Business groups give cautious welcome to first step to replacement of RMA

Environment Minister David Parker said the replacement of the RMA should lead to a simpler and more efficient planning system but cautioned it would not fix the housing crisis. Photo / Mark Mitchell.

David Parker says the replacement of the Resource Management Act is a once- in-a-generation chance to improve planning laws, but warned it will not solve New Zealand's housing shortage.

On Tuesday the Minister for the Environment released the exposure draft outlining key aspects of the Natural and Built Environments Act (NBA), the primary legislation to replace the RMA, which has defined New Zealand's planning regime since it was first passed in 1991.

"There is a broad consensus that the RMA hasn't been working properly. It takes too long, it costs too much, and it hasn't properly protected the environment, nor enabled development where needed," Parker said.

The exposure draft is being released to stakeholders and seeking public feedback, with an initial select committee inquiry taking place ahead of a second select committee process will be held when the full Bill is introduced to Parliament in early in 2022.

It outlined how more than 100 existing plans and policy statements would be consolidated into around 14 plans across the country, one of a number of recommendations by a review panel chaired by retired Court of Appeal Judge Tony Randerson, QC.

"We are creating a system that will be less complex, take less time to administer and be less costly," Parker said.

Although Parker said the RMA had contributed to New Zealand's high house prices, Parker cautioned that the new law should not be seen as the solution, claiming existing changes had led to record house price construction.

"This is not the answer to the housing crisis. The answer to the housing crisis is the national policy statement on urban development requiring councils to make room for growth up and out in growing cities."

Some aspects of the legislation have not been developed, with Parker indicating a new standing committee may need to be established to cope with minor changes to national guidance, rather than the current hugely convoluted and expensive process" to fix national policy statements.

National said the process was "too slow and complex" and reiterated its call for urgent legislation to free up housing supply.

"We can't wait years for the RMA to be replaced."

BusinessNZ welcomed the legislation's release, but chief executive Kirk Hope said many of the key issues for business - including resource allocation, and zoning and consenting for development activities - were not included in the draft.

Federated Farmers Vice-President and resource management spokeswoman Karen Williams welcomed the dual select committee process, but said the organisation was "deeply concerned" with the move to take decisions affecting local communities "in the hands of unelected regional planning committees, with at most one person representing each local authority, an as yet undefined number representing mana whenua and one representative of the Minister of Conservation".

Williams said: "That stripping away of local democracy undermines the ability of local communities to have a real say - via duly elected councils - on fundamental aspects of what happens in their own neighbourhoods."

The EMA, meanwhile appeared to support the change in decision making.

"The intent to cut the number of plans to just 14 while still enabling localised input should reduce current complexity in the planning regime and give more clarity for infrastructure development, industrial development and crucially faster housing development," EMA head of advocacy and strategy, Alan McDonald said.

But McDonald said it was unclear how the NBA would fit with a forthcoming Strategic Planning Bill and the Climate Adaptation Bill.

"Potentially replacing one RMA with the new Acts could possibly add to rather than reduce complexity, so the interface between the three will be critical."