The RMA - return of the walking dead

One of the final acts of the previous government was to push through the Natural and Built Environment Act (“NBEA”) and the Spatial Planning Act (“SPA”). This repealed the RMA, albeit with a lengthy transitional period, and replaced it with a new regime (see our earlier article here).

While detail is scant, the new government’s “100-day Plan” and the parties’ coalition agreements confirm the overall direction for further resource management reform.

Resurrect the RMA

The new government has committed to repealing the NBEA and SPA by Christmas, temporarily reinstating an amended version of the RMA. Proposed changes to the RMA include:

  • A new fast-track consenting process, expected to broadly reflect the equivalent processes under the COVID-19 legislation and then the NBEA. This, and other “essential” RMA changes, will be introduced within 100 days.

  • Streamlining the plan preparation process.

  • Generally simplifying the planning system.

  • “Mak[ing] it easier to consent new infrastructure including renewable energy, allow farmers to farm, get more houses built…” and better enable various primary sectors.

The above proposals will be broadly popular, including the important stated aim of removing barriers for infrastructure consenting. However, the mechanics to achieve them, including the detailed legislative drafting (for which ambitious timeframes have been proposed) remain to be seen.

For the foreseeable future it will therefore be back to the RMA, which was broadly panned by all major political parties…

Wider comprehensive reform

…But not for long. The RMA’s resuscitation will be short-lived, with the government promising to deliver a wider package of resource management reform.

It is unclear what the government’s comprehensive reform package will look like, but it has committed to the following fundamental features, many of which represent important changes of direction:

  • The new system will be centred on the enjoyment of private property rights, thanks to the coalition agreement between National and Act. This represents a far more libertarian basis than we have been used to under the RMA and the NBEA/SPA.

  • The government has promised to “begin efforts to double renewable energy production, including a [new] NPS on Renewable Electricity Generation”. If National’s recent “Electrify NZ” policy document is anything to go by, major reform is on the cards.

  • A National Infrastructure Agency will be established, to coordinate government funding, connect investors infrastructure, and improve funding, procurement, and delivery.

  • The recent Medium Density Residential Standards (i.e. three houses/three stories) will be made optional for councils.

  • The government will undertake an urgent review into the implementation of the NPS for Indigenous Biodiversity, and implementation of provisions relating to new Significant Natural Areas will stop.

  • The Freshwater NPS and NES will be replaced, including to “rebalance Te Mana o te Wai to better reflect the interests of all water users”; and advice will be sought on how to exempt Councils from current obligations as soon as practicable.

  • The Crown Minerals Act 1991 will be updated to clarify its role as promoting the use of Crown minerals; and the ban on offshore oil and gas exploration will be lifted.

Comment

The recently-enacted resource management reform was not without its issues – we commented on these previously. However, there will be collective groans from many sectors at the prospect of going ‘back to square one’, not least because of the time and expense associated with the previous reform effort.

Many may also lament the fact that the previous government’s reform did not achieve anything close to bipartisan support. The prospect of the new government achieving cross-party support for its reform package appears similarly slim.

Regressing to resource management reform being a political football, vulnerable to complete overhaul with every change in government, would be damaging. A stable resource management system is too important for the legislation to be fundamentally transformed with the outcome of each General Election. The RMA provided three decades of relative stability, with associated system user/investor certainty (acknowledging that it was subject to regular tinkering).

For now, we remain in a period of uncertainty around fundamental resource management reforms. Hopefully an enduring solution can be delivered this time around.

Posted on November 30, 2023 .