…as business groups welcome changes designed to encourage development

25th March 2025 By Paul Yandall | paul@propertyticker.co.nz | @propertyticker

Business and industry groups have backed the government’s proposed changes to the Resource Management Act, saying they will help bring down the costs of development.

The government said on Monday that it planned to replace the RMA with two new acts: a Planning Act, focused on regulating the use, development and enjoyment of land; along with a Natural Environment Act, which will look at the use, protection and enhancement of the natural environment. 

BusinessNZ welcomed the phase three reforms of the RMA as “another step in the right direction,” after the government firstly repealed Labour’s changes, and secondly, introduced the Fast-track Approvals Act.

“Current consenting processes are slow and costly, and projects can be rejected or have costly conditions placed on them due to the RMA,” BusinessNZ chief executive Katherine Rich said.

“In many cases consent processes do not sufficiently recognise the economic and social benefits of development relative to other considerations.

“In BusinessNZ’s view, the RMA will continue to inhibit New Zealand’s growth potential until it is properly amended to recognise property rights and allow responsible growth to happen.”

The government would look to progress its reforms, introducing two acts to replace the RMA by the end of 2025, claiming its replacement would cut administrative and compliance costs by 45%.

The Employers and Manufacturers Association said it supported the government’s direction of travel around the two new acts.

“The current Resource Management Act is highly complex and frustrating,” said EMA head of advocacy Alan McDonald.

“It has been too difficult to build the infrastructure and houses New Zealand desperately needs. The proposed changes will allow for more efficient development while respecting environmental protections and property rights.”

McDonald said that simplification and standardisation of the country’s resource management systems was “desperately needed”.

“It’s frustrating for many of our members to find themselves needing new consents to expand existing facilities, such as sawmills, when they already have permission for such activities.

“The new system should eliminate these unnecessary hurdles, and we strongly support the government’s efforts to ensure that land use is enabled unless there are significant impacts on others or the environment.”

McDonald added that the EMA has worked closely with BusinessNZ, Infrastructure New Zealand and the Property Council over the past seven years to help shape the reforms.

“We are confident that these new laws will be the foundation for better planning, improved economic outcomes, and enhanced environmental stewardship.”

The government’s Blueprint for resource management can be read here and resource management reform fact sheet here.