Small business supports plans to redevelop government land

Thursday 6 October, 2016 | By: Darrell Giles | Tags: asset sales, urban renewal, Cedar Woods, regional development

The Chamber of Commerce and Industry Queensland (CCIQ) says the State Government plan to dispose of surplus land could deliver a significant benefit to the Queensland economy.

CCIQ Director of Advocacy Nick Behrens said small business supports the decision to sell off non income generating assets including property, under the Advancing Our Cities and Regions strategy

“CCIQ hopes that this decision represents a softening in the State Government’s aversion to asset sales and privatisation,” he said.

“It’s a Clayton’s asset sale, but it’s also a decision that will deliver strong benefit to Queensland’s economy.

“Firstly, the proceeds from the sales will be able to be reinvested in infrastructure that will deliver long lasting economic benefits to the state for decades to come.

“The land developments will generate significant employment opportunity in the building and construction stages, as well as encouraging population growth.

“It will be great to see better assets that are currently gathering dust … or growing weeds.”

Mr Behrens said the strategy announced by the government today should not be seen as a broken promise but rather a good decision.

“Due to community perceptions good decisions aren’t always popular. But this is as example where good leadership is needed for the betterment of the state,” he said.

“As the Southeast Queensland sites include Mayne Rail Yards at Bowen Hills, properties at Boggo Rd, Roma St and Woolloongabba some care will be needed.

“The government needs to exercise careful judgement in bringing supply on to the market otherwise it will exacerbate what is shaping up to be a serious over-supply in Brisbane’s inner city residential dwelling market – that could undermine property prices.

“Additionally, the government needs to have policy consistency as arguably similar projects such as West Village and Cedar Woods were called in and the Logan Renewal Initiative was junked.

“These could serve as a deterrent to private sector willingness to partner with the State Government under this strategy.”

However CCIQ believes these land parcels will generate significant private sector interest.

“It will ultimately be the private sector that determines the value and worth of the land parcels derived from the commercial opportunity that will stem from them,” he said.

Mr Behrens said it was disappointing the decision was not made before 30 June to take advantage of the Commonwealth’s 15 per cent National Partnership Agreement on Asset Recycling.

The ACT Government sold public housing, ACTAB and commercial properties worth $400 million and qualified for the asset recycling initiative.

 

 

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