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RMA Reforms: What to expect in the building sector

 

Changes to how New Zealand’s infrastructure is planned and built are well underway.

The Government has confirmed it will replace the old Resource Management Act (RMA) with a new resource management system aimed at making it easier, quicker and cheaper to build homes and infrastructure, and reducing uncertainty and inconsistency across the country.

Rather than a single replacement Act, the RMA will be split into two new pieces of legislation – the Planning Bill and the Natural Environment Bill. These are meant to provide more certainty for development and environmental protection by setting out what can and cannot be done.

While a lot of the detail is still being worked through (consultation on the Bills closed in February), the general direction of the new legislation is clear.

Councils will have less ability to create their own housing and development strategies, with stronger direction coming from central government. Auckland Council’s Plan Change 120 is a good example, with the Government ruling that the plan to enable up to 2 million homes was too ambitious, instead reducing the target to 1.6 million.

A key feature of the new system is a more standardised approach to council plans. Instead of multiple district plans, which can create inconsistencies across council boundaries, each region will have a combined plan that may run across several different councils.

That includes:

  • a regional spatial plan that sets the long-term strategic direction for growth and infrastructure 
  • land-use plans that enable the use and development of land for each city or district in the region 
  • a natural environment plan that sets out how natural resources will be managed in the region

Under the new land-use plans, previous decisions can’t be revisited – meaning more certainty for people wanting to build in those areas. The Government has also promised to reduce the number of consents and permits required.

As the Ministry for the Environment website puts it: “Under the RMA, even the most minor effects from an activity have to be considered across a broad range of matters. This means more consents are required and they’re harder to get, creating hurdles for people trying to carry out everyday projects. For example, the RMA requires houses to have a certain-sized storage area outside bedrooms and kitchens.”

Instead, consenting authorities will only need to consider the major impacts from a build, and only those directly affected are likely to be consulted.

Less red tape, more clarity and consistency around rules in each area will be welcome news for builders and tradies, as will the emphasis on boosting housing development. The reforms include a strong focus on freeing up land for housing and enabling more medium and higher density development, especially within existing urban areas.

While it’ll be important to iron out the finer details, and the changes won’t necessarily mean costs come down, the overall direction of travel for resource management should make it easier to get new projects off the ground. That should spell more work for the sector, and a simpler consenting process.

For an in-depth summary of the RMA reforms, visit the Ministry for the Environment website.

 

 

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