4 Feb 2009

Companies welcome RMA changes

3:11 pm on 4 February 2009

Planned changes to the Resource Management Act have been largely cheered by the business community as likely to reduce costs and impediments to investment.

The Government on Tuesday revealed reforms to the legislation, under which consent applications for nationally-important projects will be sent directly to an independent board of inquiry.

Resource consent decisions on these projects of national significance will be made within nine months.

Business New Zealand chief executive Phil O'Reilly says the current legislation has made many businesses think twice about investments and the overhaul should help change that.

Meridian Energy has projects worth about $3 billion going through the consent process. Spokeswoman Claire Shaw says the changes have the potential to reduce developers' costs.

She said the company's West Wind windfarm project has spent two years in the RMA process, which incurs a massive cost.

The changes include plans to crack down on firms that fight consent applications purely to delay or thwart the plans of their competitor.

Firms will not be able to object to consents on the grounds of competition concerns, and the courts will be able to award not only costs but also damages against those who use the act as a weapon.

However, a resource management partner with law firm Chapman Tripp, John Hassan, said opposing consents for competitive reasons is more common than just among supermarkets and petrol stations, and the changes may not fully address the problem.

Environment Minister Nick Smith believes only one or two companies will need to be caught by the provisions before there is a change of behaviour.

RMA changes

Dr Smith on Tuesday unveiled reforms to the Resource Management Act intended to simplify and streamline processes.

He said the costs, uncertainty and delays under the current act are adversely affecting infrastructure, productivity and jobs.

He said major projects would go directly to a board of inquiry in what he described as a "one step robust process", rather than first going through local councils and then the Environment Court.

Legislation will be introduced next week when Parliament resumes for 2009.

Dr Smith expects the bill enacting the changes to be passed into law in September.

Devil in the detail, say sector groups

Sector groups say they are relatively happy with proposed changes to the Resource Management Act, but agree the devil will be in the detail.

The Environmental Defence Society says the changes have the potential to lower environmental standards by eroding the rights of the public to participate in the process.

The Property Council, which represents owners and developers, says the use of the Resource Management Act to stymie commercial development will stop under the proposals.

A group which opposes Meridian Energy's planned windfarm, Project Hayes, has welcomed the changes.

Save Central campaign co-ordinator Graye Shattkey said a speeded-up process could saved groups such as his hundreds of thousands of dollars on lawyer fees and expert witnesses.

Federated Farmers says the effort to streamline and simplify the RMA is just "an okay first step" and more is needed to protect property rights.

The Government says it dropped plans to remove the Treaty of Waitangi clause from Act because the Maori Party opposed the change and a technical advisory group said the clause had little effect in the courts.

However, lawyer Grant Powell said the proposed chanfes are a missed opportunity to strengthen Maori protections.

Political reaction

Labour Party leader Phil Goff said though some changes are needed to the act, they should not be at the expense of community groups and the environment.

Mr Goff said three quarters of all consents are heard within 20 days and Labour will be scrutinising the legislation very carefully to ensure that people's rights are upheld.

The Green Party says the proposed changes shifts the balance toward developers and away from communities and the environment.

The Government says there will be less public notifications of resource consents to reduce delays at local body level.

But Green Party co-leader Russel Norman said 95% of resource consent applications are currently not notified.

Mr Norman said any reduction of that will stifle the democratic rights of local communities to know what is going on in their neighbourhood.