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Reform Paves Way for Sustainable Growth

Reform Paves Way for Sustainable Growth

Key changes aim to boost development and environmental outcomes.

The New Zealand government has unveiled a comprehensive reform of the resource management system, aimed at promoting sustainable growth and reducing regulatory anxiety. At the heart of the change is the need to rebalance incentives for decision-makers, shifting from a culture of risk aversion and restriction to one that encourages optimal outcomes.

Key reforms include descoping the RMA's broad scope, which will reduce the number of issues planners must consider, and allowing districts and cities to plan with more autonomy. National standards for common activities will also alleviate anxiety for planners and decision-makers, enabling development to proceed with greater certainty. The introduction of biodiversity offsetting and compensation is expected to lead to better environmental outcomes.

A Planning Tribunal will provide an accountability mechanism against scope creep and unjustified regulation, ensuring the system delivers as intended. Compensation for regulatory takings will also be introduced, confronting decision-makers with the costs of decisions that infringe on property rights.

The reforms aim to drive a culture change among planners and decision-makers, aligning them with the nation's ambitions for the new system. By prioritizing "yes, and" over "no, but," the government hopes to foster a more collaborative approach to development and environmental management. The success of these reforms will depend on the ability to implement them effectively and address long-standing issues in the resource management system.