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The introduction and reference to select committee under urgency of the Public Works Amendment Bill is an early Christmas present for the infrastructure sector.
The Bill modernises and streamlines the Public Works Act 1981 (“PWA”), massaging away long-standing pain points in land acquisition, objections, and compensation processes. It will be of particular benefit to utilities operators, electricity distributors, Transpower, and local authorities.
We cut through the detail and outline the key changes. Submissions on the Bill are due on 27 January 2026.
Acquisition of land for infrastructure relocation
Proposed new sections 27E to 27H plug a gap in the existing Act by creating an express power to acquire land for the sole purpose of relocating existing infrastructure owned by the Crown, a local authority or a “responsible network utility operator” (who is also a requiring authority).
The offer-back obligations in sections 40 and 41 of the PWA will apply to land acquired in this manner. Section 27H provides that the responsibility for complying with these obligations sits with the chief executive of Land Information New Zealand (LINZ), rather than the network utility operator in whom the land may have vested.
Acquisition of land for emergency recovery
The Bill introduces a new fast track process (Part 2C), enabling the Minister to issue Orders in Council after a state of emergency. These orders can temporarily reduce consultation and notice requirements, and limit objection rights in the Environment Court, where compliance with standard procedures would be impracticable.
This process can be applied to specific public works or to projects of “responsible network utility operators”, expediting disaster recovery and network restoration.
Where an Order in Council is issued in relation to projects or works belonging to “responsible network utility operators”, the usual section 186 Resource Management Act (RMA) acquisition process is streamlined by deeming Ministerial consent to have been granted to an application for the taking of land under section 186(1) RMA.
Enhanced powers for Transpower
Under new Part 2B Transpower will have the ability to directly enter into agreements for the acquisition of land under section 17 PWA and to undertake negotiations with landowners under section 18(1)-(3) as if Transpower were the Minister.
It also allows the transfer of land from the Crown or local authorities directly to Transpower (without having to go through the section 40 and 41 offer-back process) under section 50 of the PWA and allows land (including reserves and common marine and coastal area) to be set apart for Transpower under section 52 PWA.
The Bill provides that these acquisition powers do not affect Transpower’s ability to acquire land other than via the PWA acquisition process.
Where land is acquired for a Transpower work under the PWA acquisition process, sections 40 and 41 PWA will apply, and the responsible chief executive (not Transpower) is responsible for complying with this offer-back process.
Offer-back obligations – a change in approach?
A notable policy shift in the Bill is the Government’s express retention of responsibility for the offer-back process under sections 40 and 41 PWA, even when land has been vested in Transpower or a network utility operator.
The current position under the Electricity Act, Telecommunications Act, and Gas Act is that the relevant utilities are arguably responsible for handling offer-backs themselves. This may create future legal or practical tensions if the Crown is required to manage land it no longer owns.
What this means for the infrastructure sector
Overall, we consider that the Bill is positive for the infrastructure sector as it:
- encourages collaboration between parties undertaking public works
- addresses known problems with the PWA, and
- recognises the need to speed up acquisition processes in emergency scenarios to enable the restoration of essential networks and utilities.
In particular, this Bill is a welcome reflection of the lessons learned about the importance of re-establishing infrastructure connections following disasters like Cyclone Gabrielle in 2023.
