7 Economical, administrative and environmental impacts

This White Paper describes objectives and principles for the development of attractive and environmentally friendly cities and towns. These objectives and principles represent recent developments and clarifications of existing national policy, and because of their principal nature, it is neither natural nor possible to calculate their exact economic and administrative effects.

However, urban development according to the policies of the Government is expected to result in substantial economical gains for society. Cities offering businesses and inhabitants desirable and high-quality urban environments are better equipped to attract new businesses and generate economic growth. Also, more efficient land utilisation in cities is more economical, both in terms of investment and operation. Environmental improvements and better conditions for non-motorised transport and physically active lifestyles also affect people's health, and this may contribute to large savings within the health care sector.

The proposed measures and actions will improve city environments, and the recommended principles and strategies are based on the basic vision of developing more sustainable cities and towns.

Municipalities and regional authorities have the main responsibility for developing city regions and towns. This White Paper does not suggest new tasks or changes of responsibility. Even though planning and the implementation of planning efforts are the focus of this report, it is presumed that efforts will fall within existing municipal and county planning budgets. However, infill and transformation projects are demanding, and the municipalities need increased knowledge and improved measures to plan and implement such schemes.

Infill projects are often characterised by a stark contrast between project profitability and profitability for society as a whole. The municipalities should to a greater extent emphasise economics when assessing various projects. The Government wants the environmental problems of urban areas to be reduced in cost-efficient ways. The Government will consider different arrangements to stimulate infill development in cities and towns where this is the most cost-efficient measure to solve environmental problems. High-quality infill projects may for example reduce problems of noise and air pollution, and they represent an important supplement to measures oriented directly towards the sources of pollution.

Proposals to develop and simplify the Planning and Building Act to make it easier for municipalities to plan and realise various projects in urban areas, will be treated in subsequent proposals on changes of the act in Parliament, including an analysis of economical and administrative effects.

The Government wants to emphasise improved co-ordination of national policies and the use of different measures vis-à-vis cities and towns. This may happen by using the objectives and principles for city development described in this White Paper as the basis for policy development within related sectors, for instance, in the forthcoming White Paper on City Development in a broad perspective (including social welfare systems, etc). Such harmonisation will contribute to synergy and improve the results of national efforts. It is also of great importance that national authorities act more consistently and predictably on municipal and county plans, which pursue the national objectives and principles described in this White Paper. This means a lot for the success of the municipalities. Improved national co-ordination may require increased resources, but will at the same time increase chances of exploiting and developing expertise across different national authorities.

This White Paper contains recommendations for how the work of the municipalities may be improved with regard to developing more environmentally friendly cities and towns. This includes support for pilot projects on co-operation between public and private parties within specific fields, particularly for planning and implementation of projects that support environmental strategies. Financial support for actions related to fostering expertise within the field of sustainable city development is also recommended, including the establishment of networks and more efficient exploitation of existing spheres of expertise. Development of better city indicators is also suggested, in order to improve monitoring of policy implementation and provide cities with better ways to carry out benchmarking exercises.

The proposals suggested partially represent a continuation of activities already in progress, among them the work carried out in the Grorud valley of Oslo and the Programme of More Attractive and Environmentally Friendly Towns in the Districts, and are planned to be covered within existing budgets. Increased resources may be necessary over time. Proposals for increased resources will be adjusted according to the budgets for the actual year.

This White Paper also points out other important efforts with significance for the development of cities and towns. The Government will, among other things, increase resources for public transport. The economical and administrative impacts will be discussed when these proposals are forwarded to Parliament.