New land for construction across Federation Council is not being opened up because of strains being placed on the municipal planning department.
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Councillor Aaron Nicholls says the workload on the bureaucracy in relation to immediate planning approvals means strategic progress is being sidelined.
"We are not opening up parcels of land for development because we are not getting our strategic work done," Cr Nicholls said.
"We are not able to open more space for businesses to thrive."
Cr Nicholls was speaking at the council's March meeting where difficulties facing the under-resourced planning department were again in the spotlight after the redevelopment of Corowa's Globe Hotel drew attention to the issue in February.
In response to that discussion, a report was presented to last week's meeting outlining a staff shortfall and declaring four positions needed to filled urgently to meet planning and building demands.
The original recommendation included a clause that an "allocation be made in the draft 2024-25 budgets to fund four positions within the planning and development services plus ancillary costs for up to $905,000".
However that was deleted after planning director Susan Appleyard said the $905,000 was a maximum figure and she could provide more detail in a report to the April council meeting.
The recommendation passed unanimously included points about additional short term resources being provided pending sufficient money and an independent consultant be appointed to undertake a review for the planning and development services.
Councillor Andrew Kennedy said that report might indicate only two positions are required instead of four.
"We've got to see the report come back so we can make a fair decision about where we need people," Cr Kennedy said.
"At the moment it's a bit of a shambles, the whole system between the planning portal and council (being) understaffed, so we've just got to see how this works.
"We need a proper report to see where the money is going to be spent, what it's going to be spent on and how efficient improvements are going to happen with our planning."
Federation Council is now served by a single full-time planner and two full-time building surveyors with a shortage of those professionals across Australia.
Newcastle University academic Joseph Drew in his review of Federation Council concluded that Federation needed more expertise and if shortfalls continued there could be "serious implications for the health and welfare of staff".
"Certain positions need to be funded and approved for the planning and development team as soon as possible," Professor Drew stated.
"Fixed-term positions need to be created for a plumbing inspector and an additional administrative assistant until the backlog becomes more manageable."