Landowners to get more compensation from councils as major RMA overhaul revealed

Photo: RNZ / Mark Papalii The coalition's replacement of the Resource Management Act (RMA) will force councils to compensate landowners for significant restrictions that impact developments. It will be an additional challenge for councils facing rising costs and widespread changes in other areas, including restrictions on what they are able to spend funding on - and an incoming 4 percent cap on rates increases. The reforms follow a similar model to Labour's attempt, aiming to creating two new laws - a Natural Environment law and a Planning law. More than 100 reporters, stakeholders, commentators and officials spent two hours going over the documents ahead of the official release at 1pm, revealing the information all at once to avoid market disruption. The planning bill would lay out what infrastructure is needed and when, with land secured for key infrastructure like roads, schools, and utilities. Regional policy statements are being scrapped and replaced with 'Regional Combined Plans' which include spatial planning, environmental planning, and land-use planning. Zoning - currently up to councils, with more than 1100 different zones across the country - will also be standardised, with new "overlays" providing additional and sometimes stricter rules for specific areas where consents would normally be permitted. The government estimates its new system will save about $13.3b over the next 30 years and increase GDP by 0.56 percent a year by 2050. Photo: RNZ / Mark Papalii The changes, introduced to Parliament on Tuesday afternoon, would be passed in 2026, with another bill to be passed in "coming days" to extend current consent expiry dates. Until the main bills take effect, new consent applications will still be able to be made. Current consents will also be largely extended to 2031, two years after the main legislation takes effect, under a bill the government expects to pass urgently in "the coming days". The legislation will include "descriptive, non-operative" Treaty of Waitangi clauses listing specific provisions that relate to the Crown's Treaty obligations, and "clear requirements for iwi participation in the development of national instruments" like the national policy statements and national standards. Councils will also work with tangata whenua to identify significant sites and apply rules and policies in line with the national standards. RMA Reform Minister Chris Bishop said he did not think the legislation would weaken Maori rights, rather providing additional clarity. Like Labour's approach, consenting would be largely standardised, with many activities deemed permitted so no consent is needed and new national standards giving councils requirements to develop plans and make consenting decisions. Also resembling Labour's approach, regional spatial plans will set out 30-year planning for infrastructure in each region. Labour's approach reduced the number of consenting categories to five, the coalition reduces it further to four: permitted, restricted, discretionary and prohibited. The coalition repealed Labour's version as one of their first orders of business, reinstating the Resource Management Act until they could bring in their own replacement. Photo: RNZ / Mark Papalii There are key differences to Labour's version. One is an emphasis on regulatory takings - a concept that was also a key feature of the Regulatory Standards Bill. In this case, councils would be required to compensate landowners, including through rates remission and other measures. Under the RMA, compensation is limited to extreme scenarios where land is considered unable to be reasonably used; the new system would lower that threshold to where impacts of regulation on all privately owned land are "significant" under a new framework. Instead of shifting to a system focused primarily on environmental limits the coalition will have a mix between the effects-based RMA and the limits-based approach. However, fewer effects would be able to be considered as part of the consenting process. Limits would be set out in national direction documents. The new approach would also come into effect much faster than the decade-long process Labour envisioned, with the first suite of national instruments expected in place by the end of 2026. Planning would be largely up to a new planning tribunal which would also be tasked with resolving disputes about how councils provide compensation. The RMA Reform Minister Chris Bishop also highlighted simplified purpose statements in the legislation which would avoid complexity and litigation. Labour's version also aimed to have a Climate Adaptation Bill which would intersect with its other legislation, but the work on that was not completed before the party lost power in the 2023 election. A new national regulator may also take over enforcement, which is currently up to councils and inconsistent across the country, depending on advice to the government. This would be progressed...

Landowners to get more compensation from councils as major RMA overhaul revealed

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