Hon Chris Penk
Minister for Land Information
Minister for Building and Construction

The Public Works Act will undergo its most significant reform in nearly 50-years to help unleash an infrastructure boom, Land Information Minister Chris Penk has announced.

“Removing barriers to make it faster and more affordable to build the homes Kiwis need, creating jobs through new projects and providing infrastructure to support better public services is a major part of the Government’s economic growth agenda,” Mr Penk says.

“Complex regulations and inefficient processes are slowing down development, resulting in blown out budgets and added costs for taxpayers.

“The Public Works Act is the mechanism which empowers us to acquire land for new infrastructure, while ensuring that fair compensation is provided to landowners – but it is no longer fit for purpose,” Mr Penk says.

“A targeted review last year has found unnecessary duplication in the system, issues with outdated negotiation processes and disjointed government agency practices.

“Right now, it takes up to a year on average to acquire land. If compulsory acquisition is required, the process generally takes up to two years, with at least another year tacked on if objections to the Environment Court are made.

“We cannot afford this in the face of a productivity crisis and critical infrastructure deficit. A modernised Public Works Act will set the foundation for building better.”

Extensive policy changes will be announced over coming weeks.

The first tranche will:

• Delegate land acquisition responsibility: Empower government agencies like the New Zealand Transport Agency, which regularly use the Public Works Act, 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 of land 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 disputes over compensation 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 streamline their process for building energy infrastructure.

“We have already announced the Government will fix a discrepancy in the Public Works Act which undervalues Māori freehold land compared to other land types,” Mr Penk says.

“Further improvements will be revealed as we prepare to introduce the Public Works Amendment Bill to Parliament around the middle of 2025.”

The public will be able to provide feedback during the select committee process.

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