Do you support NSW Government privatisation of public housing?
From www.theurbandeveloper.com – January 27, 10:22 PM
“The announcement by the NSW Government that they will privatise public housing in NSW is well timed to help with private housing supply”
Yes! I fully support the proposed involvement of the private sector in the provision of public housing, but I’m against selling the land. I believe that the government’s objectives can still be achieved with the underlying public land being offered to the private sector development entity as leasehold – not freehold.
I believe it is bad economic management for the Government to sell increasingly valuable public land assets at a time when it could lease the land on a 99 year tenure, allowing continued public ownership of land that, in a century, may well have then reached a stage of re-development, and allowing public control of decisions around what better purpose, if any, the land may then be utilised.
As a citizen it makes me angry and it makes me sad because there’s no great economic logic at work here.
This is short-term interest being pursued against long-term interest of the people, our children and grandchildren. I hope that people are alert to the fact that this is just not a good economic strategy.
I feel that both public and private sector interests regarding the use of public land for housing and the development of more diverse communities, can be equally accomplished by the government offering an opportunity to the private sector development market – the opportunity to bid for development rights (to design, build and sell) with a 99 year lease [with options to extend] not as a freehold.
I think privatisation is inherently unpopular with people but the problem is, in this case, that the sale of real estate assets tends to be done in dribs and drabs and isn’t therefore quite as visible as the sale of mass infrastructure, the electricity poles and wires being an example. So it tends to be done rather out of sight, but as soon as the people come to see what is happening then I think one can expect that they will see it as bad economics, substituting short-run revenues for long-term economic management.
The ongoing aim of any Government, including the current one, should be long term economic management that is to the benefit of current and future citizens of NSW. To that end, the NSW Government privatisation of public housing should be based around leasing the crown land rather than the freehold sale of state assets.