12:00a.m. 8th June 2008

| By Carolyn Tucker

The Local Government Association of Queensland has attacked plans to fast-track land releases on the Sunshine Coast, saying it will do nothing to improve housing affordability.

Land at Maroochydore, Meridan Plains, Palmview and Caloundra South are among 17 greenfield sites in South-East Queensland earmarked for early release.

The Premier said the sites at Maroochydore and Meridan Plains should be approved for development by Christmas, while land at Palmview and Caloundra South would be ready for development by this time next year.

LGAQ executive director Greg Hallam said while governments were genuinely concerned about affordability, it was a furphy to suggest that increasing supply would bring prices down.

Mr Hallam said in this instance the government had put developers’ profits ahead of community concerns and devised a plan which would ultimately fail.

“Numerous independent reports have shown prices are driven by macro-economic policy,” he said.

“We have the highest level of second home ownership in the western world and, with negative gearing and minimal capital gains, people will continue to invest in this sector.

"The lack of logic (in the government’s approach) is borne out by the experience in Perth, where they have the most available land and the highest prices.

“I would be shocked if any of these initiatives reduced the price of houses.”

Mr Hallam said the government had promised to establish a land monitor to keep track of available land more than six months ago but nothing had happened since.

He said it was clear that developers were land banking in order to maximise profits, and this practice would continue.

“We have a development community with a voracious appetite for profits. They are the most powerful lobby in the state and they are still controlling land supply,” Mr Hallam said.

“They have unfettered access to the government and it seems they can have anything they want.”