Blueprint for New Zealand's resource management reform released by Expert Advisory Group

The Expert Advisory Group was given the task, based on objectives and principles set by Cabinet, of preparing a blueprint to replace the Resource Management Act 1991 (RMA) which has faced widespread criticism for being slow, expensive, and heavily amended. With Cabinet now agreeing on the shape of the new legislation, on 24 March 2025 the Ministry for the Environment (MfE) released the Expert Advisory Group's report on resource management reform. The report outlines a better planning and resource management system for 2025. Here are the key recommendations from a high-level perspective:

1. Two separate Acts are expected to be introduced by the end of 2025:

• Planning Act – focused on regulating the use, development, and enjoyment of land. The Act will enable urban development and infrastructure (including renewable energy), and cover natural hazard management.
• Natural Environment Act (NEA) – focused on the use, protection, and enhancement of the natural environment. The NEA will address impacts on freshwater, indigenous biodiversity, landscapes, and the relationship of Māori and their culture with natural resources.

2. Narrowed regulatory scope to effects management – by moving away from the RMA approach of assessing and managing any positive or adverse effect of an activity, and instead focusing on the economic concept of "externalities" (a cost or benefit resulting from one party's activities on an uninvolved third party). Effects solely carried by the party carrying out the activity will not be controlled by the new system.

3. Enjoyment of property rights will be the foundation of the Acts, requiring regulatory justification reports if departing from nationally standardised approaches. Compensation may be payable for regulatory takings in some circumstances.

4. National policy direction will be simplified and streamlined as one set of national policy direction under each Act.

5. Regional Policy Statements (RPS) will be eliminated and partially replaced by spatial plans made under the Planning Act.

6. Spatial and regulatory plans' form and structure will be greatly standardised to be collated as "one national e-plan for New Zealand":

a. Spatial plans: will include the coastal marine area and will focus on mapping major constraints, identifying existing and future infrastructure, future urban areas, and growth and development opportunities.

b. Regulatory plan: a single regulatory plan per region will be required by each Act. The regional council will prepare a natural environment plan under the NEA and the district councils will each prepare a chapter of a combined district plan.

7. National goals will be contained within each Act, setting out the main objectives of the regulatory framework, and provide a basis for monitoring. The Planning Act will include goals for infrastructure provision and well-functioning urban and rural areas, whereas the NEA will include goals for protecting important natural values.

8. Nationally standardised zones (NSZs) will be required under the Planning Act, with MfE creating NSZs for councils to select and apply in the combined district plan. NSZs will have a "stickier" exceptions pathway if bespoke requirements are needed to meet community needs / preferences.

9. Environmental limits will be required under the NEA to protect the life-supporting capacity of the natural environment. The NEA will also require environmental controls to protect significant natural values, such as outstanding natural features and landscapes and significant natural areas. In addition, councils will be required to charge for using natural resources to recover costs, and in the case of over-allocated resources, to manage them back within environmental limits over time.

10. Consenting activity classes will be rationalised and simplified by making greater use of permitted activities, removing controlled activities, directing more focus on use of restricted discretionary activities, removing non-complying activities, and retaining prohibited activities with a narrower scope and direction.

11. Reverse sensitivity concerns will be addressed under the Planning Act "Those that come to the nuisance" will not be able to complain about it, and reasonable expansion of an existing activity will be permitted where the site is zoned or owned.

12. A new Planning Tribunal will be established to provide quick, low-cost conciliation and administrative review of council functions, including notification and requests for further information, as well as determination of the meaning of consent conditions.

13. A new national compliance regulator with a regional presence will be established, taking over from regional councils' compliance and enforcement functions.

Overall, the proposal is to create a simpler, more effective, and streamlined system than the current RMA. To ensure a fast transition, the regulatory plans made under each Act will be considered by Independent Hearing Panels. Appeals to the Environment Court will be possible in some circumstances. A final spatial plan will be approved by all local authorities in the region.

How the reform will achieve the key goals in the Report will depend on the details of the legislation, which we will closely follow. For more information on the Expert Advisory Group Report or if you have any questions, please get in touch.