Prime Minister John Key says Government will have to "rip up" its Resource Management Act reforms after National's by-election defeat in Northland.
Speaking to Radio New Zealand this morning, Mr Key said that there now no chance of getting majority support for changes to the Act's core principles.
"With the RMA, there's just no question that you've got to rip up what we've got now, go back to the drawing board and have another go," he said.
New Zealand First leader Winston Peters' victory in the Northland by-election on Saturday meant National could no longer pass legislation with the support of just the Act Party.
National needed another vote from either United Future or the Maori Party, both of whom opposed National's proposed changes to the core principles of the RMA.