Contents
The Government has released more detail on its prescription to make the Public Works Act 1981 work faster so that it is less of an impediment to infrastructure development.
We’ve had two announcements: the first in February from Land Information Minister Chris Penk on the objectives that would inform the review, and the second this week from Infrastructure Minister Chris Bishop outlining some preliminary changes to come into effect within the next six months.
We summarise and provide commentary on what we know so far.
Overall objectives
- Delegate land acquisition responsibility: empower government agencies like the New Zealand Transport Agency, which regularly use the Public Works Act (PWA), to enter into acquisition agreements with landowners. The Minister for Land Information will remain responsible for compulsory acquisition by the Crown.
- Enable collaboration between agencies: allow government agencies to work together when acquiring land for connected public projects. Instead of each agency acquiring land separately, they will be able to coordinate acquisition as needed to make the process smoother.
- Enable relocation of infrastructure: allow both the government and local authorities to acquire land when they need to move existing infrastructure (like powerlines or pipes) that are in the way of new public works.
- Refine the role of the Environment Court: clarify the factors that the Environment Court can consider when reviewing objections to land acquisitions for public works, with a renewed focus on individual property rights, removing overlap with the Resource Management Act.
- Require mediation for compensation disputes: require that parties try to resolve compensation disputes through mediation or alternative dispute resolution before going to the Land Valuation Tribunal, to avoid lengthy court proceedings where possible.
- Allow Transpower to bypass standard processes: enable Transpower, the State-Owned Enterprise managing New Zealand’s power grid, to use the Public Works Act to acquire land by agreement. This would help streamline the process.
Preliminary moves
- A streamlined objections process, bypassing the Environment Court, that will cover Roads of National Significance and other projects listed in Schedule 2 of the Fast-track Approvals Act that qualify as public works.
- Incentive payments of 15% of land value (up to $150,000) if landowners agree to sell before a Notice of Intention to compulsorily acquire is issued.
- Additional ‘recognition payments’ to landowners, acknowledging the critical role their land plays in delivering essential infrastructure.
Chapman Tripp comment
A targeted review of the PWA last year found unnecessary duplication in the system, issues with outdated negotiation processes and disjointed government agency practices. We consider that legislative change is required to resolve these problems, but that the incentive payments will likely be effective in the meantime in encouraging the parties to reach agreement in a timely manner.
New Zealand’s pressing infrastructure requirements (particularly in the energy space) will ensure that urgency is maintained around the need for an efficient and fair land acquisition process that balances private property rights against the need for infrastructure projects to be delivered efficiently.
We look forward to further decisions and action from the Government on PWA reform.
