Improving the approvals/consents process

Christine Gordon, Senior Associate and Briana Lyons, Solicitor at Simpson Grierson look at legislative reforms aimed at streamlining the approvals/consents process, increasing competition in the material supply market, and ‘cutting red tape’. 

The Building (Overseas Building Products, Standards, and Certification Schemes) Amendment Bill (Building Products Amendment Bill), is designed to remove barriers to using building products that have been certified in other countries.

The Fast-track Approvals Act 2024 (FTAA) is designed to accelerate consenting processes for major projects and create a ‘one-stop shop’ for consenting of major projects. 

The proposed Public Works Act 1981 (PWA) Reforms: relate to the acquisition of land needed for infrastructure projects.

Building Products

The Building Products Amendment Bill⁽¹⁾ implemented recommendations from the Commerce Commission’s Residential Building Supplies Market Study in December 2022 (following the highly-publicised GIB shortage). It emphasises competition in the regulatory system, including that competition should take a central role in the regulatory system.⁽²⁾  

The Bill amends the Building Act 2004 to remove barriers to overseas building products being used in New Zealand by streamlining the use of international standards. Building Consent Authorities (BCA’s) will be required to accept products and methods from overseas schemes if these are recognised by MBIE. 

These changes are expected to reduce delays and project disruptions caused by supply shortages. However, questions remain around which overseas products will be accepted as certified by ‘trusted overseas jurisdictions’ and testing of their suitability for use in New Zealand (i.e. untreated timber may be suitable in warmer, drier regions but is unsuitable in humid climates such as Auckland).

Fast-track Approvals Act 

Enacted on 23 December 2024, the FTAA creates a one-stop shop for consenting, aiming to facilitate the delivery of infrastructure and development projects with ‘significant regional or national benefits’.

There are currently 149 projects listed on the ‘fast-track’ including the Airport to Botany Rapid Transit project and Milldale residential project.⁽³⁾   

For these projects, the next step is to submit their substantive application for consideration by the Expert panel.⁽⁴⁾

For projects that are not yet on the ‘fast-track’, an application will need to be made to be a ‘referred project’ before a substantive application can be made to the Expert panel.⁽⁵⁾   

Expert panels (independent decision-making bodies) are set up for each project to decide whether or not a substantive application is approved. Expert panels have broad powers, as set out in Schedule 3. The panel convenor must be either a former Environment Court or High Court Judge or a senior lawyer with expertise in resource management.⁽⁶⁾  

The FTAA provides narrow pathways to challenge decisions, reflecting a policy intent to prioritise speed and certainty. A decision of the Expert panel can be appealed to the High Court, but only on a question of law.⁽⁷⁾  This right is limited to the applicant, the relevant local authority, the Attorney-General, or any person or group that was invited to provide comments.

Public Works Act Reforms

As Minister Penk states ‘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.’⁽⁸⁾ The PWA is well overdue for review, as it has remained largely untouched since 1988.

The amendments aim to accelerate the acquisition of land needed for the public projects in Schedule 2 of the FTAA and the Roads of National Significance in the Government Policy Statement on Land Transport 2024. The review also focuses on safeguarding Maori land and ensuring fair compensation processes for Maori landowners. 

The proposed changes introduce new financial incentives for landowners who voluntarily sell their land before receiving a Notice of Intention, offering a premium payment of up to 15% of land value (capped at $150,000) and a separate recognition payment of up to $92,000. 

The amendments remove the role of the Environment Court from the objection process, meaning objections would be determined by the Minister or the relevant local authority. 

Overall, the year is shaping up to be a pivotal year for regulatory reform impacting the construction sector, but it remains to be seen how these reforms will operate and whether they assist with achieving greater certainty in the market. 

 

FOOTNOTES

(1) Passed with cross-party support on 2 April 2025.

(2) Commerce Commission Residential Building Supplies Market Study 2022.

(3) Schedule 2 of the FTAA.

(4) Sections 42 – 45 of the FTAA.

(5) Section 13 (Referral Application) of the FTAA.

(6. Schedule 3, section 1 of the FTAA.

(7) Section 99 of the FTAA.

(8) Hon Chris Penk ‘Going for Growth: Public Works Act overhaul’ (25 February 2025) Beehive.