Aged homes in fire-risk area scrutinised

Any decision on allowing retirement villages to be developed in bushfire-prone areas should be delayed until the Royal Commission into the Victorian disaster is complete, the NSW local government body says.

Planning Minister Kristina Keneally has promised to closely scrutinise plans to build a 60-bed, three-storey nursing home and 500 retirement units on land backed by bush at Oxford Falls in Sydney's north.

The development, which would house thousands of elderly people, is before Ms Keneally after it was rejected by Warringah Council due to fire safety and other concerns.

The Local Government and Shires Associations of NSW (LGSA) said on Monday the decision should wait until the recommendations were released from the Victorian Royal Commission into the bushfires.

"The Victorian bushfire tragedy is a wake-up call to all spheres of government," LGSA president Genia McCaffery said.

"Pending developments in bushfire-prone areas for new facilities or the expansion of those already there need much more scrutiny to ensure our communities are well protected.

"These risky developments must be put aside until after the commission, allowing everybody to learn from the dreadful lessons of the past fortnight."

Only one road runs through Oxford Falls and opponents of the proposed development say it would be inadequate for evacuation of the elderly residents in case of fire.

Ms Keneally has rejected claims her department can sidestep important planning considerations to approve developments, saying they must meet a range of guidelines including from the Rural Fire Service.

She said the proposal was lodged in 2005, prior to her time as planning minister, but she had familiarised herself with its details, including a visit to Oxford Falls.

"I did not open the door to this application but it is on my desk," Ms Keneally told Macquarie Radio.

"What I'm going to do with it is subject it to clear scrutiny, the scrutiny that's required by law in terms of the Rural Fire Service and bushfire protection, as well as all the other scrutiny that's required - RTA (Roads and Traffic Authority), Department of Environment and Climate Change."

Opposition Leader Barry O'Farrell has called on the state government to review its planning policies to prevent retirement villages or accommodation for people with disabilities being built in such areas.