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July 8, 2026

Bureaucrat threatens to remove Byron Council’s planning powers

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Sydney-based Deputy Secretary NSW Planning, Marcus Ray, is threatening to remove Council’s planning powers.

Byron Shire Council risks losing its planning powers to ‘independent intervention’ if it does not ‘demonstrate how it intends to improve its housing supply’. 

In an aggressive letter to Council’s general manager, Mark Arnold, Sydney-based Deputy Secretary NSW Planning, Marcus Ray, outlined what he believes is Council’s failure in fast-tracking housing supply for the area, adding that Council’s development application (DA) processing times ‘are among the slowest in the state’.

In the letter, which was provided to The Echo, Mr Ray demands that Council outline ‘commitments it intends to make over the next three, six, 12 months and beyond, to deliver at least 4,522 new and diverse homes to 2041’. 

It’s a target that he says Council will fall ‘well short of’. 

Where is the flood data?

The demand comes despite his own department still sitting on the long-awaited 2022 flood data that will underpin further developments. 

In previous years, the NSW planning department told The Echo that housing targets are set by councils, are flexible, and not enforceable. 

Regarding the Independent Planning Commission (IPC) report recommendations on short-term rental accommodation (STRA), which are yet to be adopted/rejected by NSW Labor Minister Paul Scully, Mr Ray says, ‘it remains critical for Council to demonstrate how it intends to improve its housing supply before any decision on Council’s planning proposal can be made’. 

The Echo asked the office of NSW Planning Minister, Paul Scully (Labor), whether these directives were from his office, ‘or has Marcus Ray taken it upon himself to make these threats and decisions on the minister’s behalf?’

Additionally, The Echo asked: ‘Will these directives align with NSW Labor’s commitment that no development will occur on floodplains?’

Instead, the questions were handballed by Scully’s office back to the planning department.

A DPE spokesperson said, ‘The IPC acknowledged that managing the impacts of short-term rental accommodation is only one part of addressing Byron Shire’s housing supply and rental affordability issues’. 

The DPE spokesperson said, ‘Council has been asked to provide advice on how housing targets can be met, taking into consideration constrained areas and opportunities for infill or more suitable land’. 

‘The department is working with Council to inform its understanding of how the IPC’s recommendations will be met before providing advice to the minister to inform his decision on the planning proposal.

‘The government is also proactively planning and mitigating against the impacts of floods by drafting new rules and streamlining planning processes to stop inappropriate developments on dangerous floodplains.

‘Working closely with the NSW Reconstruction Authority, councils and the Greater Cities Commission (GCC), the Department of Planning and Environment has begun exploring  changes to the planning system, which is consistent with implementing the key recommendations of the 2022 NSW Independent Flood Inquiry (O’Kane-Fuller report), without hindering the supply of housing and critical infrastructure.

‘Council’s forecast housing demand to 2,041 is based on DPE’s 2022 population growth forecasts. 

‘The housing target is the implied minimum dwelling target needed to meet that population growth and that demand for housing will stand, regardless of any new flood level data. 

‘Council has been asked to provide advice on how those targets can be met, taking into consideration constrained areas and opportunities for infill or more suitable land’.

In response to the letter becoming public, Mayor Michael Lyon released a media release on Monday night, assuring the NSW Department of Planning that ‘We are 100 percent committed to meeting the delivery of housing [targets] in the Byron Shire’.

Council staff have submitted a late report on the matter for the August 10 Council (Planning) Meeting.



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