An overhaul of the Public Works Act – which gives the Crown the power to acquire land from private landowners for the purposes of building infrastructure – is already under way and expected to be completed by early next year.
However, Land Information Minister Chris Penk said these amendments will come into force about six months earlier. A draft Bill will be introduced in May, with the public able to provide feedback during the select committee process.
“Public infrastructure projects up and down the country are often held up for years by overly complex, drawn-out processes for purchasing the land needed,” Penk said.
“This has meant that projects which would provide massive benefits for communities end up stalled, with the only action happening in courtrooms.”
Infrastructure Minister Chris Bishop said New Zealand has “accepted too many reasons to say no”.
“The result has been long, drawn-out legal battles over land acquisitions that have cost time, money, and livelihoods.
“All New Zealanders deserve better – not only those who will benefit from a project, but also the people whose land is needed for it. It’s time to say yes to getting stuff done.”
The ministers said that while they will use the Public Works Act to “tear down these roadblocks”, there will be “premium payments” and a “streamlined objections process” for those affected by the most critical public infrastructure projects.
The amended legislation will feature:
- Incentive payments that encourage early agreements between the Crown and landowners. If landowners voluntarily agree to sell their land before a ‘notice of intention’ is issued, they will receive an additional premium payment equal to 15% of their land’s value, up to a maximum of $150,000.
- Recognition payments (5%) will go to all landowners whose land is acquired through the accelerated process. This is to acknowledge the critical role the land plays in delivering essential infrastructure, and is up to $92,000.
- A streamlined objections process will mean landowners who object to land acquisition for critical infrastructure projects won’t go to the Environment Court, but directly to the relevant decision-maker, such as the minister or local authority, for faster resolution.
There will still be two existing protections for landowners: their ability to challenge the land value to be compensated (via the Land Valuation Tribunal); and the right to seek judicial review of official decision-making claimed to be “unreasonable”.
Owners of protected Māori land will gain the benefit of the payments. But they will also retain the right to object to the Environment Court.
Bishop said objections “massively slow down delivery of critical infrastructure projects, causing significant time delays and cost increases”.
“These delays and cost increases are unacceptable, which is why the Government is prioritising amendments to the PWA related to critical infrastructure now.”
He said that over the past decade, 49 objections have been received for compulsory land acquisitions just for New Zealand Transport Agency Waka Kotahi projects.
“The new accelerated objections process will mean we can work through any objections far more quickly. Then we can get on with delivering important infrastructure projects that will help grow our economy so New Zealanders can get ahead.”
The changes support the coalition agreement between National and New Zealand First to “prioritise strategic infrastructure and simplify the planning system”.
Speaking to reporters, Penk said that while there will be a cost in offering these payments upfront, it will save authorities money that may have been spent on litigation costs and issues arising from delays.
He said delays also cause an “opportunity cost for the community that doesn’t get the benefit of the infrastructure”.
Bishop added, “time is money and every delay costs money”.
“Certainty in the short-term is worth paying a bit extra for.”
He said the payments would be funded from the individual projects’ budgets.
The fast-track process, cemented in law at the end of last year, allows particular projects deemed to be of regional or national significance to be eligible for a streamlined approvals process. A list of 149 projects, including roads of national significance, were included in the legislation and eligible for the fast-tracking.
The legislation was, however, controversial, with concerns that it didn’t give enough consideration to environmental considerations.
Bishop said on Sunday that the Government made no apologies about dealing with the country’s infrastructure deficit.
“The sense I get from New Zealanders around the country is they just want things built. They’re sick and tired of waiting so long for projects to even start. They’re sick and tired of endless projects being tied up in court for year after year after year. They just [want] progress.”
The fast-track proposal initially gave significant power to three ministers to decide what projects got the green light. That was eventually walked back after an uproar, but conflict- of-interest questions still remained and had to be addressed directly by ministers.
Asked if the decision to have landowners submit their objections to the relevant minister to deal with risked politicising the system, Penk said he didn’t think so as he believed there was a consensus among politicians to have a pipeline of infrastructure.
“Where there are particular projects, if I have a relationship personally with anyone involved in land acquisition, obviously I’ll recuse myself as appropriate in accordance with standard conflict of interest procedures.”
He emphasised there was still the ability for landowners to seek a judicial review of decision-making or challenge the land value to be compensated.
Sunday’s announcement follows a tranche of changes to the Public Works Act announced by Penk late last month.
They included allowing authorities to acquire land to move existing infrastructure in the way of new projects, enabling greater collaboration between agencies wanting to acquire land, requiring mediation between disputing parties before they head to a tribunal.
These are part of the larger overhaul of the Act.
The reforms were spurred on by a review last year that found the legislation was no longer fit for purpose. Penk said there was unnecessary duplication in the system, issues with outdated negotiation processes and disjointed agency practices.
“Right now, it takes up to a year on average to acquire land. If compulsory acquisition is required, the process generally takes up to two years, with at least another year tacked on if objections to the Environment Court are made,” Penk said last month.
“We cannot afford this in the face of a productivity crisis and critical infrastructure deficit. A modernised Public Works Act will set the foundation for building better.”
A previous change fixed a discrepancy in the legislation which Penk said undervalued Māori freehold land compared to other land types.
Jamie Ensor is a political reporter in the NZ Herald Press Gallery team based at Parliament. He was previously a TV reporter and digital producer in the Newshub Press Gallery office.