Overhauling the Resource Management Act (RMA) is critical to addressing
housing supply and affordability, and maintaining the momentum of economic
and job growth as well as better managing New Zealand’s environment,
Dr Nick Smith said today in his 20th annual speech to Nelson Rotary.

“The Resource Management Act has produced over 80,000 pages of plans and
rules across New Zealand’s 78 councils. This 10-metre mountain of red tape is
holding back the development of new houses and jobs, and it is not performing
well enough in managing key resources like freshwater,” Dr Smith says.

“The Government is planning the most significant overhaul of the Act since its
inception 25 years ago. We want to modernise the purpose to make it more
practical and relevant, standardise council plans and simplify the process for
gaining consents.”

Dr Smith today also released an independent report by Motu Economic and
Public Policy Research – commissioned by the Treasury and the Ministry of
Business, Innovation and Employment – into the impacts of planning rules,
regulations, uncertainty and delay in residential property development.

The report concludes that the RMA is adding an extra $30,000 to the cost of an apartment, an extra $15,000 to the cost of a home, and that it is reducing the capacity of housing development by 22 per cent.

“This report is consistent with the conclusions of the Productivity Commission and the Organisation for Economic Cooperation and Development in highlighting the high administrative burden of our system of environmental regulations, but also adds new information by estimating the actual cost of its flaws. It indicates that over the last decade, the RMA has added $30 billion to the cost of building and reduced new housing stock by 40,000 homes,” Dr Smith says.

Dr Smith also cited practical examples in his speech of where the RMA had wasted health and education funding, and where councils were using the RMA to unnecessarily interfere in people’s lives.

“Our first phase of RMA reforms has made a positive difference in getting consents processed more quickly, including for major projects like the Waterview Connection in Auckland, but we have always made plain more substantive change was required,” Dr Smith says.

Dr Smith outlined ten major changes the Government would be including in its second phase of reforms in 2015:

• Add natural hazards
• Recognise urban planning
• Prioritise housing affordability
• Acknowledge importance of infrastructure
• Greater weight to property rights
• National planning templates
• Speed up plan-making
• Encouraging collaborative resolution
• Strengthening national tools
• Internet for simplicity and speed

“Today’s speech sets the direction for reform. We have a power of work ahead to do with officials, our support parties and Cabinet committees to finalise and draft the required Bill. Our ambition is to have the Bill before Parliament and through a full select committee process this year,” Dr Smith says.

“These reforms will be pragmatic and moderate. We want to reduce the mountain of plans and rules that make the RMA a barrier to new housing and jobs, but retain the core environmental controls that ensure we keep New Zealand special and such a great place to live.”