The Byron Shire Council has been blindsided by an 11th-hour decision by the NSW government which will stall controversial plans for a 90-day cap on short-term holiday letting in parts of the shire.
The state government announced yesterday it had instructed the NSW Independent Planning Commission (IPC) to hold a public hearing on the issue.
The Byron Shire Council today voted in support of the policy after working on the proposal and consultation for three years.
However, the change will now need to be approved by the state government once it receives advice from the IPC.
Mayor Michael Lyon said it was a disappointing change of direction.
"In June we were told we were trusted with the ability to run a fair consultation," he said.
"That's the way it should be. Local government is the closest to its community and it should be trusted to make decisions which affect it."
The council hoped a 90-day cap would alleviate the area's housing crisis by encouraging property investors to place their vacant properties back in the long-term rental market.
Cr Lyon said he would try to remain positive and trust the IPC to look carefully at the very complex issue.
"This is a desperately needed reform for our community," he said.
"We've put our best step forward and just have to trust that the right decision will be made by that IPC."
'Sorry, game over'
Greens Ballina MP Tamara Smith made a scathing criticism of the state government's decision to intervene at the last minute.
"It is an absolute disrespect to our community after all we've gone through with the floods and the acute housing crisis," she said.
Ms Smith said the state government had caved to pressure from international corporations at the expense of local government and communities.
"Council has jumped through every hoop that the planning department has said they had to go through," she said.
"We're about to find out the result … and the minister has said, 'sorry, game over'."
In its announcement, the Department of Planning and Environment said the government had made the decision "in light of the 1,500 pieces of feedback received by the Council on the proposal … and the potentially significant economic impacts such a change could have on local businesses".
Another chance for industry lobby group
The holiday letting industry had strongly opposed the council's plan to restrict short-term rentals.
The Australian Short Term Rental Association denied it would lead to an increase in long-term rental availability.
"We asked our owners, 'If the 90-day [cap] comes in, would you consider moving your property across to the permanent rental pool?'," Byron branch president Colin Hussey said.
"And 96 per cent said they wouldn't consider it."
The lobby group previously argued the move would put 1,400 jobs at stake and cost the local economy $228 million.
Mr Hussey said he welcomed the chance to have further public hearings and examine the economic reality of the issue.
"As long as everybody involved in this discussion gets an opportunity to put the data forward," he said.
"Look at the reality of the situation without a lot of the rhetoric and a lot of the hysteria that has surrounded this discussion."
The IPC has not announced a date for its public hearing or decision.
