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Set traps for rats in the ranks

By Chris Berg - posted Thursday, 6 March 2008


But, more crucially, limiting political donations to local councillors does not tackle the real problem. Local governments have too much power over questions of property development.

After all, this is virtually the only reason that bribery occurs between councillors and property developers. Most of the time, local governments are doing little more than imposing petty, nanny state, regulations: putting up noise restrictions for street parties; forcing us to use smaller rubbish bins; ensuring that nobody paints their front door red; and other similar important things. But when they deal with the issue of property development, these councillors suddenly hold vast levels of discretionary power, able to approve or reject multimillion-dollar investments with a stroke of a pen.

Furthermore, the approach that many councils take towards property development is also a leading cause of Australia's housing crisis. Local government tends to resist urban infill, putting extra pressure on our already critical land shortage. It doesn't take long for councillors to realise that being caught between NIMBY activists and property developers is potentially a lucrative position.

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When councillors and their staff have the power to determine town planning restrictions according to their subjective judgment, and the discretionary power to impose heritage restrictions on properties barely a decade old, it is no wonder that developers feel the need to flatter those councillors with friendship, gifts, and brown envelopes full of money.

Corruption exists where there are opportunities for the manipulation of political power for personal gain. So local governments provide the corrupt-minded with ample opportunities. If we are to solve the corruption problem, we should remove the discretionary power and regulations that make that corruption so profitable.

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First published in The Australian on March 5, 2008.

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About the Author

Chris Berg is a Research Fellow at the Institute of Public Affairs and editor of the IPA Review.

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