New Zealand advances major overhaul of Resource Management Act

Parliamentary Under-Secretary Simon Court said the changes will provide greater certainty for farmers, developers and landowners while reducing unnecessary bureaucracy.

New Zealand's proposed replacement for the Resource Management Act (RMA) has taken another major step after the Environment Committee returned the Planning Bill and the Natural Environment Bill to Parliament with a series of recommended changes that the Government says will make the new planning system easier to use while keeping its overall structure intact.

Resource Management Reform Minister Chris Bishop said the legislation is designed to remove barriers that have slowed housing, infrastructure, renewable energy projects and food production, while continuing to protect the environment. He said the reforms are central to the Government's wider plan to improve productivity and support long-term economic growth.

Government highlights economic and planning benefits

According to the Government, independent analysis estimates the new planning framework could increase New Zealand's gross domestic product by an additional 0.56 per cent each year by 2050, delivering economic gains worth up to NZ$3.1 billion annually. A separate cost-benefit assessment projects savings of around NZ$13.3 billion over the next 30 years through lower administrative and compliance costs.

Officials also estimate that almost 45 per cent of the consent and permit applications currently required under the RMA would no longer be needed under the new system. Based on recent application numbers, that could remove the need for between 15,000 and 22,000 consents each year, reducing paperwork for businesses, developers and landowners.

Committee recommends practical changes before final approval

Following months of public submissions, the Environment Committee proposed several amendments that the Government has accepted. One of the most notable changes concerns Mana Whakahono ā Rohe agreements, which are formal arrangements between councils and iwi.

The Government has decided that existing and newly initiated agreements will not automatically transfer into the new planning framework. Councils will instead be able to establish new, more narrowly defined iwi participation agreements that focus on statutory planning processes and Treaty settlement obligations, with safeguards intended to prevent those agreements from expanding beyond their original purpose.

The Government is also considering further amendments relating to Waikato's Plan Change 1, saying it would be impractical for farmers and growers to implement new regional planning rules while national legislation and policy directions are being replaced.

Stronger focus on certainty and simpler decision-making

The proposed planning framework will continue to operate through two main laws supported by national planning instruments. The reforms narrow the issues that can be revisited during planning decisions, introduce more consistent planning rules across the country, reduce consenting requirements and set higher thresholds for public participation in consent processes.

The Environment Committee also recommended stronger recognition of property rights, food and fibre production, infrastructure development, competitive urban land markets and environmental improvement within the legislation's purpose and goals.

Other amendments tighten rules around natural resource levies, remove proposed market-based allocation methods in favour of retaining a first-in, first-served permitting system, and replace the precautionary principle with a more evidence-based approach to environmental decision-making.

More time for councils to prepare for the new system

Parliamentary Under-Secretary Simon Court said the changes will provide greater certainty for farmers, developers and landowners while reducing unnecessary bureaucracy. The legislation also restores controlled activity classes for primary industries, simplifies wildlife approvals and confirms that greenhouse gas emissions will continue to be managed through New Zealand's Climate Change Response Act and Emissions Trading Scheme rather than the new planning laws.

The Environment Committee has also recommended extending the transition period from 30 months to 39 months, giving councils and planning professionals additional time to prepare for the new framework. The Bills will now move to their second reading in Parliament, while the Government prepares to release draft National Policy Direction documents that will show how the new planning system is expected to operate across New Zealand.