New Zealand to lift planning ‘handbrake’ and accelerate housing growth

[WELLINGTON] New Zealand unveiled a proposed new planning system the government says will make it easier to build homes, develop farms and create vital infrastructure that will underpin future economic growth.

Two pieces of legislation, the Planning Bill to regulate land use and the Natural Environment Bill to protect nature and resources, will be introduced into parliament later Tuesday (Dec 9), Chris Bishop, the minister responsible for Resource Management Act (RMA) reform, told a briefing in Wellington. They are expected to become law in 2026, although the system won’t be fully in place until 2029.

The government is delivering on a pledge to reform the RMA, which has been in place since 1991, arguing that the law has hindered construction and development by encumbering projects with red tape. Under the new system, there will be fewer consents, less paperwork and quicker decision-making, which will reduce costs and encourage growth.

“For 30 years, the RMA has been a handbrake on the economy,” Prime Minister Christopher Luxon said. “This is a once-in-a-generation opportunity to unburden ourselves from this millstone. There will be less talking and more growing.”

Officials estimated as much as 46 per cent of consent applications required under the current law won’t be needed. That would have meant about 22,000 fewer consents in the year to June 2024.

The reforms will save the economy NZ$13.3 billion (S$10 billion) over 30 years and may add more than NZ$3.1 billion a year to gross domestic product by 2050, Bishop said.

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The new system relies on the central government setting National Policy Direction and National Standards that planners must abide by. It also introduces a Planning Tribunal to determine minor disputes.

The government expects the new rules will encourage housing development by creating long-term spatial plans that show where infrastructure and new homes will go while also making subdivision easier. BLOOMBERG