Key Takeaways
- The New Zealand government’s replacement of the Resource Management Act (RMA) will require councils to compensate landowners for significant restrictions on development
- The reforms aim to create two new laws: a Natural Environment law and a Planning law
- The planning bill will standardize zoning and introduce "overlays" for specific areas with stricter rules
- The government estimates the new system will save $13.3 billion over 30 years and increase GDP by 0.56% per year by 2050
- The legislation will include Treaty of Waitangi clauses and requirements for iwi participation in national instrument development
Introduction to RMA Reform
The New Zealand government has introduced a replacement for the Resource Management Act (RMA), which will have significant implications for councils and landowners. The new legislation, introduced to Parliament on Tuesday afternoon, aims to create two new laws: a Natural Environment law and a Planning law. The Planning law will lay out what infrastructure is needed and when, with land secured for key infrastructure like roads, schools, and utilities. This will provide a more streamlined approach to development, with a focus on standardizing zoning and introducing "overlays" for specific areas with stricter rules.
Changes to Consenting Process
The changes to the consenting process will be significant, with many activities deemed permitted and no consent needed. The coalition reduces the number of consenting categories to four: permitted, restricted, discretionary, and prohibited. This is a more streamlined approach than Labour’s version, which reduced the number of categories to five. The new system will also introduce national standards, giving councils requirements to develop plans and make consenting decisions. Additionally, regional spatial plans will set out 30-year planning for infrastructure in each region, providing a long-term vision for development.
Compensation for Landowners
One of the key differences between the coalition’s approach and Labour’s is the emphasis on regulatory takings. Councils will be required to compensate landowners for significant restrictions on development, including through rates remission and other measures. This is a significant change from the current RMA, which only provides compensation in extreme scenarios where land is considered unable to be reasonably used. The new system will lower the threshold for compensation, providing more protection for landowners. This change is expected to have a significant impact on councils, which will need to balance the need to compensate landowners with the need to manage development and protect the environment.
Treaty of Waitangi Clauses
The legislation will include "descriptive, non-operative" Treaty of Waitangi clauses, listing specific provisions that relate to the Crown’s Treaty obligations. This will provide clarity and certainty for iwi and other stakeholders. The legislation will also include clear requirements for iwi participation in the development of national instruments, such as national policy statements and national standards. This will ensure that the voices of iwi are heard and their interests are taken into account in the development of these instruments. RMA Reform Minister Chris Bishop has stated that he does not think the legislation will weaken Maori rights, but rather provide additional clarity and certainty.
Implementation and Timing
The changes will be implemented in 2026, with another bill to be passed in the coming days to extend current consent expiry dates. Until the main bills take effect, new consent applications will still be able to be made, and current consents will be largely extended to 2031. The government expects to pass the legislation urgently, with the first suite of national instruments expected in place by the end of 2026. This is a faster timeline than Labour’s version, which envisioned a decade-long process. The government’s approach will provide more certainty and clarity for developers and councils, allowing them to plan for the future with more confidence.
Comparison to Labour’s Approach
The coalition’s approach differs from Labour’s in several key ways. Labour’s version aimed to have a Climate Adaptation Bill, which would intersect with its other legislation, but this work was not completed before the party lost power in the 2023 election. The coalition’s version does not include a similar bill, but instead focuses on a mix of effects-based and limits-based approaches. The coalition’s version also reduces the number of consenting categories further than Labour’s, and introduces a new planning tribunal to resolve disputes about compensation. The coalition’s approach is more streamlined and focused on standardizing zoning and consenting processes.
Conclusion and Implications
The replacement of the RMA will have significant implications for councils, landowners, and the environment. The new legislation aims to provide a more streamlined and efficient approach to development, while also protecting the environment and the rights of landowners. The emphasis on regulatory takings and the introduction of a new planning tribunal will provide more certainty and clarity for developers and councils. However, the changes will also pose challenges for councils, which will need to balance the need to compensate landowners with the need to manage development and protect the environment. Overall, the new legislation has the potential to improve the development process in New Zealand, but its success will depend on its implementation and the ability of councils and other stakeholders to adapt to the changes.