Pushing Residential Development “Up and Out” – The Government’s ‘Going for Housing Growth Policy’

The Government intends to introduce its second RMA amendment bill and a suite of changes to national direction to “drive economic growth and productivity”, RMA Reform Minister Chris Bishop says. Following the first RMA amendment Bill introduced to Parliament earlier this year, the next stage of the Government’s RMA reform, prior to full replacement, is aimed to be achieved by a second RMA amendment bill (RM Bill 2) and a suite of national policy changes through introduction of a ‘national direction package’. The intention is for the RM Bill 2 to be introduced to Parliament before the end of this year, and then passed into law by mid-2025.  The national direction package will follow the same timeline and this bill. The Government has divided the RM Bill 2 and the national direction package into four categories: infrastructure and energy, housing, farming and the primary sector, and emergencies and natural hazards. The reforms proposed under each topic are as follows: Infrastructure and Energy Improved delivery of renewable energy development by giving effect to National’s Electrify NZ. The Electrify NZ policy can be found here, which intends to “cut red tape to drive investment in renewable electricity generation.” A new NPS for Infrastructure which intends to ensure that resource management decisions consistently enable infrastructure to be development, operated, and maintained whilst also managing its effects on the natural environment. Amendments to the NES for Telecommunications to keep it up to date with developments and give telcos greater certainty and reduced consenting costs as they upgrade their infrastructure. Changes to the resource management system to ensure a consistent approach to quarrying. Inclusion of port operators and emergency service providers as requiring authorities. Extension of the default designation lapse period from 5 years to 10 years. Extension of the duration of port coastal permits by 20 years. Housing Delivery of the ‘first pillar’ of the Government’s Going for Housing Growth policy. We discussed this policy, and the objectives of the first pillar, in our previous article here. Development of a new NES for Minor Residential Units (i.e. granny flats). Development of a new national direction for papakāinga housing, that will require each district plan to contain provisions to enable more papakāinga housing.  Simplifying the way that heritage is managed. Farming and the Primary Sector Immediate national direction changes will be made to enable development of renewable energy, indoor primary production and greenhouses on highly productive land. We discussed the changes to the NPS on Highly Productive Land in our earlier article here. Further announcements are expected from the Government’s Agriculture and Primary Sector team on what changes will be made to this sector under this second tranche of reforms.  Minister Bishop has indicated that these will largely give effect to a collection of promises made in the National Party’s manifesto and coalition agreements. Emergencies and Natural Hazards To further develop the NPS for Natural Hazards so that it will provide a comprehensive, nationally consistent framework for addressing the risks posed by natural hazards, including increased risk from climate change. The NPS for Natural Hazards will provide direction to councils on how to identify natural hazards, assess the risk they pose and respond to that risk through planning controls. The RM Bill 2 proposes to better enable rapid responses to disasters by improving emergency provisions including a new regulation making power for emergency responses. Alongside these four packages, a range of technical changes are proposed to improve the resource management system’s coherence.  Whilst the precise form of these changes is yet to be released, what is apparent is that the coalition Government is being consistent with its position to undertake vast and quick reforms of our resource management system. Holland Beckett is experienced in providing advice to clients on the current reforms to New Zealand’s resource management system.  If you have any questions about these reforms, please feel free to contact us.

The Government has announced its intention to make several changes to the Fast-track Approvals Bill, which is currently with the Environment Select Committee for consideration. Cabinet has recommended the following five changes are made, and the Committee will decide whether or not to accept them: The final decision on the granting of fast-track projects now sit with an expert panel and not the Ministers for Infrastructure, Regional Development and Transport. Giving Ministers final approval of applications, even if an expert panel recommended otherwise, was the most controversial aspect of the Bill and its removal is a significant change to the Bill as proposed.  Providing the expert consenting panel with decision-making powers aligns the Bill with the process under the previous Labour Government’s COVID-19 (Fast-track Consenting) Act 2020. Fast-track projects will now be referred to an expert panel by the Minister for Infrastructure alone who will be required to consult the Minister for the Environment and other relevant portfolio ministers as part of that referral process. However, our understanding is that fast-track projects listed in Schedule 2A of the Bill will still be able to apply directly to an expert panel for consideration. Timeframes for comments at the referral and expert panel stages will also be extended to give parties, including those impacted by a proposed project, more time to provide comments. Expert panels will be appointed by the Government and will be required to include: Those with expertise in environmental matters; Māori development and te ao Māori expertise in place of mātauranga Māori; and An iwi authority representative (only when required by Te Tiriti o Waitangi settlements). Applicants will be required to include information on previous decisions by approving authorities, including previous Court decisions, in their applications for the referring Minister to consider. Minister Bishop also provided a breakdown of the 384 projects that had applied to be listed in the Bill.  Whilst not providing specific details of the projects, he noted that 18% of the applications related to renewable energy, 24% related to infrastructure and 40% related to housing and urban development.  It is proposed that the fast-track projects to be listed in either Schedule 2A or B will be included in a paper that will be put before Parliament once the Bill returns to Parliament later this year. The Independent Advisory Group has now provided a report to the Ministers with recommendations on projects to include in the Bill and Cabinet will now consider these in the coming months. While these changes will remove the most contentious aspect of the Bill and will be more consistent with current fast-track legislation, we expect the Bill will continue to receive close scrutiny from all stakeholder groups as the Government continues with its wider reforms to the Resource Management Act 1991. Holland Beckett is experienced with fast-track consenting processes and advising clients on the current reforms to the Resource Management Act 1991.  If you have any questions or would like to know more about anything in this article, please do not hesitate to contact the authors.

Recent amendments to the NPS-HPL include clearing the pathway for consenting specified infrastructure, greenhouses and indoor primary production on highly productive land. There is now a clear consenting pathway for development of specified infrastructure (e.g. renewable energy), greenhouses and intensive indoor primary production on highly productive land (HPL) following recent amendments to the National Policy Statement for Highly Productive Land (NPS-HPL). We had previously discussed the issues and proposed amendments to the NPS-HPL identified by the Ministry and Minister for the Environment in a previous article from October last year (linked here). Following consultation and submitter feedback, the Minister for the Environment has this month made changes to the NPS-HPL that we anticipate will better enable development of intensive primary production, greenhouse activities, and specified infrastructure on HPL. The NPS-HPL sets strict standards for how HPL can be used and essentially provides that any use or development of HPL must be avoided unless such use or activity falls within one of the limited exceptions. After the NPS-HPL came into effect some renewable electricity generators and representatives from the food production sector raised concerns that it placed undue restrictions on development of activities that may have a need to be located on HPL. The two key issues identified by these parties were: The lack of clarity in the consenting pathway for new specified infrastructure on HPL, as notably no express provision for the construction of this type of infrastructure was provided for in the NPS-HPL. Specified infrastructure includes (but is not limited to) renewable electricity infrastructure; and The absence of a clear consenting pathway for developing and relocating intensive indoor primary production and greenhouses on HPL. The following changes have been made to the NPS-HPL to address these concerns: Amendments to cl 3.9(2)(j)(i) NPS-HPL that will better enable the development of new specified infrastructure on HPL. Clause 3.9(2)(j)(i) NPS-HPL has been varied to now provide that the development, operation or decommissioning of specified infrastructure, including (but not limited to) construction, maintenance, upgrade, expansion, replacement or removal may be undertaken on HPL if certain requirements set out in the NPS-HPL are met. Inclusion of a subclause that better enables development on HPL where such development provides for either ‘intensive indoor primary production’ or ‘greenhouse activities’ (cl 3.9(2)(aa)). Definitions for ‘intensive indoor primary production’ and ‘greenhouse activities’ are now also included in cl 1.3 NPS-HPL. These amendments provide a clear consenting pathway for development of specified infrastructure, greenhouses and intensive indoor primary production on HPL. If you have any questions regarding the NPS-HPL, or what these recent changes may mean for your or your business, please feel free to contact us.