMPION: I would have to find the exact date for you.

Mr TELFER: Recently?

The Hon. N.D. CHAMPION: It was 6 April.

Mr TELFER: Tomorrow is three months since 6 April. Is there an insight into when the government will release the expert panel report?

The Hon. N.D. CHAMPION: We are considering it. It has been a substantial report to government, and planning is an area which requires fairly sober consideration. I have said that what we are looking for is evolution rather than revolution in planning and so we are taking our steps very carefully. It is a large and important report with many recommendations, and we will respond appropriately.

Mr TELFER: When will it be released?

The Hon. N.D. CHAMPION: It will be released once government has considered it.

Mr TELFER: When do you think the government will have finished considering it, noting they have had three months so far?

The Hon. N.D. CHAMPION: The honourable member says it has been three months. This was an election commitment and we fulfilled it; that is, we were going to have an expert panel, and we have done that. It received 800 submissions and it has a number of important recommendations—

Mr TELFER: But it is the panel's job to go through those submissions and make the recommendations.

The Hon. N.D. CHAMPION: That is right, and it is the government's job to consider it, and so that is what we are doing.

Mr TELFER: There is no expected time when the government will be releasing this expert panel's report.

The Hon. N.D. CHAMPION: Once we have considered it.

Mr TELFER: Will the minister commit to implementing the recommendations of the expert panel's report?

The Hon. N.D. CHAMPION: That is for government to consider. We have had an expert panel and Mr Stimson and others have done a very good report, and we will consider it appropriately and respond in due course.

Mr TELFER: On 19 October last year, you reported on the advice of the expert panel to announce a package of work to better protect character and heritage at a local level.

The Hon. N.D. CHAMPION: I have done that, yes.

Mr TELFER: What support has the government provided local councils to elevate existing character areas to historic areas as part of this package?

The Hon. N.D. CHAMPION: That should be councils' core business. It is not for us to resource what councils should be doing. It should be councils' core business. Gawler council actually did this work. They allocated their own resources and did that work on heritage. That is to be commended. Other councils who have large heritage areas, and who are concerned with them and who have communities who have concerns with them, should do the work. We have opened up the pathway and done these important reforms—it is over to them.

Mr TELFER: So there has been no additional support for councils to elevate existing character areas to historic areas?

The Hon. N.D. CHAMPION: No. We have created a pathway for them and they can now do the work that their ratepayers expect them to do.

Mr TELFER: How many character areas have been elevated to historic areas since 19 October 2022?

The Hon. N.D. CHAMPION: We have not received any applications. We have had no code amendments here, no. I hope they are working on them. I am open for business.

Mr TELFER: How many councils and which councils have been assisted to review and update their character area statements and historic area statements since that time?

The Hon. N.D. CHAMPION: We might take that one on notice. We are assisting some councils in doing that.

Mr TELFER: Does the minister support the 85 per cent urban infill target in the 30-Year Plan for Greater Adelaide?

The Hon. N.D. CHAMPION: No, I killed the 85 per cent Liberal Party target. It is over.

Mr TELFER: Does the minister support—

The Hon. N.D. CHAMPION: Let's be clear about this: this is a target that your previous government held, and other governments have held. We do not hold that policy. The market will decide. We have opened up greenfield supply, so we have acted on land supply questions and we are not going to be dictating to the market or to communities some arbitrary percentage.

Mr TELFER: Spread it out. Does the minister support a single heritage act under a single heritage minister to cover the listing and protection of both state and local heritage items?

The Hon. N.D. CHAMPION: I think that a previous parliamentary committee recommended it, and we have been considering it, but it is not a cost-free exercise for government. I think the previous government might have considered it as well because I think it was some time ago that it was recommended to government by the ERDC and Mr Keith Conlon.

Mr TELFER: So there has not been any further movement in that area?

The Hon. N.D. CHAMPION: No.

Mr TELFER: You are not actively considering it at the moment?

The Hon. N.D. CHAMPION: It has been there for some time for governments to consider, but it is resource intensive.

Mr TELFER: I refer to Budget Paper 4, Volume 4, page 115, and in particular the challenge that the sector is facing, both local government and private, which is the shortage of planners. What actions have the government undertaken to address the shortage of planners in the system?

The Hon. N.D. CHAMPION: My favourite subject, I am glad you asked.

Mr TELFER: It is one of my favourite subjects, too, minister.

The Hon. N.D. CHAMPION: Good, excellent.

Mr TELFER: Maybe, we are not so different after all.

The Hon. N.D. CHAMPION: We have very similar passions.

Mr TELFER: I thought you would have had it at the top of your head, if it is such a passion project.

The Hon. N.D. CHAMPION: I was searching for the acronym, which I always get wrong, which is the BEELG, which is a group around the built environment professions. One of the concerns I had is that UniSA cancelled the undergraduate degree for planners. I was very disappointed about that, to say the least, but from that we went away and decided to assemble all the professions and local government and I think the city council came. We had everybody there: valuers, conveyancers, architects, and surveyors, and out of that some very important things have occurred. We have a paraplanning course now at TAFE. The first course filled up immediately. The second course has filled as well. A third course, as I understand it, will be opening as well.

Mr TELFER: Is that the Diploma of Local Government (Planning)?

The Hon. N.D. CHAMPION: Yes, that is the one. That will help country councils a great deal. If we can get that flow of planners going through, and some private businesses getting some planning expertise in, too, I think that will greatly improve things in regional South Australia.

We are also sponsoring the masters students at UniSA and we are looking into some new cadetships from PLUS as well and we are going to keep that group meeting. The Surveyor-General, Bradley Slape, has been chairing it with me. I think we have had two meetings so far and Bradley, as the vice-chair, has gone away and done some projects for us and I think we will have some additional announcements coming out of that on a range of those really important occupations.

Flinders University has been engaging very strongly, so I am very happy with them, because these are vital occupations if we want to do any work in this state, particularly around housing. I am very keen to do stuff around not just planners but conveyancers, valuers, surveyors and all these enabling professions.

Mr TELFER: Has there been any work done on pathways for graduates of the Diploma of Local Government (Planning)—paraplanning, as you called it—to move into urban planning degrees?

The Hon. N.D. CHAMPION: That will be the next step. If I was going to make an observation about this—and I am not being critical of previous governments—we just assumed people would show up to be planners, conveyancers, valuers and the like, so we want to create pathways as best we can. Like I said, we are considering some cadetships, but private industry is going to have to do the same as well, and we are looking at accrediting those planners coming out of that TAFE course as well.

Mr TELFER: That diploma course.

The Hon. N.D. CHAMPION: Yes. The whole thing is if you can get people on the start and then create as many pathways as they can have and coach as many people as we can through.

Mr TELFER: Continuing on, page 115, how is the development, investigation and engagement on the six country regional plans and the Greater Adelaide Regional Plan progressing?

The Hon. N.D. CHAMPION: On the regional plans, obviously all of the river communities were put back after the Greater Adelaide plan. Of the rest of the regional plans, we suspect Kangaroo Island will be the first to kick off in quarter 4 and then there will be a couple of others in quarter 1. Councils have been strongly engaging in that. I know this, because during the community cabinet it was part of the councils' presentation to the state cabinet about the regional plans, so there has been really strong engagement there.

The plan for Greater Adelaide kicks off soon. That will be a major piece of work. After we finish the Greater Adelaide plan the river communities hopefully by then will be in the recovery stage and will be better able to plan out their plans.

Mr TELFER: Can the minister provide an overview of the consultation and engagement process that will be undertaken or is being undertaken with councils, stakeholders and local communities as the regional plans are being developed, and can the minister provide a list of all stakeholders that will be or have been invited to participate?

The Hon. N.D. CHAMPION: We have already done the initial consultations. Once the draft plan is formed, we have an MOU with local government about a way of going about things, and then there will be the full range of consultation via YourSAy and workshops and the like. So there will be plenty of opportunity to comment on the regional plans and for regions themselves to have strong levels of ownership on them.

Mr TELFER: Is the MOU with the LGA or is it with the regional bodies?

The Hon. N.D. CHAMPION: With the LGA.

Mr TELFER: Does the minister give appropriate consideration to the perspectives of local councils and communities when looking at approvals?

The Hon. N.D. CHAMPION: Approvals for what—code amendments?

Mr TELFER: Yes.

The Hon. N.D. CHAMPION: Yes.

Mr TELFER: Very good. I hope that can be proven not just by—

The Hon. N.D. CHAMPION: Do you have a specific example where I have not?

Mr TELFER: I may later on.

The Hon. N.D. CHAMPION: I will wait with bated breath.

Mr TELFER: Does the minister have an ideological opposition to rural living blocks?

The Hon. N.D. CHAMPION: We have to be very careful about rural living blocks is the truth of it. It breaks up land into largely uneconomical blocks. I have lived on a small block in a country town just outside of town. It is very pleasant and I can totally understand why people want to do it, but it is not a great use of land. It has to be very carefully looked at. I think not a lot has been approved in the last 20 years. There has been a general resistance to it.

I was only talking to a person in the Barossa Valley the other day who said that when the vine pull was on there was a great threat of the whole of the Barossa Valley disappearing into that sort of model, of very inefficient small landholdings, so we have to be very careful of it. It might be appropriate in some places, but I think planning ministers of any persuasion need to be ultra careful about it, because once you get them—those sorts of fragmented landholdings—there is no going back.

Mr TELFER: What would the likelihood be of the minister giving due consideration to councils putting proposals in to develop new rural living blocks of land?

The Hon. N.D. CHAMPION: I think I wrote to councils before the regional plans were out and said that I am not considering applications of this sort until the regional plans are done. This is actually, I think, showing confidence in regional councils because if they want to examine it in a careful and sober way they can, and then that can come out through the regional plans, and landholders have some certainty.

What you have to watch for in all of these things is—and this is why I do not think there have been any approvals in the last 20-odd years—everybody is worried that if you approve this one, where does it stop? How does it stop? It can be superficially a very attractive model, but it is not great for the state's interests or for agriculture's interest. I think we have to be very careful about rural living proposals.

Mr TELFER: The process for a council or a community that are interested in the potential of developing rural living blocks would have to be through the regional plan process?

The Hon. N.D. CHAMPION: In the first instance. That is not a guarantee either, but that is where we might get a place where it can be properly considered. It gives regional councils a real way of considering it. There might be circumstances in some places where it is relevant, but it needs to be used very sparingly, and there needs to be a high bar to jump over before it is approved.

Mr TELFER: Could the minister provide an update on the progress made in implementing the recommendations of the Building Confidence report, including the appointment of a Building Commissioner?

The Hon. N.D. CHAMPION: A large portion of that work was done when we shifted to the new system. We are just in the process of recruiting a Building Commissioner. The Building Commissioner will do the remainder of the work, and a lot of that will be the certification of engineers.

Mr TELFER: Do you envision when the recruitment process will be completed?

The Hon. N.D. CHAMPION: Over the next six to eight weeks.

Mr TELFER: That is a lot more specific than a lot of your answers on time frames. I like it, thanks, minister. How is the Future Living Code Amendment coming along, and what alternative housing solutions will be provided as a result?

The Hon. N.D. CHAMPION: We are looking at August that that should be out. The State Planning Commission has been working with five councils, led by Unley, and it deals with ancillary dwellings plus where you might divide a larger home into smaller units. They are just undertaking that work and it will be there for all to see in August.

Mr TELFER: Who are the five councils?

The Hon. N.D. CHAMPION: It is the inner rim councils: Unley, Prospect—

Mr TELFER: Norwood, Payneham, St Peters, Mitcham.

The Hon. N.D. CHAMPION: We might take it on notice. Yes, it is mainly an inner rim thing, but we will get the exact details.

Mr TELFER: Yes, take it on notice.

The Hon. N.D. CHAMPION: It has mainly been Unley that has been working with the commission intensively to come up with the solutions. I might flag, though, with that sort of housing, parking is going to be an issue with that because obviously that becomes a factor in it all, which I know local communities are dealing with because of general infill anyway.

Mr TELFER: I am very aware of that. How is the implementation of the National Construction Code 2022 new provisions progressing?

The Hon. N.D. CHAMPION: Good. We have been having meetings with the HIA, the MBA, the NDIA, and the Property Council, as part of the ministerial liaison group. We have had some discussions with Gary Rake from the national Building Codes Board. Mr Rake is going to assist with the implementation plan of this.

We want to lift standards around livability and around climate change. We think that is in the interests of the state and of people who are buying new homes, but it has to be implemented carefully because we are at a particular time of the building cycle. We are looking at a range of ways of implementation that will obviously assist the building industry. We have had good engagement with Purple Orange, who are the disability advocates as well, who have met with the MBA and the HIA. The implementation is going carefully. There has been careful progression.

Mr TELFER: Is the targeted option date of 1 October 2024 still on track?

The Hon. N.D. CHAMPION: Indeed. Some states are going earlier than us so we will get to see what happens there. There will be some real-life examples.

Mr TELFER: Flicking to the next page, I refer to page 116, Budget Paper 4, Volume 4. There is an increase in the net cost of services for Planning and Land Use Services in 2023-24. Can you explain those increases?

The Hon. N.D. CHAMPION: We might take that one on notice, I think.

Mr TELFER: The numbers? There is a significant discrepancy between the 2022-23 budgeted cost of services, $8½ million, and the estimated result, $16 million. This is even with a decrease of 20 FTE. Can you explain what caused this to occur?

The Hon. N.D. CHAMPION: That is actually explained on the page below. The increase in expenses is because of higher employee and other expenditure related to the Greater Adelaide regional plan; an increase in depreciation relating to the adjustment of PlanSA; higher project expenditure; digitising flood mapping; Hackham code amendment and Port Pirie lead contamination projects; and additional supplies and services expenditure to meet a higher activity workload. There is a lot going on.

Mr TELFER: Does that also include the $3½ million above it? I am just adding up the $1.8 million, the $1.6 million, the $1 million and the $0.8 million. Far be it from me to do maths, but that is $5.2 million.

The Hon. N.D. CHAMPION: As I said, we will get you a detailed answer on notice.

Mr TELFER: Continuing on page 116, the government has budgeted $17.1 million for the receipt of fees, fines and penalties in 2023-24. Can the minister advise of the annual contributions councils are estimated to make into the ePlanning system in 2023-24 and subsequent years across the four-year forward estimates period?

The Hon. N.D. CHAMPION: Local councils are giving $1.5 million per annum.

Mr TELFER: Can you provide details about how these contributions will be expended by the government?

The Hon. N.D. CHAMPION: Essentially, it is cost recovery for the IT system, cybersecurity—those sorts of services.

Mr TELFER: Can the minister advise how they expect to hit the $17.1 million, as $16.6 million was budgeted for in 2022-23 but the expected result for the same period is $2½ million lower at $14.1 million?

The Hon. N.D. CHAMPION: It is as a result of activity. We only collected out of the activity with DAs.

Mr TELFER: Is it the expectation that there will be a significant increase in development applications? Is that number purely based around DAs?

The Hon. N.D. CHAMPION: It is just coming back to a more normal level as a result of activity in the economy and the planning system.

Mr TELFER: Over the last 12 months, have there been lower DAs than were budgeted?

The Hon. N.D. CHAMPION: The answer is yes.

Mr TELFER: How have those numbers compared over the last few years? The investment that has been happening back into—

The Hon. N.D. CHAMPION: I will give you the ePlanning figures. For 2021-22, total DAs in the system were 43,923, and that was as a result of the stimulus. In 2022-23, total DAs in the system went down to 37,490. The number of current DAs in the system is 17,648.

Mr TELFER: What level is this budget predicated on?

The Hon. N.D. CHAMPION: We are budgeted for 40,000. That is an activity-led measure. If we do not reach the 40,000, then we will probably not do the enhancements of the PlanSA system, or they will just take longer. Because it is cost recovery, the more than come in, the more that you do.

Mr TELFER: The quicker it happens.

The Hon. N.D. CHAMPION: And the more you have to do because—

Mr TELFER: How realistic is that 40,000? If the 45,000 was purely based on the stimulus—as you spoke about before—and it then went down to 37,000 with the lowering of those incentives, and it is 17,000 at the moment, it is quite ambitious to project 40,000.

The Hon. N.D. CHAMPION: We think they are reasonable and sound estimates. Obviously, we came off a peak, then you dive a bit, and we expect it to return to normal. Time will tell.

Mr TELFER: Indeed. Regarding Budget Paper 4, Volume 4, page 133, the Planning and Development Fund, can the minister advise when the next round of the Open Space Grant Program—funded from the Planning and Development Fund—will open?

The Hon. N.D. CHAMPION: We have not finalised dates yet but it is normally in November. I think one year we pulled it forward. We might have opened one of them in October to ease the burden on local government. We normally like to talk to local government and there was an issue with November which was a resource issue for them, but it is normally around that time of year.

Mr TELFER: What is the total amount of Open Space Grant Program funding that will be available for councils to apply for in 2023-24?

The Hon. N.D. CHAMPION: That depends on a number of factors: how much money goes in, and also what other pressures are on the fund at the time.

Mr TELFER: How much goes in, as in new funds going in?

The Hon. N.D. CHAMPION: Yes. It is a fairly regular collection, but it is linked to collections on each property that come in depending on activity. There are often a number of pressures on the fund, there are a number of councils with cost pressures on existing projects, and they will need to be considered as well.

Mr TELFER: Do you have an idea about a range of level of funding that may be available? It is only a few short months away.

The Hon. N.D. CHAMPION: Not at the moment.

Mr TELFER: When a council goes through the application process for the Open Space grants, it is a reasonably significant business case that they have to put and an application into percentage that they are looking to source from the fund. If there is a project overrun, is there an obligation on the fund to contribute to that?

The Hon. N.D. CHAMPION: No.

Mr TELFER: I would have thought that would be the responsibility of the council.

The Hon. N.D. CHAMPION: Normally we are inclined to be very firm with councils on those matters, and I think that in any normal operating environment you would not entertain those issues, but there are a number of significant projects which have been affected by COVID-19 and the related cost overruns, so it is a different environment from normal. It is a very uncertain environment because of labour, materials, all related to supply-side shocks related to COVID-19. Some of those projects are important projects to the state, so they have to be given due consideration.

Mr TELFER: I am going to unpack these a little bit more because I know the fund and the process very well. You say that there are a number of projects where there is a council overrun. How many of those that have the overrun are the ones that were funded due to election commitments from the government?

The Hon. N.D. CHAMPION: There are none that are from election commitments. These are all previous projects that are sometimes originating from your time in government. They are not related to the election commitments.

Mr TELFER: What is the total in the fund currently? This is a number I am always interested in.

The Hon. N.D. CHAMPION: For 2023-24, $29.317 million is the expected cash inflow.

Mr TELFER: That is the expected inflow?

The Hon. N.D. CHAMPION: Yes.

Mr TELFER: What is the existing balance?

The Hon. N.D. CHAMPION: At 30 April, it is $15.8 million.

Mr TELFER: What is the usual carryover within that fund of the balance that is usually carried through year on year? Obviously, the funds are not expended down to zero every year.

The Hon. N.D. CHAMPION: There is very little carryover. The only thing I would say is we are still enduring the effects of the COVID-19 pull forward, where $20 million was pulled forward. Obviously, this was for worthwhile projects. I think one of them was for the opening of reservoirs, but I will double-check that. We are still suffering from some of the decisions made by previous governments, perhaps for good reason, but that still hangs over the fund.

Mr TELFER: Do we have an insight into how much of the balance was used by the government to fulfil election promises?

The Hon. N.D. CHAMPION: I might take that on notice.

Mr TELFER: Thank you, that would be very interesting. The intragovernment transfers from the Planning and Development Fund on page 137 totalled $13,139,000. I know through my local government experience the rigorous process that councils have to go through to obtain funding. When funds are transferred within the state government, who is responsible for ensuring that they are used for purposes consistent with the principles of the Planning and Development Fund?

The Hon. N.D. CHAMPION: We signed MOUs with all the agencies and that requires them to report back about the expenditure.

Mr TELFER: Who makes the judgement of whether they have adequately conformed to the requirements?

The Hon. N.D. CHAMPION: It is managed by ODASA.

Mr TELFER: Have there been any examples of projects which have been judged to not appropriately conform to the parameters of that Planning and Development Fund?

The Hon. N.D. CHAMPION: Not to my knowledge.

The CHAIR: One more question.

The Hon. N.D. CHAMPION: We have carefully looked at the parameters of the fund before we entered into those MOUs.

Mr TELFER: Does the minister intend to maintain the independent assessment process for the allocation of Open Space grants established by the previous Minister for Planning and Local Government?

The Hon. N.D. CHAMPION: I do not think we have changed the arrangements at all.

Mr TELFER: There is not a plan to do so?

The Hon. N.D. CHAMPION: No.

The CHAIR: The time allotted having expired, I declare the examination of the portfolio Planning and Land Use Services completed. The examination of proposed payments for the Department for Trade and Investment and the Administered Items for the Department for Trade and Investment are now complete. I would like to thank all of the staff for their contribution to today's proceedings—I know there is always the lead-up to estimates—and for all the work that you do during the year.

Sitting suspended from 12:46 to 13:45.