Mrs SALLY QUINNELL (Camden) (15:12): I am pleased to speak in support of the Property NSW Amendment Bill 2024. The bill is an important step in improving process and removing red tape related to the administration of the Government's vast property portfolio. That burden lies with Property and Development NSW. I take this opportunity to thank both the corporation for its continued commitment to the delivery of that aim and the Minister for introducing the bill to the House. As the Minister said in his opening remarks, a dominant purpose of the bill is to remove red tape and simplify processes related to management of the Government's property portfolio.

Since its establishment, Property and Development NSW has played a crucial role in managing the Government's property portfolio. Over time that role has expanded to accommodate the changing needs of government and government agencies. In turn, that has required Property and Development NSW to undertake a range of activities related to the acquisition, management and maintenance of land. Certain activities such as the remediation of contaminated land have required Property and Development NSW to navigate significant hurdles in order to carry out development or provide services related to that work. More often than not, Property and Development NSW is required to expend considerable time and resources in achieving its aims. That is not an effective or efficient means through which Property and Development NSW should be asked to work. It is vital that the Government remove barriers which hinder the capacity of Property and Development NSW to exercise its functions, having regard to its expanded role and responsibilities in recent years.

The bill aims to improve efficiencies in the administration of the Government's property portfolio. It does that by, among other things, clarifying or otherwise amending the functions of Property and Development NSW and the circumstances upon which the corporation may exercise those functions. More importantly, the bill removes red tape and improves efficiencies by, first, clarifying the status of land subject to a lease under the Crown Land Management Act 2016 on the vesting of property in Property and Development NSW; secondly, providing Property and Development NSW with the power to acquire land by agreement or by compulsory process in accordance with the Land Acquisition (Just Terms Compensation) Act 1991; thirdly, allowing Property and Development NSW to enter into agreements with both government and non-government parties for the use of land vested in or managed by Property and Development NSW; and fourthly, allowing Property and Development NSW to create wholly owned subsidiary corporations for specific purposes.

It is important to understand how those efficiencies will be created. I now turn to consider them in detail. With respect to the vesting of property in Property and Development NSW, the bill removes the role of the Governor in the administration of vesting properties and instead enables the Minister to transfer property to Property and Development NSW by order published in theGovernment Gazette. Those amendments will enable Property and Development NSW to more efficiently vest properties from other agencies for program and project delivery, such as future delivery of housing or other Government objectives. The removal of the Governor's approval will remove duplication of process and improve the overall efficiency of vesting property in Property and Development NSW.

With respect to the compulsory acquisition of land, I note that Property and Development NSW does not currently hold any compulsory acquisition powers and presently relies on the compulsory acquisition powers of other agencies, such as the Planning Ministerial Corporation, Office of Strategic Lands and NSW Public Works, or direct negotiations with non-government parties to acquire land or property. The current process is inefficient and results in lengthy negotiations, complex approval processes, additional administration, extra costs and the unnecessary involvement of multiple Ministers. The lack of compulsory acquisition powers has resulted in unnecessary delays and costs to government.

That is perhaps best illustrated by the State's acquisition of the former Truegain waste oil refinery, where the Government was forced to step in and acquire the land for remediation purposes. As Property and Development NSW did not have the power to compulsorily acquire the site, it had to acquire the site via the Planning Ministerial Corporation before it could provide services for the remediation of the land that had become contaminated. Another example involves the land acquisitions and transfers required to enable development of Frenchs Forest town centre on the former Forest High School site. Property and Development NSW was again required to utilise the Planning Ministerial Corporation to acquire the land subject to multiple agency and ministerial approvals and a protracted and costly transaction process. In both instances, compulsory acquisition powers would have enabled the transactions to have been achieved far more efficiently and cost-effectively, saving months in resource time and tens of thousands of dollars in consultant and legal fees.

The bill provides Property and Development NSW with the power to compulsorily acquire land to reduce the cost and complexity of existing arrangements, ultimately benefiting the New South Wales taxpayer, increasing the efficiency of government operations and freeing up resources to pursue the Government's objectives. Providing compulsory acquisition powers to Property and Development NSW will enable it to fulfil its objectives more efficiently, ensuring effective use of land and property in the most cost-effective manner possible for the Government. With compulsory acquisition powers, Property and Development NSW can accelerate services without a reliance on other government agencies, which requires considerably more financial and human resources and multiple approval processes. The bill will also reduce the administrative burden experienced by agencies in the land valuation process. It does this by clarifying that the value of land is to be determined in accordance with all applicable Treasury policies as well as any directions issued by the Treasurer. The bill, therefore, reduces the potential need for an agency to procure more than one land valuation.

The bill also allows Property and Development NSW, with the approval of the Treasurer, to establish wholly owned subsidiaries for specific purposes. The creation of these subsidiaries will allow for the separation of assets held by Property and Development NSW, such as properties held long term for the New South Wales Government as part of the Government's workplace portfolio versus other assets held short term for adaptive re‑use. Examples of this are Parramatta North, the former Manly hospital, and Lot 4B, Royal North Shore Hospital. The bill will also support greater focus on adaptive re-use projects and separate strategies and reporting. The bill also enables Property and Development NSW to grant interests, such as leases on land held by the corporation, to government and non‑government parties. This allows Property and Development NSW to more effectively manage the use of the Government's property portfolio, particularly in circumstances where the agreement is necessary for a related government purpose.

The benefits of making this change include reducing vacancies in underutilised spaces within property held or managed by Property and Development NSW; improving the management of precincts, such as the Parramatta North Precinct, to ensure the right mix of tenants is achieved having regard to the needs of the area; and additional economic and environmental benefits related to agreements for the use of land held or managed by Property and Development NSW. Together, these amendments improve efficiencies in the administration and management of the State's vast property portfolio. I commend the bill to the House.