Historic Overhaul: Govt Unveils Radical Replacement for Resource Management Act

Minister Responsible for RMA Reform, Chris Bishop, and Under-Secretary Simon Court detailed the transformative changes designed to foster economic growth and elevate living standards across the nation.

In a landmark move aimed at streamlining development processes while safeguarding environmental integrity, the New Zealand Government has announced new planning legislation to replace the longstanding Resource Management Act (RMA). Minister Responsible for RMA Reform, Chris Bishop, and Under-Secretary Simon Court detailed the transformative changes designed to foster economic growth and elevate living standards across the nation.

The Need for Reform

Minister Chris Bishop emphasized the urgency of overhauling the existing system, stating that the RMA had become a significant impediment to progress. "The RMA is broken and everyone knows it," he remarked. "It makes it too hard to build the infrastructure and houses New Zealand desperately needs, too hard to use our abundant natural resources, and hasn’t resulted in better management of our natural environment." The new legislation aims to rectify these issues by introducing a more efficient and property rights-focused framework.

Key Features of the New Legislation

The proposed system introduces several pivotal changes:

1. Dual-Act Framework: The RMA will be replaced by two distinct pieces of legislation:

   • Planning Act: This act will regulate the use, development, and enjoyment of land.
   • Natural Environment Act: Focused on the protection and enhancement of the natural environment.

2. Emphasis on Property Rights: The new system is grounded in the enjoyment of property rights, allowing land use by default unless it significantly impacts others' land use or the natural environment. This approach reduces regulatory scope and permits more activities without the need for approval.

3. Standardized Zoning: To eliminate inefficiencies, the legislation proposes nationally set standards, including standardized land use zones. Currently, there are 1,175 different kinds of zones across the country; the new system aims to simplify this dramatically, taking inspiration from countries like Japan, which utilizes only 13 standard zones.

4. Spatial Planning: Each region will be mandated to develop a spatial plan identifying future urban development areas, prioritizing public investment zones, and outlining infrastructure corridors and strategic sites.

5. Environmental Limits: Clear legislative guidelines for setting environmental limits will provide certainty on where development can occur, ensuring environmental protection is maintained.

6. National Compliance Regulator: To ensure adherence to environmental standards, a national compliance regulator with regional presence will be established, taking over functions currently managed by regional councils.

Economic and Administrative Benefits

Economic analyses indicate that the new proposals could lead to a 45% reduction in administrative and compliance costs compared to the current system. This is a substantial improvement over previous reforms, which only achieved a 7% reduction. The streamlined processes are expected to accelerate infrastructure development, housing projects, and the utilization of natural resources, thereby boosting the economy.

Transition and Implementation

The Government has outlined a phased approach to implement these reforms:

• Phase One: Immediate repeal of Labour's previous RMA reforms and targeted amendments to provide relief to primary sectors.

• Phase Two: Introduction of the Fast-track Approvals Act to expedite projects with significant regional or national benefits.

• Phase Three: Development and enactment of the new Planning and Natural Environment Acts, with legislation expected to be introduced into the House before the end of this year.

Government's Commitment

Under-Secretary Simon Court highlighted the necessity of these reforms to maintain New Zealand's status as a developed nation. "Our population has grown while our infrastructure has crumbled. If we want to retain our status as a first-world nation, we need to build," he asserted. The Government is committed to delivering these reforms to unlock the economic growth needed to improve the lives of all New Zealanders.

Next Steps

The Government will commence work immediately on the policy details, aiming to introduce the two new Acts into Parliament before the year's end. This initiative marks a significant shift towards a more liberal and efficient planning system that balances development needs with environmental protection.