Proposed changes to the Public Works Act, an essential tool for acquiring land for public infrastructure projects, go further than expected, which Infrastructure New Zealand says demonstrates the Government is listening
Land Information Minister Chris Penk has announced what he describes as the most significant reform to the Public Works Act in nearly 50 years to help unleash an infrastructure boom.
“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,” Penk says.
“A targeted review last year has found unnecessary duplication in the system, issues with outdated negotiation processes and disjointed government agency practices.”
Penk says this is slowing down development and blowing out budgets.
“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.”
Infrastructure New Zealand Policy Director Michelle McCormick agrees that the current legislation leads to grossly inefficient and costly processes.
“These inefficient processes are born from what is out-of-date legislation and need to be remedied if we want to achieve an uplift in infrastructure development in New Zealand. The Public Works Act is a critical piece of the puzzle, and we welcome the progress the Government has made to reform it so far.
First tranche of changes
- 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.
Further changes are still to be announced in the lead up to the Public Works Amendment Bill being introduced to Parliament later in the year. The public will be able to provide feedback during the select committee process.
“The changes proposed go further than what was indicated by the review panel, which demonstrates the Government has listened to the sector’s feedback and broadened the scope of its reforms,” says McCormick.
“Currently, there is significant duplication between the Public Works Act and the Resource Management Act. This leads to significant project delays and greatly increases the cost of developing critical public infrastructure.
“Providing the mechanism for government agencies to work together to acquire land and enabling the relocation of existing infrastructure through land acquisition are pretty basic functions that I think most New Zealanders would expect from modern empowering legislation. Currently, there is no provision for these things.
“If we want New Zealand to succeed in the 21st century and continue to provide economic and social opportunities to our people, we need to make it far easier to build the infrastructure we need. Reform of the Public Works Act is another small but important step in that direction.”
McCormick says the infrastructure sector now looks forward to seeing the amendment legislation later in the year and contributing to its progress through Parliament.
