Is COVID-19 the culture shift we need to reimagine urban amenity? - Resource Management Journal - Resource Management Law Association

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Is COVID-19 the culture shift we need to reimagine urban amenity? - Resource Management Journal - Resource Management Law Association
Resource Management Journal

                                                          www.rmla.org.nz
        August 2020

        Official Journal of the Resource Management Law
        Association of New Zealand Inc.
        Te Kahui Ture Taiao

  Is COVID-19 the culture shift we
  need to reimagine urban amenity?
Is COVID-19 the culture shift we need to reimagine urban amenity? - Resource Management Journal - Resource Management Law Association
INSIDE
4
4: Is COVID-19 the culture shift
we need to reimagine urban
amenity?
                                   12 16
                                   12: Climate Change Implications
                                   for Local Government of
                                   the Resource Management
                                                                              16: Possum in the Headlights: An
                                                                              Audit of Australia’s Biodiversity
                                                                              Offsetting Conditions and Some
                                   Amendment Act 2020                         Lessons for New Zealand

21 25
21: Mediation in the
Environment Court: Do the
Numbers Matter?
                                   25: Case note: Bunnings Ltd v
                                   Auckland Transport [2020]
                                   NZEnvC 92 Joseph Wright

                                      Editorial:
                                      3: Bronwyn Carruthers, Barrister, Shortland Chambers
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    EDITORIAL
    Bronwyn Carruthers, Barrister, Shortland Chambers

   It is obviously trite to say that COVID-19 has led to change.   compensation to achieve no net loss. Sally Gepp and
   One potential change, and the focus of our lead article         Madeleine Wright together with Dr Fleur Maseyk and
   from Dr Claire Kirman and Emma Fergusson, is in how we          Dr Marie Doole have commented on an audit undertaken
   evaluate and provide amenity in intensified urban areas.        by the Australian Audit office of the approach taken in
   The bias towards the status quo has been displaced,             Australia and identified a number of significant issues that
   with change now accepted as inevitable where growth is          have implications for New Zealand. Ideally these mistakes
   expected to occur, but at the same time the experience of       can be avoided with the NPS expected next year.
   lockdown has likely heightened the need to (at a minimum)
                                                                   Jemma Hollis, an LLB Honours student at the University
   maintain amenity at the local level. The challenge of
                                                                   of Waikato contributes to this issue, with her analysis of
   delivering compact urban form with ready access to quality
                                                                   the time taken to resolve plan appeals looking for a
   outdoor space clearly lies ahead.
                                                                   correlation between the time taken and the number of
   On the subject of change, the climate change constraints        parties involved. She concludes that mediation directed
   in the RMA were removed by 11th hour changes to what            by the Environment Court appears to defy group dynamic
   is now the Resource Management Amendment Act 2020,              theories, with increases in participant numbers not making
   with local authorities also required to have regard to the      it more difficult to get the job done. The greater use of
   emissions reductions plan and national adaptation plans         mediation and/or pre-hearing meetings at council level is
   expected under the Climate Change Response Act 2002.            worth considering going forward.
   Blair Dickie discusses the implications of these amendments.
                                                                   Finally, Joseph Wright, Dentons Kensington Swan,
   Staying on the topic of RMA reform, the NPS on                  summarises Bunnings v Auckland Transport, considering
   Indigenous Biological Diversity is expected to be               what happens to the lapse period of an unimplemented
   released in April 2021, formalising the use of offsets and      designation when it is rolled over as part of a plan review.
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       Is COVID-19 the culture
       shift we need to reimagine
       urban amenity?

THE IMPETUS FOR THE RE-EVALUATION OF
AMENITY
The COVID-19 lockdown period saw many New Zealanders
develop new relationships with how they live, play and
work within urban environments. Whilst it is unknown at
this stage how the pandemic and the attendant economic
downturn will impact on the housing system, given the
lengthy time horizon of planning instruments, this paper        Authors:
posits that it is unlikely that the pandemic will have any      Dr Claire Kirman,
sustained impact on the fundamentals of how we should           Special Counsel –
plan future urban environments. What is likely, however,        Urban Development and
                                                                Dr Emma Fergusson,
is that it will generate sustained changes to the amenity       Principal Advisor, Kāinga Ora –
values that communities consider important within the           Homes and Communities
compact urban form model, which will have implications
for how different housing typologies are delivered and the
preferences for quality outdoor and local public spaces      a maintenance of the status quo. Earlier cases under the
within those typologies.                                     Town and Country Planning Act 1977, for example, had the
                                                             effect of limiting the inquiry as to the effects on amenity to a
THE ‘AMENITY VALUES’ PROBLEMATIC                             consideration of whether or not “the proposed use is likely
Even before COVID-19, the interpretation of the terms        to have a detrimental effect on the existing amenities of the
‘amenity’ and ‘amenity values in Resource Management         area”. This had then spilt into statutory understandings of
Act 1991 (RMA) jurisprudence and the propensity towards      the concept under the RMA (Reids Holiday Park v Rangiora
protection of the status quo was problematic. Case law had   Borough [1979] D B13332(A); see also Storer v Erye County
inadvertently cast the consideration of amenity as being     [1980] 7 NZTPA 268).
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   Indeed, this shortcoming in the legislation and its                    proposed National Policy Statement – Urban Development
   implementation was alluded to in the Opportunities                     (2020) (NPS-UD), for example, viewed the statutory
   for Change: Issues and Options paper released in                       conception of amenity as disenabling of flexible growth and
   November 2019 by the Resource Management Review                        the development of quality urban environments. Specifically,
   Panel, whom were tasked with considering the opportunities             the Beca Report Enabling Growth – Urban Zones Research:
   for reform of the RMA. Specifically, that paper made the               Key Observations, Findings and Recommendations
   following observations regarding the innate bias towards               (August 2018) concluded (at 2):
   the status quo in the current system ([35–36]):
                                                                              the barriers to facilitating development appear to
                  A bias towards the status quo                               be from the emphasis local authorities put on the
                  Decisions made through the resource management              ‘present state’ and built form of amenity, rather
                  system have favoured existing users and uses, and           than any future environment that would result in an
                  as a result have inadequately provided for future           area, and the social and physical infrastructure parts
                  generations, as well as poorer communities and              of amenity.
                  iwi/Māori. Problems that have exacerbated this bias
                                                                          As such, (as notified) the NPS-UD included a proposal
                  include:
                                                                          which established higher order planning directives which
                  •    an emphasis of the RMA on avoiding or              emphasised that amenity values can change over time and
                       remedying adverse effects                          that urban development offers opportunities for changes
                  •    the protection of use rights, for example in       to amenity which can better support communities and their
                       relation to land use planning and the right to     values. The policy intent of such a proposal was to shift the
                       take water                                         widely held perception that urban development has only
                  •    processes (eg, legal appeals) that favour the      negative effects on amenity for individuals.
                       well-resourced
                  •    the application of ‘permitted baselines’ in        CONTEXT SETTING – THE AUCKLAND UNITARY
                       resource consent processes.                        PLAN AS A MODEL FOR CHANGING THE WAY
                                                                          AMENITY IS CONSIDERED
                  Furthermore, until recently there has been
                  insufficient recognition of the importance of             The promulgation of the Auckland Unitary Plan in 2016
                  proactive and strategic planning in the system.         signalled what the Independent Hearings Panel described in
                  Over the last decade, some councils have                its Overview Report as a “large step-change” in the planning
                  developed strategic plans and joint spatial plans       for urban development capacity, creating the establishment
                  for their regions, districts and communities to help    of a planning pathway for the ongoing long-term supply of
                  fill this gap. Central government has encouraged        residential, business and industrial capacity in the Auckland
                  this form of planning by requiring Auckland             Region (Auckland Unitary Plan Independent Hearings Panel
                  to prepare a spatial plan, future development           Report to Auckland Council Overview of recommendations
                  strategies through the National Policy Statement        on the proposed Auckland Unitary Plan (Auckland Council,
                  for Urban Development Capacity, and spatial             22 July 2016)). Against significant community opposition,
                  planning partnerships under the Urban Growth            the Auckland Unitary Plan introduced what in the
                  Agenda. However, the lack of legal weight and           New Zealand planning context must be considered to be a
                  disconnection with RMA plans means that the full        novel response to urban development capacity: the removal
                  benefits of strategic planning are not being realised   of density requirements and the introduction of region-wide
                  throughout the system.                                  graduated intensification around both existing and planned
                                                                          centres, transport nodes and corridors. The Overview
   Prior to the Resource Management Review Panel’s
                                                                          Report went on to set out the Independent Hearing Panel’s
   identification of the statutory conceptualisation of amenity
                                                                          recommended blueprint for dealing with the provision of
   and how it was inadvertently acting as a roadblock to future
                                                                          capacity:
   urban development, the amenity problem had already been
   earmarked in the Urban Growth Agenda as a matter requiring
   urgent redress. The discussion documents supporting the                                                                      Continued
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(i) utilising several planning methods for greenfield             The application was declined at council hearing stage on
    development and brownfield redevelopment, thereby             the basis of the adverse impact the scale and height of the
    providing flexibility in the way the region could respond     development had on the amenity of the area.
    to growth; and
                                                                  Summerset appealed the Council’s decision to the
(ii) introducing planning controls that most appropriately        Environment Court, but for the purposes of the Environment
     enable growth, whilst balancing the protection of            Court Hearing, revised the application so that the
     existing values in significant areas and items of            development took a more tiered or stacked approach
     natural and historical heritage and of ecological value,     to bulk approach when viewed from within the adjacent
     the taonga held closely by mana whenua, volcanic             Mixed-Housing Suburban (MHS) area surrounding the east
     viewshafts and the maunga themselves, air and water          and north of the site.
     quality, the natural character of the coastal environment,
                                                                  In granting the appeal, the Environment Court held (at [80]):
     and the special character of many places.
                                                                      We have reached the view that the consent as
The timing of the Auckland Unitary Plan was critical to
                                                                      now proposed by the applicant is appropriate and
achieving this outcome. The hearing of submissions
                                                                      properly balances the interests of intensification
came at a time when there was a growing awareness of a
                                                                      with the need for compatibility with the residential
significant housing supply issue, leading the Independent
                                                                      environment and impacts on visual amenity. Overall,
Hearing Panel to record in the opening to its Overview
                                                                      we are satisfied that the activity constitutes an urban
Report that the current resource management issue of
                                                                      built character of predominantly three-storeys and
greatest significance facing the Auckland Region was its
                                                                      therefore meets the policy of the Plan and other
capacity for growth.
                                                                      policies and objectives of the Plan generally.
Indeed, as the hearings on the Auckland Unitary Plan
                                                                  Importantly, the Environment Court made several key
progressed, the Government was to notify the first national
                                                                  observations regarding how the NPS-UDC (referred to in
direction on urban development – the National Policy
                                                                  the decision as the UPS) and the Auckland Unitary Plan
Statement: Urban Development Capacity (2016) (NPS-UDC).
                                                                  should be interpreted. In summary, the Court concluded
Whilst that national direction did not play a part in the
                                                                  that (at [17–18]):
outcome for the Auckland Unitary Plan, it required that
local authorities throughout the country follow in Auckland’s         Both the National Policy Statement Urban
footsteps by introducing new national planning requirements           Development (Urban Policy or UPS) and the
for local authority responses to urban development capacity           AUP stress compact urban form in the context of
issues in the short, medium and long term.                            the existing urban areas requires intensification.
                                                                      This Site is appropriate for such intensification
The relatively recent decision of Summerset Villages
                                                                      for integrated residential development and in
(St Johns) Limited v Auckland Council [2019] NZEnvC 173
                                                                      particular for a retirement village …
illustrates that with a more innovative planning instrument
such as the Auckland Unitary Plan and with effective                  Fundamentally we do not accept the proposition
national direction, there is scope even within the existing           that the change envisaged under the UPS and AUP
framework to recast the concept of amenity.                           can be countermanded by reference to the existing
                                                                      residential amenity without a reference to the plan
By way of background, that case involved an appeal by
                                                                      changes that are envisaged in terms of the UPS and
Summerset Villages (St Johns) Ltd relating to an application
                                                                      AUP. To determine the residential character without
to establish a retirement village on a 2.6-hectare site
                                                                      reference to the UPS and the AUP would be a failure
adjacent to St Johns College in Meadowbank. Pursuant to
                                                                      to properly administer both the Unitary Plan and
the Auckland Unitary Plan, the bulk of the site was zoned
                                                                      the Policy Statement in terms of the requirements
Mixed Housing Urban (MHU) and the application fell to be
                                                                      under s 104.
considered as an integrated residential development.
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   The Court also made several important observations                      “H5.1 Zone Description
   regarding how decision-makers should approach the task
                                                                           The Residential – Mixed Housing Urban Zone is a
   of interpreting and implementing the Auckland Unitary
                                                                           reasonably high-intensity zone enabling a greater
   Plan, noting that the tenor of the Auckland Unitary Plan
                                                                           intensity of development than previously provided
   was to promote a compact urban form in the context of
                                                                           for.
   existing urban areas requiring future intensification (at [52]):
                                                                           Over time, the appearance of neighbourhoods within
                  … However, we conclude that the apparent and
                                                                           this zone will change, with development typically up
                  perceptible thrust of the AUP undeniably embraces
                                                                           to three storeys in a variety of sizes and forms …”
                  the philosophy of the UPS: namely a focus on
                  enabled outcomes for intensification rather than         We conclude that this aspiration creates a context
                  the more conventional and traditional preservation       that invites the exercise of development ambitions
                  of amenity as defined and circumscribed by now-          that are in step with the direction of the UPS as
                  superseded planning instruments.                         well as confirming an environment more tolerant
                                                                           towards growth and change. As an affirmation
   And earlier in the decision (at [33–34]):
                                                                           of this encouragement, the zone objectives
                  … Compatibility does not mean similarity.                particularise the vision and provide clear guidance
                                                                           in respect of intended outcomes (emphasis added):
                  Our conclusion is that the proper meaning of the
                  AUP wording as to compatibility is that there must       “H5.2 Objectives
                  be some features of the development allowing the
                                                                           (1)   Land near the Business-Metropolitan Centre
                  residential and MHU zones to interact and relate to
                                                                                 Zone and the Business-Town Centre Zone,
                  one another.
                                                                                 high-density residential areas and close to the
   In that regard, the Court was critical of the Council’s                       public transport network is efficiently used for
   witnesses who had focused more on existing residential                        higher density residential living and to provide
   amenity and the surrounding area in its current form rather                   urban living that increases housing capacity
   than the future form brought about by the Auckland Unitary                    and choice and access to public transport.
   Plan and required by the NPS-UDC, noting with respect to
                                                                           (2)   Development is in keeping with the
   that approach (at [32]):
                                                                                 neighbourhood’s planned urban built character
                  If this is to be the outcome of the application of             of predominantly three-storey buildings, in
                  these two criteria, we conclude that it must be seen           a variety of forms and surrounded by open
                  as direct contravention of the imperatives of the              space.”
                  UPS and of the AUP to achieve a compact urban
                                                                           …
                  form and in particular the intensification along
                  public transport corridors envisaged and reflected       This range of opportunities is encapsulated
                  in the zoning of this Site as MHU and the zoning         and given validity in terms of the anticipated,
                  along St Johns Road and Remuera Road of both             future, urban environment as foreshadowed in
                  terraced housing and buildings.                          the objectives set out above and, in particular,
                                                                           articulated in Objective H5.2(2). The term used
   Also of interest are the following comments regarding the
                                                                           to describe the resultant physical manifestation of
   focus of the MHU zone (at [58]–[59] and [61]–[62]):
                                                                           development that may emerge pursuant to the
                  Firstly, the flavour of the zone is established by the   provisions is “predominantly”. (Emphasis original)
                  zone description and its unequivocal articulation
                  of change and the resultant creation of a new
                  paradigm of urban growth (emphasis added):

                                                                                                                             Continued
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    The Court heard much on the matter of                         Applying the criteria as suggested by the Council
    “predominantly” and the meaning, if not the                   leads to our conclusion that this is an acceptable
    essence, of the word. It was a matter of some                 amended proposal. Thus, it is not necessary for us
    tightly-held views as to its meaning and relative             to consider the wider issues. We comment that
    importance. The Court is confident that this term             the application of the AUP and UPS cannot be
    was used in the AUP quite deliberately. There is              viewed in the context of only allowing activities
    a deliberateness and flexibility to the word. This            that are similar to or the same as existing
    means the concept is in fact contextual to allow              residential character and adjacent zones. In our
    robust and pragmatic assessment on individual                 view, that would be an incorrect application of
    applications for consent.                                     the provisions and arguably may undermine
                                                                  the very purpose of the AUP and the UPS. This
With regards to the NPS-UDC, the Court noted that it was
                                                                  decision cannot be taken as an endorsement of the
a planning instrument that was at the top of the planning
                                                                  Council’s approach to these provisions generally
hierarchy and required due consideration by decision-
                                                                  or even in this case. What it demonstrates is that
makers when establishing policy frameworks on matters of
                                                                  the amended application is clearly appropriate and
urban growth and redevelopment (at [44]). Specifically, the
                                                                  anticipated in this zone.
Court noted the future focus of the NPS-UDC, commenting
(at [46], [49] and [50]):                                         Given we reach our conclusions in the absence of
                                                                  having to decide this point, we comment only for
    At this point, we recognise the use of critical
                                                                  the purpose of guidance for the future. Clearly, the
    language in these provisions of the UPS.
                                                                  Auckland Plan anticipates future change. That is not
    Deliberately, it seems to us, the authors of the
                                                                  only evident in the Plan but is explicitly stated in
    document have deployed the words ‘change’ and
                                                                  the preamble to the Auckland Unitary Plan. In the
    ‘future’. Unarguably, the use of these terms intends
                                                                  initial stage, such changes, particularly within or
    a future focus for development planning.
                                                                  adjacent to residential zones, will be unsettling
    …                                                             for existing residential owners. To this extent, we
    There is a clear commonality of purpose and                   understand the concerns that have been expressed
    principle to be found, on the one hand, in the                by Mrs Ngata and others at the original hearing.
    theme of the UPS, set out above, and, on the other,           There is no doubt that the degree of intensification
    in the particular thrust of the OA3: ‘change’. In our         envisaged within the Plan is significant. It will
    view, the inescapable conclusion in apparent: the             bring with it impacts in terms of the construction
    UPS gives direction to decision-makers to have                periods which are now evident through Auckland
    regard to urban growth outcomes which have                    central and beginning to radiate into the suburbs.
    previously been under-emphasised in favour of                 (Emphasis added)
    local environmental or amenity considerations.            This case is important not only because it records the
    The UPS requires evaluation in the context of ‘national   future focus of amenity values incorporated into both the
    significance’ within which planning endeavours            NPS-UDC and Auckland Unitary Plan, but also because it is
    are to be undertaken and which will allow ‘(urban)        a current example of a departure from the Court’s traditional
    environments to develop and change’. Accordingly,         approach to consideration of amenity effects within the
    our conclusion is that a more future-oriented,            existing statutory framework (namely that consideration of
    outcome-focused conclusion than what might                adverse effects on amenity values is confined to an inquiry
    have been the case otherwise and common-place             as to the potential adverse effect on the existing amenities of
    before the promulgation of the UPS is envisaged.          an area, rather than the planned future amenities). Indeed,
    (Emphasis added)                                          recognition that amenity values develop and change
                                                              over time is now explicitly recognised in the NPS-UD with
In conclusion, the Court held that the amended                Objective 4. Further, Policy 4 requires that when making
development was appropriate in terms of the Auckland          planning decisions that affect urban environments, decision-
Unitary Plan stating that (at [66]–[67]):
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   makers have particular regard to the fact that changes to        Susan Edmunds “Property market: were predictions of
   planned urban built forms may detract from the amenity           doom misplaced?” (14 July 2020) Stuff ;
   values appreciated by some people, but will improve the          “House prices rise again but economists expect correction”
   amenity values appreciated by other people, communities          Otago Daily Times (online ed, Dunedin, 14 July 2020)).
   and future generations, including by providing increased
                                                                    Currently New Zealand has about 5,000 people a week
   and varied housing densities and types. Policy 4 goes
                                                                    returning to New Zealand from other countries and very
   even further to state that such amenity changes are not, of
                                                                    few New Zealanders are departing – to put this in context,
   themselves, an adverse effect.
                                                                    we would typically have a net loss of 10,000 to 15,000
                                                                    New Zealanders per annum through out-migration. These
   COVID-19 AND ITS POTENTIAL INFLUENCES ON
                                                                    people may be here permanently, or at least until the
   THE HOUSING MARKET
                                                                    global situation stabilises, and they will need places to
   Turning now to the potential influences of the pandemic on       live. For now, this influx will be partly mitigating the impact
   the local housing system; whilst the actual impact may not       of New Zealand’s border closure and international travel
   be known for some time, discussions thus far have largely        restrictions more generally, which have effectively curtailed
   focused on house price effects.                                  international immigration at present. When the arrivals of
   There is considerable variance in the predicted scale and        returning New Zealanders slows down, we may well see
   timing of a market shift, but there seems to be consensus        reduced net in-migration over the medium term, and
   among economists that a significant drop in house values is      this will reduce pressure on housing supply. It has been
   on the horizon (for a summary, see Susan Edmunds “What’s         noted, however, that New Zealand’s comparative success
   really going to happen with New Zealand’s house prices?”         in addressing COVID-19 may also make the country an
   (28 June 2020) Stuff ). A combination of        attractive prospect for potential migrants when the border
   distressed sellers, a smaller number of potential purchasers     does reopen.
   and general wariness in the face of rising unemployment           The rental sector, too, is likely to face changes in the
   and market instability is expected to result in house price      context of COVID-19, and these will have further flow-
   drops of between five and 15 per cent over the next 12 to        on effects on house prices. Prior to the pandemic, there
   18 months. To put this in perspective, the Global Financial      were approximately 37,000 short-term rentals marketed
   Crisis of 2008 resulted in a national drop of around eight       through websites such as Airbnb to both domestic and
   per cent but over a longer period.                               international travellers. While domestic tourism is being
   Although the post-lockdown market has seen only a                promoted as a fillip for the struggling tourism sector now
   1.5 per cent drop on pre-lockdown values, this may well          that travel internally is possible again, it seems unlikely
   be the calm before the storm. Indeed, CoreLogic have             that the volume will be sufficient to fill short-term rentals
   noted that in the main centres and holiday destinations,         as well as more established accommodation facilities such
   prices have already declined significantly: Auckland is down     as motels and hotels if the border closure continues for
   2.4 per cent and Queenstown 7.2 per cent (Greg Ninness           many months. The potential for these dwellings to be
   “The worm seems to have turned for property values in            shifted into the long-term rental market is significant, and
   the main centres” (16 July 2020) Interest.co.nz). It is widely   this could relieve rental supply issues in some areas and
   expected that when the buffering effects of the wage             put downward pressure on rents.
   subsidy scheme and the mortgage repayment holiday
                                                                    RE-CONCEPTUALISING AMENITY VALUES IN THE
   recede, and as the predicted recession deepens, there will
                                                                    URBAN DEVELOPMENT CONTEXT
   be a significant increase in properties brought to the market
   by vendors facing financial pressure. The relative buoyancy      The urban efficiencies of a spatial pattern of capacity based
   of the market at present is attributable to a combination of     on a compact urban form mean that urban development,
   pent-up demand and limited supply, as potential vendors          which intensifies around centres and transport nodes and
   respond warily to market uncertainty (see, for example,          corridors, will in the authors’ view still continue to be
   Anne Gibson “Economists question house market rally” The
   New Zealand Herald (online ed, Auckland, 14 July 2020);
                                                                                                                          Continued
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a prerequisite to the efficient and effective functioning      At the time of writing this paper, the Resource Management
of urban environments, including public transport and          Review Panel had not released its system reform
other significant infrastructure. Whilst that model for        recommendations, but the Urban Development Act 2020
urban development is unlikely to change as a result of the     can be seen as a likely indicator of the potential change
pandemic, arguably, delivery of the Terrace Housing and        in store, albeit with the potential for slightly different
Apartment Buildings (THAB) typology by developers might        terminology. In that regard, the Urban Development Act
need to be reconsidered to accommodate new ways of             modifies the application of the definition of amenity in
utilising housing (for example, increased demands to work      Part 2 of the RMA by introducing the concept that urban
from home necessitating office space within dwellings or       amenity may change over time. This involved specifically
communal office spaces in THAB typologies).                    recording that in promoting sustainable management of
                                                               natural and physical resources, recognition must be given
Acknowledging that future amenity values are an important
                                                               to the fact that amenity values may change (Refer to s 5 of
consideration in any urban development proposal,
                                                               the Act).
COVID-19 has seen a shift in people’s housing and outdoor
living preferences and, as a consequence, neighbourhood        In a similar vein, Objective 4 of the NPS-UD provides
amenity. Such shifts are not unexpected as historically        that “New Zealand’s urban environments, including their
global pandemics have resulted in lasting changes to           amenity values, develop and change over time in response
urban growth patterns. As Kyle Chayka suggests, the            to the diverse and changing needs of people, communities
experiences of isolating in place, working from home, and      and future generations”. Policy 4 further requires that when
having one’s sphere of activity reduced to one’s immediate     making planning decisions that affect urban environments,
neighbourhood is likely to change understandings of home,      decision-makers have particular regard to the matter that
and shape what people look for in a dwelling, along with       planned urban-built forms may involve significant changes
changes to the importance and requirements of outdoor          to an area, and those changes may detract from the amenity
and local public spaces (Kyle Chayka “How the coronavirus      values appreciated by some people but improve the
will reshape architecture” The New Yorker (online ed,          amenity values appreciated by other people, communities
New York, June 17 2020)). This, therefore, may be an aspect    and future generations, including by providing increased
of the delivery of urban development planning that may         and varied housing densities and types, and are not, of
be permanently changed by people’s experiences of the          themselves, an adverse effect.
COVID-19 pandemic.
                                                               CONCLUDING REMARKS
Historically, New Zealanders have also been wary of
denser residential typologies, and reports from Australia       Since the introduction of the NPS-UDC in 2016, there has
and elsewhere of the rampant spread of the virus               been a wave of plan changes and plan reviews notified
through “vertical cruise ships” may harden these views         throughout the country with the objective of addressing
(Yara Murray-Athfield “Why Melbourne’s public housing          intensification and growth issues. As these plan reviews
towers have ‘explosive potential’ for coronavirus to spread”   and plan changes continue through the statutory process,
(5 July 2020) ABC News ; Katrina Raynor,       and in light of the recently gazetted replacement national
Alan Pert and Catherine Townsend “Vertical cruise ships?       direction on urban development, the NPS-UD, the question
Here’s how we can remake housing towers to be safer and        now exists as to whether or not the COVID-19 pandemic
better places to live” (15 July 2020) The Conversation         and the ensuing economic downturn should impact on and
). Such perceptions may be            change our response to urban development in New Zealand
difficult to change, however, more dense typologies are        in the long term.
still capable of delivery as part of a resilient urban form    Given the long-term horizons of planning instruments, it is
if they are undertaken in a manner which is cognisant of       the view of the authors that the pandemic is unlikely to have
the socio-economic and psychological perspectives of           any sustained impact on the fundamentals of how we plan
people and communities, and if the design principles           future urban environments, but may change the amenity
incorporated into such typologies respond appropriately        values that communities consider important both in terms
to those perspectives.                                         of how different housing typologies are delivered and the
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   preference for quality outdoor and local public spaces                   generally has an economic life of at least 50 years,
   within those typologies. In that regard, the comments of                 so that once an area is developed according to
   the Independent Hearings Panel regarding the need for                    an existing land use plan, future plan changes
   long-term resilience in any urban development model                      to that area are unlikely to have any effect on
   adopted are apposite both to this context, as well as in                 capacity until it once again becomes economic for
   relation to the approach taken in the development of the                 redevelopment. Thus is important that the Unitary
   Auckland Unitary Plan (at 51):                                           Plan is calibrated to demand over the long term,
                                                                            and not to just immediate concerns.
                  There are compelling reasons to ensure the
                  Unitary Plan enables a development pattern            Note: The views expressed in this paper are those of the
                  that is capable of meeting residential demand         authors and not Kāinga Ora – Homes and Communities.
                  over the long term and does not limit its focus       The authors would also like to acknowledge the helpful
                  to just the next ten years or so. The first is that   comments received from Jessica Phillips, Ministry for the
                  housing development is not readily reversible and     Environment.

                  “Rethinking Resources:                                The district has developed a brand that
                                                                        embraces its longstanding reliance on
                  RMLA Rotorua 2021!”                                   cultural and geothermal resources together
                                                                        with the development of significant tourism,
                  Our 2021 conference aims to celebrate                 agriculture, energy and forestry initiatives that
                  the continued and evolving relevance of               have all flourished under the umbrella of the
                  Resource Management Law in the sustainable            RMA. This conference will canvass the many
                  management of natural and physical resources.         and varied ways in which rethinking resources
                                                                        can result in revitalisation of a community for
                  We collectively operate within a culturally,          local, regional and national benefit.
                  physically, ecologically and socially dynamic
                  setting that requires agile thought in order to       Tūngia te ururoa kia tupu whakaritorito te
                  meet the varied present and foreseeable needs         tutū o te harakeke.
                  of the environment and our communities.               In order to change we must be prepared to
                  Rotorua demonstrates rethinking of resources          do things differently.
                  in a very tangible way.

                                                              www.rmla.org.nz
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        Climate Change Implications for
        Local Government of the Resource
        Management Amendment Act 2020

SUMMARY
This note outlines the recent climate-change-related
amendments to the Resource Management Act 1991
(RMA) and discusses the implications of these changes
for existing arrangements and for local government                 Author:
implementation agencies. It notes that the repealed                Blair Dickie,
                                                                   Climate Change
sections will possibly have the most effect and will target        Knowledge Hub Leader
regional councils’ consideration of discharge applications
from point sources, with little effect on emissions from land
use changes. The additions relating to considerations for       Act 2004. Regional consent authorities were expressly
policy statements and plans confirm existing requirements,      prevented from addressing greenhouse gas emissions as a
but by being explicit, provide much needed linkages             contaminant to the environment.
between legislation and co-ordination between central
                                                                This position was intended to prevent “double jeopardy”
and local government.
                                                                situations arising from the joint imposition of regulatory and
                                                                financial controls on the same activity, since, at the time,
BACKGROUND
                                                                there was no integrating climate mitigation plan to align
The RMA is constantly being amended, reformed and               the financial and regulatory levers operated by central and
added to, and in some cases elements are repealed.              local government respectively. Additionally, the financial
In 2004, following the enactment of the Climate Change          levers were rendered ineffective for almost a decade
Response Act 2002 (CCRA), and with the expectation that,        though amendments to the CCRA in the wake of the
in future, greenhouse gas emissions would be managed            Global Financial Crisis. As a result, both central and local
by central government through a financial mechanism,            government were left powerless to influence development
changes were made to the RMA as part of the Resource            decisions, and greenhouse gas emissions increased.
Management (Energy and Climate Change) Amendment
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   The recent RMA reforms have focused on process elements         already in force (from 30 June 2020). This is an astute move
   and freshwater management, but at the 11th hour changes         as it effectively prevents a rush of entities seeking regulatory
   were made that will have a bearing on the way the RMA           approvals for large high-carbon-emitting activities in the
   addresses climate change, and the role of those agencies        interim.
   administering it.
                                                                   EXISTING SITUATION
   CHANGES
                                                                   It is worthwhile noting the current requirements of the RMA
   There are seven sections in the Resource Management             with respect to climate change so that the implications of
   Amendment Act 2020 creating two changes. The first              the recent changes can be explored. The RMA already
   change removes constraints on the ability to treat              provides clear direction for decision-making concerning
   greenhouse gases as a contaminant. Two sections of the          the allocation of natural resources, the location and
   parent Act (ss 70A and 104E) that specifically excluded         construction of physical resources and the allocation of
   the consideration of greenhouse gas discharges to air in        space in both terrestrial and coastal marine areas with
   relation to climate change have been repealed. This has         respect to climate change adaptation. This comes from pt 2
   been achieved by amending ss 19 and 35. Additionally            s 7(i) and is reinforced by the New Zealand Coastal Policy
   ss 20 and 36 repeal ss 70B and 104F, which are exceptions       Statement 2010 with respect to coastal developments
   to the primary sections and therefore no longer relevant.       (Policies 24, 25 and 27, covering natural hazards and sea
                                                                   level rise more than 100 years out), and the National Policy
   The second change creates alignment between central
                                                                   Statement for Freshwater Management (NPSFM) requiring
   government’s (in development) national climate change
                                                                   regional councils to consider the reasonably foreseeable
   plans for emissions reductions and adaptation, and local
                                                                   effects of climate change when setting objectives for
   government’s RMA policy statements and plans.
                                                                   quality and quantity in each Freshwater Management Unit
   These changes have been made through ss 17, 18 and              (Policies A1 and B1). This will change with the latest version
   21, which insert the following wording into s 61 (Matters       of the NPSFM to come into force later this year, referring
   to be considered by regional council (policy statements)),      to setting target attribute states, but still only relating to
   s 66 (Matters to be considered by regional council (plans)),    adaptation.
   and s 74 (Matters to be considered by territorial authority)
                                                                   Climate mitigation in the context of emissions reductions or
   when preparing or changing policy statements and plans.
                                                                   biological offsets are not specifically covered in the RMA.
   Amongst other things the authority must have regard to:
                                                                   The benefits to be derived from the use and development
   • any emissions reductions plan made in accordance with         of renewable energy is included in pt 2 s 7(j) and is
     s 5ZI of the Climate Change Response Act 2002; and            supported by the National Policy Statement for Renewable
   • any national adaptation plan made in accordance with          Electricity Generation. These provisions can be considered
     s 5ZS of the Climate Change Response Act 2002.                as supporting greenhouse gas emissions reductions, but
                                                                   only insofar as fossil fuels are replaced by renewable natural
   These changes come into force at various times.                 resources containing energy. Reducing emissions does not
   The repealed sections that allow consideration of               appear to be the primary purpose of these; rather climate
   greenhouse gas emissions and the requirement for councils       mitigation can be considered a co-benefit.
   to have regard to central government’s emissions reduction
   plans and national adaptation plan do not come into force       A proposed National Policy Statement for Indigenous
   until the end of next year (31 December 2021). This will        Biodiversity (Ministry for the Environment, November 2019
   ensure that the national instruments have been completed        ME 1472) does include reference to both climate adaptation
   and are in effect.                                              and mitigation in policies and proposed implementation
                                                                   mechanisms. The objectives are to maintain and restore
   By contrast the requirement that a Board of Inquiry or
   the Environment Court must “take into account” climate
   change, when a matter is called in as a matter of national
   significance on the basis of its greenhouse gas emissions, is                                                          Continued
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indigenous biodiversity, and there is recognition that the       Currently, not all greenhouse gas discharges are covered
future climate will be different. Proposed Policy 3 focusses     by the Emissions Trading Scheme (for example, fugitive
on the resilience of indigenous biodiversity to the effects      emissions from land use change are not), but it is starting
of climate change (adaptation), and proposed Policy 14           to influence land use change with respect to afforestation.
requires the development of regional scale biodiversity          At the current price of around $32/tonne, carbon farming
strategies. It is this policy that brings together the need to   has increased but the price is considered insufficient to
promote resilience to a changing climate by among other          transition remaining high carbon electricity generation
things maintaining and promoting connectivity between            or change transport fuels (“NZUs Firm – But What does
habitats to allow species migrations in response to climate      $32 Do?” Carbon Match, 30 June 2020) and to drive
change (adaptation) and to also recognise and consider           the economic transformation to low-carbon activities.
promoting landscape-scale restorations for co-benefits           Something else will be required. Will this be the RMA and
including for water quality and freshwater habitats, carbon      is this what the changes have set up?
sequestration (mitigation) and hazard mitigation.
                                                                 Changes to ss 61, 66 and 74 are additional to the existing
                                                                 requirement in the same sections for regional and
IMPLICATIONS FOR LOCAL GOVERNMENT
                                                                 territorial authorities to have regard to any management
The two key changes identified are discussed starting            plans and strategies prepared under other Acts. It would
with the opportunity for councils to consider discharges of      seem that the new provisions merely reinforce what could
greenhouse gases to air.                                         be expected to occur, as the existing requirement is
At first glance, this may seem to be limited to regional         not limited in scope and the direction to agencies is to
councils and unitary authorities, having the control of          “have regard”, meaning to “have a look” – the weakest
point source discharges to the environment. However,             requirement for consideration, in contrast to the “give
certain land uses can contribute to an increased release         effect to” relationship between regional policy statements
of greenhouse gas emissions (coal mining, mining or              and plans.
drainage of peat soils for agriculture, location and design      The additional requirement for this consideration reinforces
of subdivisions and developments that potentially lock           the relationship between central government plans
people into high carbon lifestyles) as diffuse discharges.       and strategies and makes explicit the link between the
However, control of these emissions is not a regional            government’s climate change directions for both adaptation
function. There is no equivalent to s 30 of the RMA, which       and mitigation and all levels of RMA policy and plans. An
allows regional councils to manage the diffuse impacts of        element of urgency has been injected into the process with
land use on water quality. Therefore, diffuse greenhouse         the clear message that climate change matters addressed
gas emissions would be more appropriately covered by             by central government are to be considered by local
territorial authorities in their district plans under s 31 as    government when reviewing and changing RMA policy
an effect of the use of land. A further complication is that     statements and plans. This is additional to the existing
land use derived greenhouse gas emissions would only             trickle-down relationship between policy statements
be regulated (require a resource consent) if the relevant        and plans that can create delays through sequencing of
district plan addressed the matter and required it.              individual reviews and changes.
The change removes a barrier and opens the opportunity           The current hierarchical relationship of local government
up for both regulatory and financial policy levers to address    plans creates the opportunity to regionalise national
greenhouse gas emissions. Without seeing the policy              directions by providing two stages for sub-national
design of the national emissions reduction plan there is         interpretation. This occurs with the design of regional
no way of knowing which lever should be applied and for          policies and then the crafting of regional and district rules.
what type of discharge. Within the RMA sphere, diffuse           The direct relationship to all local government policy and
discharges of greenhouse gases emanating from land use           plans required by this amendment not only has the potential
can only be addressed through district plans, should the         to create faster subordinate policy and rules but may also
relevant authority give itself that function, whereas point      improve consistency between central direction and local
source discharges will be a regional council role.               implementation. This design may have real advantages
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   for emissions reductions which are sector-based (not so           surface would seem to be one way – the RMA regulatory
   geographically determined), but these may not be as clear         instruments are to have regard to the national direction.
   for adaptation responses where the local cross-function           The opportunity exists for the national emissions reduction
   alignment role of Regional Policy Statements will be critical.    plan to do more than signal direction and the central
                                                                     government role, by also creating an integrating role and
   CONCLUSION                                                        identifying ways local government’s RMA polices and plans
   Given that climate change adaptation is clearly identified        can contribute to the national effort. This will enhance the
   as a primary consideration when exercising powers and             ability of local government (at all levels) to have regard to
   functions under the RMA (in pt 2) and greenhouse gas              the plan as required by the amendment.
   emission reductions are not (not mentioned in pt 2), it           A similar opportunity exists in the climate adaptation
   is reasonable to consider that the relationship between           space, only in this area there is a paucity of policy
   RMA policies and plans may be different for each climate          levers, currently limited to regulations applied by local
   change response. This asymmetry is further compounded             government under the RMA. In this situation we are not
   by the fact that central government has recently updated          talking of policy alignment – we need more tools to do
   and strengthened the settings of the Emissions Trading            the job. The opportunity exists for central government to
   Scheme (mitigation) and to date has not created for itself        not only identify national priorities for adaptation efforts
   alternative policy levers for national adaptation.                such as critical strategic infrastructure, but also to create
   With the “have regard to” relationship between central            financial mechanisms and consistent national messaging
   and local government policies and plans it would seem             that will allow community and land use transformations.
   that the intention is to bring the policy levers and the          This would assist resilience to projected climate impacts
   agencies together, potentially for local government (RMA)         and help to identify alignment opportunities for local
   to support the central government (CCRA) direction for            regulatory support.
   emissions reductions and that central government will             Only time will tell if this is the direction that central
   rely on local government to address adaptation matters            government will pursue in its design of the National
   as these will play out locally and differentially across the      Emissions Reduction Plan and the National Adaptation
   country. This type of issue is ideally suited to regional-scale   Plan. The RMA changes discussed may, on the surface,
   spatial planning.                                                 seem in isolation to merely reinforce the status quo, but
   Effective policy implementation requires many things to           depending upon the policy design of emerging national
   go right including the alignment of public policy levers.         instruments they may prove to be valuable additions, at
   This is often difficult when the responsible agencies have        least until the wider RMA reforms.
   different foci (international/national and regional/local),       Note: The author is employed by the Waikato Regional
   capacity and resources. This amendment has created                Council as Principal Strategic Advisor. Views expressed in
   the links between financial and regulatory policy levers          this note are those of the author and are in no way to be
   for emissions reductions, but it is a weak one and on the         interpreted as representing a position of that Council.
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        Possum in the Headlights:
        An Audit of Australia’s Biodiversity
        Offsetting Conditions and Some
        Lessons for New Zealand

INTRODUCTION
The Australian Government’s Department of Agriculture,
Water, and the Environment (DAWE) has just been grilled
by the Australian National Audit Office (Report No 47 2019)
(Audit) for its approach to managing biodiversity offsetting.
The Audit focused on assessment, approval, monitoring

                                                                 Authors:
and enforcement of offset conditions attached to approvals
for activities affecting matters of national environmental
significance under the Environment Protection and
                                                                Sally Gepp, Barrister;
Biodiversity Conservation Act 1999 (EPBC Act).

New Zealand’s experience with biodiversity offsetting and       Madeleine Wright, Senior
                                                                Associate, Berry Simons;
environmental compensation has been variable. With the
use of offsets and compensation set to become formalised        Dr Fleur Maseyk, Practice
when the National Policy Statement for Indigenous Biological    Leader – Conservation
Diversity (NPSIB) is released (likely April 2021), the Audit    Science at The Catalyst
provides an opportunity to learn from Australia’s mistakes      Group; and
and avoid some of the most serious outcomes that result
                                                                Dr Marie Doole, Practice
from poor exchanges and poor implementation (including          Leader – Policy at The
non-compliance with consent conditions). A New Zealand          Catalyst Group
audit of current practice may also be warranted.

THE AUSTRALIAN CONTEXT
The EPBC Act is Australia’s primary national environmental
legislation. Its object includes (s 3):
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   (a) to provide for the protection of the environment,             that will or may result from allowing the activity. Even
       especially those aspects of the environment that are          prior to the enactment of that provision, offsetting or
       matters of national environmental significance; and           compensation could be considered under s 104(1)(c)
                                                                     (Clearwater Mussels Ltd v Marlborough District Council
   (b) to promote ecologically sustainable development
                                                                     [2018] NZEnvC 88 at [11]).
       through the conservation and ecologically sustainable
       use of natural resources; …                                   Although there is as yet no operative national direction
                                                                     relating to biodiversity offsetting, incorporation of
   The “matters of national environmental significance”
                                                                     biodiversity offsetting into planning instruments and
   include wetlands of international importance; listed
                                                                     improving their design and implementation has been
   threatened species and ecological communities; listed
                                                                     greatly assisted by international work programmes and
   migratory species; the Great Barrier Reef Marine Park
                                                                     publications, particularly the Business and Biodiversity
   and protection of water resources from coal seam gas
                                                                     Offsets Programme (BBOP), and local publications including
   development and large coal mining development (ch 2
                                                                     the Guidance on Good Practice Biodiversity Offsetting
   pt 3). A person must not take an action that has, will have,
                                                                     in New Zealand (New Zealand Government, 2014) and
   or is likely to have a significant impact on a matter of
                                                                     Biodiversity Offsetting under the Resource Management Act
   national environmental significance, unless approved by
                                                                     (Maseyk and others, 2018).
   the Minister or their delegate under the EPBC Act (ch 2
   pt 3). Such approvals are administered by DAWE.                   There has also been judicial consideration of biodiversity
                                                                     offset and compensation. Early case law focussed on
   The process for approval comprises referral to the Minister
                                                                     the distinction between mitigation and offsetting (Day v
   of an activity that the applicant considers will have, or be
                                                                     Manawatu-Wanganui Regional Council [2012] NZEnvC
   likely to have, a significant impact on a matter of national
                                                                     182 at [3-63]; Royal Forest and Bird Protection Society of
   importance, and a decision by the Minister as to whether
                                                                     New Zealand Inc v Buller District Council [2013] NZHC
   that is accurate (pt 7), assessment of the activity (pt 8), and
                                                                     1346). More recent jurisprudence has considered the
   then a decision whether to approve the activity and if so on
                                                                     parameters within which offsetting and compensation
   what conditions (pt 8).
                                                                     should be applied in New Zealand, in response to modern
   The Minister’s decision whether to approve the activity is        regional policy statements and plans incorporating
   subject to several obligations and mandatory considerations       biodiversity offsetting and compensation principles. For
   (pt 9 div 1 subdiv B). Although the EPBC Act does not             example, the Environment Court recently considered the
   expressly refer to biodiversity offsetting or compensation        principles that determine whether a proposed programme
   conditions, offsets have been used as a condition of              of action is a valid biodiversity offset and the circumstances
   approval since 2001 (Miller and others, 2015).                    in which biodiversity compensation should be permissible
   In 2012 DAWE released the EPBC Act Environmental                  (Oceana Gold (New Zealand) Ltd v Otago Regional Council
   Offsets Policy which applies to any proposed action that          [2019] NZEnvC 41; Oceana Gold (New Zealand) Ltd v
   impacts on a protected matter, and the Offsets Assessment         Otago Regional Council [2020] NZHC 436).
   Guide which implements the requirements of the Policy by          In reaching its decision to approve limits on the circumstances
   calculating the equivalence of biodiversity trades.               in which biodiversity offsetting and compensation can be
                                                                     used, the Environment Court cited with approval concerns
   THE NEW ZEALAND CONTEXT                                           raised in M Christensen Biodiversity offsets – a suggested
   Biodiversity offsetting or compensation measures are              way forward (Resource Management Journal, April 2010),
   relevant considerations in New Zealand resource consent           that offsets can allow “developments to proceed that
   decisions. Section 104(1)(ab) of the Resource Management          have a very significant impact on biodiversity that in many
   Act 1991 (RMA) codifies a requirement for consent
   authorities to consider, subject to pt 2, any measure
   proposed or agreed to by the applicant for the purpose
   of ensuring positive effects on the environment to offset
   or compensate for any adverse effects on the environment                                                                Continued
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cases would be judged unacceptable”, and that there are          and that the DAWE “is unable to demonstrate that conditions
some ecosystems, habitats and species in respect of which        of approval are appropriate”. In making this last finding, the
offsetting is inappropriate or impossible (at [147]–[148]).      Audit was scathing of the DAWE’s assessment, approval,
                                                                 monitoring and enforcement of offset conditions (s 4).
In a decision on the West Coast Regional Policy Statement,
a slightly different approach was taken to incorporation         The Audit’s specific findings, and possible implications for
of limits (Heritage New Zealand Pouhere Taonga v West            New Zealand, are discussed below.
Coast Regional Council [2020] NZEnvC 80). Biodiversity
                                                                 First, the Audit found that DAWE does not identify desired
offsetting and compensation may only be used where the
                                                                 environmental outcomes as a means of determining the level
activity first avoids particular adverse effects.
                                                                 of acceptable environmental impact. As a consequence,
Information about the outcomes of biodiversity offsets           there is no method for determining whether approval
or environmental compensation (such as the extent to             conditions are proportionate to the environmental risk and
which conditions are complied with, and whether stated           ultimately, or whether the approval itself is appropriate.
outcomes are achieved) is not compiled in New Zealand.
                                                                 New Zealand biodiversity offsetting policies are typically
Nor have these matters benefited from Environment Court
                                                                 premised on a “no net loss or preferably net gain”
consideration or formal audit. A review of compliance of
                                                                 objective. Beyond this broad scale objective, specific goals
offsets and environmental compensation several years ago
                                                                 (for example, no net loss of what, compared to what, by
demonstrated a significant proportion of conditions were
                                                                 when), and desired outcomes (for example, regional targets
not met (32%), with levels of compliance being uneven
                                                                 for habitat extent or population targets) are less commonly
across sectors from 100% for renewable energy generation
                                                                 explicitly defined. The lack of national direction on specific
projects to just 4.5% for agriculture (Brown and others,
                                                                 goals and outcomes means New Zealand is likely to face
2013). Brower and others (2018) also demonstrated similar
                                                                 similar inadequacies to the Australian situation.
trends with respect to compensation conditions on public
conservation land.                                               Second, the DAWE was criticised for not having established
                                                                 internal guidance for reviewing environmental offsets
THE AUDIT AND IMPLICATIONS FOR NEW ZEALAND                       beyond the EPBC Act Environmental Offsets Policy and the
                                                                 supporting Offsets Assessment Guide and had no “quality
There are good reasons for restricting the use of biodiversity
                                                                 assurance process for sampling or reviewing offset plans.”
offsetting and compensation including inadequacy of
                                                                 As a result, there was no way of ensuring “that offsets are
exchange (across type, amount, space and time), ability
                                                                 assessed consistently, in line with the offset policy and in a
to provide additional gains, and inappropriateness
                                                                 way that achieves the objectives of the EPBC Act”.
(ecological, technical, social or cultural) of trading in
terms of the ecosystem, habitat or species that an offset        Both of New Zealand’s offsetting guidance documents are
or compensation is proposed to apply to. These concerns          non-statutory documents and offsetting policies remain
form the basis of biodiversity offsetting principles.            inconsistent across different regional policy instruments.
                                                                 Against that background, it is safe to assume that deviation
The Australian experience provides an additional reason
                                                                 from New Zealand’s guidance documents is common.
for New Zealand to approach biodiversity offsetting with
caution. By taking heed of the Australian Audit findings,        Third, the DAWE was found to have no agreed method
New Zealand may succeed in avoiding some of the                  for estimating risk of loss averted – being the risk that the
most serious outcomes that result from poor design of            biodiversity at the proposed offset site would be lost at
biodiversity offsetting policies and proposals and related       some defined point in the future if not for the offset. Risk of
implementation issues (for example, compliance with              loss estimates need to be accurate so that “the conservation
biodiversity offsetting consent conditions).                     gain delivered by the offset is correctly calculated and …
                                                                 is ultimately greater than or equal to the negative impact.”
The Audit found that the DAWE’s administration of the
                                                                 Despite demonstrable inconsistences in its risk of loss
EPBC Act was “ineffective”, the governance arrangements
                                                                 assessments (for example, two offsets being approved
supporting administration were “not sound”, that regulation
                                                                 for the same project at the same property with differing
is “not supported by appropriate systems and processes”
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