COUNCIL REPORT.

Extractive resources, and in particular mineral and construction resources, are critical to the development of both the local and State economy. Having access to high quality earth resources close to market (end users) is increasingly at risk due to land use planning conflicts. These conflicts can result in the loss of access to new resource areas, or restrictions on the expansion of existing quarrying operations due to the proximity of existing sensitive land uses like dwellings. This can lead to increased construction costs across the economy as quarries are forced to locate further from demand centres, or restrict production from existing sites (e.g. hours of operation / truck movements) or restrict site expansion.

A 2016 report by the former Department of Economic Development, Jobs, Transport and Resources estimates that the value of production generated from the (then) 485 quarries in Victoria was approximately $676 million per year. In 2019 over two million tonnes of sand was quarried in the Nyora SERA with production increasing approximately 10 per cent per year since 2014. There is at least 20 years supply of sand remaining and it is estimated that 22 per cent of Greater Melbourne’s sand requirements will be supplied from the Nyora SERA between now and 2050. The report identified that the encroachment of sensitive land uses (e.g. dwellings and accommodation) close to resource extraction operations, or on top of resource reserves, reduces the economic viability of resource extraction resulting in a range of negative economic impacts. Council commenced a project to identify, protect and manage the Nyora sand resource in 2017. A consultant’s report was completed and preparation for a Planning Scheme Amendment commenced. Following interest from the Victorian Government the project expanded into the SERA pilot project.

Two pilot project local government areas (Wyndham City and South Gippsland Shire) were identified and are being used to trial and test production for identified SERA sites through the implementation of newly-developed planning controls. The pilot project presents an opportunity to develop planning controls to directly address issues that extractive industry operators are currently facing, as well as test and refine methodology to identify appropriate SERA sites in the future. The exhibited draft planning controls are provided in Attachment [3.1.3].

Council Submission

Council has been supportive of the SERA pilot project in recognition of the importance of the sand resource to the local and Victorian economies. It also seeks to address the increasing number of amenity conflict issues. In recent years quarries have objected to dwelling applications and local landowners have objected to quarry applications. It is clear that land use conflicts related to resource extraction are increasing and that Council should closely consider applications for new uses in the sand resource area that may impact future access to the sand or create the potential for more conflict. The draft SERA planning scheme provisions significantly improve the ability to avoid and/or manage new amenity conflict issues and discourage uses that compromise resource access. On this basis, Council’s submission supports the planning scheme principles established by the SERA pilot project. The SERA provisions will benefit resource management however they have the potential to affect landowners over an extended period of time. Identifying land in the SRO is a clear statement that a quarry may operate on SRO land sometime in the future. For landowners already concerned about existing quarry operations, this presents a legitimate concern and is likely to be reflected in the submissions DELWP receive. Importantly, the proposed SRO does not prohibit anything. It introduces additional planning permit triggers for new dwellings and some buildings and works and retains appeal rights should Council refuse an application. The SRO removes public notice and third-party appeal rights for new quarries that are more than 250m from a sensitive land use provided they have direct access to the South Gippsland Highway. The SUZ retains the planning permit requirement for a quarry and prohibits most forms of sensitive land uses at the quarry site.

The high concentration of rural residential style development in the sand resource area and immediate surrounds has established the potential for ongoing amenity conflict concerns which will remain challenging to manage while quarrying continues. Balancing the concerns of existing residents with the economic importance of the resource is not easy however the criticality of high-quality sand, close to market, when access to new resource is becoming more difficult, means that protecting the resource must have a high priority. Discouraging a proliferation of sensitive land uses in the SERA, and approving uses only when amenity impacts can be addressed, should be a priority to protect the state significant resource.

Council’s draft submission supports the proposed planning scheme controls and requests that implementation of the controls involve further exhibition and the opportunity for independent review. This is considered warranted given the extent and complexity of the proposed changes.

Consideration should also be given to providing more planning permit exemptions in the SRO for buildings and works related to existing dwellings and agricultural uses. Most of the freehold land in the proposed SRO area is in the Farming Zone or Rural Living Zone. These zones do not promote the use of land for more than one dwelling and it is the number of new dwellings and new residents that creates conflict potential and not the size of a residential extension or farm building. For this reason, it is recommended that more planning permit exemptions be included in the SRO to reduce its burden on local residents and agricultural operations.

The submission also notes the impact of sand trucks on the local road network and the amenity impacts of trucks on local residents. If the area is to experience an increase in truck movements in coming years, it is important that the State Government work with Council and the local community and lead implementation measures to maintain roads and manage amenity impacts. A large portion of sand truck movements occur on McDonalds Track, which is the Shire’s most heavily trafficked Council road. The strategic significance of McDonalds Track for access to the resource, combined with Council’s limited resources to provide for its upgrading, supports its transfer from Council to a State Government responsibility as a matter of priority.

Separate to the submission, additional feedback will be provided to DELWP requesting clerical and procedural changes to the draft provisions that do not affect the broader merits of the proposal. This includes typographical corrections, updating clause numbers, minor text and formatting changes.

CONSULTATION

SERA consultation occurred over a two-month period and concludes on Friday 24 July 2020. An extended exhibition period was provided in response to COVID-19. As DELWP is the project lead agency it sent letters to all directly affected landowners and interest groups in May 2020. Some feedback has been expressed to DELWP that letters should have been more broadly distributed. It is normal practice to notify all directly affected landowners. For those not directly affected, a consultation plan was developed to ensure as many people were informed as possible of the SERA. Council has SERA exhibition details on its webpage directing visitors to the State Government’s ‘Engage Victoria’ webpage. Council was advised by DELWP that submissions had been received in relation to the Nyora element of pilot project. DELWP is not able to provide Council with copies of the submissions and could only inform Council in broad and general terms of the submission contents. Key themes emerging from the submissions are:

• Residents are concerned that the SRO will see more quarries established in the area;

• Existing quarries are affecting landowner amenity and having traffic impacts;

• Quarries affect land values; and

• Quarries affect flora and fauna in the locality.

RESOURCES

Council’s involvement in the SERA pilot project is limited to a partnership role which has no financial implications for Council other than staff resources.

RISKS

Should demand for the sand resource continue or increase, there is a risk that land use conflict issues with increase, access to the resource will be compromised and more residents will be exposed to amenity impacts from the quarrying operations.