• The Government has unveiled a new Resource Management Act system to simplify planning and reduce red tape.
• Chris Bishop said the reforms aim to improve infrastructure development and natural resource management.
• The new system includes two Acts, focusing on land use and environmental protection, with standardised zoning.

The Government has revealed the key features of a new Resource Management Act (RMA) system, drawing upon advice received from an expert advisory group.

In a statement on Monday afternoon, Chris Bishop, the minister responsible for RMA Reform said the current legislation is “broken” as it “makes it too hard to build the infrastructure and houses New Zealand desperately needs”.

He said it was “too hard to use our abundant natural resources, and hasn’t resulted in better management of our natural environment”.

“Cabinet has now agreed on the shape of the Government’s replacement legislation, signalling a radical transition to a far more liberal planning system with less red tape, premised on the enjoyment of property rights,” Bishop said.

“Turning our economy around requires changing the culture of ‘no’ that permeates decision-making in New Zealand. Whether it’s aquaculture off the coast of the South Island or a new green building replacing a heritage gravel pit next to a train station in the centre of our biggest city, the RMA has obstructed growth instead of enabling it. That’s all about to change. Enough is enough.”

He said an expert advisory group developed a blueprint for reform earlier this year. This blueprint “delivers a workable basis” for a new system and Cabinet had made decisions on new features drawn from it.

“Economic analysis undertaken on the Blueprint’s proposals show that they are estimated to deliver a 45% improvement in administrative and compliance costs when compared to the current system. Similar analysis done on the last Government’s RMA replacement estimated that it would deliver only a 7% reduction in process costs.”

The key features:

• Two Acts: A Planning Act focused on regulating the use, development and enjoyment of land, along with a Natural Environment Act focused on the use, protection and enhancement of the natural environment.
• A narrowed approach to effects management: The new system will be based on the economic concept of “externalities”. Effects that are borne solely by the party undertaking the activity will not be controlled by the new system (for example, interior building layouts or exterior aspects of buildings that have no impact on neighbouring properties such as the size and configuration of apartments, the provision of balconies, and the configuration of outdoor open spaces for a private dwelling). Matters such as effects on trade competition will be excluded.
• Property Rights: Both Acts will include starting presumptions that a land use is enabled, unless there is a significant enough impact on either the ability of others to use their own land or on the natural environment. This will reduce the scope of effects being regulated and enable more activities to take place as of right. There will be clear protection for lawfully established existing use rights, including the potential for the reasonable expansion of existing activities over time where the site is ‘zoned or owned’. There will be a requirement for regulatory justification reports if departing from approaches to regulation standardised at the national level. Compensation may happen for regulatory takings in some circumstances. There will be an expansion in the range of permitted activities.
• Simplified National Direction: One set of national policy direction under each Act will simplify, streamline, and direct local government plans and decision-making in the system. Direction under the Natural Environment Act will cover freshwater, indigenous biodiversity and coastal policy. Direction under the new Planning Act will cover urban development, infrastructure (including renewable energy) and natural hazards.
• Environmental limits: A clearer legislative basis for setting environmental limits for our natural environment will provide more certainty around where development can and should be enabled, whilst protecting the environment.
• Greater use of standardisation: Nationally set standards, including standardised land use zones, will provide significant system benefits and efficiencies. The new legislation will provide for greater standardisation, while still maintaining local decision making over the things that matter.
• Spatial Plans: Each region will be required to have a spatial plan, focused on identifying sufficient future urban development areas, development areas that are being prioritised for public investment and existing and planned infrastructure corridors and strategic sites.
• Streamlining of council plans: A combined plan will include a spatial planning chapter, an environment chapter and planning chapters (one per territorial authority district).
• Strengthening environmental compliance monitoring and enforcement: To safeguard the environment, a national compliance regulator with a regional presence will be established – taking over a function currently done poorly by regional councils.

Bishop said ideas like standardised zoning are “common sense”.

“Right now, every individual council determines the technical rules of each of their zones. Across the country there are 1,175 different kinds of zones. In Japan, which utilises standardised zoning, they have only 13,” Bishop said.

“Standardising these zoning rules will take pressure off ratepayers and make it easier to build more homes for Kiwis. It will also enhance local decision making, allowing elected local representatives to focus more time on deciding where development should and should not occur in their community, and less time on the enormous amount of technical detail that goes into regulating that development.”

This is part of a commitment National made with the Act Party after the 2023 election.

Under-Secretary for RMA Reform and Act MP Simon Court said the current legislation is too broad.

“We must rationalise the system to ensure a tight scope where only those affected get a say, and at the right time. We cannot have Tom, Dick, and Harry weaponise the planning system to block progress from the opposite end of the country.

“We believe that the best way to stop unnecessary red tape is attach a price to it. The new system will protect landowners against regulatory takings, enabling them to seek recourse if found that unjustified restrictions have been placed on their land.”

The new pieces of legislation are expected to be introduced into the House before the end of the year.