Pacifecon research manager Philip Dawes takes a look at one of the company’s recent reports that details the latest local government reforms.
Pacifecon’s research team has compiled a report on the latest local government reforms. As a country we are facing challenges when it comes to infrastructure and, as a result, change is on the horizon. It’s critical we get these changes right, focus on core services, and align local priorities with the national objective of economic growth.
Councils are working through a significant amount of uncertainty as details on the reforms are still being developed and refined. Some of those changes include:
• Water: Currently there are more than 40 distinct water entities and 40-plus new water strategies. More regional partnerships are expected.
• Resource Management: Plan stop — councils must halt most plan and policy statement changes until the end of 2027 (there are some exceptions). Compliance and enforcement will be stepped up.
• Land Transport: Work has been halted on previously-funded projects (walking and cycling). The focus will be on roads of national significance.
• Climate Change: The ban on new oil and gas exploration has been lifted. The Government is working on various energy initiatives to boost renewable energy and to realise New Zealand’s clean energy potential.
Some of the new legislation being introduced includes local government system improvements focusing on core services, including networks infrastructure, public transport, waste, civil defence and community facilities.
There is also the introduction of a Planning Act, a Natural Environment Act and a possible Enforcement Act, the result of which would see more plans being prepared by councils.
Regarding the construction industry, various bills are being introduced to speed up the consenting process, including those for small stand-alone dwellings, self-certification by plumbers and drainlayers, and strengthening of occupational licensing regimes. Systems will also regulate high-risk earthquake-related building types in medium and high seismic zones.
There is optimism around efforts to reduce consenting delays and streamline planning processes, although many of the practical details are still being worked through.
There’s more waiting in the wings, too, with pending legislation to simplify local government by removing regional councillors, a “Head Start” pathway for councils wishing to go early on amalgamation, and establishing a unitary authority. Rates capping, development levies and climate change amendments are also being looked at.
Pending voluntary consolidation of Building Consent Authorities (BCAs) would mean councils are no longer required to be a BCA, updating and standardisation of regulations would eliminate duplication, and collaboration would be incentivised.
The report also breaks down Pacifecon’s pipeline project numbers, including:
• Civil, energy and heavy industry infrastructure: $151.8 billion in early planning, $42.4 billion in planning, and $6.9 billion in tendering.
• Non-residential — civil, commercial, education, health, industrial, sport and multi: $209 billion in early planning, $74.5 billion in planning, and $9.2 billion in tendering.
• Residential: $76.4 billion in early planning, and $16.8 billion in planning.
We anticipate there will be a lot of changes in local government over an extended period of time — upwards of three years — as well as new agencies to deal with, and more plans to understand and keep an eye on. While details are still to emerge, the reduction in red tape for construction will be welcome.
Score a free copy of the reform report
• Our team of 30 researchers reports on residential and non-residential projects, as well as civil infrastructure across New Zealand. They undertake approximately 1000 hours of research each week, and have a strong understanding of local terminology, industry dynamics, and market nuances, resulting in accurate and meaningful project intelligence.
Email projects@pacifecon.nz to request a copy of the free Local Government Reform Report.
