Unburnt wildlife refuge to be sacrificed for homes

The NSW government is under pressure over a housing development that will flatten a wildlife refuge spared in the Black Summer bushfires.

Federal Environment Minister Tanya Plibersek has just approved a 153-home estate that will clear most of a mature forest on the NSW South Coast.

The site at Manyana covers about 20 hectares and is documented habitat for grey-headed flying foxes, which are listed as vulnerable to extinction under federal laws.

It's also suitable for endangered greater gliders that lost vast swathes of habitat in the blazes of the 2019/20 summer.

One of Ms Plibersek's first acts as minister was change the glider's status from vulnerable to endangered after experts said the population had halved in 20 years, with the fires compounding land clearing and other threats.

In recent weeks, the critically endangered Swift Parrot - one of Australia's rarest animals - was also spotted on the development site by a trained ecologist.

The Manyana community has fought for years to defeat the Ozy Homes development and recently the Greens have warned a string of similar, long-dormant projects could pose a major threat to threatened species habitat in coastal NSW.

Locals are devastated federal approval has been given, albeit with one stage of the project cancelled after an assessment of impacts on threatened species.

Almost 40 conditions to curb or offset harms have also been imposed, including limiting clearing of grey-headed flying fox habitat to 1.25 hectares, and planting food trees.

But opponents say 17 of the roughly 20 hectare site will be lost and some of the conditions are absurd.

One requires the protection of a patch of littoral rainforest - a critically endangered type of ecosystem.

But another says some of it can go in order to satisfy NSW laws requiring bushfire protection zones around homes.

"I'm flabbergasted," Bill Eger, president of Manyana Matters Environmental Association said.

"On one hand they are saying this rainforest is so important it must be protected, but on the other they're saying 'if it's going to pose a bushfire risk to the houses you can chop it down'.

"We are going to protect bulldozed blocks from a critically endangered ecosystem. That is nuts."

Australian National University David Lindenmayer, a leading expert in forest ecology, agrees.

"What we're seeing - as always - is the typical death-by-a-thousand cuts."

While there have been no glider sightings on the development site in recent years, Professor Lindenmayer says its perfect habitat for them.

"The greater glider got absolutely barbecued in the fires. We know coastal populations are in enormous trouble but we're going to knock over a bunch more habitat."

The minister's office says the government has to make decisions in accordance with the facts and national environment laws.

"That's what happens on every project, and that's what's happened here."

But the minister has written to the NSW government, noting serious concerns held by the area's federal Labor MP Fiona Phillips about the site being inappropriate for housing.

Ms Phillips says the development is going ahead under a zombie development application - a catch all term for dormant projects approved years ago.

Manyana Matters says state approvals for the housing project date back to 2006 but so much has changed that it should be reassessed.

In the letter, Ms Plibersek draws the Manyana development to the attention of NSW Planning Minister Paul Scully, while noting the current state inquiry into zombie DAs.

AAP has sought comment from Mr Scully, the NSW environment minister, Ozy Homes and the company's environmental consultants.