The Problem with Economists is that they Aren’t Planners?

Urbanised was present when the NSW Minister for Planning and Open Spaces gave a speech at UDIA NSW February Luncheon.  It was a dialectical analysis of planners and economists. To the casual observer they would have left that lunch in a state of disorientation. But there is clearly something going on between the planners and economists in Government – between the Department of Planning and the Treasury. We understand that the tensions are arising on multiple fronts but a big one is the cliff fall in stamp duty revenues which have flow on effects to the quantum of contributions. There is little doubt that there will be substantial financial constraints to this year’s NSW budget due to further falls in stamp duties collected. (It was no coincidence that the Treasurer is considering the privatisation of North Connex). It is also no secret that the Treasurer knows he will be held accountable for the financial performance of the State and before the summer was squarely blaming a dysfunctional planning system (and rightly so). Bushfires, floods and corona virus will add a convenient political diversion from this issue. But it is vitally important that the interests of planners and economists are aligned, or the industry faces further increases in contributions with a broken planning system.