'The days of letting councils decide that growth shouldn’t happen at all are over', says Chris Bishop

New power is on the way for Housing Minister Chris Bishop to override local councils.

The Cabinet has agreed to implement a new rule that allows for them to “modify or remove provisions in local council plans if they negatively impact economic growth, development, or employment”.

The new regulation is temporary and will be in place until the Coalition Government’s new planning system comes into effect.

The Government aims to replace the Resource Management Act (RMA) with a Natural Environment Act and a Planning Act.

Reforms to the RMA include things like: creating a single set of residential and commercial zoning rules which local councils can use to plan their districts and allowing people to build on their property unless it significantly impacts the natural environment or the ability of others to use their own land.

Speaking at the Wellington Chamber of Commerce on Wednesday morning, Bishop told the audience: “It is an inarguable, and sometimes uncomfortable, fact that local government has been one of the largest barriers to housing growth in New Zealand.”

Bishop says the Cabinet plans to add this interim measure to the RMA Amendment Bill that is before Parliament and it is expected the new regulation will be passed into law in the next few weeks.

But there is a caveat before this power can be used - the housing minister has to investigate, consider a council’s “consistency with existing national direction” under the RMA and engage with the local authority.

“We believe this strikes the appropriate balance between the local and national interest.”

"...We aren’t willing to let a single line in a district plan hold back millions or billions in economic potential. If local councillors don’t have the courage to make the tough decisions, we will do it for them.

"Let me be absolutely clear: the days of letting councils decide that growth shouldn’t happen at all are over."

Discussion document for “Going for Housing Growth” plan

Alongside this new regulation, Bishop also released a new discussion document about the Government’s “Going for Housing Growth” plan and in particular, its Pillar 1 proposals.

The plan has three pillars and the first pillar looks at “freeing up land for urban development, including removing unnecessary planning barriers”.

This includes proposals such as:

• Introducing new housing growth targets for councils in places like Auckland, Wellington, Rotorua and New Plymouth and making them “enable 30 years of feasible housing capacity in their district plans”
• Strengthen the intensification requirements for councils in Auckland, Hamilton, Tauranga, Wellington and Christchurch
• Provide more mix use across urban environments (for example, having a cafe near people’s homes)
• Stop councils from imposing rural-urban boundary lines in planning documents
• Investigate ways councils can plan for 50 years of growth (instead of 30) and be more responsive to private plan changes
• Stop councils from having minimum floor area or balcony requirements
• Make the MDRS optional for councils

The discussion document is open for public submissions until August 17.

Bishop says the discussion document is a “critical step” in shaping a system that “finally puts housing supply, economic growth, and common sense at its core”.

“We are not interested in tinkering. We are building a planning system where housing growth is not just allowed - it’s expected. Where councils are accountable for delivering capacity, not blocking it.”

‘Overly restrictive’

The Labour Party has called the Government's new power to override council decisions an “overreach”.

Labour’s local government spokesperson Tangi Utikere says councils 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," Utikere says.

"New Zealand is not a sandpit for Chris Bishop to play in.”