Is COVID-19 the culture shift we need to reimagine urban amenity? - Resource Management Journal - Resource Management Law Association
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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?
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
RESOURCE www.rmla.org.nz MANAGEMENT JOURNAL 3 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.
RESOURCE www.rmla.org.nz MANAGEMENT 4 JOURNAL 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).
RESOURCE www.rmla.org.nz MANAGEMENT JOURNAL 5 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
RESOURCE www.rmla.org.nz MANAGEMENT 6 JOURNAL (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.
RESOURCE www.rmla.org.nz MANAGEMENT JOURNAL 7 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
RESOURCE www.rmla.org.nz MANAGEMENT 8 JOURNAL 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]):
RESOURCE www.rmla.org.nz MANAGEMENT JOURNAL 9 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
RESOURCE www.rmla.org.nz MANAGEMENT 10 JOURNAL 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
RESOURCE www.rmla.org.nz MANAGEMENT JOURNAL 11 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
RESOURCE www.rmla.org.nz MANAGEMENT 12 JOURNAL 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
RESOURCE www.rmla.org.nz MANAGEMENT JOURNAL 13 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
RESOURCE www.rmla.org.nz MANAGEMENT 14 JOURNAL 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
RESOURCE www.rmla.org.nz MANAGEMENT JOURNAL 15 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.
RESOURCE www.rmla.org.nz MANAGEMENT 16 JOURNAL 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):
RESOURCE www.rmla.org.nz MANAGEMENT JOURNAL 17 (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
RESOURCE www.rmla.org.nz MANAGEMENT 18 JOURNAL 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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