Herald NOW: Daily News Update: June 18 2025. Video / Herald NOW
The Government will take back power from local councils if their decisions are going to negatively impact economic growth, development or employment.
In a speech to business leaders at the Wellington Chamber of Commerce, Housing and RMA Reform Minister Chris Bishop has announced Cabinet will insert a new regulation powerinto the Resource Management Act (RMA).
“We have had decades of local councils trying to make housing someone else’s problem and we have a planning system that lets them get away with it,” Bishop said.
Accusing local government of being one of the largest barriers to housing growth, Bishop said the provision would be added into the RMA amendment legislation currently before Parliament.
“The RMA’s devolution of ultimate power to local authorities just has not worked. There may be people who say ‘why don’t you just leave councils to it?’ The reality is, central Government has an intense interest in the way councils plan and allow their cities to function,” Bishop said in a statement.
“We bear the cost, all New Zealanders bear the cost, of a failed and dysfunctional planning system. Ultimately, it is central Government that shells out the $5 billion a year in housing subsidies that is a direct result of a failed planning system. So it is in our interest, and I would argue we are more than justified in taking action to make sure that councils can plan properly.”
Housing Minister Chris Bishop. Photo / RNZ
Before using the power, a minister must check whether what a council is doing is consistent with the national direction under the RMA, and engage with the council.
It would also only be an interim measure while the Government works to reform planning laws, which are due to take effect in 2027 to align with the councils’ next Long-Term Plans.
The Government is also no longer proposing to make Medium Density Residential Standards (MDRS) optional for councils.
The MDRS standards required councils to allow the development of three homes up to three storeys on a site without the need for resource consent.
They were announced by the previous Government and passed with National’s backing. At the time, it signalled a bipartisan commitment on housing.
In Government, National backed down and made the standards optional.
But Bishop now said most councils had already changed their plans to include the MDRS, so it would be inefficient and a waste of money to make them change their plans again.
“Next year, we’ll replace the RMA with a new planning system that makes it easier to plan and deliver the housing and infrastructure New Zealand needs.
“The new planning system is an enormous opportunity to create a planning system that enables and encourages housing growth.”
The document provided more details on six planned law changes:
The establishment of Housing Growth Targets for Tier 1 and 2 councils.
New rules making it easier for cities to expand outwards at the urban fringe.
A strengthening of the intensification provisions in the National Policy Statement on Urban Development (NPS-UD).
New rules requiring councils to enable a greater mixed-use zoning across cities.
The abolition of minimum floor area and balcony requirements.
New provisions making the Medium Density Residential Standards optional for councils.
Last month, ministers released proposed sweeping changes to rules covering councils’ oversight for public consultation.
Papakāinga would also be allowed to have commercial activities of up to 100sq m, conservation activity, accommodation for up to eight guests and education, health, sports, marae, urupā and māra kai facilities. Medium papakāinga of up to 30 homes would be considered a “restricted discretionary” activity, with those of more than 30 units becoming “discretionary” activities.
Labour has criticised the move, saying Bishop has taken National’s “general disdain” for local councils up a notch.
“Councils are elected by the people they serve and know their regions and cities best. Chris Bishop deciding that plans made by local communities are overly restrictive without any evidence to back it up is wrong,” Labour local government spokesman Tangi Utikere said in a press release.
“National’s Resource Management Act legislation is getting the whims of every minister taped to it – instead of protecting natural and urban environments and delivering better outcomes, the hodge podge law is giving Chris Bishop a free pass to do whatever he likes.
“New Zealand is not a sandpit for Chris Bishop to play in.”
